Starting a business in Sharjah may really prove to be an exciting and profitable venture. Be an entrepreneur in Sharjah with an impressive strategic location, modern infrastructure, and a business-friendly environment. All of these make Sharjah worthwhile for any entrepreneur. If you are setting up your company in Sharjah, know how the company registration process works. Important steps involved in starting your business in Sharjah will be outlined in this guide.
Understand the Business Landscape in Sharjah
Sharjah is one of the fastest-growing emirates in the UAE with an economy that is good and an environment that is favorable for doing business. The emirate initially drew investors mainly because of its industrial, trade, and services sectors. The municipality is home to several free zones that provide distinct advantages, depending on the type of business prospect. Get details about Company Formation Service in Sharjah Mainland.
Choose the Right Business Activity
The first thing you would do to register a business is to select the most suitable business activity. Commercial licenses are regulated by the Department of Economic Development (DED); consequently, you need to decide on the exact nature of your business before even applying for one. Knowing the activity as per which the business is going to work helps to decide the type of licensing, whether it is to open a retail store, a manufacturing facility, or to provide services.
There are three main types of licenses in Sharjah:
- Commercial License: For retail, trading, or distribution businesses.
- Industrial License: For manufacturing and production-based companies.
- Professional License: For service-based businesses like consulting, IT services, and education.
Decide Between Free Zone and Mainland
There are two main ways in which you can register a business here in Sharjah. It’s either by the mainland or in one of the many free zones. Both of these have pros and cons depending entirely on what suits your business.
- Mainland Business Registration: There are no restrictions for doing business anywhere in the UAE when you operate from the mainland. However, ownership of a portion of the company might require a local sponsor or partner (UAE national). This option is most suitable for businesses dealing in local markets and working with government entities.
- Free Zone Business Registration: There are many types of free zones present in the emirate of Sharjah. Some of the well-known ones include Sharjah Airport International Free Zone (SAIF-Zone) and Hamriyah Free Zone, which offer 100% foreign ownership along with other tax benefits for incoming investors. Free zone registration could prove advantageous if your business type falls under import/export trade or international trade. Know about Business Setup Service in UAE.
Choose Your Company Structure
Next, you will need to determine the legal structure for your business. In Sharjah, you have the following options:
- Limited Liability Company (LLC): The most popularly adopted business structure for accommodating multiple owners with the requirement of a local sponsor.
- Sole Establishment: It is an establishment that would suffice for sole ownership, i.e., a space for a professional or service-based business.
- Branch of a Foreign Company: Enables to open up a branch of foreign companies in Sharjah.
The type of company structure you choose will determine in the ownership and liability, and many other important aspects.
Register Your Business Name
Among other items, once you have decided what your business activity, license requirements, and structure are, you will need to register the business name. The name should be in accordance with the naming regulations set by the DED and should not be offensive, religious, or contain the name of already existing companies. After this, you will continue with the other processes of registration. Get details about Legal Translation Service in UAE.
Apply for Necessary Approvals
Depending on your industry, you might need additional approvals from different agencies. For example, if your company is involved in food, health, or educational services, the health-related or education-related departments need approval from you. This would fall under compliance and legality matters.
Finalize Company Registration
You may submit you application for company registration only after all required paperwork has been initiated. After your registration has been approved, you will get your trade license, which legally permits you to operate your business in Sharjah. The registration process would take from few days to several weeks depending on your business complexity. Know about Visa Services in UAE.
Open a Business Bank Account
After registering your company, open a corporate bank account to manage the finances. Within Sharjah, there are several local and international banks with business banking services that can cater to almost all demands. Choose the one best suited to your business needs.
Call +971 56 658 2477 for Setting up a business in Sharjah
Setting up a business in Sharjah presents plenty of opportunities for growth and success. Understanding the company registration process as well as following local laws almost certainly puts in to place a business that may thrive in one of the most dynamic regions in the UAE. Whether registering in free zone or mainland, ensure every step is monitored and consult local professionals for a smooth setup in the business.