Private Shareholding Company in Sharjah

Sharjah, one of the UAE’s seven emirates, has quickly become a vibrant hub for investors and business owners. The diverse business opportunities in Sharjah have further amplified the economic growth in the region. The Emirate is well-known for its economic diversification, cultural diversity, and investor-friendly policies. Whether you are looking to establish a medium or a large scale company, a private shareholding company in Sharjah is a profitable option to consider.

A private company formation helps entrepreneurs operate with flexibility, limited liability, and access to capital. In this article , we will walk you through the concept, features, and step-by-step process of setting up a private shareholding company in Sharjah.

What is a Private Shareholding Company in Sharjah?

A private shareholding company in Sharjah is a business entity established by a minimum of two shareholders and a maximum of 200 shareholders. The share capital in such business structures is divided into equal shares among the shareholders. Each shareholders’ liability is limited to the value of their shares in the business. A private company differs from a public shareholding company as it cannot offer its shares to the public. Such companies, also known as private joint stock companies, cannot trade on the stock exchange.

Meanwhile, businesses such as family-owned companies, investment groups, and strategic joint ventures are best suited for private business setup in Sharjah. It provides a balance between ownership and financial flexibility.

Key Features of a Private Shareholding Company in Sharjah

A private company formation in Sharjah attracts entrepreneurs from across the globe. Let us look at some of the key features of these private companies which stand out as one of the most profitable options for small and medium enterprises.

Limited Liability

One of the key features of a private shareholding company in Sharjah is its policy of limited liability. The liability of shareholders is limited to the amount of capital they contributed. The shareholders are not personally liable for the company's debts or obligations.

Private Ownership of Shares

A private joint stock company ensures greater privacy and ownership control. They do not offer their shares to the public or list themselves on stock exchanges. They can raise capital through private placements.

Nature of Business

Small and medium business opportunities in Sharjah are best suited to be set up as a private shareholding company.

Capital Requirement

Minimum capital is mandatory for such a business entity. The minimum share capital should be as defined by the UAE Commercial Companies Law.

Audit

Private companies in Sharjah must audit their financial statements annually. It should also perform quarterly internal audits, wherever needed.

How to Start a Private Shareholding Company in Sharjah?

A Sharjah company formation involves simplified business setup procedures. To ensure both legal compliance and effective operation, a private joint stock company in Sharjah must be formed through the following steps:

Step 1: Select the Nature of Business

The first step in navigating Sharjah's abundance of business possibilities is deciding the nature of your business. The UAE offers about 2,000 different economic activities to choose from. The business license in Sharjah will depend on the nature of your business. Six categories of business licenses are available to private firms such as commercial, industrial, occupational, tourism, agricultural, and professional.

Step 2: Register Trade Name

Your company is known by its trade name. Select a distinctive company name that hasn't been used before. The name needs to fit the type of business you run. The public shouldn't find it objectionable. By registering your trade name with the Sharjah Economic Development Department (SEDD) , you can reserve it.

Step 3: Get Initial Approval

Obtaining a no objection certificate (NOC) from Sharjah officials is the next step. It is also known as the process of obtaining initial approval. Furthermore, this clearance permits the authorities to move ahead with the licensing process. The investor can now proceed with the further steps of Sharjah company formation.

Step 4: Prepare Documents

Preparing important legal documents including the articles of association (AOA), board resolution, and memorandum of association (MOA) is required for a private corporation.

Step 5: Select Business Location

Selecting the site for your business operations is the next crucial step. The Sharjah Municipality and other relevant authorities have certain zoning laws and regulations. These must be followed by all the private shareholding companies when choosing their business location. Additionally, it must meet the standards established by the SEDD.

Step 6: Get Additional Approvals

In case of certain business activities, you will have to get additional approvals from the local government authorities. For exam ple - for any legal activities and legal consultancy, you have to take additional approval from the Ministry of Justice.

Step 7: Submit Documents

The next step is to submit significant documents such as the NOC, MOA, AOA, board resolution, copy of your lease contract, and additional approvals.

Step 8: Make Payment

To get a business license in Sharjah, make the necessary payment to the SEDD. Obtain the license after making payment in accordance with the terms of your business license.

Step 9: Register with Chamber of Commerce and Industry

Registering your business with the Sharjah Chamber of Commerce and Industry is the final step in your business setup process.

Why Choose Commitbiz LLC?

For companies seeking flexibility, legal protection, and a strategic market presence, a private shareholding company in Sharjah is a great choice. It continues to draw aspirational investors from all over the world due to its modern infrastructure, tax advantages, and a regulatory framework that promotes private enterprises. Contact us if you are interested in setting up a private shareholding company in Sharjah. With over 17 years of experience, Commitbiz is committed to assisting you with a smooth business setup process by taking care of all the necessary documentation and legal requirements.