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SHARJAH COMPANY REGISTRATION
Company Registration in Sharjah – A Thriving Business Destination. Located just 20 minutes away from Dubai, Sharjah is a hub of business activity with its own international airport, seaports and a thriving economy.
As a free trade zone, Sharjah offers tax benefits, free zones, and liberal laws to attract international investment in its thriving manufacturing, trade, and service sectors.
With supportive legal authorities, modern communication systems, and a multitude of banks and multinational corporations, Sharjah make it easy and cost-effective to establish your business. Join the many investors from around the world who have chosen Sharjah for their successful business ventures.
KEY REQUIREMENTS FOR COMPANY REGISTRATION SHARJAH
TIMELINE FOR SETTING UP A BUSINESS IN SHARJAH
BUSINESS LEGAL ENTITIES IN SHARJAH
Limited Liability Company
An LLC is a popular form of business structure in Sharjah, allowing for multiple owners with limited personal liability for the company’s debts. The shareholder’s liability is restricted to their investment in the business.
In Sharjah, a partnership firm must be between two or more people, and each of them is responsible for the company’s liabilities up to the amount of their share of the company.
A foreign company can establish a branch office in Sharjah, which is considered a separate legal entity from its parent company.
Free Zone Company
Sharjah has several free zones, such as the Sharjah Airport International Free Zone (SAIF Zone), which offer a range of benefits, including 100% foreign ownership and tax exemptions.
BUSINESS JURISDICTIONS IN SHARJAH
The ability to conduct business anywhere in the UAE is the biggest benefit of establishing a company on the mainland.
To encourage foreign direct investment, the Sharjah Economic Development Department (SEDD) proposed a 100% foreign ownership policy for onshore or mainland businesses in June 2021.
According to this policy, commercial and industrial companies operating in the Emirate of Sharjah will be 100% owned by foreign investors or firms.
This changes permits foreign companies’ branches to conduct business in the Emirate without needing a foreign company’s representative while exempting international investors from any capital restrictions or additional charges.
Sharjah Free Zone
Sharjah Free Zones offers complete ownership, top-notch infrastructure, no trade barriers, tax exemptions, and no import duties.
The Sharjah free zones also give business owners the opportunity to assess their great infrastructure and advantageous location, which includes easy access to warehouses, cargo airports, and seaports, making them a good choice for a variety of industries.
Free zones in Sharjah are listed below.
Hamriyah Free Zone
Foreign nationals may establish businesses in Sharjah with 100% ownership rights, tax-free capital and earnings repatriation, and complete commercial tax exemptions in Hamriyah Free Zone.
There are two kinds of businesses that can be established in the Hamriyah Free Zone, depending on the form of shareholding: Free Zone Establishment (F.Z.E.) is a limited liability business with only one stakeholder and Free Zone Company (F.Z.C.) is Similar to how a shareholder limited liability corporation is set up, with the exception that it enables a maximum of 5 shareholders.
Sharjah Airport International Free Zone (SAIF)
The Sharjah Airport International Free Zone (SAIF-Zone), one of the most prestigious commercial destinations in the United Arab Emirates, was established in the Emirate of Sharjah in 1995. More than 4,500 businesses (industrial, commercial, and professional entities) from 91 countries are located in the SAIF-Zone.
Sharjah Media City – UAE Free Zones (SHAMS)
Sharjah Media City Free Zone, often referred to as Shams Sharjah Media City, was established in January 2017 to be a premier center for media and innovation. Additionally, Sharjah grants permit, independent contractors and business owners.
Sharjah Publishing City | Ministry of Economy – UAE
The exclusive free zone for printing and publishing is Sharjah Publishing City (S.P.C.).
For all authors and book lovers, Sharjah Publishing City, a distinctive free zone, is one of the most attractive locations. With a floor area of 400,000 square meters, it offers business owners excellent warehousing and office space options.
Sharjah Research Technology and Innovation Park (SRTI)
The SRTIP free zone was created to promote collaboration between private industry, the public sector, and academic institutions.
To bridge the gap between ideas and the marketplace, it has been constructed. The goal of SRTI Park is to provide an environment that is favourable to creativity and modernization through first-rate facilities and high-tech services.
The U.S.A. Regional Trade Center (USARTC) was founded in 2011 as part of Sharjah’s goal to promote itself as a centre for international trade and transform its economy into one driven by investments.
Small and Middle-Sized Enterprises (S.M.E.s) have the chance to grow their trade in the Middle East and North Africa (MENA) region thanks to the USARTC. It benefits SMEs by supporting them with market research and entry, including setting up shops in the U.A.E. and other places.
DOCUMENTS REQUIRED FOR SHARJAH COMPANY FORMATION
Some of the commonly required documents for company registration in Sharjah include those listed below.
- A business card for the contact person
- A comprehensive business plan
- A fully filled out and signed application form for company registration
- A Memorandum of Association (MOA) with notarization and certification from a local law firm
- Articles of Association (AOA) with written and verified signatures
- Passport copies of all partners and managers involved in the business
- Original bank letters of recommendation, as well as any necessary licences for the partners’ current businesses
- A valid leasing agreement for the business premises
- Bank statements of the parent company for the past three months (if applicable)
- An attorney-in-fact resolution, if the company is a representative office
- A study of the project’s feasibility, to ensure its viability and success.
PROCESS OF COMPANY FORMATION IN SHARJAH
Selecting a Business Entity
The first step in the process of company registration in Sharjah is selecting the appropriate business entity that aligns with the nature and objectives of your business.
The applicant must choose the jurisdiction in which they wish to establish the company and then register with the Department of Economic Development (DED) by submitting an application form available on the Sharjah Chambers of Commerce website.
Obtaining the Licence
The next step is to apply for the relevant licence based on the type of business the applicant intends to operate. There are three types of licences available in Sharjah – industrial, professional, and trade.
Check the business trade license in Sharjah for more information.
Registering the Company Name
After obtaining the licence, the applicant must register a unique and distinguishable trade name for the business. The name must not be similar to any existing companies and must be exclusive to the public. Upon completion of these steps, approval from the municipality is required.
Drafting the Memorandum of Association (MOA)
The applicant must provide all necessary information for the drafting of the Memorandum of Association (MOA). This document must then be notarized by an authorized notary.
The Sharjah government requires all businesses to have a physical office in Sharjah and to hire local employees. To achieve this, businesses must have a valid leasing agreement.
Paying the License Fee
Finally, the applicant must pay the license fee and obtain approval for the name board from the corporation.
PROS AND CONS OF BUSINESS IN SHARJAH
Sharjah is strategically located between Europe, Asia, and Africa, making it an ideal hub for businesses looking to tap into the markets of the Middle East, Africa, and South Asia.
Sharjah offers a business-friendly environment with a range of incentives and benefits for companies operating in the emirate.
Sharjah is home to several free zones, which offer attractive benefits such as 100% foreign ownership, tax exemptions, and streamlined processes for setting up and operating a business.
The cost of setting up and operating a business in Sharjah is relatively low compared to other regions in the UAE.
Sharjah has a diversified economy, with a strong focus on industries such as manufacturing, trading, and tourism.
Sharjah has a skilled and educated workforce, making it easy for companies to find the talent they need to grow their business.
The government of Sharjah is committed to supporting and promoting the growth of businesses in the emirate.
Limited market size
The local market in Sharjah is relatively small compared to other regions in the UAE, which may limit the potential for growth for some businesses.
Limited access to funding
Access to funding may be limited for small and medium-sized businesses in Sharjah.
The process of setting up and operating a business in Sharjah can be bureaucratic and time-consuming, especially for companies that are not familiar with the local regulations.
BUSINESS SETUP IN SHARJAH WITH RELIN CONSULTANTS
Relin Consultants have a team of experts in company formation and business setup in Sharjah. We have experience and knowledge of the local regulations and procedures. Our team will handle all the necessary paperwork and navigate the bureaucracy on your behalf.
Our team of professionals will provide a one-stop-shop solution for all your business setup needs from choosing the right legal structure, obtaining licences, and even finding office spaces. Relin Consultants has a wide network of contacts in the Sharjah government and business community that can help you establish your business quickly and efficiently.
Reach out to us at Relin Consultants to learn more about our business setup services in Sharjah.
What are the steps for company formation in Sharjah?
Company registration in Sharjah can be done by following the listed steps:
- Choosing a business entity for the business
- Applying for the appropriate license
- Registering the company name
- Drafting the Memorandum of Association (MOA)
- Presenting a leasing agreement
- Paying the required license fee
What are the minimum number of directors required for business setup in Sharjah?
The minimum number of directors required for business setup in Sharjah varies depending on the type of business entity you choose to establish. Usually, the minimum number of directors required is at least 1.
Is a resident director required for company incorporation in Sharjah?
It is not necessary to appoint a resident director for company registration purposes. However most emirates banks will require at least one resident director for account opening purposes.
What is the capital requirement for business setup in Sharjah?
The capital requirement for business setup in Sharjah varies depending on the type of business entity you choose to establish.
What is the corporate tax rate for companies in Sharjah?
Mainland companies in Sharjah are subject to corporate tax up to 9% of net profit.
Companies operating in the UAE Free Zones are not subject to corporate income tax, value-added tax (VAT), or withholding tax on their income. However, there are some exceptions to this rule. For example, certain industries, such as oil and gas, banking, and insurance are subject to specific taxes and fees.
Which type of business entity is the most sought-after in Sharjah?
The most sought-after type of business entity in Sharjah is the Limited Liability Company (LLC). LLC is a popular business structure for foreign investors as it allows for 100% foreign ownership and the liability of the shareholders is limited to their respective share capital.
LLC is also the most common form of business structure for small and medium-sized enterprises. The LLC structure is flexible and allows for a wide range of business activities, making it suitable for a variety of businesses.
Additionally, the process of setting up an LLC is relatively straightforward and can be completed in a relatively short period of time.
How long does it take to incorporate a business in Sharjah?
The time it takes to incorporate a business in Sharjah can vary depending on the type of business entity you choose to establish, the nature of your business, and the availability of documents. However, on average, it can take 2-6 weeks.
Do I need a local shareholder to register a company in Sharjah?
It is not necessary to have a local shareholder to register a company in Sharjah for most business activities.
Can I start an LLC with 100% ownership in Sharjah?
No, as a foreign individual, you cannot start an LLC with 100% ownership in Sharjah. According to the laws of the United Arab Emirates (UAE), at least 51% of an LLC must be owned by a UAE national, referred to as a “local partner” or “sponsor”. The remaining 49% of the company can be owned by a foreign individual or entity.
How to start a business in Sharjah free zone?
Registering a company in a Sharjah free zone typically involves the following steps:
Choose a free zone: Research the different free zones in Sharjah and select the one that best fits the needs of your business.
Choose a business activity: Each free zone has a list of approved business activities, so choose the one that aligns with your business.
Choose a legal structure: Decide on a legal structure for your business, such as a free zone establishment (FZE) or free zone company (FZC).
Obtain initial approvals: Obtain the necessary initial approvals from the relevant authorities, such as the Ministry of Economy or the free zone authority.
Draft and register the Memorandum of Association (MOA) or Articles of Association (AOA): Prepare and register the MOA or AOA with the free zone authority.
Obtain a trade license: Apply for and obtain a trade license from the free zone authority, which will allow you to conduct your business activities in the free zone.
How can I check my Sharjah company registration?
You can check the status of your company registration Sharjah by following these steps:
Visit the Department of Economic Development (DED) website: Go to the official website of the Department of Economic Development (DED) in Sharjah and select the “Business Registration & Licensing” section.
Search for your company: Use the “Company Search” function to search for your company by entering your trade name or Commercial license number.
View the details: You will be able to view the details of your company registration, including the registration date, Commercial license number, and the status of your license.