How to start a company in Sharjah mainland?
Sharjah has a flourishing economy that attracts investors from all over the world. Sharjah is one of the seven Emirates and third most populous city of UAE. Being a center for culture and industry, it contributes to 7.4% of GDP of the country. Sharjah overlooks Gulf of Oman and Persian Gulf on either sides along with the coastal towns of Khor Fakkan and Kalba. This helps in the transport of cargo and commercial goods. The Emirate shares political, legal, military, and economic functions with other emirates of UAE in a federal framework.
Sharjah places high importance on trade and commerce. Moreover, the emirate has several investor-friendly policies that allow start-up or SMEs to launch their business. Sharjah legal authorities extend their complete support and make sure that businesses feel comfortable in establishing their companies. Sharjah is yet another amazing business hub to start your venture.
How to setup a business in Sharjah mainland?
Sharjah offers incredible opportunities for foreign investors. The government authorities understand the importance of businesses and how it strengthens their economy. Therefore, with diverse investor policies, Sharjah promotes entrepreneurial culture.
Business setup in Sharjah mainland is easy but if you’re not familiar with the legal system, it might be challenging. Therefore, consult a professional company formation expert to guide you throughout the process.
Steps for company setup in Sharjah mainland
- Choose the business activity
Initially, you have to select the business activity. After deciding the type of business activity, finalize the business license required to start your company.
- Local sponsor
If you’re a foreign investor, you need a local sponsor to start the business. You should find a UAE national and he/she must hold 51% shares of the company.
- MOA and lease agreement
As a next step, you have to submit an MOA written between parties that serve as an agreement to work together. Additionally, you should find an office space and lease agreement notarized.
- Submit necessary documents
Once you have completed the above steps, submit all the required documents. The documents could vary depending on the business activity.
Sharjah mainland Company registration documents include,
- Application form
- Business plan copy
- Notarized and attested MOA & AOA
- Passport copies of managers and partners
- Bank reference letter
- Power of Attorney
- Lease agreement
- Board resolution if it’s a foreign company
- Three months bank statement
- Feasibility report
- Pay the fees
After submitting all the documents, pay the required fees for acquiring your business trade license.
- Get the establishment card
You have to apply for the establishment card through immigration Authority. The card includes all the information about your company.
- Get approval for the name board
While selecting a name for your business, you must give three options to the authority. You should follow certain naming conventions like unique and free from any indecent words.
- Approval for employees
Once you hire employees, you have to get their entry visa and work permit from the Ministry of Labor. Business owners have to apply for visa and permit on behalf of your employees.
- Visa stamping
You have to work on the process to obtain stamped passport. It must be done with the help of your partner or local sponsor in UAE.
- Approval from DED
You need to submit all the forms and company registration documents to the DED.
- Register trade name
After finalizing the trade name, register it with the DED. You can do it online.
- Get final approval
Get other approvals from the municipality based on your business type. Pay the required fees and submit all the required documents. Finally, you will get the license within few days.
What are the different business licenses in Sharjah mainland?
To commence any business in Sharjah mainland, you need a perfect business license. The trade license depends on the type of business and business jurisdiction.
The different types of business license include,
- General trading license
Getting a general trading or commercial license helps you distribute, store, import, export, and warehouse specified goods. The SEDD or Sharjah economic development department is the authorized agency for issuing license.
- Service license
This license allows you to carry out services mentioned in the license issued by SEDD. People applying for service license must have the necessary qualification according to the claim.
- Industrial or manufacturing license
Industrial license allows you to assemble, process, design, and pack locally manufactured or imported products. Moreover, industrial license requires various approvals from ministry of Economy, ministry of labor, and other departments. Get all these approvals and submit your application.
What are the different business structures available in Sharjah mainland?
Before planning to incorporate your business in Sharjah, you have to determine the business structure.
Following are the different business structures in Sharjah,
Limited Liability Company allows maximum 2 to 50 members. In this setup, business owners need a local Emirate with 51% shares of the total paid-up capital.
- Partnership company
Partnership company is formed by either two or more companies. They jointly handle the company’s liabilities. The partners must be UAE nationals
- Foreign company branch
As per the name, the company is an extension of a parent company situated in some other nationality. Here, the business owners should submit the application and get the preliminary license approval for having a branch in the Sharjah mainland.
- Local company branch
You can start a branch of a company in different Emirate. For eg – you can have a company office in Abu Dhabi and its branch in Sharjah as well.
- Public and Private shareholding company
Public share holding company has its capital divided into equally-valued tradable shares. Every partner has limited liability to share capitals. Private share holding company is subject to the set of rules & regulations of Public joint stock companies.
Setup your company with Flybiz business setup consultants
At Flybiz, we offer business advisory services that are customizable according to your needs. Initially, we understand your business idea and map the best company setup in Sharjah.
We assist you throughout the Sharjah mainland company setup process. Our services include business advice and necessary guidance throughout the legal documentation process. Apart from regular services, we offer licensing, finding local Emirati, PRO services, registration, office space, and other related services.