If you are planning to establish your company in Sharjah, it is essential to acquire a trade license. This crucial document grants you the legal permission to conduct business operations within the Sharjah emirate. Sharjah offers a variety of trade license classifications, each associated with specific commercial activities. In this article, we will provide a comprehensive guide on how to initiate a business in Sharjah and the process of obtaining a general trading license.
Securing a license is a mandatory requirement in the United Arab Emirates (UAE) for anyone looking to launch a business. This article will outline the application procedure for obtaining a business license in Sharjah.
The Department of Economic Development (DED), in collaboration with the Chamber of Commerce and Industry, serves as the official agency responsible for regulating and overseeing the licensing procedures for all organizations in Sharjah. However, it’s important to note that certain economic activities require approvals from various Ministries and other government authorities.
For instance, the Central Bank of the UAE is responsible for granting permission to banks and financial institutions. Insurance companies and related organizations, on the other hand, require approvals from the Ministries of Economy and Commerce, Finance and Industry, and Health, respectively.
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General Trading License Types in Sharjah
In Sharjah, there are three primary categories of general trading licenses, each catering to different types of business activities:
- Commercial License: This license encompasses a wide range of business activities, making it suitable for various commercial ventures.
- Professional License: Designed to accommodate individuals in specialized occupations, artisans, service providers, and craftspeople.
- Industrial License: Geared towards businesses engaged in manufacturing and industrial operations.
Additionally, authorities in Sharjah may grant other specialized licenses, such as business operation permits and entrepreneurial business licenses, under specific conditions and requirements.
Requirements for obtaining a General Trading License in Sharjah
To ensure compliance with the necessary legal prerequisites and to optimize commercial prospects for business proprietors in Sharjah, it is imperative to follow the prescribed steps before establishing a business. These steps include:
#1. Determine the Business Category:
Select the most appropriate business category that aligns with your company’s nature, choosing from commercial, industrial, or professional categories.
#2. Identify Commercial Activities:
Define the specific commercial activities that pertain to your chosen business category, with the option to list up to 10 activities under a single license.
#3. Legal Company Status:
Decide on the appropriate legal structure for your company within the Emirates.
#4. Company Name Selection:
Choose a suitable and distinctive name for your company, complying with naming conventions and regulations.
#5. Documentation Preparation:
Assemble all requisite paperwork, including memorandums of association and approvals from relevant government entities, where necessary in specific cases.
#6. Fee Payment:
Complete the payment of the prescribed fees as part of the application process.
Why Sharjah is a good place to launch a business?
Sharjah offers compelling reasons to consider it as an ideal location for launching a business:
- Full Profit Repatriation: Businesses in Sharjah can repatriate 100% of their profits, providing a favorable environment for financial growth and international business operations.
- Tax and Customs Benefits: Sharjah exempts businesses from customs charges and taxes on imports and exports, reducing financial burdens and enhancing cost-effectiveness.
- Robust Infrastructure: The emirate boasts a strong and well-developed infrastructure, facilitating seamless business operations and offering excellent networking opportunities.
- Superior Facilities: Sharjah provides exceptional storage and industrial facilities, making it an attractive choice for companies involved in manufacturing and trade.
- Thriving Business Community: While Sharjah’s businesses may not be as extensive as those in other emirates, they are steadily expanding. The emirate has become a prominent business hub, attracting entrepreneurs and startups, ranking closely behind Abu Dhabi and Dubai. This dynamic environment offers a wealth of business opportunities that can be highly advantageous for investors and business owners.
Various Business Structures in Sharjah
In Sharjah, the specific paperwork and requirements for obtaining a general trading license can vary based on the type of business structure you are operating. Several corporate arrangements are recognized in Sharjah, including:
- Limited Liability Company (LLC): A common business structure that offers limited liability to its members.
- Company in Partnership: Businesses established with shared ownership and responsibilities.
- Branch of a Foreign Company: Foreign companies can set up branches in Sharjah to expand their operations.
- Branch of a Local Company: Local companies may establish branches to extend their reach.
Irrespective of the chosen business structure, there are certain common prerequisites for obtaining a trade license in Sharjah. These include:
- Selection of a Business Name: Choose a unique and compliant name for your business, ensuring it adheres to local naming regulations.
- Submission of Additional Documentation: Depending on the nature of your business and chosen structure, additional paperwork may be required to complete the trade license application. For instance, a Gulf Cooperation Council (GCC) corporate branch must provide verified documents from both the UAE Embassy in the respective Gulf State and the UAE Ministry of Foreign Affairs.
Additionally, there are specific criteria and documentation obligations for both public and private shareholding companies. The application form must adhere to the stipulations outlined in the Commercial Registry Act and its associated rules.
What is the cost of a Sharjah Trade Licence?
The cost of obtaining or renewing a general trading license in Sharjah can vary based on factors such as the type of license, the nature of the business, the ownership structure, and other specific criteria. For an accurate estimate, it is advisable to contact the Sharjah Economic Development Department directly. You can also consult with one of our business advisors for more detailed information on business setup.
How to Renew Your Sharjah Trade License?
Renewing your trade license in Sharjah is a crucial annual requirement, as a current trading license is essential for conducting business. Here are the steps to renew your trade license:
Gather the Necessary Documentation:
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- Renewal application form for a Sharjah trade license.
- Copies of passports or UAE National IDs.
- For UAE citizens, photocopies of family books.
- Lease contract for your business premises.
For further information and assistance on How can I get a General Trading License in Sharjah , speak with our experienced consultants. Book your FREE consultation today at +971582595164, +97145187213 or drop us a line on info@companysetup.ae
