Sharjah Airport International Free Zone (SAIF)-Designated Zone

Sharjah Airport International Free Zone (SAIF)

Sharjah Airport International Free Zone (SAIF Zone) provides some of the most enticing business incentives in the region, including speed of service and simplicity of process. Versatility has always been one of SAIF-ZONE’s prime objectives. From a single office space to entire manufacturing facilities and everything in between, the options are designed to accommodate every business and every scenario.

SAIF-Zone’s customer base is among the largest in the world from one central hub, with access to more than 2 billion people within a four-hour flight and as one of the most dynamic Emirates in the UAE, Sharjah accounts for over a third of the country’s industrial activity.

Warehouses, storage areas, container parking, bunkers and labour housing are all available at the lowest costs and highest quality. SAIF-ZONE offers an unlimited workforce to support your business along with sponsorship and visas for in-house staff to make the transition to a new workplace as smooth as possible.

AN IDEAL PLACE FOR BUSINESS & QUALITY LIVING

​​The Emirate of Sharjah with an area of 2,590 square kilometers, which is equivalent to 3.3 per cent of the country’s total area excluding the islands, is the third largest emirate of the United Arab Emirates and the cultural capital of the Arab World as declared by the UNESCO in 1998. It is located between Dubai and Ras Al Khaima interrupted by a part of Ajman. Sharjah is 10 Kilometers away from Dubai and 76 Kilometers away from Abu Dhabi the capital of the United Arab Emirates.

Sharjah is known for its strength as the industrial backbone of the U.A.E… 40% of the total number of industries in the U.A.E. is based in Sharjah. The majority of these industries are petrochemicals, textiles, leather, food and basic non-metal industries.

Sharjah contains the main administrative and commercial centers along with cultural and traditional projects. Links with the outside world are provided by Sharjah International Airport, Port Khalid, Port Khorfakkan and Hamriyah Free Zone Port.

Living in Sharjah means experiencing a different and a unique life style. All the outstanding facilities of accommodations, multinational education, medical services, shopping malls, museums, clubs and a large variety of sports and social activities to enjoy; make Sharjah the perfect place to set up your business and reside.

Business advantages in SAIF-ZONE:

The benefits of operating from SAIF Zone are tremendous. It allows 100% foreign ownership exemption for personal and corporate income tax with 25-year contract remedies for final rent. Licenses are issued on the same day and the ‘one window operation.

Business facilities in SAIF-ZONE:

  • Industrial Park.
  • Land on Lease.
  • Prebuilt Warehouse.
  • Temporary Warehouse.
  • SAIF Zone Labor Accommodation.

Licenses available in SAIF-ZONE:

  1. Trade License
  2. Commercial:Import, Export, Distribution, consolidation, storage or warehousing of items specific in the license, Maximum limit is three similar product lines.
  3. General: General Trading license can be obtained under a commercial license which allows a large number of products.
  4. Service: Service license allows the holder to carry out service specified in the license only. All type of services are allowed unless otherwise restricted by the Federal or local authorities.
  5. Industrial: Import of raw materials, manufacturing, processing, assembling, packaging and exporting the finished product.

Value Added Tax (VAT):

Value Added Tax (VAT) has been introduced across the UAE on 1 January 2018 at a standard rate of 5%.

Who should register for VAT?

A business whether situated in designated zone or non-designated zone or outside free zone should register for VAT if the taxable supplies and imports exceed the mandatory registration threshold of AED 375,000 within preceding 12 months or it is anticipated  that the total value of taxable supplies exceed AED 375,000 in the next thirty 30 days. Upon registration, a tax registration number (TRN) would be issued to business by the Federal Tax Authority.

What is a designated zone?

A Designated zone is a specified fenced geographical area having security measures and customs controls in place to monitor entry and exit of individuals and the movement of goods to and from the area. Following free zones are declared as designated zones.

a. Free Trade Zone of Khalifa Port
b. Abu Dhabi Airport Free Zone
c. Khalifa Industrial Zone
d. Jebel Ali Free Zone (North-South)
e. Dubai Cars and Automative Zone (DUCAMZ)
f. Dubai Textile City
g. Free Zone Area in Al Quoz
h. Free Zone Area in Al Qusais
i. Dubai Aviation City
j. Dubai Airport Free Zone
k. Hamriyah Free Zone
l. Sharjah Airport International Free Zone
m. Ajman Free Zone
n. Umm Al Quwain Free Trade Zone in Ahmed Bin Rashid Port
o. Umm Al Quwain Free Trade Zone on Sheikh Mohammed Bin Zayed Road
p. RAK Free Trade Zone
q. RAK Maritime City Free Zone
r. RAK Airport Free Zone
s. Fujairah Free Zone
t. FOIZ (Fujairah Oil Industry Zone)

What is a non-designated zone?

Any free zone which is not declared as designated zone is a non-designated zone. In other words a non – designated zone is any geographical area within UAE which does not have any security measures and custom controls in place to monitor entry and exit of goods and individuals. Eg. DMCC, Dubai Media city, DIFC and Dubai Internet city.

What transactions are subject to VAT within Designated zones?

a) Goods transferred between designated zones shall not be subject to VAT. However goods supplied by an entity in the designated zone to entities outside the designated zone are subject to 5% VAT.
b) Services provided by an entity to other entities inside the designated zone or outside the designated
zone are subject to 5% VAT.
c) Professional fees for services are subject to VAT @ 5%.

What government/free zone fees (License/Visa/rent) are subject to VAT?

In case of designated zones the trade license fees, visa fees, lease rentals will not be subject to VAT. And in case of non-designated zones the trade license fees and visa fees are not subject to vat however rent is subject to 5% VAT.

If you need additional assistance or have any questions, please contact the following:
Email: legal@jitendragroup.ae
Tel: +971 4 343 8022