Are you planning to start a business in Dubai? When we speak of company formation in the city, you must’ve come across the phrase ‘free zones.’ This is because free zones offer incredible business ownership benefits like 100% foreign ownership, tax exemptions, and straightforward processes. However, the question is, which free zone is ideal to start a business?
In this blog, we have provided an overview of Sharjah vs Dubai free zones and which one stands as a preferred choice for business people. Let’s together explore the variables that attract investors to the region and several factors to consider before starting a business in free zones.
Let’s begin:
Sharjah Free Zones
Cost-Effective and Strategic Business Hubs
Sharjah Free Zones have become very popular because they combine strategic linkage with cost. With a variety of licenses that may be tailored to different activities like trade, consulting, manufacturing, publishing, technology, and healthcare, they serve a wide range of business needs, from startups and SMEs to multinational organizations.
Some of The Best Free Zones In Sharjah, UAE
Sharjah Airport International Free Zone (SAIF Zone): This area, which is close to Sharjah International Airport, is perfect for free zone companies involved in business activities, like commerce, logistics, and transportation. It offers industrial land plots, on-site labor accommodations, advanced warehousing, and competitive lease rates.
Hamriyah Free Zone: One of the biggest industrial free zones in the United Arab Emirates, Hamriyah Free Zone primarily serves industries including food processing, shipping, and oil and gas. It is highly valued for industrial operations due to its outstanding infrastructure and close proximity to three seaports.
The Sharjah Publishing City Free Zone: This is a specialty area dedicated to media, distribution, and publishing companies. It provides tax-free benefits and specialized licenses to independent publishers and creative industries.
Sharjah Media City: With its broad business formation choices, Sharjah Media City (SHAMS), a more recent area that supports trading, professional services, and holding corporations, is rapidly gaining interest for tech and digital media businesses.
Sharjah Research, Technology, and Innovation Park (SRTIP): SRTIP encourages collaborations between academics and industry to accelerate growth in knowledge-intensive sectors, with a focus on advanced technology, research and development companies, and innovation-driven enterprises.
What Are The Benefits of Business Setup in Sharjah Free Zones?
When deciding between Sharjah vs Dubai free zones, here are some benefits of what Sharjah has to offer:
- 100% Foreign Ownership: Without the need for local sponsorship, investors maintain complete control and a free zone authority.
- Tax Benefits: Customs duties on imports and exports are eliminated, and a 9% corporate tax structure and zero personal income tax help to reduce taxes.
- Fast Licensing: Thanks to simplified digital processes, many licenses can be granted in as little as 24 to 48 hours.
- Reasonably Priced Setup: Competitive license fees begin at AED 5,750*, and packages that are tailored to different business kinds are available.
- Strategic Location: Easy access to MENA markets and international trade routes is made possible by the area’s proximity to ports and airports.
- Virtual Offices: Flexible office solutions include completely furnished physical offices and warehouses as well as virtual offices.
- Complete Profit Repatriation: There are no restrictions on the transfer of capital and dividends back to investors’ home nations.
Dubai Free Zones
Globally Connected Economic Ecosystem
With its specialized industries, Dubai’s more than 40 free zones are well known for attracting foreign investment and setting up a business here. These areas are essential to Dubai’s economic diversification and draw global businesses in a variety of industries, including media, technology, healthcare, finance, and logistics.
Some Of The Best Free Zones in Dubai
Innovation & Technology: Dubai Dubai Silicon’s Internet City
- Ideal for: Innovation clusters, R&D, and Oasis Tech startups
Creative & Media: Dubai’s Media City and City of Production
- Ideal for: Publications, movies, television, and advertising
Medical & Healthcare: Dubai Healthcare City
- Ideal for: Dubai Hospitals, research, and the pharmaceutical industry in healthcare cities
Manufacturing & Logistics: Dubai Maritime City, Dubai Airport Free Zone (DAFZA), and Jebel Ali Free Zone (JAFZA)
- Ideal for: Shipbuilding, import/export, logistics, and trade
Services for Finance: Dubai Multi Commodities Center (DMCC), Dubai International Financial Center (DIFC)
- Ideal for: Fintech, banking, and commodity trading
Research & Education: Dubai Knowledge Park
- Ideal for: Academic establishments and research initiatives
Modern infrastructure and regulatory frameworks that meet the needs of each sector are provided by these industry-specific free zones, encouraging innovation and business efficiency.
What Are The Benefits of Dubai Free Zones?
Here are the benefits of setting up a business in the UAE, Dubai free zones:
- 100% Foreign Ownership: Dubai free zones permit full ownership without local partners, just like Sharjah.
- Tax Incentives: Numerous zones provide exemptions from income taxes, zero corporate tax, and waivers of customs duties.
- Advanced Infrastructure: Facilities include large warehouses and logistics centers, as well as state-of-the-art offices and laboratories.
- Regulatory Ease: Dubai free zones simplify the process of issuing licenses, permits, and visas based on industry-specific requirements.
- Networking & Business Ecosystem: Having access to a small group of peers in the same industry promotes collaboration and information exchange.
- Connectivity: Unmatched logistics benefits are offered by Dubai’s top-notch seaports, excellent office spaces, airports, and transportation systems.
Key Differences In Sharjah Vs Dubai Free Zones
Let’s compare Sharjah vs Dubai free zones and see which one is better for your business trades.
| Factor | Sharjah Free Zones | Dubai Free Zones |
| Cost | Cost-effective license and setup fees | Comparatively more expensive; offers premium office services |
| Industry Focus | Broad, with distinct areas for media, manufacturing, publishing, and innovation | Very particular to a given industry (financial, journalism, tech, logistics) |
| Tax Structure | 9% corporate tax (effectively 0% in free zones), 0% personal income tax, and no customs duty | Customs exemptions and often zero corporate and personal income tax |
| Business Setup Speed | Takes 1-2 days to issue industrial license | Licensing depends on zones and sectors |
| Location Advantage | Port closeness, strategic MENA access, and reduced operating expenses | International corporate environment, high-end connectivity, and a global logistics hub |
| Office & Infrastructure | Industrial lands, warehouses, and flexible office alternatives | Modern, industry-specific infrastructure |
| Foreign Ownership | Allowed | Allowed |
Cost-conscious startups and industrial-focused businesses looking for convenient port access and reasonably priced infrastructure are drawn to Sharjah. Dubai caters to companies that require specialized ecosystems, cutting-edge infrastructure, and a worldwide network.
Why Opt for Dubai or Sharjah Free Zones?
For companies seeking cost effectiveness, quick setup, and access to a range of industries, such as publishing, media, and manufacturing, Sharjah Free Zones are a great starting point for economic development. With reduced overhead, they can access the larger GCC and global markets thanks to their advantageous seaport links and close proximity to Dubai.
For businesses looking to benefit from high-end infrastructure, global connectivity, and concentrated industry ecosystems, particularly in the fields of finance, technology, healthcare, and logistics, Dubai Free Zones offer excellence. In a thriving economic environment, Dubai’s free zones offer an ideal setting for networking, innovation, and market expansion.
Choosing Your Desired Free Zones!
Both the Sharjah and Dubai free zones in the UAE provide strong benefits catered to various business profiles for investors and entrepreneurs looking to make a name for themselves in the United Arab Emirates. Dubai’s specialized, well-known free zones are ideally complemented by Sharjah’s reasonably priced, adaptable free zones. Your industry, financial constraints, and long-term business goals all play a role in choosing the best free zone. With this guide, you can make an informed decision about the area that offers maximum benefits to businesses. Compared to the mainland, free zones offer numerous business perks that you can enjoy as an owner.
Take the First Step Towards Building Your Business in the UAE Free Zones!
Xpert Advisory can be your partner in setting up businesses in the UAE free zones. Get in touch with our expert team if you need help with company formation in free zones and understanding the intricacies of the procedure. Contact us today!
FAQs
What Is The Difference Between Mainland and Free Zone Businesses in Dubai?
A mainland business is allowed to trade with foreign businesses as well as within any city in the United Arab Emirates. International business is facilitated by freezone enterprises’ ability to deal freely with both other free zones and nations outside of the United Arab Emirates.
What Kinds of Licenses Do Free Zones Offer?
Companies in free zones get a range of permits, frequently customized for certain industries, including trading, industrial, consulting, and professional licenses. Typically, licensing is granted 24 to 48 hours following the submission of paperwork and approvals.
Which Is The Cheapest Free Zone To Start a Business In UAE?
Sharjah Media City (SHAM) is considered one of the cheapest free zones in the UAE to start business operations. It is among the areas of business in Sharjah with a thriving UAE market. If you are among those businesses looking to establish a company on a budget, choose SHAM.
