Foreign investors and entrepreneurs who seek a cost-effective company formation in the UAE often choose Sharjah to open their businesses. The process of business setup in Sharjah mainland is preferred by investors due to a myriad of factors including cost-effectiveness and the possibility of 100% foreign ownership. Business setup consultants in the UAE recommend Sharjah due to the emirate’s business-friendly approach, lower living costs and cheaper rental options.
You need to approach the Sharjah Economic Development Department (SEDD) for obtaining a mainland license for your preferred business activity. You can set up a business in Sharjah by following the steps set out by the SEDD. This article provides valuable insights into steps, procedures and requirements related to opening a business in Sharjah Mainland. Read on.
Step 1. Determine the Business activity
Obtaining a business license starts with the first step which is identifying the business activity. In Sharjah, you can choose from over 3,000 economic activities for a mainland company. The activities are divided into different categories which are industrial, professional and tourism activities.
The type of license is dependent upon the type of economic activity. For instance, a professional license is issued if your activity is professional. In some cases, one license may have more than one type of activity. In such instances, the type of license determined based on the dominant activity. A trading business that also sells products online can obtain a licence for a general trading business. How ever, e-commerce activities will be permitted as an additional activity on the trade licence.
Step 2: Apply for a Trade Name
For starting any business in Sharjah, you will need to apply for a trade name in the next step. You are required to submit the following documents:
- Properly filled trade licence application
- Copy of valid passport, Emirates ID
- No Objection Certificate from your sponsor (if applicable).
- Applicants, who are under 21, require to submit permission from a court authority to carry out business in Sharjah
- Approvals from official authorities, if necessary (for example, a restaurant would require municipality approval)
- Pay government fees
Step 3: Finalise the location and obtain the title deed
Company formation in Sharjah is comparatively inexpensive and you won’t find it tough to finalise a location for your office or shop. Once you finalise the location, you need to get the lease contract and obtain the title deed before proceeding further with the process of business setup in Sharjah.
Step 4: Apply for approvals from government bodies
Certain activities in Sharjah are regulated by government bodies called special economic activities. If the nature of your business is in line with any special activity, you need to secure approval from relevant government authorities. For example, if you wish to open up an educational institute, it is mandatory to obtain the approval of the Sharjah Private Education Authority (SPEA).
Step 5: Get the business licence issued
Finally, you would need to apply for the issuance of the business licence.
To do so, you would need to submit the following documents:
- Trade licence application form ( business setup consultants in Sharjah will help)
- Trade name certificate
- Copy of passport and Emirates ID
- Certified NOC for foreign investors
- Technical Report
- Duly attested copy of lease contract and title deed
- External approvals from government bodies as per the economic activity
- Memorandum of Association
In addition to that, the government fee for license issuance needs to be submitted at this stage. You must bear in mind that the required official fee for license issuance in Sharjah may vary depending on the type of license as well as the value of the property in which you are opening the commercial establishment.
Why Business Setup in Sharjah is Ideal for Foreign Investors?
Sharjah is known for having one of the most diversified economies in the UAE and is considered an industrial hub. The emirate is a strategic investment hotspot for foreigners due to easy access to major international airports and seaports. Apart from that, foreign investors prefer company formation in Sharjah Mainland due to 100% foreign ownership. While setting up a mainland business in Sharjah, the entrepreneurs need not appoint a local sponsor (UAE national).
How Can Business Setup Consultants in the UAE Help You?
The prospect of business setup in Sharjah is highly competitive to both local and foreign investors due to the emirate’s open-door policy, easy incorporation process, and a favourable regulatory environment. This is the reason why Sharjah is home to more than 55,000 SMEs that benefit emirate’s highly robust supply chain. The process of company formation detailed here may appear to be simple on paper but new entrepreneurs often seek the help of business setup consultants in the UAE such as Jitendra Business Consultants (JBC) to ease the burden of paperwork and approvals.
JBC has years of experience in helping investors set up companies in the UAE in a variety of industries. Our qualified consultants will take care of the visa processing, documentation, consultation on activities, and bank account opening. Apart from that, we will guide you on the mandatory regulations including Anti-money Laundering (AML), Economic Substance Regulation (ESR), and Ultimate Beneficial Ownership (UBO). Obtaining a license in Sharjah is no longer an issue if you avail of our bespoke services.