Guide on Company Formation in Sharjah Mainland

by commitbizadmin 03, Jul 2020

Guide on Company Formation in Sharjah Mainland

Sharjah is said to be one of the most affordable places in the United Arab Emirates. Investors who look for starting a small-scale business cannot afford hotspots like Dubai and Abu Dhabi due to the high cost of living in these cities. Hence Sharjah makes its way to start their business. It is the third-largest city in the UAE and offers humongous opportunities for doing business all over the UAE and internationally.

To set up a business in Sharjah, you have two main jurisdictions to choose from, i.e., Mainland and Free Zone. This article is entirely dedicated to providing information on registering your business in Sharjah mainland.

The registration process is handled by the Sharjah Economic Development Department (SEDD) and the Sharjah Chamber of Commerce and Industry. A statutory body that regulates and controls while establishing a business in Sharjah, the licensing processes for an entity in Sharjah. It was formed to organize and activate industry as well as external and internal trade in the Emirate and prepare studies relating to industrial and commercial activities. You also have the option of choosing business setup consultants in Sharjah, like Commitbiz, who can take care of the business setup procedure while you concentrate on the business operations.

Let us now understand the different steps and things required to start a company in Sharjah mainland.

Licenses Required for Business Setup in Sharjah

  • Commercial License covering all the trading activities
  • Professional License covering professionals, craftsman, artisans, and services
  • Industrial License for establishing industrial and manufacturing activities

There are also a few special permits issued by the Sharjah DED namely –

  • Business Operation Permit
  • Entrepreneurial Business License

Benefits of Setting up your Business in Mainland of Sharjah

Mainland Sharjah offers its investors with all the advantages of a highly developed economy. Global investors see Sharjah as an excellent place to invest in. Global ties are maintained to have smooth trades everywhere. Just some of the advantages that business owners will have and already have in the Sharjah mainland are listed below.

  • Free enterprise system
  • Highly developed transport infrastructure
  • State-of-the-art telecommunications
  • Sophisticated financial and services sector
  • Top international exhibition and conference venue
  • High-quality office and residential accommodation
  • Reliable power, utilities, etc.
  • First-class hotels, hospitals, schools, shops, etc. Cosmopolitan lifestyle
  • No mandatory annual auditing
  • No limit on the number of business activities
  • Zero capital requirement

Procedure for Setting up a Business in Sharjah Mainland

Just like any other mainland company registration in the UAE, Sharjah also offers similar steps.

  1. The first step is to determine the type of business activity – you can choose more than one activity
  2. Find a local sponsor who will have the maximum shares in your company
  3. Choose a corporate entity for your business
  4. Submit an application for business registration with the proposed company name to the Sharjah DED
  5. Register the trade name of your company
  6. Obtain initial approval from Sharjah DED
  7. Get approval for location and inspection from the Municipality
  8. Next step is to obtain a signed Memorandum of Association (MOA) and lease agreement from the Public Notary
  9. Submit all the required documents to get a payment voucher
  10. Complete the licensing requirements, pay fees, and get your trade license
  11. Get an approval from the Name Board
  12. Apply for an establishment card
  13. Obtain approval for hiring an employee from the Ministry of Labour
  14. Get a stamp on a visa from the Immigration Department

Documents Required to Setup your Business in Sharjah

  • Verification of trade name reservation and initial approval for the business activities
  • Passport copies of the shareholders and managers
  • Personal information of shareholders and managers
  • Lease agreement documents with complete details
  • Attested Power of Attorney of the legal representative
  • Pre-approval of third parties on some activities
  • Board resolution stating the intent of business incorporation in the UAE
  • Memorandum of Association
  • NOC from the sponsor of UAE residence visa
  • CV of the shareholders

If you need help in completing this process, then our experts at Commitbiz can assist you. We have over a decade of experience and extensive knowledge of requirements for setting up a business in the UAE. Contact us today – we’d be happy to assist you.