Sharjah, one of the seven emirates of the UAE, is fast becoming a top choice for entrepreneurs and investors. With its strategic location, business-friendly environment, and growing economy, Sharjah offers countless opportunities for business growth. If you’re considering setting up a business in this dynamic emirate, this guide will walk you through the key steps, benefits, and options available.
Why Choose Sharjah for Your Business Setup?
- Strategic Location: Sharjah is strategically positioned, connecting the East and West, with easy access to both regional and international markets. Its proximity to Dubai is beneficial for businesses as they can enjoy Sharjah’s cost advantages with Dubai’s infrastructure.
- Cost-Effective: Compared to other emirates, Sharjah offers competitive costs for business licenses, office space, and living expenses. This makes it an attractive option for entrepreneurs looking to minimize overheads while maximizing profit.
- Investor-Friendly Policies: Sharjah’s government has implemented several investor-friendly policies, including streamlined business setup processes, minimal bureaucracy, and 100% foreign ownership in Free Zones.
Business Setup in Sharjah: Mainland vs Free Zone
For setting up your business in Sharjah, there are two options to choose from: Mainland or Free Zone. Each comes with its own set of advantages, depending on your business needs.
Sharjah Mainland: To conduct business throughout the UAE you need to establish a Mainland business that can offer you the freedom to do so. The recent amendments to UAE laws now allow 100% foreign ownership for most business activities in Sharjah Mainland, eliminating the need for a local sponsor. This option offers greater flexibility in business activities and access to a wider market, including federal and local government contracts.
Sharjah Free Zones: Sharjah boasts several Free Zones, including Hamriyah Free Zone and Sharjah Airport International Free Zone (SAIF Zone), and many others, offering 100% foreign ownership, 0% corporate and income tax, and no import/export duties. Free Zones are ideal for businesses focused on international trade, manufacturing, or media. However, business activities may be restricted to within the Free Zone unless you collaborate with a local distributor.
Types of Business Licenses in Sharjah
There are different types of licenses that you can apply for depending on your business in Sharjah:
- Commercial License: Required for businesses involved in trading activities, including import/export, wholesale, and retail.
- Industrial License: Necessary for businesses engaged in manufacturing, processing, or industrial activities.
- Professional License: For businesses offering professional services like consulting, legal, or IT services.
- Freelance Permit: Ideal for individuals working independently in fields such as photography, writing, or graphic design.
Steps You Can Follow to Set Up Your Business in Sharjah
- Choose Your Business Activity
Identify the specific products or services you’ll offer. Ensure your activity aligns with Sharjah’s regulations. - Select Your Jurisdiction
Decide whether to establish your business in the Mainland or a Free Zone, based on your business needs and goals. - Choose a Legal Structure
Select a suitable business structure such as a Limited Liability Company (LLC), Free Zone Establishment (FZE), or Sole Proprietorship. - Register Your Business Name
A unique name that is compliant with regulations of Sharjah and available to use as per the Department of Economic Development (DED) is necessary. - Prepare Your Documents
Gather required documents, including passport copies, a business plan, and NOCs (if applicable). - Apply for a Business License
Submit your application to the SDED or the relevant Free Zone authority and pay the necessary fees. - Secure Office Space
Lease or purchase office space as per your business needs. The size of your office may affect the number of employee visas you can obtain. - Open a Corporate Bank Account
A business bank account in Sharjah is necessary to manage your business finances and grow your business. - Complete Visa Procedures
Apply for visas for yourself, your partners, and your employees as required.
Cost of Business Setup in Sharjah
The cost of setting up a business in Sharjah varies depending on the business structure, number of visas, and location (Mainland or Free Zone). Mainland licenses generally start from AED 12,000, while Free Zone setups might have different cost structures. Additional costs may include government fees, office space rent, and visa processing fees.
Start Your Business Journey Today
Setting up a business in Sharjah is a smart choice for entrepreneurs looking to tap into the UAE’s thriving economy. Whether you choose the Mainland or a Free Zone, Sharjah offers a strategic location, cost advantages, and a supportive environment for business growth.
For a hassle-free business setup in Sharjah, consider consulting with PRO Smart Business Services. Our experts can guide you through the process, handle all the paperwork, and ensure compliance with local regulations, allowing you to focus on growing your business.
Ready to start your business in Sharjah? Contact PRO Smart Business Services today and let us help you turn your vision into reality.
