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register company in sharjah

2022-09-21
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In recent years, Sharjah has been attracting investors worldwide due to its thriving economy. Business and trade within Sharjah are highly valued by the government. Investors will find Sharjah’s rules conducive to starting a business, and there are several complies with a number of investor-friendly provisions.

When starting a business in the United Arab Emirates, business professionals must take into consideration many variables.

This guide is intended to help them understand those variables and describe the process of register company in sharjah for natives and Foreigners and also opening a company in Dubai, and getting a business logic sense in Sharjah.

Of course, feel free to visit us at the Al Balooshi office if you have any legal concerns regarding if you ever want to open a company.

Register company in sharjah

There are a number of types of companies that can be incorporated in Sharjah by an applicant:

  • Limited Liability Companies (LLC)
  • Branch Office
  • Joint Stock Companies
  • Sharjah Free Trade Zone Company

Additionally, Sharjah requires the following eligibility criteria for company registration:

  • The partnership company

A company incorporated in a non-free trade zone would require only 49% ownership when applying for company registration in Sharjah. 51% of the ownership in the company must be held by an Emirati. As a result, this type of entity cannot be owned by foreigners. Companies that are incorporated in the Sharjah Free Trade Zone may have 100% foreign ownership.

  • Capital for registration

The minimum capital required for Sharjah company registration vari, and random company to company. An LLC must have AED 150,000 in capital for incorporation.

  •  Foreigner Directors

There is no restriction on LLCs appointing foreign managers and directors, but the applicant must ensure that the foreign directors meet Sharjah’s requirements for company registration, including obtaining appropriate visas.

What is the procedure for registering a company in Sharjah?

The following procedure is required to register company in Sharjah:

  • Type of the business

In order to register company in Sharjah, applicants must first determine what type of business they want to operate. The Sharjah free zone company is the most appropriate business structure if the applicant wishes to own 100% of the company in Sharjah. On the other hand, limited liability companies in Sharjah are the right choice for applicants who desire some form of independence and control by foreign managers.

  • Emirati Sponsor

Foreign companies in the UAE must find a local sponsor. The local sponsor must own more than 51% of the company in order to qualify for membership. An amount of up to 49% of the company’s shares can be owned by the foreign company. Nevertheless, if the applicant wishes to hold 100% foreign ownership, then a free zone company would be the best choice.

  • Registering the Company in the Department of Economic Development

In order to register with the Department of Economic Development (DED), the applicant must choose an appropriate structure and find a local sponsor. In addition, the applicant may visit the Sharjah Chambers of Commerce website to register his company.

  • Application for Respective License

Once the company has been established, the applicant must apply for the appropriate license. The three types of licenses available are the Professional License, the Industrial License, and the Trade License.

  • Registration of the business name

Applicants must register their trade names after obtaining their trade licenses. An important requirement of a trading name is that it must not be from another word, must be used by the public, must not violate any rule property, and must be distinct from every other name in use.

  • Approval of the municipality

The applicant is required to obtain approval from the municipality in the next step.

  • Drafting an association contract

As part of the application process, the applicant must draft the memorandum of association, which requires valid information regarding the message completion; the applicable notary must notarize the memorandum.

  • Looking for rental space for the office

As of 2019, Sharjah’s government requires companies to hire local employees and have office space there. For applicants who require office space in Sharjah, securing office space is necessary. Once this has been completed, notarization is needed for the lease agreement.

  • Payment for the License Fees

After paying the relevant license fee, the applicant must secure approval from the Sharjah name board, which concludes the process of company registration there.

What are the Documents required to register company in Sharjah?

The following documents are required to register company in Sharjah:

  • Registration application form for a company
  • Contact information on the business card
  • A detailed copy of the business plan
  • A Memorandum of Association (MOA) that has been notarized and attested
  • The Articles of Association (AOA) must be notarized and attested
  • A copy of each partner’s passport and the business manager’s passport
  • If the partner has an existing company, the original bank references and license are required
  • The lease agreement
  • Three-month bank statements of the parent company
  • Representation power of attorney.
  • Foreign parent company’s board resolution.
  • An assessment of the feasibility of the proposed project.

We have many lawyers specializing in the legal framework of any business-related cases at Al Balooshi legal law firm.

How can I get a business license in Sharjah?

To protect consumers’ rights, Sharjah Economic Development Department (SEDD) issues and renews Sharjah business licenses to make sure the government is aware of business operations in Sharjah.

For business owners, obtaining a business license is the first step towards register company in Sharjah. Without consent, running the business is prohibited. Similarly, a business license must be renewed as needed.

Is there a difference between the different types of Sharjah business licenses?

There are three main types of Sharjah trade licenses:

  • Commercial licenses for all trading activities.
  • Professional charges for artisans, services, and craftsmen.
  • Industrial licenses for manufacturing or industrial action.

Business operation permits and entrepreneurial business licenses are two licenses that may be issued to specific businesses by the authorities.

What are the requirements for getting a Sharjah business license?

A Sharjah trade license must meet the following requirements for a business to commence operations:

  • Classify your business based on its industry, commercial sector, or professional sector.
  • The number of business activities per license should not exceed 10.
  • Select a business name.
  • Initial approval should be sought from SEDD.
  • If a trading name has not yet been registered, you should report it after it has been approved.
  • Seek approval from Sharjah Municipality to lease a space for your business.
  • Make sure the necessary documents are prepared, including a memorandum of association and approval from all relevant government agencies.
  • Apply for the business license by submitting a final submission to the Department.
  • Paying the required fees.

It is also possible to register your business trademark in the UAE during the licensing process. Dubai and other emirates are also popular destinations for companies who are successful in Sharjah.

Can a foreigner register a company in UAE?

In UAE, foreigners are required to comply with legal procedures and licenses, but the process is relatively straightforward, especially compared with the benefits they receive.

A major attraction for investors is Dubai’s wide range of business opportunities, economic activities, and project sizes, ranging from small to large. Another attraction for investors is Sharjah because you can register a company in sharjah with few complications and so many facilities to be a business owner.

As a member, you’ll be able to enjoy the following privileges:

  • Many free zones in Dubai offer tax exemptions and tax facilities for foreigners wishing to establish businesses there.
  • The strategic location of Dubai makes it an ideal place for developing projects on its land, as it sits halfway between East and West.
  • Various industrial areas as well as equipped commercial centers, business centers, skyscrapers, etc.
  • Foreign investors can establish companies in Dubai with the help of the state through various services and facilities.
  • Buildings, networks, and roads form a robust infrastructure that is constantly evolving.

To register company in Sharjah as a foreigner, what documents are required?

To establish a company legally, a foreign investor needs the following documents:

  • Form for requesting information.
  • Implementation plan.
  • If you are a local company, please provide a copy of your trade license or registration certificate.
  • Director and shareholder passports in color.
  • Form for signatures from shareholders and managers.
  • Sponsor’s certificate of no objection.
  • Financial statements for the past two years from the company’s founder and a bank’s certificate of reference.

How much does it cost to register a company in UAE?

Register company in Sharjah or the UAE, in general, requires selecting options, such as how big or small the company is, how many employees, and where the company is to be established so that you can determine the cost.

In addition to obtaining visas for employees, you must also obtain new commercial licenses for a fee. Hence, you must know the required fees.

To be allowed to reside in the UAE, employees must be sponsored and provided with the necessary visas and papers. Due to the multi-lawyers in our office of Al Balooshi law firm, we can help you with your business toto legal forms in order to protect your business.

Companies in Dubai can be established for the following costs:

  1. Commercial licenses are subject to a cost called the license to conduct business in the Dubai Free Zone.
  2. Rent or the cost of buying a new office in the location where you wish to do business.
  3. Expenses associated with the furnishing and decoration of an office.
  4. In the case of employees sponsored by your company, the cost of work permits and visas will be incurred.
  5. Depositing the minimum required capital according to your business type in a bank account in the name of the company.

The type of company also impacts; incorporation costs; for example, industrial companies are more expensive than commercial and professional companies.

Register company in Dubai

It is necessary for citizens and foreign investors to complete the following steps to start opening a company in Dubai through government departments like register company in Sharjah:

Establishing the nature of a company’s activities or business

Opening a company in Dubai begins with determining the company’s economic activity and nature of its business. Economic activity can be categorized into six types, namely:

  • commercial
  • professional
  • Industrial
  • agricultural
  • Literal
  • tourist

Plan the legal format

Company legal forms are primarily determined by the business and entity requirements. Also, it determines what activity is permitted and which laws and regulations must be adhered to.

Registration and reservation of trade names

As the trade name is required to be associated with the type of license or what it indicates, the trade name distinguishes the license from others. Also, it protects the customer from falling under suspicion.

The initial approval

Upon finishing the first steps in setting up a company in Dubai, you can obtain an initial approval, which you can use to proceed to get approval from the related entities if necessary. The General Directorate of Residency and Foreigners Affairs requires the initial approval of foreign investors.

Agreement for service agent

In certain cases, a memorandum of association may be required, and depending on the legal form of the business, a local service agent agreement may also be required.

Selection of a company headquarters

To register a company in Dubai, the fourth step is to determine the location of its headquarters, as all companies are required to have a physical address there, and to obtain the license, a rental contract certified by the Real Estate Regulatory Authority of Dubai is needed.

Approval from the authorities concerned with establishment activities

Department of Economic Development can provide information about the various approvals required for the company’s activities.

Issuing and receiving trade licenses

Dubai Economic Department’s service delivery centers issue and receive trade licenses for companies established in Dubai.

A lot of manufacturing companies from around the world are attracted to Sharjah because it is known as an industrial hub. The manufacturing industry in Sharjah accounts for over 80% of the economy.

Consequently, Sharjah is an excellent location for a manufacturing or production company. As a top 10 business destination in the UAE, Sharjah is considered easy to do business with, and there is no problem incorporating a company here for investors.

Sharjah offers free trade zones where foreign companies can own 100% of the business. As well to this, incorporating a company into Sharjah’s free trade zone can also provide you with different incentives.

There are two free trade zones in Sharjah: the Sharjah Airport International Free Zone and the Hamriyah Free Trade Zone. All this information about Sharjah makes it a very special place in the business world. You can register company in Sharjah with ease with the help of our team of lawyers in the Al Balooshi law office.


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بقلم المستشار القانوني

Legal Consultant in the office of Younis Mohammed Al Balushi. A legal Consultant with a degree in law and has many legal research and articles that have been published in the most important international fields concerned with legal affairs. Such as: - Journal of the seminar for legal studies. - International Legal Journal. - Journal of Political Science and Law. He also has several case studies and cases in different disciplines: international law, criminal law, civil transaction law, commercial transaction law, and so on.The legal advisor at Younis Mohammed Al Balushi Advocates and Legal Consultants has many years of experience and a long experience in pleading before the Dubai Courts and the various courts of the United Arab Emirates.

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