Getting the Business license in Sharjah is a crucial step for working legally there and entering the market. If you don’t know how to get it, you should know there are some steps you should follow first.
Sharjah is one of the top destinations of the United Arab Emirates because it offers excellent opportunities for inversion. For this reason, is you want to carry out business in there you should have a license.
In this article, you’re going to learn everything you need to know to obtain this crucial permit so you can open your company or new branch in this promising place in the UAE. Let’s observe:
- What is the process for getting a Business license in Sharjah?
- Why do you need a business license?
- Which are the types of licenses available in Sharjah?
- What are the types of legal entities you can establish in Sharjah?
- What are the requirements to obtain a business license in Sharjah?
- Which documents do you need to process the business license?
- How can you get the business license?
- How can you renew your business license?
- Why can Connect FZ help you to set up your business in Sharjah?
1. What is the process for getting a Business license in Sharjah?
One of the steps you should follow for your Business setup in Sharjah is getting the proper license. If you’d like to set up a company, open an office, open a new branch of your business, or set up any of the legal entities allowed in this place, you must have a license to operate there.
When it comes to company formation in a Free Zone, Sharjah might be a great option for you. However, it’s important to be well-informed about everything you need to do so you know exactly what to expect.
1.1 What are the advantages of Sharjah as a business place?
Although there are many Free Zones where you can set up your business, Sharjah has many benefits to offer you. Some of the advantages of choosing this place are the following:
- It’s a tax haven
- You’ll get 100% tax exemption for your business activities of import and export
- You can have 100% ownership of your business
- The authorities offer lucrative governmental incentives
- It has a solid communication infrastructure within their wide offer of local and foreign banks
- You won’t have to worry about foreign exchange control
2. Why do you need a business license?
You need to have a Business license in Sharjah if you want to work there legally. It’s a mandatory requirement established by the institutional authorities that regulate the place.
In addition, every commercial, professional and industrial business should be legally registered. So, if you want to offer your products or services in Sharjah, you must have a company and a business license,
Let’s observe some of the following reasons about why you should own a license:
- It will help you get more clients and customers both in the UAE and internationally
- You can offer your professional services or products legally
- It helps you start your professional practice in order
In the UAE there are my Free Zones available where you can set up your company, particularly in the Northern area. Sharjah is one of those that could be the perfect for your business but there are many others from where you can choose.
3. Which are the types of licenses available in Sharjah?
Before starting your process for getting the Business license in Sharjah, you need to know which type of license you need. Since there are four types of trade license you should determine which one suits best for your business.
3.1 Commercial license
The commercial license is aimed for those businesses that are going to perform all kinds of trading activities. In this is included all the export and import activities too. If your business is looking for sell goods or any kind of product you need to have this document to operate legally in Sharjah.
3.2 Professional license
The professional license covers all kind of professional services carried out by skilled or qualified people. It usually refers to specific jobs like technical, consulting, health, and many more services.
3.3 Industrial license
The industrial license in Sharjah is for those businesses that carry out manufacturing or industrial work. This kind of license is aimed for those companies that have a warehouse or any facility where they carry out their activities.
3.4 Tourism license
The tourism license, as it name says it, is for those businesses dedicated to the tourism sector like hotels, travel agencies and more. If your business is related to any tourism-related activity then this is your kind of license.
One of the special locations in the UAE to set up your business is Sharjah Airport International Free Zone. There are many advantages by opting for this place but you need to know the process you should follow to open your business here.
4. What are the types of legal entities you can establish in Sharjah?
After you define your industry and the type of license you need, you must choose what kind of legal entity you’d like to establish in Sharjah. Hence, it’s important to know which one of them you want to set up.
- Limited Liability Company (LLC): It’s a company formed with a minimum of 2 and a maximum of 50 members.
- Partnership Company: It’s only available for UAE nationals.
- Local Service Agent License or Business Partnership License: It’s managed by one person. It’s aimed for those who want to run a business or carry out a professional economic activity.
- Foreign Company Branch: For an outside business wanting to open a branch in the UAE
- Local Company Branch: For a business situated in the UAE wanting to open a branch
- GCC Company Branch
- Public/Private Shareholding Company: A company with shared capital
When you set up a company you may face several challenges that you were not expecting. For this reason, it’s important to understand everything related with this process. If you’d like to know more about how to set up a company in Sharjah you have to continue reading.
5. What are the requirements to obtain a business license in Sharjah?
Keep in mind that for obtaining the license you must carry out the Business setup in Sharjah. These two processes go to together but you need to comply with some requirements before applying for the license.
5.1 Trade name
It’s important to have a business plan so you can define everything properly. Some of the things you have to do are the following:
- Decide your business category (commercial, professional, industrial or tourism)
- Define your business activities within your license
- Select your trading name and register it
- Define the legal incorporation type
5.2 Office space and lease agreement
Another important requirement to get the license is having an office space. You should sign a lease agreement since it’s a crucial document you must submit when you apply for the license.
5.3 Special permits and approvals
Once you define your business category, you should know that depending on your type of business you may require approval from certain authorities. For example, manufacturing companies should get an approval from the Ministry of Finance and Industry.
Make sure to obtain all the necessary approvals from the relevant government authorities that are mandatory for your business.
Keep in mind that your license has a validity time, so when it’s the time you should carry out the Sharjah trade license renewal online.
6. Which documents do you need to process the business license?
Once you know the requirements, the next step for getting the Business license in Sharjah is gathering all the necessary paperwork. There are several documents you should process before applying for the license and which you must submit with the application. Some of these are the following:
- Memorandum of Association
- Approval from the Ministry of Economy
- Approvals from authorities that apply to your business
- Tenancy contract (certified copy)
- Lease agreement
- Ownership certificate
- Partnership contract
- Personal documents of the shareholders: passport, visa, residency, etc.
- Trade name certificate
- No-objection letter
- Bank letter or balance sheet to demonstrate company’s capital
Depending on the type of business you’re going to set up, you may be requested to submit additional documents like the National ID, family book or any other. For this reason, it’s important to be aware of everything your business needs based on its category.
The Ajman Free Zone is another great location to set up your business. It’s a place that attracts several investors because it offers several benefits. It’s another option you can consider for your business expansion.
7. How can you get the business license?
Beginning the process to set up your company in the UAE is part of processing the license. Once you have started and you have several documents you should gather them for your application.
Let’s observe the steps you have to take to submit your application to get your Business license in Sharjah:
- Get the licensing form signed by all the owners and shareholders
- Gather all the required documents and approvals
- Go to the Department of Economic Development (DED) to submit your documents along with the application form
- Pay the required license fees
- Get the trade license from the Chamber of Commerce and Industry
As you can see, it’s not too much trouble to get the license. The hard work is obtaining the documents and complying with the requirements to set up your business.
Once you get your license, you must continue the process of company formation in Sharjah, which are necessary to start operating in this place. Your license it’s a crucial step, but it’s not the end, so continue with the process to get the legal status to offer your products or services in the UAE.
Keep in mind that depending on the type of license you want to receive the process may vary. For this reason, you should know which one is the right one for your business before you start the process.
8. How can you renew your business license?
It’s important to carry out the Sharjah trade license renewal online once a year. It’s important to do it if you want to continue operating in the UAE. Once your business starts growing, you need to continue working in the UAE to increase your revenue.
It’s important to be aware of each time you should renew your license so you don’t miss it and you can continue operating without any worries. If you would like to get some help, here in Connect FZ we can provide you the knowledge and expertise you need to have all your documentation and renew your license.
9. Why can Connect FZ help you to set up your business in Sharjah?
In Connect FZ we’re focused on helping every business owner that wants to enter the UAE market. Hence, our team of specialist will work with you to assist you in each step of your business setup in Sharjah or any other Free Zone.
We will guide you from start to finish and we will provide strategic advice so you can select the best option that suits your needs. You won’t have to worry about anything because we will be readily available to help you.
Would you like to contact Connect Free Zone to help you process the Professional License in Dubai? You can call at +971 433 166 88 or send an email to email@example.com , and you’ll talk to one of their representatives that will gladly answer all of your questions.