Business Setup in Sharjah Mainland

Business Setup in Sharjah Mainland

Sharjah Mainland Business Setup 

Sharjah, the third-largest emirate in the UAE, has rapidly emerged as a dynamic business hub. With over 66,000 active businesses and access to more than 3,000 business activities across various industries, Sharjah Mainland provides entrepreneurs with a wealth of opportunities. 

One of the standout sectors in Sharjah is the healthcare industry, which earned the emirate the prestigious "Healthy City" recognition from the World Health Organization (WHO). This achievement highlights Sharjah's commitment to healthcare excellence and its proactive approach to promoting well-being and high living standards

Sharjah Mainland is governed by the Sharjah Economic Development Department (SEDD), which ensures that business setups in the emirate adhere to regulatory standards. This regulatory body facilitates seamless business operations across various sectors, ranging from education and healthcare to manufacturing and logistics. One of Sharjah’s key advantages is its strategic geographical positioning; it is the only emirate that borders all six other emirates, making it a connective hub for trade and commerce throughout the UAE.

Sharjah's contribution to the UAE’s GDP stands at 7.4%, reflecting its significant economic impact. The emirate’s diversified economy, supported by its vibrant industrial sector, has made it an attractive destination for both local and international investors. Key industries in Sharjah include manufacturing, real estate, construction, education, and logistics. The city is also known for its favorable regulatory framework, which simplifies the process of setting up and operating businesses

The education sector in Sharjah is particularly noteworthy. The emirate is home to University City, a large academic hub that ranks as one of the best student cities in the world. University City houses some of the region’s top educational institutions, including the American University of Sharjah and the University of Sharjah, attracting students from across the globe.

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Sharjah Mainland Business Setup Advantages

Full Foreign Ownership

International businesses do not require a local Emirati sponsor to be a partner to operate, maintaining 100% ownership. Unless operating in certain strategic industries.

No Mandatory Audits

Businesses are not required to undergo audits.

Ease of Currency Regulations

Sharjah does not impose restrictions on the use of foreign currencies.

No Visa Limitations

Visa quotas can be expanded as long as they have adequate office space.

Tax Exemptions

Tax exemption for personal income tax and tax relief of up to $100,000 for corporate tax, especially for SMEs.

Cost-Effectiveness

Relatively low costs options compared to Dubai while still enjoying the same benefits associated with it.

No Profit and Capital restrictions

There are no minimum capital requirements, no restrictions on repatriation of capital and profits.

Freedom to Operate Anywhere

Businesses can operate across the UAE, including free zones, and even internationally.

Licenses Available in Sharjah Mainland

  • Commercial License: For businesses in trading goods locally or internationally, including import-export companies and retail businesses.
  • Industrial License: For manufacturing or processing activities, including production and packaging.
  • Professional License: For individuals offering professional services based on their skills, such as consulting, IT services, and healthcare.
  • Tourism License: Essential for businesses in the tourism sector, including inbound and outbound tour operations. This license facilitates activities like booking accommodations and arranging travel services.
  • E-commerce License: For businesses conducting trading activities online, this license covers various online business models.

Process of a Business Setup in the Sharjah Mainland

Timeline: 3 to 6 weeks

The process of a business setup in the Sharjah Mainland is efficiently organized by the Sharjah Economic Development Department (SEDD).

 Here are the essential steps for a business setup in the Sharjah Mainland:

01 Identify Business Activity

The business activity refers to the main operations of a business. Sharjah allows a wide range of business activities with specific licenses dedicated to each industry. Pin down the industry for your business setup in the Sharjah Mainland.

02  Select the Legal Structure

Each business has a different ownership layout and the options available for a business setup in the Sharjah Mainland range from a sole proprietorship to a public company.

The most popular happens to be the Limited Liability Company (LLC).

03  Assign a Local Service Agent (LSA) - if applicable

For certain strategic sectors, like defense and civil aviation, businesses need to appoint a local sponsor who acts as a representative for the business and does not have to be included in decision making.  

04 Reserve a Company Name

You need to acquire a trade name certificate for a business setup in the Sharjah Mainland. Thus, reserving a name that is not in use and ensuring that it complies with the UAE’s language, religion and political conventions is vital.

05 Secure Initial Approval

Submit your company’s details for the initial approval application to the SEDD to proceed with the business setup. The approval confirms the government’s acceptance of your business activity and legal structure.

06 Draft and Notarize the Memorandum of Association (MoA)

Memorandum of Association (MoA) is an outline of the company’s legal structure and activities. This document must be notarized by the Sharjah Courts.

07  Rent a physical office space

Lease an office space or facility and sign the rental agreement to meet the physical presence requirement. The tenancy contract needs to be attested by the Sharjah Municipality.

08 Submit Documents for the Respective License

Based on your business activity, apply for the relevant trade license, such as commercial, industrial, or professional license. The documents needed remain the same for all types of businesses, submit your application to SEDD. 

09Pay the License Fee

Settle the license fees to finalize the process and obtain your trade license. The fees vary based on the type of business activity and license.

10Obtain External Approvals

For certain business activities, additional approvals from external authorities may be necessary. These regulatory authorities include: Ministry of Interior for security services; Ministry of Health for medical services; and Sharjah Municipality for food-related businesses.

11 Receive the Trade License

Upon completion of all steps, receive your official trade license from the SEDD and begin operating your business in the Sharjah Mainland.

Documents Required in Sharjah Mainland

Required documents vary based on the legal structure of the business

Entity Type Required Documents
Limited Liability Company (LLC) Trade name approval
Copies of passports (all partners)
UAE National ID (local sponsor)
Memorandum of Association (MOA)
Tenancy contract
Initial approval from the SEDD
Sole Proprietorship Trade name approval
Copy of passport
Owner’s visa (if applicable)
No-objection certificate (if applicable)
Tenancy contract
Branch Office Trade name approval
Parent company’s Certificate of Incorporation
Memorandum and Articles of Association (parent company)
Copy of passport of branch manager
Power of Attorney (POA)
Tenancy contract

License Cost in Sharjah Mainland

The cost of setting up a business in Sharjah Mainland varies depending on the type of license you require, the starting price of all licenses is AED 10,000.

In addition to the license fees, other potential costs include office space, which can vary significantly based on location and size. Local sponsor fees if applicable and visa and permit costs also add to the overall expenses.

*Note the price is an estimate and will vary in reality. For an accurate cost breakdown, get in touch with our consultants.

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Frequently Asked Questions

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