Sharjah, one of the seven emirates of the United Arab Emirates, is increasingly becoming an attractive option for companies looking to set up their businesses in the area. The strategic location of the Emirate of Sharjah, a competitive business environment, and access to global markets provide many opportunities for entrepreneurs and businesses wishing to establish themselves in Sharjah mainland. Start Any Business UAE (India Branch) will take you through the key areas of company formation in Sharjah mainland, including types of licenses, types of companies, registration process, required documentation, and compliance.
Process of Company Formation in Sharjah Mainland (2025)
Establishing a company formation in Sharjah mainland can be done effortlessly by following the vital steps. Here is a guide to its setup –
- Determine Your Business Activity – The first step is determining your business and what activities you plan on conducting. This will lead you to your business license.
- Choose a Company Name – Identify a unique and relevant name for your business that follows the UAE’s naming conventions. Ensure that the name is not offensive and avoid using any names for companies that you do not own.
- Submit Initial Approvals – After you have determined your business activity and name, you will need to secure your initial approvals from the Department of Economic Development (DED) in Sharjah. You need these approvals before you can continue the business setup process.
- Draft the Memorandum of Association (MOA) – For those starting a limited liability company or partnership, the law requires you to draft and notarize a Memorandum of Association (MOA) to outline the company structure, ownership, and operations.
- Lease Office Space – All businesses in Sharjah mainland are required to have an office space. It will be necessary to lease space and obtain a tenancy contract.
- Apply for the Business License – Once all the above steps have been completed, you are ready to apply for the final business license with the Department of Economic Development (DED). With your business license issued, your business is now an officially recognized entity.
Types of Business Licenses in Sharjah Mainland
To establish a company in Sharjah mainland, you need to obtain the appropriate license that matches your business activities. Sharjah provides a range of business licenses that cover different industries and activities.
Below is a breakdown of some of the main types of business licenses –
- Commercial License – This license is for businesses that participate in trading, specifically importing, exporting, and selling goods and products that include retail, wholesale, and general trading.
- Professional License – If you are a business that delivers services like consultancy, marketing, education, or legal services, you will need a professional license. This license is usually for professional freelancers or service providers.
- Industrial License – This license is for businesses participating in manufacturing and industrial activities. This will allow the business to operate factories and manufacture goods in the emirate.
- Tourism License – With Sharjah’s rich cultural heritage and tourism industry, there will be businesses that will need a tourism license if they provide services in the hospitality sector, travel, or tour management.
- Freelance License – If an individual wants to freelance in the media, technology, art, or consulting.
Types of Companies in Sharjah Mainland (2025)
One of the key elements of your setup in Sharjah is selecting the type of company formed. Each type has a different ownership structure, liability protection, and regulatory requirements.
Within Sharjah mainland, the following are the most common types of companies that can be formed –
- A Sole Proprietorship – When an individual wants to operate a business independent of anyone else, this would be the business setup of choice. The sole proprietor has total control over the business, but the individual has unlimited liability for any debts or liabilities.
- A Limited Liability Company (LLC) – This is one of the most well-known types of company formation in the UAE, and an LLC can be formed with as few as two shareholders and can have up to 50 shareholders. The liability of each shareholder is limited to the value of their shares in the business.
- A Civil Company – A civil company is a business arrangement for professionals such as doctors, lawyers, engineers, and accountants who want to do business together as partners. Civil companies provide full foreign ownership for approved professional services.
- Branch of a Foreign Company – A foreign company wishing to form a branch in Sharjah mainland can open a branch while retaining 100% ownership of the branch office. The branch office is legally considered the same entity as the parent company and can conduct the same activity.
- Representative Office – A representative office allows a foreign company to establish a presence in Sharjah but cannot conduct commercial activity. A representative office is permitted to mark and conduct research; however, it cannot generate direct sales or profit.
Documents Required for Business setup in Sharjah
To register a company in Sharjah mainland, you must submit specific documents. The documents required may vary depending on the type of business entity, but the common documents include –
- Completed application form
- Passport copies of all shareholders and partners
- Copy of initial approval from DED
- Notarized Memorandum of Association (MOA)
- Lease agreement and Ejari certificate for office space
- Proof of trade name reservation
- Bank reference letter (for specific business types)
- Passport-size photos of the shareholders
Compliance Requirements in Sharjah Mainland
Compliance is crucial to being able to run your business in Sharjah mainland. By following regulations and ongoing responsibilities, you can make sure your business is not at risk of falling out of good graces with the authorities.
Some of the most common compliance measures are as follows –
- Renewal of Business License – Your business license must be renewed annually to keep your company operational.
- VAT Registration – If your company’s revenue exceeds the specified threshold, you must register for Value Added Tax (VAT) and comply with VAT regulations, including filing returns and paying taxes on time.
- Economic Substance Regulations (ESR) – Businesses engaged in certain activities must comply with ESR and submit relevant reports annually to demonstrate sufficient economic substance in the UAE.
- Ultimate Beneficial Owner (UBO) Disclosure – Companies are required to disclose the ultimate beneficial owner to the authorities, ensuring transparency and accountability.
- Employee Visa and Labor Card – If you hire employees, you must obtain work visas and labor cards for them and ensure compliance with UAE labor laws.
Key Advantages Associated with the Process of Business Setup in Sharjah
There are several advantages to business setup in Sharjah mainland, making it an attractive destination for entrepreneurs and investors –
- Strategic Location – Sharjah offers access to major trade routes, making it a gateway to the Middle East, Asia, and Africa.
- 100% Foreign Ownership – Certain business activities allow full foreign ownership without the need for a local partner.
- Tax Benefits – Sharjah mainland provides favorable tax conditions with no personal or corporate income tax.
- Business-Friendly Environment – The regulatory framework is conducive to business growth, and the local authorities are supportive of new businesses.
- Access to Skilled Labor – Sharjah offers access to a diverse pool of skilled workers, enabling businesses to find the right talent.
- Cost-Effective Setup – Compared to other emirates, Sharjah offers relatively lower setup costs, making it a budget-friendly option for startups and small businesses.
Choose the Best Business Setup Services in Sharjah, UAE
Navigating the company formation process in Sharjah mainland can be complex, especially for first-time entrepreneurs. To ensure a smooth and hassle-free experience, it is highly recommended to partner with experienced business setup consultants in Sharjah. They can provide expert advice, handle paperwork, and guide you through every step of the process.
Whether you are looking for assistance in choosing the right business license, drafting legal documents, or meeting compliance requirements, a professional business setup service can help you save time, money, and effort. Start Any Business UAE (India Branch) is a trusted provider of business setup in Sharjah and across the UAE. With in-depth knowledge of local regulations and a dedicated team of professionals, SAB UAE can help you start your business successfully.
Frequently Asked Questions (FAQs) on Company Formation in Sharjah
What is the cost of starting a company in Sharjah?
To open a company in Sharjah which is a popular Sharjah free zone fees are around INR 5,08,670. Whereas Sharjah Airport International free zone business establishment costs about INR 7,12,140.
How can I establish a corporation in Sharjah?
Starting a business in Sharjah is a bit difficult but no need to worry as Start Any Business UAE professionals can able to make your setup process easy and efficient without any kind of obstacles.
How many directors are required for setting up a business in Sharjah?
For establishing a company or business in Sharjah at least one director is necessary. This is not necessary for the director to be a Sharjah national.
What is the money demanded to launch a corporation in Sharjah?
The lowest share capital needed to start a company in Sharjah is around INR 10,17,343 per company. In order to grant a general trading license for a company, this must need around AED 1 million in share capital.
How overseas nationals can form a venture in Sharjah?
Starting a business in Sharjah is simple but some documentation process seems daunting with the help of Start Any Business UAE consultants can help you in the process of business setup in Sharjah and make it easy.
Is a shareholder required to register a company in Sharjah?
Yes, shareholders are necessary to register their company in Sharjah. At least one shareholder is needed to form a business in Sharjah.
How long does Sharjah company incorporation take?
If you have prepared all the necessary documents and approvals in a proper manner then company incorporation in Sharjah takes around three weeks to complete the entire procedure.
