If you’re thinking about starting a business in Sharjah, which is the third-largest Emirate in the UAE, you’ll find plenty of great business opportunities. One crucial step in this process is getting a trade license.
In this guide, we’ll give you a clear overview of what you need to do to get a trade license in Sharjah. We’ll cover the necessary requirements, the fees involved, and the steps you should follow. This way, you can have a straightforward and easy application experience in Sharjah.
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Sharjah’s Economic Development Department’s Role
The Department of Economic Development (DED) in Sharjah plays a pivotal role in overseeing and regulating the establishment of new businesses. It issues trade licenses and permits for companies across Sharjah, encompassing both small-scale retail enterprises and large industrial ventures. Collaborating closely with other government entities, the DED ensures businesses comply with relevant laws and regulations.
SEDD extends various services to businesses, including assistance in finding suitable locations and guidance on the incorporation of new companies. They also provide support and direction to startup companies on various aspects of establishing a business in the UAE.
However, specific economic activities mandate approvals and licenses from other government bodies, such as:
- Pharmaceutical and healthcare organizations requiring clearance from the Ministry of Health.
- Financial institutions and banks needing approval from the UAE Central Bank.
- Industries’ business operations approved by the Ministry of Finance and Industry.
- Companies offering insurance and related services allowed by the Ministry of Economy and Commerce.
Types of Trade License in Sharjah Free Zone
A trade license is an official paper that allows an individual or a company to do a particular business in the UAE. In Sharjah, the authority that takes care of giving out these licenses is the Sharjah Economic Development Department (SEDD).
In Sharjah Free Zone, businesses can choose from various trade licenses, each tailored to specific activities:
- Industrial License:
- For manufacturing, assembly, or similar industrial activities.
- Allows import of machinery and raw materials, as well as export of finished products.
- Eligible for corporate and individual income tax exemptions.
- Professional License:
- Suited for businesses offering consulting, engineering, and design services.
- Permits import of necessary tools and equipment for service provision.
- Qualifies for tax exemptions on both corporate and individual income.
- Commercial License:
- Essential for businesses involved in trading activities, such as importing and exporting goods.
- Allows importation, storage, and subsequent exportation of products.
- Entitles businesses to tax exemptions on corporate and individual income.
How can I get trade license in Sharjah?
Starting a business and obtaining a trade license in Sharjah, UAE, can be streamlined with the right guidance. Here are the simplified steps:
Step 1: Choose Your Business Activities
Decide on your business activity to determine the type of trade license and relevant authorities.
Step 2: Select Licensing Category
Identify the appropriate business licensing category to understand applicable rules and regulations.
Step 3: Register Trade Name
Register a trading name for your business at the Department of Economic Development (DED) in Sharjah.
Step 4: Choose Legal Structure
Establish a legal business structure compliant with UAE regulations, such as Limited Liability Corporation, Sole Proprietorship, or Partnership firm.
Step 5: Submit License Application
Submit the initial trade license application, required documents, and fee payment.
Step 6: Obtain Government Approvals
Depending on your business type, secure approvals from relevant government agencies such as the Central Bank, Ministry of Economy and Commerce, Ministry of Health, and Ministry of Finance and Industry.
Advantages of Starting a Business in Sharjah
Setting up a business in Sharjah comes with several benefits due to the emirate’s growing economy and efforts to attract foreign investment. Here are some advantages for investors and entrepreneurs considering Sharjah:
- Currency Freedom: Unlike some other places, Sharjah doesn’t impose currency restrictions. This flexibility supports smoother business transactions for investors.
- No Mandatory Audits: Businesses in Sharjah Mainland don’t need to undergo mandatory annual audits. This saves time and resources, allowing companies to focus on their operations.
- Flexible Office Locations: Businesses can rent offices anywhere in Dubai’s mainland, strategically positioning themselves for access to resources, markets, and customer interactions.
- Wide Range of Activities: Unlike certain areas in the UAE, Sharjah offers businesses the freedom to choose their activities without limitations or categorization.
- Low Capital Requirement: Sharjah has minimal to no capital requirement, attracting investors with a cost-effective approach.
- Unlimited Visas: As a company expands, it can access a higher number of visas, ensuring a steady flow of qualified personnel.
- Local Market Access: Sharjah’s mainland location provides easy access to various markets, boosting profitability for businesses.
- Minimal Taxes: Businesses in Sharjah are subject to limited taxation, mainly Value Added Tax (VAT) rather than income or corporate tax.
- Free Warehousing: Investors can utilize free warehouse facilities for up to two months, supporting storage needs.
- Repatriation: Foreign investors can own 100% of their company and transfer profits back to their home country.
- Abundant Skilled Labor: Sharjah offers a pool of skilled labor, making recruitment easier and more cost-effective.
Cost of getting a Trade License in Sharjah
Obtaining a trade license in Sharjah entails several costs. Firstly, there’s an application fee, varying based on business activity and jurisdiction. Additionally, a fee is required for reserving a trade name. Upon approval, a license issuance fee is payable, varying by business type and license duration. Businesses must secure commercial premises, with rental costs varying by location and size. Some activities mandate a security deposit. Annual license renewal incurs a fee, as does engaging PRO services for application assistance. Visa fees, health and safety certifications, and municipality approvals also contribute to the overall cost. It’s essential to consult local authorities or business advisors for precise estimates and to ensure compliance with regulations. Overall, the cost of obtaining a trade license in Sharjah encompasses application, reservation, issuance, renewal, premises rental, security deposit, PRO services, and additional regulatory expenses.
If you’re looking for a budget-friendly choice, the e-commerce license is the way to go, starting at just AED 6,000.
Renewal of a Trade License in Sharjah
To renew your trade license in Sharjah Free Zone, submit the following documents to the Department of Economic Development (DED):
- License Renewal Form.
- No Objection Certificate (NOC) from Relevant Authorities.
- Copies of UAE passports and national ID cards.
- Photocopy of Notary Public’s signature authentication verification.
- Certified lease contracts.
Once you’ve gathered the required paperwork, send it to the DED along with the renewal fee. After a thorough review, if everything is in order, the DED will approve your trade license renewal. Ensure you stay informed about the renewal process and have all necessary documents ready to avoid penalties for failing to renew on time.
How much does it cost to open a company in Sharjah?
Setting up a business in Sharjah can vary in cost. For example, in Sharjah Media City (SHAMS), it’s around AED 25,000, and in Sharjah Airport International Free Zone, it’s approximately AED 35,000. But remember, in a free zone, your business is limited to trading within the free zone or outside the country.
Is there any grace period for Sharjah trade license renewal?
Sharjah trade licenses have a 2-month grace period for renewal. After this, a fine of 200 AED per month is applicable. Renewals delayed beyond this period may also incur immigration fines for expired establishment cards and eChannel.
How Company Setup Consultants Can Assist You
Embarking on a business venture in Sharjah holds promise for budding entrepreneurs entering the UAE market. Yet, the intricacies of business setup can be daunting. This is where Company Setup Consultants step in. Our expert team guides you through the paperwork and aids in selecting the perfect office spot for your company.
To Speak with our Experienced Business Consultants for further information and assistance, call us at +971-582-595-164. Send a WhatsApp Message for Chat Query on +971 582595164 or email us at info@companysetup.ae.
