Sharjah - Licenses

Sharjah is the safest and highly advanced Emirate. The business activities conducted their accounts for more than 45% of the country's Gross Domestic Product (G.D.P.). Being the only city with access to ports in the Arabian Gulf's eastern and western coasts and furthermore with the Indian Ocean and immediate connections to North Africa, the Emirate offers excellent opportunities for foreign investors. Investors have the possibility of opening various business entities among which L.L.C., joint-stock companies, branch office, and subsidiaries.

Reasons to consider company formation in Sharjah:

• It has a modern legal framework
• There are no foreign exchange controls, trade barriers or quotas
• Sundry incentives from the Government of Sharjah for investors
• 100% tax exemption for export, import, and all commercial levies
• 100% repatriation of profits and capital
• Sharjah has provision for warehousing facilities where investors can store goods for up to 2 months for free
• Presence of multiple local and foreign banks, and an advanced communication system

For setting up a business in Sharjah, adhering to the procedures and legal formalities is essential.

Procedure for Business Setup in Sharjah

• Get the company's lease agreement and Memorandum of Association (M.O.A.) signed by a public notary
• Furnish the required documents to get a payment voucher issued
• Fulfil the licensing requirements and pay the license fee to get a trade license issued
• Obtain approval from the Name Board
• Apply for an Establishment Card
• Get approval for hiring an employee from the Ministry of Labour
• Get a stamp on a visa from the Immigration Department
• Obtain special approvals, if applicable
• Determine the type of economic activity your business would be conducting
• Find a local sponsor
• Choose a legal form for your business
• Submit a company registration application submission with the proposed company name to the Department of Economic Development (D.E.D.)
• File the company's documents with the D.E.D. to obtain a trade license from the Chamber of Commerce and Industry
• Get the trade name of the company registered
• Obtain initial approval
• Obtain approval for location and inspection from the Municipality

• Certified copy of the tenancy contract
• Certificate of No-Objection letter, visa, passport, and residency proof photocopies
• Land map of ownership certificate photocopy
• Approval from Legal Affairs
• Approval from the Ministry of Economy
• Approvals from other government entities, if required
• Partnership contract certified by a public notary
• National ID and family book photocopies
• Signboard
• Technical evaluation report
• Trade name certificate

To start a business in Sharjah, one has to select a corporate structure for the business. The available business entities in Sharjah are:

• Limited Liability Company – It is the most preferred business entity by the investors where the number of partners must not be more than 50 and less than 2. The liability of the partner is limited to the investment in the company
• Partnership Company – The partnership company in Sharjah must be between two or more individuals, and they are liable to the extent of their shares to the company's liabilities
• Local Service Agent – They are the individual companies that are managed by a single person. If the owner is not a U.A.E. or G.C.C. national, then there must be a local service person who is a U.A.E. national.
• Public/Private Shareholding Company – A Public SC is the one with share capital divided into equally valued trad-able shares. A Private SC is subject to rules pertaining to public joint-stock companies