Sharjah is one of the most business-friendly destinations in the world and for obvious reasons. Mainland business set up in Sharjah holds numerous benefits for a foreign investor, including 100% ownership in a large array of sectors, numerous tax breaks and incentives, and access to both local and international markets. Also, shareholders can apply for resident visas as well.
Here we list a few important benefits of mainland company formation in Sharjah.
Before you initiate the process of company setup in Sharjah mainland, it is of utmost importance to be crystal clear about the type of business you wish to establish, the sector you wish to operate in, and the resources that you have at your command. More importantly, you need to be aware of the legal forms of companies in Sharjah mainland so that you are comfortably placed to fulfill all government rules and regulations.
Limited Liability Company(LLC)
This is the ideal choice for businesses seeking an additional level of flexibility along with limited liability, as an investor’s liability is directly proportional to the amount they have invested. There can be a minimum of 2 and a maximum of 50 shareholders allowed in LLC. New government regulations introduced in 2021 now allow for 100% ownership in a large number of sectors.
Local Proprietorship(LSA Company)
This type of entity is most suitable for investors with limited resources. It offers a straightforward legal structure for easy setup and operations. However, this type of entity requires a UAE national as a local partner. The partner known as Local Service Agent( LSA), however, has no ownership rights.
Branch Companies
As the name suggests, this is the extension of an existing company operating either in UAE, GCC or a foreign land. This business entity as such operates under its parent company’s name and requires no local sponsor. With branch companies, the liability is directly tied to the parent company. This is a preferable option for businesses willing to establish their presence in mainland Sharjah.
Partnership Company
This type of business entity is formed by two or more UAE national shareholders, which means UAE residents committing themselves to a business venture. The liability depends upon the type of partnership involved in business formation.
Before mainland business setup in Sharjah, you need to be fully aware of the different types of Sharjah mainland licenses granted by the authorities. This will help you apply for a license based on your business activities.
Commercial License
Mainland companies involved in any kind of trade activities(both general and specific), as well as selling of goods and commodities, need a commercial trade license, which can be used to set up either an LLC or a sole establishment. Real estate businesses, broadcasting companies, healthcare service providers, and retail companies are a few of the types of businesses that need to apply for this license.
Industrial License
This license needs to be acquired by businesses interested in manufacturing activities. Applicants need to detail their manufacturing activities and prove that the entire manufacturing process will fully conform to stipulated health and safety regulations.
Professional License
Businesses and entrepreneurs must obtain a professional business trade license from the regulatory body before they are allowed to provide their professional services to clients from the Sharjah mainland. The main objective of this license is to ensure that the business is capable of providing the desired services. Professionals, artisans, and specialists among others need to demonstrate a certain level of skill sets to qualify for this license.
Agricultural License
This license is meant for businesses involved in agricultural activities and animal farming.
Tourism License
As the name suggests, this type of Sharjah mainland license is meant for businesses operating in the tourism sector. As such, this license needs to be acquired by hotels, travel agencies, restaurants, travel operators, etc for their business operations.
Handicraft License
As the name suggests, a handicraft license is meant for artisans, workers and businesses engaged in manufacturing and trading handicrafts.
The Sharjah Economic Development Department (SEDD) is the body responsible for overseeing the entire process and procedure for business establishment in mainland Sharjah.
Here we list important steps for mainland company formation in Sharjah.
If you are interested in establishing and operating your business in Sharjah, you must obtain a mainland trade license issued by the Sharjah Economic Development Department (SEDD). This involves filling up all the requisite forms, and submission of all the relevant documents. Also, ensure to have a valid tourist/visit visa if you are new to Sharjah, as you will not be allowed to set up a business in the absence of a valid entry visa.
Please keep the following essential documents handy for initial approval to set up a business:
The cost to start a business in mainland Sharjah depends upon a lot of factors. The first and foremost is the type of license you require, with the starting price of a license generally starting from AED 10,000. Also, the cost of office space varies based on size and location.
Sharjah mainland license cost is the total of several costs including, government fees(between (AED 15,000 to AED 30,000), local sponsorship fees, and office rental fees(varies according to area and location). You also need to consider other fees such as costs associated with the drafting of MOA, visa fees, and other sundry costs.
The mainland license in Sharjah is granted by the Sharjah Economic Development Department (SEDD). The different types of licenses available are Commercial licenses, Professional licenses, and Industrial licenses. Apart from these main three types of licenses, there is also tourism license, agriculture license and handicraft license.
The Sharjah Economic Development Department (SEDD) is the body responsible for overseeing the entire process and procedure for business establishment in mainland Sharjah. Once you decide upon your business activities, and obtain your trade license from SEDD, you are good to start your business operations in Sharjah mainland.
Recent changes in law make it easier for foreign businesses to secure 100% foreign ownership of mainland companies in a wide variety of sectors, thus providing businesses with enough opportunity for diversification and growth. However, local partner is needed in sectors such as defense and civil aviation.
The cost of setting up a mainland business in Sharjah mainland ranges from AED 15,000 to AED 35,000. There are more than 3,000 business activities to choose from, along with provision for 100% ownership in certain sectors. The final cost varies depending upon the license obtained, office space, location of the business and visa fees for employees.
The mainland business setup in Sharjah varies from two to four weeks. There are several factors involved like the complexity of the business, the trade license required and the speed at which all the necessary documents are submitted. A good firm can expedite the entire process to a significant extent.