How Can You Obtain a Sharjah Mainland License For Business Setup In UAE?

Sharjah Mainland License

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You have decided to start a business in Sharjah but are unsure how to get a Mainland License for company formation. Sharjah offers a professional license that benefits everyone planning to conduct business in the local market of Sharjah and other emirates of the UAE. 

Although the process of getting a business license may look long, it is easy once you have a good outline that leads you through the steps. In this guide, we’ll take you through the fundamental procedures and conditions necessary to get a Sharjah Mainland License.

Why Is Sharjah Mainland the Best Place for Business?

Here is why one should business setup in Sharjah mainland:

  1. No Mandatory Audits

Sharjah mainland companies currently do not need to be audited, thus enabling them to allocate their extensive time and efforts to other business-related activities.

  1. Ease of Currency Regulations

There are no restrictions on using some currencies to make financial transactions in Sharjah.

  1. No Visa Limitations

It is also interesting to note that mainland UAE companies can easily increase their visa quotas so long as you have physical office space for company formation in Sharjah.  

  1. Financial Viability

Business in Sharjah mainland also has the same privileges as the free zone firms. The business on the mainland does not pay taxes and has no minimum capital.

  1. Freedom to Operate Anywhere

The Sharjah Mainland companies can conduct business anywhere across the UAE, including free zones and any global location subject to those jurisdictions permitting the trade

Types of Companies in Sharjah Mainland

In Sharjah mainland, you can establish the following types of companies based on the number of shareholders:

  1. Limited Liability Company

Sharjah mainland offers the LLC company setup with as few as two members and as many as fifty members. The liability of each shareholder with the company is limited to the amount that he has for the company’s share capital. 

Currently, the government has granted permission for company formation in Sharjah mainland without restrictions on foreign ownership. 

  1. Partnership Company

A Partnership company setup in Sharjah is a legally recognised enterprise formed by two or more associates who are jointly and legally liable for the enterprise’s liabilities to the extent of their shares in the business. 

Unlike an LLC, a partnership company cannot be formed by a foreign investor in the mainland region of Sharjah. You cannot open a partnership company unless all the shareholders are UAE nationals.

  1. Local Service Agent License Company

A Local Service Agent (LSA) Company in Sharjah can be considered a one-person mainland business since the company’s owner is a sole trader. Currently, foreign investors need to employ a UAE national as the Local Service Agent to operate within the mainland region individually. Moreover, these LSA requirements do not apply to the UAE or GCC national business owners. 

  1. Share Holding Public/Private Limited Company

Share capital in a private shareholding company in Sharjah is comprised and distributed into units of shares of equal face value, which are transferable. Every company member has only a limited liability to its share capital. Moreover, they must sign a memorandum and articles of association for securing a license and becoming the founder members.

  1. Branch Companies

Those already registered companies can now register branches in the Sharjah mainland. Companies established in the Sharjah mainland, including those with bases in UAE, overseas companies, and GCC companies, can open a branch in Sharjah’s mainland. 

If you’re confused regarding which company you should open in Sharjah mainland, take advice from Xpert Advisory. Their expert business setup consultants give the best advice on obtaining a trade license and diverse business opportunities.

How Do You Apply For a Mainland License In Sharjah?

The following five steps must be fulfilled to get business licenses in Sharjah mainland:

Step 1: Contact Xpert Advisory 

Xpert Advisory mainly procures trade licenses for foreigners and companies in Sharjah mainland. They are experienced in handling the UAE government rules. Moreover, their business setup consultants in Sharjah provide legal help for clients who want an appropriate type of business license and comply with the Sharjah rules and regulations. 

Step 2: Register Your Trade Name

For setting up a business in Sharjah mainland, you need a company name. The name you select should not be vulgar or obscene, should not contain blasphemy, or should not have any reference to either Islam or Allah. If any personal name is used, it should not be abbreviated but in full. The SEDD is responsible for accomplishing this feat. 

Step 3: Choose Your Legal Type and Business Operations

To establish a business in Sharjah, you need to follow a legal company structure which includes sole traders, limited liability companies, partnerships, and others. Your legal structure determines your company’s territorial location and the legal ability to carry out various activities on the trade license.

While applying for a mainland license, you have to choose the nature of your business  activities and the legal type of business. 

Step 4: Obtain Initial Approval

The first approval from the SEDD is the most important to initiate your mainland company formation in Sharjah. Certain documents herein require one to submit them to the SEDD as part of the requirements for approval. These are your passport, visa, business plan, leases, trade name certificates and any other documentation needed. 

Step 5: Apply For Your Sharjah Mainland Trade License

After getting the initial approval certificate for your Sharjah mainland business setup, you need to apply for a license from SEDD. This must be supported by your trade name certificate, rental agreements, the initial approval certificate, any other supporting document, and the duly filled out license application form. 

Once SEDD has approved your application and paid the license fee, you can open a corporate bank account and start the process of business in Sharjah. 

Procedure to Form a Business Entity in Sharjah Mainland

The procedures for Sharjah mainland company formation require the following documents from the Sharjah Economic Development Department: 

  • Identify business activity
  • Use a Local Sponsor/LSA if available, but not for UAE citizens subject to business activity
  • Select a proper legal type
  • Reserve a company name
  • Apply to the SEDD first before being given accreditation.
  • Obtain the respective type of license
  • A draft MoA is a legal document which suggests suitable rules for cooperation between the parties in their relationship with the project.
  • Make sure that you sign a lease agreement with space/facility for office use
  • Pay the license fee
  • Get the mainland license

Regulatory Factors In Sharjah Mainland

Some of the compliance requirements that must be met by those companies that are operating in Sharjah mainland include: 

The legal requirements, if not met, will lead to heavy fines and loss of reputation. Moreover, in extreme cases, the trade license is withdrawn. 

Final Words

Establishing a business with a Sharjah mainland license has many advantages, such as no mandatory audit, unlimited visa quota, and flexibility in terms of business operation anywhere in the UAE. Being able to work with government tender opportunities and be exempted from taxes, Sharjah is one of the fastest-growing business destinations. 

For professional business formation and industrial license approval, consult with Xpert Advisory immediately. Our specialist consultants can guide you through the process – contact us today!

FAQs

What Is The Business Setup Cost In Sharjah?

The cost of registering a business in Sharjah falls between AED 5000* and AED 30000* and above. 

What Is The Cost Of The Commercial License In Sharjah?

The cost of a Sharjah trade license normally falls between AED 5,000* and AED 10,000*. The exact fee will depend on the size of the company and the actual commercial activity to which the service relates.

This blog is intended for informational purposes only. The content is provided “as is” and we make no representations or warranties of any kind regarding its accuracy, completeness, or suitability. Any reliance on the information is at your own risk. We are not liable for any losses or damages arising from the use of this blog.

* – Fees and Costs Mentioned are for Reference Only.

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