A Guide to Getting a Trade License in Sharjah: Requirements and Process
Sharjah, the mesmerizing Emirate of UAE, has been recently witnessing a surge in the business investment. The Emirate is home to beautiful architecture and modern skylines that captures the attention of spectators. Starting a business in Sharjah is a simple process which includes some legal requirements. One main requirement is obtaining the trade license in Sharjah. Once you get the business license issued, you can confidently start your business operations in the thriving region.
In this article, you will find all the information pertaining to the business setup in Sharjah and the trade license application.
Introduction to Sharjah trade license
Like in the rest of the Emirates of UAE, in Sharjah also, you need an appropriate trade license to conduct business activities. A Sharjah trade license is an official permit issued by the economic department of the Emirate to the firms. It gives them legal permission to carry out business operations.
The Department of Economic Development of Sharjah (SEDD) is the primary body responsible for issuing the trade license and also regulates the businesses operating therein. The SEDD primarily overseas the Sharjah mainland. On freezones, there can be respective governing authority.
Benefits of business setup in Sharjah
Here are the major reasons why entrepreneurs choose Sharjah as business location:
- Strategic geographic location
- Low operational costs
- Cost effective business setup
- Pro-business policies
- Top tier freezones
- Diversity in business activities
- Significant tax benefits
- Skilled workforce available
- High quality of life
Sharjah offers a wealth of opportunities and advantages for long term prosperity of business people.
Three types of trade license in Sharjah
The Sharjah trade license is generally of three types. These broad categories cover almost every industry ranging from media, to healthcare, finance, technology and beyond. Here, have a look at the broad three types of Sharjah trade license:
Commercial business license:
For someone looking to buy, sell or trade products ad commodities, commercial license is a must. You can take example of retailers and wholesalers selling range of goods, including exporters and importers. All of them need a Sharjah commercial license for their business.
Industrial business license:
Manufacturing and industrial activities such as production, processing and assembling of products and goods will require an industrial business license. A simple example of this license holder can be a food manufacturer.
Professional business license:
Service oriented firms and individuals who offer professional services to the customers need a professional business license in Sharjah. The license holder must possess the necessary skills and qualifications in their respective fields.
Please note that it is very important to choose the right type of business license for your firm in Sharjah. All licenses are subject to their own rules and requirements. A business setup expert can offer you more guidance with respect to it.
Documents required for Sharjah business setup
Here is the list of paperwork you would need for starting a business in Emirate of Sharjah:
- Completed license application form
- Copy of valid passport
- Copy of UAE residence visa, if applicable
- Copy of Emirates ID, if applicable
- Trade name registration certificate
- Passport sized photographs
- Initial and additional approval certificates
- Office lease contract
There may be additional documents that you may be required to submit for trade license in Sharjah. For a detailed guidance, you can trust experts like Dubiz Business Setup.
Steps to get the business license in Sharjah
The process of obtaining a trade license in Sharjah is quite simple. However, be sure to follow the steps we have mentioned carefully as missing any one of these can cause unnecessary delays. Here is the process broken down:
1. Jurisdiction selection:
You can decide to operate on Sharjah mainland or in a freezone such as SHAMs (Sharjah Media Center). Each economic zone has its own benefits and what may be suitable for you depends on your business needs.
2. Business activity determination:
Decide the activities you would carry out. Now here you have to ensure that the selected activity/ies must be from the approved list of DED/respective freezone authority. There is a wide range of options that entrepreneurs can pursue belonging to various industries.
3. Legal structure selection:
You can establish a sole proprietorship, a joint stock company, a limited liability company, a partnership firm, civil company, holding company, or any other type as may be permitted in selected economic zone.
4. Trade name reservation:
Getting a suitable and appropriate name registered for your business is an important step. The name must be within the scope of UAE’s naming conventions and must not be already taken.
5. Initial approval:
Before you proceed with the application for trade license in Sharjah, seeking initial approval from the DED/respective freezone authority is a must.
6. Office space:
Of course, you would need a comfortable and facilitative office space for your business. You can rent out space, get private office, warehouses, etc., as per the size and nature of your business. For someone looking to run an online business, a virtual office may also be an option.
7. External government approvals:
Specific activities are regulated by designated government departments and to carry out those, their permission will be needed. For example, heath related businesses may need additional permissions.
8. Business license application:
Once all the permits are at place, next you must gather the documents and reach out to the concerned licensing authority for making a request for business license. For mainland, it would be the DED and in freezones, the respective authority.
9. Visa processing:
Foreigners who want to run a business in UAE need proper visas that lets them stay and work in UAE for specific period of time legally. You must apply for business visa, employee visa, as you may require.
10. Bank account setup:
Finally, a business bank account will be opened in name of company. The account can be used for making payments, for receiving payments, for keeping track of funds, for investment, for card application, and availing other financial services.
Sharjah trade license cost
The price of Sharjah trade license can be between AED 5,000* and AED 30,000*. The cost can even go beyond this. Basically, it depends on your specific business requirements and conditions.
You can get more details on Sharjah trade license cost from the experts.
Wrapping up!
It can be concluded that Sharjah is a promising region for entrepreneurs looking to start something of their own. With the presence of amazing and well-renowned free zones like SHAMS, it offers significant potential for investors and startups. Whether mainland or free zone, in each case, you need a Sharjah trade license.
You can make the business licensing process fast and hassle-free by partnering with the right consultant. Dubiz Business Setup can make the process very easy for you. With their years of experience and a team of professional experts, they assist in efficient business setup in the UAE. They provide services such as licensing, visas, business bank accounts, golden visas, tax advice, and many more, helping entrepreneurs achieve their dreams.
Get a free consultation with them today!
