Limited Liability Company Formation in Sharjah

Looking to start a business in the Middle East? Sharjah would be your best option. It is the third largest Emirate having a dynamic, business-friendly environment for those who wish to open an LLC company in Sharjah.

Here, we look at what is needed for the formation of a Limited Liability Company in Sharjah. Read on to know more. 

What is an LLC?

An LLC is a business structure that can be formed with a minimum of 2 and a maximum of 50 shareholders. The shareholders' liability is limited to their shares in the business capital.

Benefits of LLC Formation in Sharjah

For setting up a Limited Liability Company in Sharjah, you can access certain benefits like:

  • Fast and straightforward Process

The process of LLC formation in Sharjah is simple and hassle-free. It can be completed within weeks.

  • Limited Liability

This is a key benefit for you. This legal structure protects your personal assets even if the company faces bankruptcy or financial crisis.

  • Full Ownership

For establishing an LLC in Sharjah, you are allowed to hold 100% ownership in certain cases. While for some, a local sponsor will be required to be a part of the company.

  • Affordable Costs

LLC is the most affordable business structure in Sharjah. The investment required for office space, labour and other business-related expenses is comparatively low.

  • 100% Repatriation of Profit

You can get all of your profits and capital invested without any repatriation cost. 

  • Government Support

The government has waived any paid-up capital requirements and offers various incentives and opportunities to you. 

  • Securing Office Space

The availability of office space can vary depending on your chosen free zone location. Sohar Free Zone offers a range of office solutions, from flexible co-working spaces to private office suites. The size of your office may influence the number of visas you can obtain, so careful consideration is advised. 

Process of Starting an LLC in Sharjah

Thinking of establishing a Limited Liability Company (LLC) in Sharjah? Here's a breakdown of the key steps involved:

  • Decide on a Trade Name

Choose a unique trade name for your LLC that complies with local regulations. Adhere to the norms while deciding the trade name.

  • Choose  Business Location

Select a location to form your LLC. As there is the option of a mainland or free zone, you need to choose the appropriate one based on your business activity.

  • File the Initial Application

Start the process by submitting the initial application with the chosen trade name to the Department of Economic Development (DED).

  • Business Registration

The Department of Economic Development will review the application and the relevant documents upon submission. If the papers are in order, your business will be registered. 

  • Pay the Fees and get the License

The authorities will issue a payment authorisation upon verifying your application. Pay the required fees and get the license to conduct your business in the Emirate.

Documents Required to Start an LLC in Sharjah

For LLC formation in Sharjah, the documents mentioned below need to be submitted to DED:

  • Business plan.
  • All legal approvals.
  • 3 options of trade names.
  • Rental/Lease Agreement.
  • Valid Visa of all the shareholders.
  • Technical skill certificate (if applicable).
  • Approval from the Ministry of Economy.
  • Passport copies of all the shareholders.
  • Contact details (Email & contact number).

Why Commitbiz?

Commitbiz is one of the best business setup consultants with 13+ years of experience. Our advisors will offer you strategic guidance for setting up a business in Sharjah. Contact us today for more in-depth information.


What are the basic requirements for forming an LLC in Sharjah?

  • A minimum of two and a maximum of 50 shareholders are required.
  • UAE national majority ownership (min. 51% equity).
  • Memorandum of Association (MOA) prepared and notarized.
  • Business activity and location finalised.

Can I, as a foreigner, fully own an LLC in Sharjah?

No, unless you are setting up a business in Sharjah free zone. Mainland LLCs require a local Emirati partner having a minimum of 51% stake.


What is the LLC License Cost in Sharjah?

The cost of a license in Sharjah depends on the business activity you choose to engage in. For more information, contact the experts who can assist you with pricing. 


What are some disadvantages of forming an LLC in Sharjah?

  • Requirement for a local majority shareholder (unless in a free zone).
  • Minimum share capital deposits can be a barrier for some businesses.
  • Limitations on publicly trading company shares.