The United Arab Emirates is popular for its constantly developing emirates. Sharjah is one among them. Its flourishing economy is an attraction for foreign investors. Besides, company formation Sharjah is a fruitful process because of the investor-friendly policies charted by the government.
The government of Sharjah promotes trade, service, and manufacturing sectors in the region through foreign investments. It invites budding businesses and global investors to establish their business in the UAE, hence contributing to the rapid growth of the business ambiance in Sharjah.
Benefits of establishing a business in Sharjah
The company formation Sharjah is easy and the authorities ensure full support and comfort to new entities establishing their mark in the emirate. Setting up a business in Sharjah is beneficial for the given reasons:
- Sharjah is one of the largest cargo hubs in the world.
- Businesses flourish rapidly in Sharjah due to its growing economy and populous customer base.
- Companies are exempted from all kinds of taxes.
- Sharjah is a hub of international banks and a modern communication structure.
- Foreign investors can send the earned profits to their home country.
- Authorities provide storage facilities to industries to store their raw materials and finished goods.
- Exemption from tax for import, export, and all commercial tariffs.
- There are no restrictions in foreign exchange controls, quotas, or trade in Sharjah.
- The Sharjah government offers a business-friendly atmosphere for establishments to flourish and grow in the foreign land.
- The governmental incentives projected for investors are rewarding.
- The infrastructure in Sharjah is vibrant and wonderful.
- Immense availability of manufacturing resources such as water, electricity, etc.
- Extensive support from the government.
Types of licenses available in Sharjah
There are three types of licenses available in Sharjah:
- Commercial License – A commercial license holder can distribute, combine, store, import, and export goods that are specified in the license.
- Industrial License – With an industrial license, the business owner is allowed to manufacture, process, redesign, and repackage products. To obtain this license, the owner needs to get approvals from the Ministry of Labor, Ministry of Economy and Commerce, and other relevant departments.
- Professional License – This license is issued to professionals who are qualified and experts in a particular field and wish to deliver services specified in the license.
The type of license you require for your business depends on the activity and jurisdiction you choose for your business.
Types of business structures eligible for establishment in Sharjah
- Limited Liability Company(LLC)
In LLC, the partnership can be shared between 2 to 50 members. The liability of each partner depends on the share of capital invested in the company.
An LLC can appoint foreign employees as directors and managers, provided they suffice the requirements for company registration.
- Branch of Foreign Company
This is a child company of an existing company in some other foreign land. The business activities, profits, losses, and all other undertakings in the branch are controlled by the parent company.
- Branch of Domestic Company
The branch company is an extension of an establishment within the UAE. All the activities of the branch company fall under the control of the parent company.
- Partnership Company
This type of company can be formed in partnership, by two or more UAE companies or individuals. The partners jointly share the company’s liabilities.
- GCC Company Branch
A branch established by a company situated in any of the GCC(Gulf Cooperation Council) countries other than the UAE.
- Private/Public Shareholding Company
A public shareholding is a company with shared capital divided into equally valued tradable shares.
In a private shareholding company, every member who signs the MOA and AOA to the company intending to operate the business is considered a founding member of the company.
- Local Service Agent
This form of entity is managed by one person. However, the liabilities and other obligations are borne by the owner of the company.
Except for some economic activities stated by the mainland authorities, Sharjah authorities allow 100% ownership to the foreign companies. Besides that, the minimum capital requirement for every company is different.
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Steps to start a business in Sharjah
Before starting a company in Sharjah, the owner has to fulfill some legal requirements of the UAE government. These are the steps that need to be followed to launch your business full-fledged in Sharjah –
- Determine the business activity
- File an application for company registration with the Department of Economic Development(DED)
- Apply for the required license according to your business type.
- Register for the trade name
- Draft the Memorandum Of Association(MOA) of the company.
- Sign lease agreement
- Payment of the license fee
- Register necessary information with the Ministry of Labor and get an establishment card.
Our experts in Shuraa Business Setup can guide you through a convenient and hassle-free process of business setup in Sharjah.
Documents required for company formation Sharjah
You need to submit the following documents for the registration of your company.
- Application form for company registration
- Approvals from all concerned authorities
- MOA and AOA
- Copy of passport of owner/shareholders/managers
- Legal No-Objection Certificate(NOC)
- UAE visa/entry permit
- Business plan
- Trade name certification proof
- Residential proof
- Original bank reference letter
- Lease agreement
- Three-month bank statement
Conclusion
Sharjah stands as one of the most developed emirates in the UAE. Sharjah alone contributes 45% of the country’s GDP through its trading activities. It offers great opportunities to foreign companies and opens the gates of possibilities for them to grow and earn a fair share of profit in an Arab land.
Sharjah has accommodated many corporations who have started from scratch and created a brand of themselves in the UAE. The ever-supporting government and its incentives help start-ups to expand their reach and find a place in the market.
Business consultants in UAE can make the process of company formation smooth and hassle-free. They offer consulting services related to business setup in the UAE that is custom-made to your needs.
Our seasoned experts in Shuraa Business Setup can help you provide a platform in Sharjah to launch your business. Shuraa professionals have wide domain experience and familiarity with the laws of the UAE. We ensure an untroubled administration and easy paperwork through the entire legal and company setup process in Sharjah or any other part of UAE.
So, get in touch with us now and let us guide you to your dream destination!
To learn more about the business setup and license acquisition process in Sharjah, book a free consultation with us. You can reach out to us at +97144081900, or drop a WhatsApp message on +971507775554. You can also email us your query at info@shuraa.com.