A business license or a trade license is one of the essential requirements for officially conducting business operations in Sharjah. Every company must have a valid trade license to commence its business operations in the city. A trade license in Sharjah is valid for one year, after which the renewal process is carried out.
Obtaining a renewed business license includes a lot of documents processed. Also, renewing a trade license could be an elongated process if you are not familiar with it. Deferral in filing a trade license renewal imposes a penalty, or worse, a ban to the trade license, freezing all the business activities.
Sharjah has made efforts to ease obtaining and renewing a business license, but occasionally handling these procedures of obtaining and renewing a trade license in a timely fashion in the city can prove cumbersome for businesspersons. If you have any queries on how to get or renew a trade license or for any other incorporation service, get in touch with Commitbiz Management Consultants.
The steps involved in renewing a trade license are mentioned below.
1.Apply for License Renewal
The application should apply for a license renewal at any of the following Sharjah Economic Development Department's service channels –
- SEDD Branches
- SEDD Website
- Service Centers
- SEDD Application
The documents required with the application for renewal are –
- License.
- Copy of partners' passport and ID.
- Approvals form official authorities depending on commercial activity.
- Certified copy of contract lease.
2.Reviewing the Transactions
The concerned service channel where the license renewal form is submitted will perform the necessary audit and issue the payment voucher
3.Pay Fees
Once you receive the voucher, carry on to the payment procedure. Straightaway after making the payment, you will receive your renewed license from the channel.
These simple steps can be completed in a period of 2-4 weeks. But what happens if the company fails to renew the trade license in Sharjah.
Monetary Penalties
When a licensed business expires, the SEDD can impose a business with several penalties. A business practising without a license could be penalized, while failure to renew a license within the specified time-limit could cost a company a lot.
Black List
When the business continues its business activities without renewing their trade licenses, it is possible that the company could be blacklisted and would stop all the activities the company is dealing with. They can nullify the visas and sponsors under the company.
Restriction on Expansion of the Business
The companies with an expired license are not allowed to expand under these circumstances. The companies need to have a clean record if there are plans for expansion.
To avoid such circumstances, it is better to appoint a business consultancy firm that can deal with these procedures. Business consultancy agencies are abundant in Sharjah. Such agencies offer A-Z company formation solutions, which include everything from trade license registration and on-time annual renewals with timely reminders, so you, the business owner, can focus on your business. One may have to address the questions to professionals on processing the requirements for running a business.
How can we help?
Company formation in Sharjah is a lucrative proposition, and one must select the most appropriate legal entity to represent one's business. Commitbiz offers a wide range of highly reliable business management services that can help you in the realization of your business initiatives in Sharjah. Our team of professionals specializes in company incorporation, registration, accounting, tax advisory, and bookkeeping services. If you are looking to set up a company in Sharjah or anywhere in the UAE, do contact us. We'll be glad to assist you.