How to Start an Business in Sharjah ?, Here’s Your Guide
Business Setup in Sharjah offers a diverse range of choices for investors seeking to establish themselves in the Emirate, including licensing authorities and free zones.
From adaptable alternatives for first-time start-ups to more intricate frameworks for larger enterprises, Sharjah accommodates to all desires and ambitions.
Sharjah is located only 20 minutes from Dubai, and well-connected by public transport. Sharjah has its own international airport as well as three seaports, and in addition hosts a third of all manufacturing activity in the United Arab Emirates.
What are the Types of Business Entities in Sharjah?
Sharjah is one of the tax haven emirates of the UAE and business setup in Sharjah mainland or freezone is beneficial for foreigners. The type of business entities in Sharjah include:
- Limited Liability Company: This type of business requires partners not more than 50, but less than 2. It is the most common type among investors as the liability of the partner is limited to the investment in the company
- Partnership Company: This includes partnering between 2 or more individuals, where liability is limited to the extent of their shares to the company’s liabilities.
- Local Service Agent: This type of company is generally managed by a single person. And if the individual does not have a UAE or GCC national, then it must be backed by a local sponsor, who is a UAE national.
- Public/Private Shareholding Company: A public shareholding company has the feature where the share capital is equally divided into tradable shares. A private shareholding company is subject to rules of public joint stock companies.
3 Types of Business Jurisdictions in UAE
Mainland companies are licensed by the Department of Economic Development (DED) of the respective emirate. They can operate both within and outside the UAE.
- Local Market Access: Mainland companies can do business anywhere in the UAE, including the local market.
- Office Location: Flexibility to open an office anywhere in the UAE.
- Business Activities: No restrictions on the types of business activities.
- Government Contracts: Eligibility to bid for government projects and contracts.
- Local Sponsorship : Not Mandatory for all Business
Freezone companies are established in designated areas that offer specific economic benefits.
- Full Ownership: 100% foreign ownership is allowed.
- Tax Benefits: Often enjoy tax exemptions, such as no personal or corporate income taxes.
- Repatriation: 100% repatriation of capital and profits.
- Simplified Procedures: Easier and faster company setup procedures.
- Customs Duty Benefits: Exemption from import and export duties within the freezone.
- Specific Activities: Some freezones are specialized and restrict the type of business activities.
Offshore companies are set up for international business operations outside the UAE.
- Full Ownership: 100% foreign ownership is allowed.
- Privacy: High level of confidentiality and privacy.
- Tax Benefits: No taxes on income earned outside the UAE.
- Cost-Effective: Lower setup and operating costs.
- No Physical Presence: Cannot have a physical office in the UAE or conduct business within the UAE.
- Restrictions: Limited to international business activities, primarily for holding, asset protection, and international trading.
List of Free Zones in Sharjah
Dubai has Most Freezones in UAE,For Freezones in Dubai click here.
Frequently Asked Questions
Here are answers to the most frequently asked questions.
Yes, a foreign national is eligible for 100% ownership of a free zone/Offshore and In Mainland specific business company in UAE.
Yes, foreign nationals can easily register a business in UAE. Professional assistance is necessary for aspects like licensing, visa issuance, and bank account opening, and a business setup consultant in Dubai can assist you with this.
Yes, Dubai/UAE allow you to register and own businesses without the need for a physical office space.
Yes, you can easily sponsor your spouse and children through a free zone business license.You are Eligible for Family Visa
The three(3) most prominent licenses available in UAE are professional, commercial, and industrial.
Professional license:
A professional license permits offering specialized services such as consultancy, accounting, legal advisory, and so on. This license is required for skilled professionals looking to set up businesses and deliver services based on their intellectual or artistic capability.
Commercial license:
A commercial license is granted for businesses involved in trading activities and is required to legally conduct activities such as import and export of goods within and outside the UAE.
Industrial license:
An industrial license is needed for businesses conducting activities such as manufacturing, packaging, segregation, etc.
The following documents are required from the shareholder(s) and manager(s) for free zone company formation :
- Passport copy
- Latest UAE entry stamp/visit visa copy
- Residence visa copy and Emirates ID (for UAE residents)
- Address proof
- Passport-size photo
Please note that in addition to these, you may be required to submit additional documents. Consulting with a Tycoon business setup company will help you gain more information in this regard.