Sharjah is said to be the most developed Emirates in the UAE. Its location, affordable real estate, business-friendly environment and growing population make Sharjah the perfect place to set up a business in the UAE. It is a home to a diverse collection of businesses and has needs for companies across all sectors. As it is the only Emirate with a passage to ports in the Arabian Gulf’s eastern and western coasts, access to the Indian Ocean and direct connections to North Africa, Sharjah offers great possibilities to the investors.
Let us now understand every aspect of starting a business in Sharjah.
Types of Companies Permitted in Sharjah
- Civil Companies
- Individual Establishment
- General Partnership/Simple Limited Partnership>
- Public/Private Joint Stock Company
- Limited Liability Company
- Foreign Company/Establishment Branch
- Individual Establishment (Service Agent)
- Local Company Branch
Advantages of Setting up a Business in Sharjah
- Sharjah has no corporate income tax, withholding tax, value added tax, import/export tax or capital gains tax
- There is no rule of minimum share capital requirement for a limited liability company in the UAE
- Full repatriation of capital
- Access to quality infrastructure
- Geographically strategic location near the Africa and European continents make it an ideal location for setting up a trading company
- Companies that are incorporating in Sharjah will additionally benefit from huge government subsidies offered to the energy and utilities sector
- A Sharjah company will also profit from the 66 double tax treaties signed by the UAE with countries like China, India, Japan and Singapore to reduce withholding taxes on payments abroad
- All businesses can benefit from office spaces, industrial park, pre-built warehouse facilities and labor accommodation facilities
Types of Licenses Available in Sharjah
- Commercial License
- Professional License
- Industrial License
Procedure to Open a Company in Sharjah
Foreign businessmen have the many opportunities of opening various types of companies in Sharjah, among them are limited liability companies, joint stock companies, branch offices and subsidiaries. In order to register a company in Sharjah, foreign investors must meet certain conditions. Foreign businessmen may open a company in Sharjah if 51% of the company is owned by a UAE national. However, full foreign ownership is permitted in the free zones. Foreign companies may also open branches in Sharjah. Depending on the type of company you choose, here are a few steps that you must take to establish a business in Sharjah.
- Select a name for your company. The name must not match the company name of any existing company in the Emirates
- File for a company registration by filling a form and submitting it to the Department of Economic Development (DED) in Sharjah
- Draft a Memorandum of Association for the company
- File an application for a trade license
- File for an establishment card with the Ministry of Labor
- Register the employees with Ministry of Labor
This process will take not more than 4-5 weeks to complete.
Documents to Submit with the Application Form
- Application form
- Brand certificate
- Copy of passport and National ID and identity of the UAE national
- Certificate of No Objection Letter from the applicant
- A copy of passport and visa or residence and identity card of the expatriate
- Technical assessment report
- Official reports (if any)
- Memorandum of Association certified by a Notary Public
- Legal affairs approval
- Certified copy of lease contract
- Official address of the company
Why Start a Business in Sharjah?
Sharjah provides its investors an excellent environment for doing business and represents an alternative to company registration in Sharjah. The minimum requirement for opening a company in Sharjah is appointing one shareholder and one director. Among the attractions of Sharjah there is the Hamriyah Free Zone which provides many facilities to foreign investors. With such immense opportunities, this a correct time to start a business in Sharjah
Since the procedure can be daunting for a foreigner, it is advisable that you have a business consultant who provides you with the information you need in the venture. We at Commitbiz can help you start a business in Sharjah. Contact us today- we’d be glad to help you out.