Sharjah is on the move. It has become a prime business destination due to its strategic location, diverse economy, and thriving sectors, including trade, manufacturing, tourism, and education. On top of that, companies benefit from business-friendly policies, including 100% foreign ownership and tax exemptions in free zones, efficient licensing procedures, affordable operational costs, and well-developed infrastructure. So, starting a business in Sharjah offers exciting opportunities for entrepreneurs and investors alike.
This guide covers the steps involved in setting up a business, the different types of licenses you can get in Sharjah, the many benefits of obtaining a business license in Sharjah, and the documents you’ll need to get started. Whether you’re a first-time entrepreneur or an experienced investor, we will help you navigate Sharjah’s business landscape with confidence.
Let’s start with a step-by-step guide to help you gain entry to this hub for business growth and innovation.
How to get a business license in Sharjah: step-by-step
Obtaining a business licence in Sharjah is a vital step for entrepreneurs looking to establish their presence in one of the UAE’s most business-friendly emirates. The process ensures that your business complies with local regulations and is officially authorised to operate. While the requirements may vary depending on the nature of your business and the jurisdiction you choose (so it’s always worth speaking to a company formation specialist), the steps below are straightforward when approached systematically.
So, let’s run through the five key steps to obtain a business license in Sharjah:
Step 1: Define your business activities: Start by identifying the specific activities your business will undertake. The Sharjah Economic Development Department (SEDD) provides an approved list of activities, from which you can select up to 10. These activities will determine the type of license you need and any additional permits required. Being precise about your business scope ensures compliance with regulations and prevents delays in the licensing process.
Step 2: Choose your legal structure: Select the legal framework that best suits your business needs. Common options in Sharjah include:
- Sole proprietorship: Ideal for individual entrepreneurs managing the business entirely on their own.
- Partnership: Suitable for businesses with two or more owners sharing responsibilities and profits.
- Limited Liability Company (LLC): A popular choice for businesses looking to limit personal liability, where ownership can be shared between individuals or entities.
Your choice of structure affects ownership rules, liability, and operational regulations, so it’s essential to consult with experts and research thoroughly before making a decision.
Step 3: Select a business name and obtain initial approval: Choose a unique and memorable name for your business, ensuring it complies with UAE naming regulations. The name must not include offensive language or reference religious, political, or controversial terms. Once you’ve decided, submit the name along with details of your business activities and legal structure to the SEDD for initial approval. This step is crucial, as it confirms your business is eligible for registration and ensures the chosen name is reserved for your use.
Step 4: Secure office space: Sharjah regulations require businesses to have a physical office. Lease an office space that meets the requirements of the Sharjah Municipality. Factors such as location, accessibility, and compliance with zoning laws should be top of mind. An approved tenancy contract is a mandatory document for the licensing process, so ensure the office space aligns with the needs of your business.
Step 5: Submit your application and pay fees: Complete your business license application by submitting all required documents to the SEDD. These documents typically include:
- Initial approval certificate
- Tenancy contract
- Copies of passports, visas, and Emirates IDs for all shareholders
- Pay the applicable fees, which vary based on your business type and activities.
Once your application is approved and fees are settled, you will receive your official business license. This document authorises you to legally operate your business in Sharjah and marks the final step in establishing your venture.
Types of business licenses in Sharjah
Sharjah offers a variety of business licences tailored to different industries and activities, ensuring that businesses operate within the legal framework of their specific sectors. Choosing the right licence is crucial, as it determines the scope of your operations and the regulations you must follow. It’s crucial not to make a mistake here.
Here’s an overview of the main types of business licences available in Sharjah to help you identify the one that suits your needs.
- Industrial License: This license is required for businesses involved in manufacturing, processing, packaging, assembling, or fabrication activities.
- Commercial License: Designed for trading activities, this license covers areas such as import, export, general trading, and e-commerce.
- Professional License: This license is issued to service-based businesses in fields such as teaching, law, medical services, and consultancy. Examples include business, management, marketing, IT, design (excluding engineering), HR, tourism, event management, health and fitness, sports, and many more.
- Other licenses: In addition, Sharjah authorities may issue special licenses like Business Operation Permits or Entrepreneurial Business Licenses.
Benefits of starting a business in Sharjah
Starting a business in Sharjah has a lot of advantages, with the emirate offering a wide range of benefits that help foster growth and success. Here are some of the key advantages of establishing your business in Sharjah.
- Mainland flexibility: Businesses registered in Sharjah mainland can operate across the UAE, including with government entities, offering broad market access and growth opportunities.
- 100% foreign ownership: Recent legal reforms allow full foreign ownership of mainland and free zone businesses, eliminating the need for a local sponsor and making Sharjah more attractive to international investors.
- Free zone tax advantages: Sharjah’s free zones offer 0% corporate and personal income tax, along with exemptions from import, export, and re-export fees, providing cost-effective solutions for global businesses.
- Business-friendly infrastructure: Both mainland and free zones feature easy licensing processes, low start-up costs, and access to essential facilities like business centres, warehouses, and land plots, ensuring smooth operations.
- Strategic location and market access: With free zones near major transport hubs and Sharjah mainland granting access to the UAE’s dynamic market, businesses benefit from excellent logistics and expansive potential for growth.
Documents required for a business license in Sharjah
Let’s now look at what you need to get ready ahead of time. To obtain a business license in Sharjah, you will need to provide the following key documents:
- Trade Name Approval Certificate – Proof that your business name has been approved by the relevant authorities.
- No Objection Certificate (NOC) – If applicable, to confirm no objections to the proposed business.
- Tenancy Agreement – A contract for the physical office space approved by the Sharjah Municipality.
- Shareholder documents – Copies of passports, visas, and Emirates ID for all shareholders.
- Any additional documents specified by the relevant authorities for your business type.
Consulting with professional business setup advisors can ensure your documents are properly attested and submitted to the appropriate departments efficiently.
As always, check with a company formation expert who can ensure your documents meet the requirements to ensure smooth and efficient processing.
About Worldwide Formations
Since 2008, Worldwide Formations has been a trusted provider of corporate advisory services, offering tailored solutions for entrepreneurs and businesses looking to establish or expand in the UAE. With expertise in all aspects of business setup in Dubai and the wider UAE, we are an officially registered agent across all major jurisdictions, including mainland and free zones in the UAE. Our clients span 90 countries, and we deliver bespoke services that address operational, financial, and legal requirements across a wide range of industries.
From obtaining trade licenses to company registration, visa processing, and ongoing compliance, Worldwide Formations offers comprehensive support to ensure a smooth and efficient setup tailored to your specific needs when obtaining a business license in Sharjah. Contact us today, and let us help you achieve your business goals.
