How to Set Up a Business in Sharjah

Setting up a business in Sharjah, one of the seven emirates of the UAE, requires careful planning, research, and understanding of the local business environment. Sharjah, located on the eastern coast of the Arabian Peninsula, is the third-largest emirate and the only one to have land on both the Arabian Gulf and the Gulf of Oman. In this article, we will guide you through the process of setting up a business in Sharjah, including the legal requirements, types of businesses, and the steps you need to take to register your company.

Legal Requirements for Setting up a Business in Sharjah

Before you start your business in Sharjah, you need to be aware of the legal requirements. The following are the legal requirements for setting up a business in Sharjah:

• Choose the Type of Business: You can choose from various business structures in Sharjah, including sole proprietorship, partnership, limited liability company (LLC), and branch or representative office. The most common business structure in Sharjah is the LLC.
• Get a Trade Name: You need to register a trade name with the Department of Economic Development (DED) in Sharjah. The trade name should be unique and not infringe on any existing trademarks. Once the trade name is approved, you will receive a trade name certificate.
• Obtain a Commercial License: To operate a business in Sharjah, you need to obtain a commercial license from the DED. The commercial license allows you to conduct business activities in Sharjah. The DED issues three types of commercial licenses: commercial, industrial, and professional.
• Register with the Chamber of Commerce and Industry: You need to register your company with the Sharjah Chamber of Commerce and Industry (SCCI). The SCCI issues a membership certificate that allows you to conduct business in Sharjah.
• Apply for Visas: If you want to hire employees, you need to apply for visas for them. You can apply for visas through the General Directorate of Residency and Foreigners Affairs (GDRFA) in Sharjah.

Steps to Set Up a Business in Sharjah

Now that you know the legal requirements, here are the steps you need to take to set up a business in Sharjah:

• Choose a Local Partner: If you are a foreign national, you need to have a local partner to set up a business in Sharjah. The local partner should own at least 51% of the company’s shares.
• Reserve a Trade Name: After choosing a local partner, you need to reserve a trade name with the DED. The trade name should reflect the nature of your business.
• Draft the Memorandum of Association: The Memorandum of Association (MOA) is a legal document that outlines the company’s objectives, shareholders, and share capital. You need to draft the MOA and have it notarized by a public notary.
• Obtain Initial Approval: After notarizing the MOA, you need to obtain initial approval from the DED. The DED will review your application and ensure that it meets the legal requirements.
• Rent a Business Premises: To obtain the commercial license, you need to rent a business premises in Sharjah. The business premises should comply with the local regulations and standards.
• Get Final Approval: After obtaining the initial approval, you need to submit the lease agreement and other required documents to the DED. The DED will review your application and grant you the final approval.  
• Register with the SCCI: Once you obtain the final approval from the DED, you need to register with the SCCI. You need to submit the MOA, commercial license, lease agreement, and other required documents to the SCCI. The SCCI will issue a membership certificate that allows you to conduct business in Sharjah.
• Apply for Visas: If you plan to hire employees, you need to apply for visas for them. You can apply for visas through the GDRFA in Sharjah. You need to provide the necessary documents, such as passport copies, visa application form, and Emirates ID application form.

Types of Businesses in Sharjah

Sharjah offers a wide range of business opportunities. The following are the most common types of businesses in Sharjah:

• Trading: Trading is one of the most popular businesses in Sharjah. You can import and export various goods, such as textiles, electronics, and food items.
• Manufacturing: Sharjah has a thriving manufacturing industry, with companies producing goods such as steel products, plastics, and building materials.
• Services: The service sector in Sharjah is diverse and includes businesses such as consulting, advertising, and IT services.

FAQs

Q1. What is the minimum capital required to set up a business in Sharjah?

The minimum capital required to set up a business in Sharjah depends on the type of business. For example, the minimum capital required to set up an LLC is AED 150,000.

Q2. Can I set up a business in Sharjah if I am not a UAE national?

Yes, you can set up a business in Sharjah if you are not a UAE national. However, you need to have a local partner who owns at least 51% of the company’s shares.

Q3. How long does it take to set up a business in Sharjah?

The time it takes to set up a business in Sharjah depends on various factors, such as the type of business and the completeness of the application. On average, it takes around 10 to 15 working days to obtain the necessary approvals.

Q4. Do I need to have a physical office to set up a business in Sharjah?

Yes, you need to have a physical office or business premises to set up a business in Sharjah. The business premises should comply with the local regulations and standards.

Q5. What is the process to close a business in Sharjah?

To close a business in Sharjah, you need to follow the legal procedures, such as cancelling the commercial license, cancelling the visas, and settling the liabilities. You need to inform the relevant authorities, such as the DED and the SCCI, and obtain the necessary approvals.

Conclusion

Setting up a business in Sharjah requires careful planning, research, and understanding of the legal requirements. You need to choose the type of business, get a trade name, obtain a commercial license, register with the SCCI, and apply for visas if necessary. Sharjah offers a wide range of business opportunities, from trading and manufacturing to services. By following the steps outlined in this article, you can start your business in Sharjah with confidence.