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The UAE’s popularity as a business hub has been growing day by day. All its Emirates are well-known destinations for both business and tourism. One of the most sought-after choices for entrepreneurs is establishing business in the nation’s third-largest populous Emirate. We are talking about Sharjah—home to beautiful natural landscapes, along with iconic architecture and infrastructure. To do business in this vibrant city, first you will need to obtain a trade license in Sharjah.
The process of company formation in the UAE is quite straightforward, and the same applies to Sharjah. Let us walk you through the process of obtaining a trade license in the city, along with the requirements and costs.
A trade license, also known as a business license, is an authorization/permit issued by the concerned government of Sharjah to businesses, allowing them to carry out operations in the Emirate. To secure this license, you will need to reach out to the relevant government body, submit the required documents, and fulfil the legal formalities.
As a businessperson or an entrepreneur, you get to choose from the following three main types of business licenses in Sharjah:
Businesses involved in manufacturing and industrial activities need to obtain an industrial license. For example, a packing company would require this license. Additionally, companies with an industrial license benefit from relaxations on both income and corporate tax within the free zones.
For those providing services based on expertise and qualifications, a professional license in Sharjah is a great option. For instance, an accounting firm can get this license to offer top-notch services to clients. In fact, this license also allows businesses to import tools and equipment needed for service delivery. Furthermore, such businesses in the free zones enjoy corporate and income tax exemptions.
For trading goods and services, whether inside or outside the UAE, a commercial license is required. For example, a business involved in importing or exporting products, storing goods, etc., will need to acquire this license. This license also provides exemptions on both corporate and personal income taxes.
Now that we understand what a trade license Sharjah is and its different types, the next question is: Who regulates and oversees businesses and licensing in the Emirate? As an entrepreneur, it is important to know which government body you will be dealing with.
As we know, each Emirate in the UAE has its own Economic Development Department responsible for overseeing and regulating economic activities, including business operations. In Sharjah, the Department of Economic Development (SEDD) is primarily responsible for regulating the establishment of new businesses and ventures in the city. The SEDD oversees trade licensing, issuing initial approvals for new businesses, trade name registration, and license renewals. Businesses must comply with the standards and laws set by the Department to operate legally. To ensure compliance, the SDED conducts regular inspections and monitors the operations of all businesses across various sectors in the Emirate, including Sharjah mainland.
Apart from business establishment laws, the SDED also works in close collaboration with other government bodies to foster economic growth in the Emirate and improve the business climate. They also develop specialized programs and tailor services to support small and medium enterprises (SMEs) and are extremely welcoming to new ventures.
The process to secure a trade license Sharjah does not need to be difficult. If you follow the steps carefully, it can actually be quite easy. Here is how to get trade license in Sharjah:
The first step is to choose the business activity you want to pursue. The activity you select will determine the type of UAE trade license you need to apply for and the rules and regulations that will apply to you. There are a wide range of industries to choose from, including health, retail, tech, and fashion. Select the one that aligns with your aspirations and goals.
Next, you will need to decide on the legal structure of your business. You can choose to operate as a Limited Liability Company, a sole proprietorship, a branch, a partnership, or another available option. Please note that the legal form of your company will have implications for your business’s liability, operational flexibility, and more. Make a wise decision by considering the nature and needs of your business.
Every business has a name, and so will yours. You will need to select a suitable name for your venture in Sharjah and submit a request for its registration with the SEDD. Your proposed name should comply with the naming rules of the Emirate as any violation could lead to cancellation or rejection of your application.
Next, you will need to get initial approval from the SEDD for your business. Securing initial approval involves obtaining an NOC (No Objection Certificate) from the department. This NOC is a declaration that there are no legal objections against your business in the city.
Following that, you must find a suitable office space for your business. This will also include securing the municipality’s approval and obtaining a lease contract for the chosen premises.
Some business operations require special permissions from certain government bodies. For example, healthcare and pharmaceutical businesses need clearance from the Ministry of Health, financial institutions and banks need approval from the Central Bank of the UAE, and so on. If your business requires any such approvals, make sure to obtain them on time.
After completing the above steps, the next main part is applying for the trade license in Sharjah. For this step, we recommend starting with document preparation. Gather all the necessary legal documents to ensure a smooth application process. Reach out to the concerned authority and submit the license application form along with the required documents.
While applying for the license, make sure to get the fee voucher from the department, pay the required fees, and clear any outstanding payments.
After you submit your license application, the department will review the information and documents. If everything is in order, you will receive approval for the business license. The department will assign to you the license fees, and once they are cleared, your license will be issued to you.
After receiving your license, you can apply for a business bank account, visa, and trademark registration in the UAE as needed. With the process completed, your business journey begins!
The cost of starting a business in Sharjah ranges between AED 5,000* to AED 30,000* and above. An affordable license option is available in SHAMS Free Zone, starting at AED 6,875*.
The total cost of setting up a business in Sharjah will depend on the nature of your business, your specific requirements, and other factors. For an accurate cost estimate, please contact Dubiz Business Setup.
The Sharjah trade license needs to be renewed annually. Failing to do so is considered running a business illegally and can lead to legal troubles such as cancellation of business operations, visa issues, heavy fines, and eventual blacklisting of the business. This is why it is very important to get your trade license renewed on time. Additionally, at the time of renewal, you have the option to change the business address and sponsor if needed.
For trade license renewal Sharjah, you will need to file an application for renewal with the SEDD and pay the renewal fees. After reviewing your application, the SEDD will approve the renewal and issue your renewed trade license. If the expiry date has passed by more than three months, you will need to contact the Inspection Division of SEDD.
Here are the documents and requirements for trade license renewal in Sharjah:
Trade license renewal fees in Sharjah based on how long it has been expired is as follows:
For latest information, please check official website of SEDD.
Looking for reliable Sharjah company formation? Looking to secure a new trade license in Sharjah? Stop searching! Dubiz Business Setup is your trusted partner for end-to-end company formation across the UAE. From UAE company registration to securing the license, visa, and corporate bank account, Dubiz can help you get established in Sharjah with ease. We will make sure your business starts on the right foot, complying with all UAE regulations.
Don’t let legal procedures and paperwork stress you out. Allow us to make everything easy for you!
Call us right away on +971563695485. You can WhatsApp us on the same number. Our email ID is info@dubiz.co.
To start a business in Sharjah, you would need the following documents:
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The general trading license cost in Sharjah Media City (SHAMS) can start from around AED 6,875*. However, this cost can vary based on specific business conditions. Contact our experts for accurate quotations.
To cancel trade license in Sharjah, you will need to get approval from state and federal agencies and submit documentation to relevant department. You will also need to pay cancellation fees. Cancellation of trade license in Sharjah means closure of the company and there can be several situations for the same:
To renew trade license in Sharjah, you must make an application with the Department of Economic Develpoment (SEDD) along with some documents such as filled form, NOC as needed, lease contracts, etc.
To check your license fine in Sharjah, start by visiting the Sharjah Municipality website. Scroll down to find the Business Services section. Select it and click on the Trade License Fines Payment option. Then, choose the Fine Search option, enter the required information, and click Search. Your trade license fine details will be displayed on the screen, and you can make the payment online.
Here is a quick link: Trade License Fine Check
The advantages of doing business in Sharjah include:
For any inquiry related to your trade license in Sharjah, you can visit the official website of SEDD.
