Sharjah is a flourishing economy, one that attracts bountiful foreign investment. The Government of Sharjah acknowledges the importance of trade, service, and manufacturing sectors in sustaining the nation’s economy, and has thus charted policies that promote foreign investment. The government policies in Sharjah are favorable towards budding businesses, and have hence gained the faith of global investors, contributing to the rapid growth of the business milieu in Sharjah.
Advantages of Setting up a Business in Sharjah
Setting up a company in Sharjah is fruitful from the following standpoints:
- Sharjah is a tax haven, i.e., companies are levied no corporate or income tax
- It has 100% tax exemption for import, export and all commercial levies
- It allows 100% repatriation of profits and capital for foreign companies setting up business
- 100% foreign company ownership is allowed in Sharjah
- There are no foreign exchange controls, quotas or trade barriers in Sharjah
- It presents lucrative governmental incentives for investors
- There are many local and foreign banks in Sharjah, along with a robust communication infrastructure
- Sharjah provides warehousing facility where investors can hoard goods freely for upto 2 months
Types of Licenses Available in Sharjah
The following licenses are available to start a business in Sharjah,
- Commercial License
- Professional License
- Industrial License
Legal Entities in Sharjah
- Limited Liability Partnership- Minimum 2 and Maximum 50 members are allowed under this business structure. The liability of the partners is equal to the shares invested in the company
- Partnership Company- This type of business structure is for UAE nationals only. It can be started by two or more individuals
- Local Service Agent- This business structure is managed by just one person. The function can be running any business or professional economic activity where the establishment owners bear all the financial obligations
- Foreign Company Branch Registration- This is for an established business situated outside the UAE wanting to have its branch in the UAE
- Local Company Branch Registration- This is for an established company situated in the UAE wanting to have its branch in the Emirates
- GCC Company Branch Registration
- Public/Private Shareholding Company- It is a company with shared capital divided into equally
Process of Company Formation in Sharjah
Setting up a business in Sharjah requires the following procedures to be undertaken:
- Sign a lease agreement and MoA (Memorandum of Association) in a public notary
- Process all requisite documents to get a payment voucher issued
- Complete the licensing requirements and pay the license fees to get a trade license issued
- Get an approval from the Name Board
- Apply for an establishment card
- Obtain an approval for employees from the Ministry of Labor
- Get a stamp on visa from the Immigration Department
- Decide the type of economic activity your business would be involved in
- Determine the legal incorporation type of the business
- Find a local sponsor
- Submit the company registration application with a proposed company name to the Department of Economic Development (DED), and notarize the MoA (Memorandum of Association)
- File the company documents with DED to get a trade licence from the Chamber of Commerce and Industry
- Register the trade name of the company
- Procure initial approval
- Obtain approval for location and inspection from the Municipality
Document Required to Start a Business in Sharjah
The following documents are required for registering a company in Sharjah:
- License form
- Approval from the Ministry of Economy
- Approvals from other government entities, if called for
- Certified copy of the tenancy contract
- Certified No Objection letter, passport, visa and residency Xerox copies of the shareholders
- Land map or ownership certificate Xerox copy
- Lease agreement [Having a physical address for one’s business/office is mandatory in the UAE. The rent on an average within a free zone area is US$ 25 up to US$ 45 per square feet (US$ 225 up to US$ 400 per square meter)]
- Legal Affairs approval
- Partnership contract certified by the Public Notary
- National ID and family book Xerox copies
- Signboard
- Technical evaluation report
- Trade name certificate, as a proof of trade name reservation
How to Get a Business License in Sharjah?
To get a business license in Sharjah you need to approach the Department of Economic Development (DED) which is a prime business setup authority issuing license. You have to present the following documents with an application form to obtain a business license.
- Licensing form signed by all the shareholders and owners
- Trade name certificate
- Approvals of the official authorities for the activities requiring special approval
- Photocopy of passports and naturalization certificate
- No-objection letter from the applicants' current sponsor together with a photocopy of a residence permit/visa details
- Copy of Memorandum of Association and Bank Letter confirming the depositing amount of the company’s capital or balance sheet
- Approval from the Ministry of Economy and Planning
- Technical Evaluation Report (Inspection)
- Photocopy of lease contract certified duly
- Photocopy of plot blueprint in addition to property document
- Bulletin board form
Once you submit all the above mentioned documents, you will be provided with a license from the authority.
Sharjah is a home to numerous companies who have set up their businesses from scratch. The government provides various incentives to start ups to expand their businesses. There are a lot of opportunities in Sharjah only if one decides to explore and research about new ventures that can be started.
Why Us?
Business Setup Worldwide provides a platform to start a business in Sharjah. Our advisors in Sharjah have years of experience in this field with local expertise. They can make the process smooth and hassle free. Wide domain experience and familiarity with the laws of Emirate help us to take care of passport, visa and licensing requirements of our clients, and ensure that their task is completed smoothly without unnecessary bureaucratic hassle. To know more, contact us today.
