In today’s competitive global marketplace, investors and entrepreneurs constantly search for innovative ways to expand their ventures and tap into new market opportunities. For startup entrepreneurs, SMEs and multinational companies looking to setup a new company or expand their existing business to the UAE market, just like Dubai, Sharjah, the third-largest emirate in the UAE, presents a golden opportunity for business owners, investors, and professionals.
With its robust infrastructure, business-friendly policies, and strategic position, Sharjah is rapidly becoming a top choice for business setup in the UAE. In this guide, we will walk you through the essentials of setting up a business in Sharjah, addressing the various types of business licenses and how to navigate the process of company formation in Sharjah.
Why Setup a Company in Sharjah?
Sharjah offers a unique blend of opportunities for businesses of all sizes and foreign investors and entrepreneurs. Here’s why you should consider Sharjah and a go-to option for establishing a business in the UAE.
- Strategic Location: Situated between Dubai and the Northern Emirates, Sharjah provides easy access to key markets across the UAE and neighbouring countries.
- Cost-Effective: Sharjah offers lower business setup and operational costs compared to neighboring Dubai, including affordable real estate and living expenses.
- Cultural Hub: Known as the cultural capital of UAE, Sharjah attracts diverse talent and customers.
- Economic Stability: Sharjah provides a well-diversified economy that reduces dependency on oil, ensuring long-term stability.
- Government Support: Pro-business policies and incentives foster a favorable environment for growth.
- 100% Business Ownership: As a foreign investor in UAE, you stand to benefit 100% ownership of your business setup in Sharjah.
- Tax Benefits: Sharjah offers 0% corporate tax on business annual revenue below AED375000 and zero personal income tax, similar to other UAE emirates.
Types of Business License in Sharjah
Sharjah offers different types of business licenses designed to suit different business activities. Each license type has specific requirements and regulations. Choosing the right license is crucial for your business’s operation and offering.
- Commercial License: For trading activities and retail businesses.
- Industrial License: For manufacturing and production companies.
- Professional License: For service-based businesses and consultancies.
- Tourism License: For hotels, travel agencies, and tourism-related activities.
Business Setup in Sharjah Freezones
Sharjah boasts several freezones, each catering to specific industries. These free zones provide state-of-the-art facilities and support services with additional benefits such as 100% foreign ownership and tax exemptions, making them attractive options for international businesses looking to establish a presence in the UAE.
Sharjah Airport International Free Zone (SAIF Zone):
- Focus: Manufacturing, trading, and services
Hamriyah Free Zone:
- Focus: Industrial and commercial activities
Sharjah Publishing City Free Zone:
- Focus: Publishing and creative industries
Sharjah Media City (Shams):
- Focus: Media and creative industries
How to Setup a Company in Sharjah
Business setup in Sharjah involves several key steps. While the process is straightforward, navigating local regulations can be complex for newcomers. Many entrepreneurs find value in partnering with experienced business setup consultants like Corporate Business Services (CBS) to ensure a smooth process.
Below is a summary of the steps to setup a company in Sharjah.
- Choose your business activity and license type.
- Select a company name that complies with UAE naming conventions.
- Prepare and submit required documents to the Sharjah Economic Development Department (SEDD).
- Obtain initial approval for your business activity.
- Secure and office space or virtual office, as per your requirement.
- Apply for your chosen trade license in Sharjah.
- Pay license fees and receive your business license.
- Open a corporate bank account and apply for residency visas.
Cost For Starting a Business in Sharjah
The cost of starting a business in Sharjah varies depending on factors such as license type, business activity, and location. Generally, the business setup costs in Sharjah are more competitive compared to other emirates. Key expenses include:
- License fees
- Office rent
- Trade name certification fee
- Visa costs for employees
- Business consulting fee (if required)
- Initial capital requirements
Documents Required to Setup a Business in Sharjah
Proper documentation is crucial for a smooth business setup process. Typical requirements include:
- Passport copies of shareholders
- Business plan
- Proof of address of business owner
- Valid UAE visa or EID (if inside UAE)
- Bank reference letters
- No Objection Certificate (NOC) from current sponsor (for UAE residents)
- Tenancy contract for office space
Additional documents may be required depending on your business activity and license type. Ensuring all paperwork is complete and accurate from the outset can save time and prevent delays in your business setup journey.
How Can CBS Assist You?
At Corporate Business Services (CBS), we understand the intricacies of setting up a business in the UAE. With over 17 years of experience in assisting startups, SMEs and large enterprises to establish a presence in the UAE, our team of experts can guide you through every step of the process.
We assist you in selecting the right business license to navigating legal intricacies, our all-one business setup solution provides comprehensive support tailored to your unique business needs.
Take the first step towards realizing your business vision in this dynamic emirate. Book a free consultation with CBS today, and let our experienced consultants help you unlock the full potential of your business success in UAE.