Trade License in Sharjah: Costs & Requirements

In Sharjah, UAE’s third-largest populous Emirate, SEDD and free zone authorities (SPC, SRTIP, SHAMS, etc) carry the authority to issue trade licenses to businesses for commercial, professional, and industrial activities. Cost of trade license in Sharjah starts from AED 5,000, and many activities require additional permits, for example from Sharjah Municipality, Civil Defence, or Health authorities. 

Recently, SEDD reported that the number of business licenses issued and renewed in Sharjah rose by 2% in the first half of 2026, reaching 38,169. Investors are showing more interest in Sharjah for better cost positioning and SME-friendliness, all while being proximate to Dubai and northern Emirates. 

This comprehensive blog answers what entrepreneurs actually search for: can you operate without a license in Sharjah, Sharjah trade license types, a practical cost breakdown, free zone vs. mainland comparison, and how the renewal works. After reading this, you should be well-informed and ready to take practical steps toward business setup in Sharjah. 

Quick answer summary box:  

What is a trade license in Sharjah?

A trade license is the mandatory legal permit which you need to carry out business from Sharjah which can be within the Emirate, across UAE, or globally. It’s a document per se, generated, issued, and attested by either SEDD (Sharjah economy department) or a free zone authority in Sharjah after you submit your business plan, ID documents, and business-related documents (MoA, trade name certificate, etc). 

Important: SEDD.ae states that if you engage in an unlicensed activity or one not mentioned on your license in Sharjah, you will have to pay a fine of AED 2,000! 

Sharjah provides you two jurisdictions (regions), which are mainland and free zone, where you can set up your company. Understanding this first is important before we go further into the application process. 

Where can you get a Sharjah trade license – mainland vs free zone 

Here is a quick reference table to help you understand mainland vs. free zone in Sharjah, which jurisdiction to choose, and why: 

Who regulates the trade licensing in Sharjah? 

The regulator is Sharjah Department of Economic Development (SEDD) in mainland. 

Each Emirate in the UAE has its own Economic Development Department that regulates mainland (onshore) business. In Sharjah, the Department of Economic Development (SEDD) serves as the counterpart to DET Dubai, ADDED (Abu Dhabi), and DED of other emirates. 

SEDD regulates and issues trade licenses to Sharjah mainland companies, and: 

• Issues initial approval for new business establishments
• Looks after trade name registration
• Conducts and oversees trade license renewals
• Conducts regular inspections and monitors the operations of all businesses
• Is primarily responsible for regulating the establishment of new businesses 

SEDD does not interfere in matters of Sharjah free zones. However, the authority collaborates with other government bodies to promote economic growth in the Emirate and improve the business climate. 

Free Zone Authorities (FZAs) in Sharjah 

Each of the six (6) free zones in Sharjah has its own respective government entity that looks after business conduct, registration, and company liquidation in that free zone. Below is a brief introduction to each: 

Business approvals from sector-specific government bodies 

Depending on your business activity, you may need to get mandatory regulatory clearances before SEDD, or free zone authority issues the final trade license: 

• Sharjah Municipality: Safety, health, and zoning compliance. Lease contract attestation in mainland.
• Ministry of Health and Prevention (MOHAP): For clinics, pharmacies, healthcare facilities.
• Ministry of Education: Regulates nurseries, schools, educational consultancies.
• Sharjah Civil Defence: Fire safety and emergency compliance.
• Department of Tourism: Issues permits for cultural, event, and entertainment activities.  

For more specific assistance, please contact our Sharjah business setup experts at Dubiz Business Setup.  

What are the types of trade licenses in Sharjah? 

Sharjah offers every type of trade license which you need to carry out diverse economic activities be it from industrial space, professional services, or general commerce.  

License Type	Required for	Issued by	Example
Industrial License	Manufacturing, production, and industrial activities.	SEDD/Free Zone Authority	Food manufacture, textile factory, packaging company
Professional License	Offering services as an expert, skilled, or qualified entity.	SEDD/Free Zone Authority	Accounting firm, salon, marketing agency
Commercial License	Trading goods and services, whether inside or outside the UAE.	SEDD/Free Zone Authority	Importers, retailers, merchants
Tourism License	Hospitality and tourism-related activities. Sharjah Commerce & Tourism Development Authority (SCTDA) permit often required.	SEDD/Free Zone Authority	Travel agency, resorts, tour operator, tourism consultancy
E-Trader License	Operating home-based commercial businesses.	SEDD (mainland)	Cloud kitchen, crafting
Sharjah E-Commerce License	Selling goods via online channels such as Instagram, websites, and marketplaces (Noon, Shopify, Amazon).	SEDD/Free Zone Authority	Online store, social media seller
Instant License	Get within 24 hours without going through traditional formalities like regular licenses. Lease contract and MoA requirement waived off for 1st year.	SEDD (mainland)	Commercial and professional operations.

How to get trade license in Sharjah? 

The process to secure a trade license Sharjah involves these simple 8 steps: 

1. Select your business activity:  

The first step is to choose the business activity (2000+ options) 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. You may be able to combine up to 5 or 10 activities under single license based on what issuing authority allows.  

2. Choose a legal structure: 

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 a holding company. Each comes with its own asset – liability structure, tax obligations, and operational scope. 

3. Get your trade name registered: 

Select a suitable name for your venture in Sharjah and submit a request for its registration with the SEDD or free zone authority. Your proposed name should comply with the naming rules of the Emirate as any violation could lead to cancellation or rejection of your application. 

4. Apply for the initial approval: 

Securing initial approval involves obtaining an NOC (No Objection Certificate) from the licensing department. This initial approval is a declaration that there are no legal objections against your business in the city. 

5. Choose an office space: 

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. Free zones offer flexi desk and co working spaces.  

6. Additional government approvals: 

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.  

7. Apply for trade license: 

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 for a smooth application process. Reach out to the concerned authority and submit the license application form along with the required documents. 

8. Collect your license: 

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 process usually takes 2 – 4 weeks (or lesser in free zones). 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.  

Trade license cost in Sharjah 

The cost of starting a business in Sharjah ranges between AED 5,500* to AED 30,000*+. An affordable license option is available in SHAMS Free Zone, starting at AED 6,875*.  

What is the cost of a trade license in Sharjah mainland? 

The starting cost of a trade license in Sharjah mainland is around AED 18,999*, which includes the license fee at 13% of property rental value, MOA notarization of AED 1,500, service approval of AED 300, trade registration of AED 1,500, etc. 

How much does a trade license cost in different Sharjah free zones? 

Sharjah free zones, including SHAMs Free Zone and STRIP free zone, offer trade licenses starting at a cost of AED 5,500* – AED 5,760* without visa. It usually varies from free zone to free zone. 

The total cost of setting up a business in Sharjah will depend on the nature of your business, your specific requirements, and other factors. Costs also vary between mainland and free zone business setup in Sharjah. For an accurate cost estimate, please contact Dubiz Business Setup. 

What documents are required to start business in Sharjah? 

To start a business in Sharjah, you would need the following documents: 

• Filled business license application form
• Trade name approval
• Copies of shareholder passports, visas, Emirates ID
• Passport size photographs
• Initial approval certificate
• Copy of certified lease contract
• Trade name certificate
• Government approvals
• Additional documents as may be asked for

For more information, contact Dubiz Business Setup. 

What are the benefits of obtaining trade license in Sharjah? 

Entrepreneurs enjoy multiple advantages from getting a trade license in Sharjah, including: 

• Minimal taxes (close to 0%)
• No currency restrictions
• Flexible office locations
• Low capital requirements
• Huge customer base
• Diverse and skilled labour
• Low cost compared to Abu Dhabi and Dubai business setup. 

Trade license renewal in Sharjah 

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.  

Key fact: At the time of renewal, you have the option to change the business address and sponsor if needed. 

For trade license renewal Sharjah, here is the process: 

1. File an application for renewal with the SEDD 
2. Pay the renewal fees 
3. After review, the SEDD will approve the renewal and issue your renewed trade license.  

Trade license renewal fees in Sharjah can be 13% of office rent or minimum AED 11,000*.  

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: 

• License renewal form
• NOC from the relevant authority
• UAE passport copy
• National ID card copy
• Registered lease contract
• Copy of signature verification attested by Notary Public 

According to Sedd.ae, trade license renewal fine in Sharjah based on how long it has been expired is as follows: 

• License expiry less than 2 months: No fine
• License expiry from 2 to less than 6 months: AED 1,000
• License expiry from 6 months up to a year: AED 2,000
• License expiry for more than a year: AED 3,000

Thus, to avoid fines, renew your trade license on time. 

Start your Business Journey in Sharjah with Dubiz 

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.  

Do not 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. 

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