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Growing Economy
Sharjah is a booming economy and a favourite destination for foreign investors including many from Germany. Sharjah Mainland is the best option for German entrepreneurs due to its business friendly government, full foreign ownership in many sectors, strategic location, strong connectivity, affordable lifestyle and wide investor benefits.
Strategic Location
One of Sharjah’s biggest advantages is its international airport and access to key seaports on both western and eastern Arabian Gulf coast. This strategic location offers direct trade routes to North Africa and Indian Ocean, making Sharjah a smart hub for German exporters and industrial businesses looking to expand.
Business Setup
Business setup in Sharjah Mainland is regulated by Sharjah Department of Economic Development (SEDD). It offers a long list of pre-approved business activities. While Sharjah is known for its industrial zones, commercial and professional licenses are also available. German investors planning manufacturing or trading setups can rely on Flyingcolour® for end-to-end support.
Sharjah Mainland provides people who want to start a business on the Sharjah mainland with exclusive tax benefits. The emirates can offer 0 percent corporate tax to the foreign investors operating companies on the Mainland if their annual taxable profits fall under AED 375,000*. The fiscal benefit makes it an appealing destination for entrepreneurs seeking to enhance their profit and reinvest for their business growth.
Understanding the legal framework is necessary for any business setup, and Sharjah mainland adheres to the laws and regulations of the UAE. The Department of Economic Development (DED) regulates economic activities and licenses businesses in Sharjah. Compliance with local laws ensures the smooth and lawful operation of companies in the emirate.
The business landscape in Sharjah is characterized by its welcoming and supportive business environment. The government has implemented numerous policies to attract foreign investors and boost economic growth. The streamlined method of setting up a business in Sharjah mainland represents the ease of performing business, making it a hassle-free manner for entrepreneurs.
Sharjah’s strategic location benefits people who want to set up Business in Sharjah Mainland. Between Dubai and the Northern Emirates, Sharjah is a gateway for trade and investment. Its proximity to significant ports and airports boasts easy access to the global market, making it an ideal location for business and foreign investors.
It is integral to understand the local culture and business etiquette to develop successful business relationships in Sharjah. Respect for local customs, traditions, and values boosts a positive business environment. Networking and creating connections with local partners can contribute to the success of a company in Sharjah.
Limited Liability Company Limited Liability Company (LLC) can be developed in Sharjah with at least two or a maximum of 50 shareholders. Each shareholder’s liability toward the business is limited to the extent of their shares within their capital. The government has been allowed to start an LLC Business in Sharjah with complete foreign ownership from June 2021. Moreover, the government has scrapped the previous requirement to have a UAE national as a local sponsor with 51 percent of shares in the business.
Partnership Company A partnership company is another legal entity to Setup Your Company in Sharjah Mainland. This type of company is formed with the partnership of two or more partners. The company partners are liable to the extent of their shares to the company’s liabilities. Unlike an LLC, a partnership company cannot be formed by foreign investors. All the shareholders of a partnership business must be UAE nationals.
Local service agent/Sole proprietorship A Local service agent or Sole proprietorship is another legal structure for setting up a business in Sharjah Mainland. This company type is managed by a single owner. However, if a person does not have a GCC or UAE national, it must be backed by a local sponsor.
Public/Private Shareholder Company Share capital is divided into tradable shares of equal value in the shareholder company. Each partner of the business has just limited liability to their share capital. The rules of Public Joint Stock Companies apply to a private shareholding corporation in Sharjah. Members who sign the memorandum and articles of association are considered the founding members of the company.
An industrial license is necessary for people planning to conduct manufacturing or industrial activities. This license is essential for entrepreneurs to conduct activities, like manufacturing, mining, quarrying, and activities related to electricity, oil & gas, and more.
Businesses involved in trading require a commercial license to start a business in sharjah mainland. This license allows business people to conduct activities like distribution, consolidation, storage, warehousing, and import and export of specified goods. Furthermore, it additionally allows you to begin your e-commerce business.
A professional license is given to professional people who provide professional services for their company. This license lets people perform a skill in which they are professional. Consultancy, management consultancy services, and all other professional services come under the scope of a professional license in sharjah mainland.
Board resolution for international companies
Lease agreement
Feasibility report of the project
Application for business registration in Sharjah
A copy of the business plan
Power of Attorney
Bank reference letters, if applicable
Duly confirmed & notarized MoA and Articles of Association (AOA)
Passport copies of all partners and managers
Determine the type of business you want to perform to set up a Business in Sharjah.
Assign a local sponsor or LSA if applicable
Determine an appropriate legal structure
You should choose the trade name and register it with the relevant authority.
Prepare a Memorandum of Association (MOA) and notarize it.
You should get initial approvals from DED.
According to the type of business activity you plan, apply for approvals from the municipality, the ministries, and departments, as needed.
You should rent or lease an agreement for official and commercial space with the company owner. It must be verified by the competent authority.
Get approval from the Ministry of Labour for the recruitment of staff.
Submit the required documents.
Pay the cost and license fee of setting up in Sharjah mainland.
Get the license and begin a business.
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Setting up a business in the UAE can be an overwhelming experience for the uninitiated but we can make this job truly easy for you. Talk to our expert consultants for free & decide the best course of action for yourself, today.
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