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Setting Up a New Business in Sharjah Mainland

Company formation in Sharjah Mainland

Sharjah, one of the seven emirates of the United Arab Emirates (UAE), offers a favorable environment for entrepreneurs to establish their businesses.

Start Your Business in Sharjah Mainland

Sharjah, one of the seven emirates of the United Arab Emirates (UAE), offers a favorable environment for entrepreneurs to establish their businesses. The emirate’s strategic location, robust infrastructure, and business-friendly policies make it an attractive choice for both local and international investors. LLC company formation & business setup in sharjah mainland  can be an exciting endeavor with numerous opportunities, but navigating the process can seem overwhelming without proper guidance. Nestled along the coast of the Arabian Gulf, Sharjah Mainland stands as a testament to the harmonious coexistence of tradition and progress in the United Arab Emirates. As one of the seven emirates, Sharjah holds a distinct position, valuing its heritage while embracing modernity.

While rooted in tradition, Sharjah Mainland has not shied away from embracing economic diversification and modern development.

The emirate has strategically nurtured industries such as manufacturing, trade, and services to reduce its dependence on oil revenue. Sharjah’s Hamriyah Free Zone and Sharjah Airport International Free Zone have attracted international businesses, facilitating trade and investment.

Advantages Of Business Setup In Sharjah Mainland

1. Strategic Location

Sharjah’s mainland is strategically positioned, providing easy access to major markets in the Middle East, North Africa, and South Asia. Its proximity to Dubai and other emirates further enhances its connectivity.

2. Diverse Economy

Sharjah boasts a diverse economy with thriving sectors such as manufacturing, trade, tourism, education, and healthcare. This economic diversity can provide a range of opportunities for various types of businesses.

3. Infrastructure and Connectivity

The emirate offers well-developed infrastructure, including modern road networks, ports, airports, and communication systems. This infrastructure facilitates efficient business operations and seamless connectivity.

4. Business-Friendly Environment

Sharjah has worked to create a business-friendly environment by streamlining procedures, reducing bureaucracy, and enhancing government services. The emirate’s commitment to supporting businesses contributes to a smoother setup process.

5. Cultural and Heritage Appeal

Sharjah is known for its rich cultural heritage and commitment to preserving its traditions. This can be advantageous for businesses in sectors such as tourism, arts, and cultural exchange.

6. Cost-Effective Setup

Setting up a business in Sharjah mainland can often be more cost-effective than in some other neighboring emirates. The costs associated with licenses, permits, and real estate can be competitive, making it attractive for startups and small businesses.

7. Access to Skilled Workforce

The emirate is home to a skilled and diverse workforce, with a strong focus on education and vocational training. This can be advantageous for businesses seeking talented employees.

8. Stable Political Environment

The United Arab Emirates (UAE) in general, including Sharjah, offers a stable and secure political environment. This stability provides a sense of confidence for businesses looking to establish a presence in the region.

9. No Personal or Corporate Income Tax

Sharjah mainland offers the advantage of no personal or corporate income tax, which can significantly impact a company’s financial planning and profitability.

10. Flexible Business Structures

Entrepreneurs have the flexibility to choose from various business structures to suit their needs, including sole proprietorships, partnerships, and limited liability companies (LLCs).

11. Access to Free Trade Zones

While Sharjah mainland has its advantages, businesses can also benefit from access to the emirate’s free trade zones, which offer specific incentives

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Register Your Business Setup In Sharjah Mainland | LLC Company Formation in UAE

Forming an LLC in Sharjah mainland involves several steps, and it’s important to adhere to the regulations and procedures set by the local authorities. Here’s a general overview of the process:

1. Business Activity Selection

Choose the type of business activity you intend to conduct. This is a critical step as it determines the licenses and permits you’ll need.

2. Choose a Local Sponsor

For mainland LLC formation, you’ll typically need a UAE national (sponsor) who will hold a 51% ownership in the company. This sponsor is often a silent partner and does not actively participate in the business.

3. Trade Name Reservation

Select a unique and appropriate trade name for your company. The name must reflect the nature of your business and follow UAE naming guidelines. You’ll need to get this name approved by the Department of Economic Development (DED).

4. Initial Approval

Submit the required documents, including a proposed Memorandum of Association (MOA), to the DED for initial approval. The MOA outlines the business activities, ownership distribution, and other relevant details of the company.

5. Lease Agreement

You’ll need to provide a lease agreement for a physical office space in Sharjah. The location of the office should be in a commercial or industrial area, depending on your business activity.

6. Capital Requirements

The minimum capital requirement for LLC formation can vary depending on the business activity. While there used to be a mandatory minimum capital requirement, many Emirates, including Sharjah, have moved away from this requirement in recent years. Instead, the capital requirement might be symbolic.

7. Notarize the MOA

Once the initial approval is obtained, the MOA must be notarized at the Notary Public Office in the Emirate of Sharjah.

8. Obtain Approvals and Licenses

Depending on your business activity, you might need additional approvals and licenses from relevant government departments or authorities.

9. Obtain a Commercial License

Once all approvals are in place, you can apply for a commercial license from the DED. This license allows you to legally operate your business in Sharjah.

10. Register for Employees

Register your company and its employees with the Ministry of Human Resources and Emiratisation (MOHRE) to comply with labor laws.

11. Register for VAT

If your business’s annual turnover exceeds the mandatory threshold, you’ll need to register for Value Added Tax (VAT) with the Federal Tax Authority.

To Know the Exact Set of Documents required to set up your company in Sharjah Mainland, talk to our business setup experts in Sharjah.

Frequently Asked Questions

An LLC (Limited Liability Company) is a common business structure in Sharjah mainland. It requires a UAE national sponsor holding 51% ownership, while the foreign investor holds the remaining 49%.

Advantages include access to a larger local market, ability to bid for government contracts, and a wider range of business activities compared to free zones.

Yes, with a mainland license, you can conduct business not only in Sharjah but also across the UAE

The timeline can vary based on factors such as the type of business and the completeness of your documentation. It usually takes a few weeks to a couple of months.

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