Whenever you decide to start a business in the United Arab Emirates, one of the mandatory steps is to get a license. In this article, we will be giving a comprehensive overview of how to get a trade license in Sharjah.
The statutory body that controls and regulates the licensing procedures of any entity in Sharjah is the Department of Economic Development (DED), with institutional support from the Chamber of Commerce and Industry. However, there are some business activities, which requires approval from specific Ministries and Other Governmental Authorities. For example, the banks and financial institutions must take permission from the Central Bank of the UAE, insurance companies and associated agencies from the Ministry of Economy and Commerce, industrial from the Ministry of Finance and Industry, and medical and pharmaceutical merchandises from the Ministry of Health.
Types of Trade License in Sharjah
There are three main types of trade license in Sharjah. They are:
1. Commercial License
Covering all kinds of activities
2. Professional License
Covering professions, craftsmen, services, and artisans
3. Industrial License
For establishing industrial and manufacturing activities
There are other special licenses issued by the authorities such as Business Operation Permit, Entrepreneurial Business License, etc. subject to specific criteria.
Requirements for Obtaining a Trade License
Before starting a business in Sharjah, it is vital to follow the steps mentioned below to meet the legal needs of all concerned government authorities and to guarantee maximum commercial benefit for all the business owners. The steps are:
- Select the business category which your organization falls into- commercial, industrial, or professional
- Determine the different business activities that come under the particular business category (maximum 10 per license)
- Decide as to your business’ appropriate legal status in the Emirates
- Select a proper business name for the company
- Submit an application to the Department of Economic Development Sharjah for initial approval
- Register a trading name after receiving initial approval (if you don’t have previously reserved a trading name)
- Lease business premises and obtain permission from the Authority
- Prepare all required documents; such as memoranda of association and approvals from other relevant government authorities which may be necessary to each case
- Submit a further application to the Department to obtain the final license
- Pay the requisite fees
Getting a Trade License for Your Business in Sharjah
The steps to get the trade license for your business in Sharjah are:
- After completing the procedure for trade name registration, and initial approval you must head to the licensing section of DED
- The licensing authority approves the license details and modifies or adds to it if necessary
- The payment voucher will be issued and audited
- After paying the fees, the applicant will receive a business license and trade register certificate
- Licenses Form
- Trade Name Certificate
- Photocopies of the passport, Family Book and National ID for UAE Nationals
- Certified No Objection letter, photocopies of passport, visa or residency for foreigners
- Technical Evaluation Report
- Government Entities Approvals, if required
- Service Agent Contract approved by the Legal Affairs Section
- Certified Tenancy Contract photocopy
- Land Map or Ownership Certificate
Renewal of Trade License in Sharjah
A trade license is valid of one year after which it can be renewed. One cannot operate a business in Sharjah without renewing the Trade License. When it’s the stage for your Sharjah trade license renewal, you can change your sponsor and business address, if required.
We at Commitbiz offer complete assistance in renewing the trade license in whichever way you need. Our business setup consultants will work with you to handle your company set up in the UAE from start to finish. We give tactical inputs, help you assess and select the proper form of company, work with you on your business plan, handle administration and documentation formalities. In short, we handle everything you need.
Contact us today – we’d be happy to assist!