Company Formation in Sharjah
With a most important location in the Middle East, affordable real estate, business-friendly laws, and new infrastructure &facilities, Sharjah is the desired destination for business owners. Sharjah is a hub to a great number of companies in the UAE; and numbers of businesses have set up here from scratch; or quite a lot of businesses have expanded in this region in form of regional hubs. A Company formation in Sharjah is something you must discover.
The Sharjah Economic Development Department is the foremost government authority that lay down guidelines on company formation in Sharjah. Companies are classified as
- Limited liabilities company
- Partnership company
- Local services agent or business partnership
- Foreign company branch registration
- Local company branch registration
- GCC company branch registration
- Public-private shareholding company registration
How to start a company in sharjah
Ahead of company formation in Sharjah overseas investors will must satisfy the requirements of the UAE Companies Law. The stages to register a company in Sharjah are:
- Put a Sharjah company registration application with the Department of Economic Development,
- draft the company’s memo of association,
- acquire the trade license,
- file for an establishment card with the Ministry of Labor,
- register staff with the Ministry of Labor.
Our experts in Dubai can sketch the MOA for company formation in Sharjah.
Sharjah Company registration
Each and every kind of company differs from each other in conditions of ownership patterns, licensing & registration procedures, and necessary documentation.
- Sharjah Company registration as a Limited liability Company; it is a kind of company in which the number of partner must not be more than 50; and must be less than 2. The legal responsibility of the partners is equal to the shareholding. In case there is a UAE national partnership, the ownership should be at least 51%
- Partnership Company formation in Sharjah; this is fundamentally for UAE nationals only; the partnership company will be between two or more than two persons; and they are accountable to the degree of their shares to the company’s liabilities.
- Local service agent: These are creature companies that are manage by one person only. The task can be running all business or specialized economic activity; and the owner tolerate all the financial for fear that the owner is not a UAE or GCC national; then there should be a local service individual who has to be a UAE. Local service agent should be a normal and not a legal entity/ representative.
- Opening foreign company branch in Sharjah; this is relevant in case an overseas company opens a branch abroad.
- Local company branch: this is relevant in case concerned party desires to open a branch of a company in other emirates.
- Public-private Shareholding Company: A public shareholding company is a company with shared funds divided into equally valued trad-able shares. A private shareholding company, on the other hand, it is subject to policy pertaining to public joint stock companies.
Advantages of company formation in Sharjah
- Being an emirate of the UAE, Sharjah levies no business income tax; value added tax, withholding tax, import/export tax or investment gains tax. additionally, our customers wishing to move to Sharjah will not be obligatory to pay any personal income tax;
- While there is a condition for UAE nationals to hold at least 51% stake in the company, the revenue/loss distribution can be determined by our customer. Also, there is no minimum share capital obligation for a limited responsibility company in the UAE;
- Sharjah’s free zones offer customers quite a lot of incentives including i) 100% foreign ownership ii) full repatriation of capital iii) exemption from taxes and custom duties iv) access to quality infrastructure. The well-liked free zones in Sharjah include the Hamriyah free zone and the Sharjah International Airport Free Zone. For further information, kindly pass on to our UAE free zones page;
- Sharjah is a famous industrial center, producing 48% of UAE’s industrial productivity. Furthermore, the town also ranks among the top 10 cities for business in the Gulf area. Hence, our customers may find it beneficial to setup a manufacturing company in the city;
- Sharjah’s strategic position near the African and European continents makes it an ideal place for setting up trading company. Furthermore, this joined with the UAE’s first-class infrastructure, makes Sharjah an ideal place for offering product distribution services;
- Company formation in Sharjah will furthermore benefit from massive government subsidies offered to the energy and utilities segment. Statistically, the government bears 70% of the price of electricity and water usage. As a result, it will be comparatively economical for a company searching; that is to invest in the Middle East to prefer Sharjah as their base of operations;
Documentation required for Sharjah Company registration
The documents necessary are more or less similar for above types of company with slight changes between different categories.
Largely speaking, however, the following documents require to be submitted to Sharjah Economic Development Department
- A legitimate copy of passport and national ID in case of UAE national
- In case of national from oversees, a no objection certificate, copy of passport and copy of visa or residence is mandatory.
- Duly filled license form
- Branding certificate
- In case of technical evaluation is required than a report should be submitted
- Official approvals, if any
- Contract of partnership properly attested by a notary
- Lease copy
- Legal affairs approval
- Property certificate if existing
- Approval from the ministry of economy
- Billboard and other branding designs
- Meeting minutes of the board of directors to open a branch (applicable in case of company branch registration from abroad)
- Authenticated copy of the memorandum of association of the company
- Finally, a copy of the feasibility study on the business undertaking is required.
All sort of commercial licenses are valid for a period of 12 months; following that they have to be renew yearly.
Trade names and license procedures for Sharjah Company registration
Registering a trade name for your company is essential; as it has to be match with the kind of business activity you want to pursue. You need to make sure that trade name which you chosen; should not be already book by any other investor; and also it does not violate the instructions as well as conditions. You have to also have alternate trade names in order of preference,
You need to submit the whole set of documents to DED; Our team can help you with the same.
Permits requires for company formation in Sharjah
There are some permits that business owners may require to apply for their business processes. E.g. warehouse permit is necessary for a license issued inside or outside Sharjah.
The process for warehouse permit begins with filling out the license form. After that, you have to book an appointment with a concern section for assessment; and a subsequent approval of the location. Approval from civil Defense is obligatory to proceed further. The lease should be authenticated and certified. Then you may proceed to accomplish approval from government authorities pertaining to the kind of business activity. Finally, permit fee should be paid to the licensing department post that you will receive your permit.
There are a lot of Opportunities in Sharjah; and also there are plenty of information share by the local government to help you with Sharjah company registration. However, we do realize that there are many procedures to be followed starting from licensing to permits to setup business in Sharjah. Our consultants are expert in the company formation in Sharjah; and facilitate many owners to setup successfully in this region. We provide to all international investors and business owners willing to expand or initiate their business in the UAE.
If you are interested and willing, contact us today.