Business Setup & License in Sharjah

Sharjah, an esteemed emirate within the United Arab Emirates (UAE), offers a conducive environment for entrepreneurs and investors seeking to establish their businesses. With its strategic location, business-friendly policies, and diverse economy, Sharjah presents numerous opportunities for company formation. In this essay, we will explore the various options available for business formation in Sharjah, including freezones, mainland areas, and offshore jurisdictions. By understanding the distinctive features, benefits, and processes associated with each option, entrepreneurs can navigate the dynamic landscape of business formation in Sharjah with confidence and success.

Freezones:

Sharjah is home to several prominent freezones that provide an ideal environment for company formation. These freezones include:

Sharjah Airport International Free Zone (SAIF Zone): SAIF Zone is one of the largest and most successful freezones in the UAE. It offers a range of facilities and services, including simplified company setup procedures, 100% foreign ownership, and tax advantages.

Hamriyah Free Zone Authority (HFZA): HFZA is located in Sharjah’s port area and provides comprehensive support for company formation. It offers an array of benefits, including 100% foreign ownership, tax exemptions, and easy access to global markets.

Sharjah Publishing City Free Zone (SPC): SPC focuses on the publishing and printing industry. It provides a specialized ecosystem for businesses in this sector, offering streamlined procedures, access to modern infrastructure, and 100% foreign ownership.

Mainland:

In addition to the freezones, entrepreneurs can opt for mainland company formation in Sharjah. Mainland areas offer their own set of advantages:

Wider Market Reach: Companies established in the Sharjah mainland have access to the UAE market as a whole, enabling them to engage with local businesses, government entities, and consumers. This wider market reach facilitates potential collaborations and business opportunities.

Flexibility and Networking: Mainland businesses in Sharjah have the flexibility to choose their preferred location within the emirate. This flexibility allows entrepreneurs to strategically position themselves based on industry demands, customer proximity, and transportation convenience. It also facilitates networking opportunities and collaborations with a diverse range of businesses.

Diverse Business Activities: Mainland companies in Sharjah have the freedom to engage in a wide range of business activities across various sectors, such as retail, hospitality, real estate, and services. This flexibility enables entrepreneurs to explore multiple industries and diversify their operations.

Offshore:

Sharjah also offers offshore company formation options through designated jurisdictions. Offshore structures provide distinct advantages:

Asset Protection and Privacy: Offshore companies in Sharjah offer enhanced asset protection and privacy. They provide a secure environment for safeguarding personal and corporate assets, while maintaining confidentiality by not publicly disclosing beneficial ownership information.

Global Market Expansion: Offshore companies can conduct business activities globally, expanding into international markets and accessing diverse opportunities. This global reach allows businesses to establish international partnerships, subsidiaries, and a broader customer base.

Tax Optimization: Offshore structures in Sharjah enable businesses to optimize their tax obligations legally. Through strategic tax planning, offshore companies can achieve potential tax savings and improved financial efficiency, enhancing overall profitability and competitiveness.

Sharjah presents a wealth of opportunities for entrepreneurs and investors seeking to establish businesses. With options for company formation in freezones, mainland areas, and offshore jurisdictions, Sharjah offers diverse pathways for growth and success. Freezones provide a business-friendly environment, streamlined procedures, and tax advantages, while the mainland offers wider market access and flexibility. Offshore structures provide asset protection, global business expansion, and tax optimization. By capitalizing on the distinctive advantages of each option, entrepreneurs can embrace the dynamic landscape of business formation in Sharjah, setting the stage for remarkable achievements and contributing to the emirate’s continued economic growth and development.

Corporate Entities in Sharjah:
The following are the types of Corporate Entities in Sharjah:

a) Limited Liability Companies. (LLC)
b) Partnership Company. (PC)
c) Private Shareholding Company. (PSC)
d) Sole Proprietorship.
e) Branch Office.
f) Joint Stock Company. (JSC)

Guidelines for Setting up a Business in Sharjah:

Below are the steps for setting up a business in Sharjah:

i) Identify the nature of the business:

The initial phase of setting up a business in Sharjah involves identifying the appropriate business type. As outlined earlier, there exist several business models, each to be carefully chosen to establish a company that aligns with the requirements, characteristics, and operations of the venture.

ii) Register Trade Name:

A company’s trade name holds significant importance as it embodies the identity, goals, and mission of the enterprise. It’s imperative for the business proprietor to officially register a distinct name by regulatory requirements.

iii) Select a Local Sponsor:

An entrepreneur is required to enlist the support of a local sponsor due to specific business frameworks mandating their involvement. These sponsors play a crucial role in facilitating various business operations and ensuring compliance with government regulations. Additionally, they serve as a gateway to diverse business prospects within Sharjah for the company.

iv) Documentation:

Submitting the necessary documents, such as the Memorandum of Association (MOA) and Articles of Association (AOA), personal documentation, business plans, etc., is crucial as they are instrumental in acquiring approvals, certificates, and licenses necessary for establishing a business in Sharjah.

v) Acquire a Business License:

Businesses are required to complete registration with the Department of Economic Development (DED) for entrepreneurs to obtain a business license tailored to the nature and scale of their operations. This license serves as official authorization from the pertinent authorities to engage in the company’s activities.

vi) Create a bank account:

Creating a bank account offers numerous benefits for starting a business in Sharjah, including facilitating international transactions, handling accounts in multiple currencies, and effectively managing financial statements, among others.

vii) Payment:

The company is obligated to settle the requisite government fees to fulfill all prerequisites for the application forms and other procedural formalities.

viii) Processing of Visa and Miscellaneous Procedures:

Another crucial consideration is visas, as companies need to facilitate visa processing for their employees to aid in residency and employment for both local and international ventures in Sharjah. Alongside this, setting up a business in Sharjah entails several other essential steps, including securing office space, adhering to regulations, acquiring special approvals, obtaining an Emirate ID, and more. Each of these steps offers unique advantages, streamlining the company setup process in Sharjah and ensuring swift market entry.

Advantages of company formation in Sharjah:

i) There are no taxes imposed on corporations or income.

ii) Complete ownership by foreign companies.

iii) Complete ownership by an international company.

iv) Incentives provided by the government for investors

v) Investment security.

vi) Warehouse facilities offer complimentary storage for investors’ goods for a duration of up to two months.

vii) The presence of both domestic and international banks in Sharjah.

Business Cost:

By choosing Bformations, you can enjoy the perks of 100% foreign ownership and repatriation of profits. This translates into cost savings and increased profitability. The initial setup cost stands as a crucial factor demanding meticulous consideration.

Documents required for setting up a business in Sharjah:

The following are the documents required to start a business in Sharjah:

1. i) Application form for registering a company.
2. ii) Business card of the contact person.

iii) The plan for the business.

1. iv) Memorandum of Association that has been notarized and attested (MOA)
2. v) Memorandum of Association that has been notarized and attested (MOA)
3. vi) Copies of the partners’ and company managers’ passports

vii) Original bank reference letters and license of the partner’s existing company, if applicable.

viii) A lease agreement.

1. ix) Bank statements for the parent company from the past three months.
2. x) Power of Attorney.
3. xi) Resolution passed by the board of directors of the overseas parent company.

xii) Feasibility study for the project that will be implemented.

Tax Conditions in Sharjah:

As Sharjah falls within the UAE, taxation regulations in the city mirror those of the nation. Hence, the tax situation in Sharjah aligns with that of the UAE overall.