If you plan to establish your company in Sharjah, you will need to obtain a trade license, which grants you permission to conduct business operations in the emirate. The Department of Economic Development (DED), in collaboration with the Chamber of Commerce and Industry, is the governing body responsible for overseeing and regulating the licensing procedures in Sharjah.
It’s important to note that specific economic activities may require approval from relevant Ministries and other governmental authorities. For example, banks and financial institutions need permission from the Central Bank of the UAE, while insurance companies and related organizations require approval from the Ministries of Economy and Commerce, Finance and Industry, and Health, respectively.
Obtaining a trade license is a crucial requirement for starting a business in the United Arab Emirates, including Sharjah. The DED and other relevant authorities ensure compliance with the licensing procedures to facilitate smooth business operations in the emirate.
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Types of General Trading Licenses in Sharjah
In Sharjah, there are three main categories of general trading licenses available:
- Commercial License: This license is applicable to a wide range of activities and allows businesses to engage in commercial trading operations.
- Professional License: This license is specifically designed for individuals in protected occupations, artisans, service providers, and craftspeople who offer professional services.
- Industrial License: The industrial license is required for businesses involved in manufacturing and industrial operations.
Apart from these three categories, there are also other unique licenses available in Sharjah. These include business operation permits and entrepreneurial business licenses, which are granted under specific conditions and requirements.
Requirements for Obtaining a General Trading License in Sharjah
To ensure compliance with legal requirements and maximize commercial benefits, it is important to follow these steps when obtaining a general trading license in Sharjah:
Step 1. Determine Business Category:
Choose the appropriate business category for your company, which can be commercial, industrial, or professional, depending on the nature of your business activities.
Step 2. Identify Commercial Activities:
Identify the specific commercial activities that fall within your chosen business category. Each license allows for up to 10 commercial activities to be listed.
Step 3. Legal Status:
Select the suitable legal status for your company in the Emirates. This may involve establishing a sole proprietorship, partnership, or a corporate entity.
Step 4. Company Name:
Choose a suitable and unique company name that complies with the naming regulations and guidelines set by the authorities.
Step 5. Prepare Documentation:
Gather and prepare the necessary paperwork, which may include memorandums of association and any required permissions from relevant government agencies. The specific documentation required can vary based on the business activities and legal structure.
Step 6. Pay Fees:
Ensure that the required fees for the license application and processing are remitted as per the regulations.
Reasons Why Sharjah is a Great Place to Launch a Business
Launching a business in Sharjah offers several advantages that make it an attractive choice for entrepreneurs. Some of the key benefits include:
- Repatriation of Profits
- Tax and Customs Benefits
- Strong Infrastructure and Networking Opportunities
- Superior Storage and Industrial Facilities
- Growing Business Opportunities
Business Structures in Sharjah
When establishing a business in Sharjah, the type of business structure you choose will determine the specific paperwork and requirements you need to fulfill. The common business structures in Sharjah include:
#1. Limited Liability Company (LLC):
An LLC company Formation is a popular business structure where the liability of shareholders is limited to their share capital. It requires at least two shareholders and allows for a flexible management structure.
#2. Partnership:
This structure involves a partnership agreement between two or more individuals who share the profits and losses of the business. Partnerships can be general partnerships or limited partnerships, depending on the level of liability each partner assumes.
#3. Branch of a Foreign Company:
Foreign companies can establish branches in Sharjah to conduct business operations. The branch operates as an extension of the parent company and must comply with local regulations.
#4. Branch of a Local Company:
Local companies in the UAE can also establish branches in Sharjah. Similar to a branch of a foreign company, the branch operates under the authority of the parent company.
Regardless of the business structure, there are common requirements to obtain a trade license in Sharjah, including:
a). Choosing a Business Name:
Selecting a unique and appropriate name for your business that complies with the naming regulations and guidelines set by the authorities.
b). Submitting Additional Paperwork:
Depending on the type of business structure, additional documentation may be required. For example, a branch of a foreign company may need verified documents from the UAE Embassy in the relevant Gulf State and the UAE Ministry of Foreign Affairs.
For public and private shareholding firms, there are additional criteria and documentation to be fulfilled according to the Commercial Registry Act and its rules.
What is the cost of a Sharjah Trade Licence?
The cost of obtaining or renewing a trade license in Sharjah varies based on several factors, including the type of license, the nature of the business, the ownership structure, and other relevant criteria. To obtain a more accurate estimate of the cost, it is recommended to contact the Sharjah Economic Development Department directly. They will provide specific details and guidance regarding the fees associated with your particular business setup.
For more comprehensive information and assistance regarding the cost of a Sharjah trade license, it is advisable to consult with a business formation advisor or professional who can provide personalized guidance tailored to your specific requirements.
How can I get my trade license renewed?
To renew your trade license in Sharjah, you need to follow these steps:
- Gather the Required Documents: Collect the necessary paperwork for the license renewal process. This typically includes:
- Renewal application form for Sharjah trade license.
- Copies of passports or UAE National ID of the company’s owners or partners.
- Photocopies of family books for UAE citizens.
- Lease contract or tenancy agreement for the business premises.
- Submission of Documents: Submit the completed renewal application form along with the required documents to the relevant authority. In Sharjah, this is typically done through the Sharjah Economic Development Department or the relevant free zone authority if you are operating within a free zone.
- Payment of Renewal Fees: Pay the applicable renewal fees as specified by the licensing authority. The fee amount may vary depending on the type of business, license category, and other factors.
- Review and Approval: The submitted documents and renewal application will be reviewed by the authorities. If everything is in order, the trade license will be renewed for another year.
- Collection of Renewed License: Once the renewal is approved, you can collect your renewed trade license from the respective licensing authority. It is important to keep the renewed license in a safe place and display it prominently in your business premises as required by the regulations.
It is recommended to initiate the trade license renewal process well in advance before the expiration date to ensure a smooth transition and uninterrupted business operations. You may also consider seeking assistance from a business consultant or professional service provider who can guide you through the renewal process and ensure compliance with all requirements.
Company Setup Assistance for Obtaining a Sharjah General Trading License
If you are looking to obtain a general trading license in Sharjah and take advantage of its thriving business climate, the experienced team at Company Setup Consultants can provide valuable assistance. Our knowledgeable business setup advisors are well-equipped to guide you through the process of starting a business and applying for a general trading license in Sharjah.
We understand the intricacies involved in setting up a company and can offer comprehensive support tailored to your specific business project. Whether you need guidance on the licensing procedure, documentation requirements, or other aspects of starting a business in Sharjah, our team is here to help.
To benefit from a free consultation and explore how we can support you in launching your business, don’t hesitate to get in touch with us today. We are eager to assist you in making your business venture a success in Sharjah!
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.
