Sharjah is the third largest emirate of the UAE and the only one to have a land on the Gulf of Oman and the Persian Gulf. This constitutional monarchy is spread over an area of 2,600 sq. km, and attracts over 5 million investors and tourists annually. Strategically located between Africa, Europe, and Asia, Sharjah boasts of a low crime rate and a fair judicial system. It is considered as the shipping sector of the country and has created an industrial base for the United Arab Emirates. However, in recent times, Sharjah free zone is not limited to these peripheral sectors and has a rather vast outlook. The government of the UAE has taken proactive steps to bring foreign investment to create enormous opportunities for the business set up in Sharjah free zone.
Free Zones in Sharjah
Types of Licenses in Sharjah Free Zone
A valid business license is required to set up business in the UAE. In order to obtain Sharjah, free zone license one has to decide on the type of business activity to be performed in the region as the business activity determines the number of licenses required. There are mainly 3 types of licenses provided in Sharjah Free Zone:
1. Commercial License
This type of license is provided for companies engaged in trading or buying and selling of goods. If you choose a business activity that is classified under commercial activity, you will be issued with a commercial license by the free zone authorities. Logistics, car rental, and real estate services can be classified as a commercial activity.
2. Trading License
This license is issued to the businesses involved in industrial and manufacturing activities. You need to have a physical office in the country to acquire this license. It includes activities such as manufacturing of food products, metal casing, furniture manufacturers, and packaging.
3. Professional License
This type of license is given to the businesses providing services. They can be service providers, professionals, artisans and/or craftsman. It includes activities such as management consultancy, law firms, auditing and accounting companies, educational institutions and medical services.
How to Set Up a Business in Sharjah Free Zone?
The process to Sharjah free zone company setup can be smooth and easy if you make a proper plan. Research, precise decision making and following the rules and regulations are the basic steps. Other than that, you need to follow these steps:
- Understanding your business and deciding appropriate free zone for the same
- Preparing business setup plan
- Choosing a company name and reserving it with the desired free zone
- Finalizing suitable infrastructural setup
- Estimating workforce required for the business
- Depositing the minimum capital amount mandated by the authorities in the bank account
- Completing business registration and licensing process
- Completing business setup formalities by getting an individual shareholder, corporate shareholder, or both to sign the company formation documents in the presence of free zone authorities.
Procedure to Get a Sharjah Free Zone License
Companies which are established in free zones are governed by the rules of respective free zones. To get the necessary approval you need to have valid documents. The list varies by the type of business activity. Below is the general guideline for steps and documents needed to get your business license in Sharjah free zone.
1. Initial approval
You need to provide the following documents to get the initial approval-
- Completed application form
- Business plan
- Copy of existing trade license/registration certificate (if you are an existing company, applicable to the local company only)
- Colored passport copies of the company's shareholders and the appointed Manager/Director for the new company
- Specimen signature of the company's shareholders and the appointed Manager/Director for the new company
- 2 years audited financial reports for a corporate entity or certificate of reference from a personal bank of the individual shareholder
- NOC from the current sponsor (for individuals)
- Unit title deed
- Letter of Intent
- Registry Identification Code Form (RIC) for Manager/Director (Original and notarized)
After you get an initial approval, the next step is to pay necessary fees and register your business. The fee depends on the type of business license you require. The documents are as follows:
- Completed application for registration
- Board Resolution appointing Manager/Director (Notarized and attested)
- Power of Attorney given to Manager/Director (Notarized and attested)
- Memorandum and Articles of Association (Notarized and attested)
- Specimen signature of Manager/Director (Notarized and attested)
- Passport-size photo of Manager/Director against a white background
- Share capital information
3. Licensing and Visa Process
Under this process:
- Lease agreements will be prepared by the authority
- Then the trade license will be issued
- Visa processing will start
Why Set Up a Business in Sharjah Free Zone?
Liberal economic policies and legal framework, cosmopolitan culture, and business-friendly company laws of Sharjah attract commercial companies and industries to avail investment opportunities in the Emirates. Sharjah Free zone company formation boasts of unmatched investor incentives and facilities from the UAE government. When compared to the other free zones in the UAE, Sharjah Free Zone company setup cost is reasonably moderate and works as the most cost-effective choice. The free zones also offer affordable land and labor as well as incentives to small and medium-sized enterprises. They have highly developed infrastructure compared to the rest and 24-hour licensing services to enable quick business setup for individuals. Additionally, there are fewer accounting and auditing requirements, a relief to the companies setting up business in Sharjah Free Zone. There are many such incentives for starting a business in Sharjah.
Advantages of Setting Up a Business in Sharjah Free Zone
- 100% repatriation of capital and profits
- 100% foreign ownership
- 100% free transfer of funds
- Abundant and low-cost supply of energy
- No currency restrictions
- 100% exemption on imports and exports
- Corporate tax exemption
- 100% privacy with limited financial planning
- 24-hour licensing services
- Cheaper lease rents
- Low-cost labor and warehouse facility
- Easy access to big ports and Sharjah International Airport
Company formation in Sharjah free zones symbolizes huge earning potential, tax exemptions, world-class infrastructure, modern amenities, liberal government policies, and free trade barriers. Process for forming a company in any of the Sharjah free zones is streamlined but requires acute planning and proper decision making. Getting a help in Sharjah business setup from a professional company like Commitbiz can help you take care of all the processes that are vital to complete the paperwork successfully. Commitbiz helps global investors, businessmen, and corporate form company in Sharjah free zones while availing all the advantages that a developing economic trading hub provides. Our experts take care of the entire Banking, Visa, Legal, and Licensing formalities, and allow corporations to enjoy their company formation process without worrying about the bureaucratic red tape and legal formalities. Contact us today, even it’s for a friendly advice.