Mainland Business Setup in Sharjah
The Emirate of Sharjah is a popular trade and economic hub of the UAE. Sharjah is blessed with deep water ports (Port Khalid, Hamriyah Port, Khorfakkan Port and Khalba Port) that are very actively used for cross-border trade activities. So, for entrepreneurs looking to establish a goods trading company, import export company, consulting and services company the Sharjah mainland is an ideal choice.
The mainland company formation process in Sharjah will allow entrepreneurs to establish their company and be part of the growing business ecosystem. The Sharjah Economic Development Department (SEDD) is the licensing authority for administering the mainland company operations in the region.
Key Benefits of Sharjah Mainland Company Formation
Sharjah is one of the major logistics and trade corridor of the UAE. It is also an important cultural centre of UAE. There are various tourist and cultural sites in the Emirate alongside the large industrial areas where there are a lot of small and large manufacturing centres.
So, the business landscape of Sharjah is expanding and is one of the key markets contributing significantly to the growth of UAE. The export and re-export segment, used car and spare parts, carpets and furniture, garment production, metal parts and fabrication services, retail sector, cafeteria, etc., make up the Sharjah's business ecosystem.
There are following advantages for the entrepreneurs in setting up a company in the Sharjah Mainland.
- Cost effective company formation when compared to Dubai
- Wide range of business activities available for entrepreneurs to start their business
- Wide variety of business infrastructure availability - office space, retail space, warehouses, manufacturing units, industrial areas
- Trade License issued by the Sharjah Economic Development Department (SEDD)
- Industrial areas, 4 Sea Ports and 1 International Airport contribute significantly to the trade economy (passenger and goods movement to and from other countries)
- Availability of cheaper labour and staff accommodation
- Mainland Companies can add staff depending on the rental office area (per.sqft)
- Bank Account opening guidance from Sharjah Islamic Bank, RAK Bank, etc.
Types of Business Licenses in Sharjah Mainland
The main three business license types in Sharjah Mainland is the Commercial, Services, and industrial. Across the 3 business licenses categories the entrepreneurs can start their mainland company in Sharjah at a low cost. There are several business activities that the entrepreneur can choose to setup the mainland company in Sharjah.
Commercial License
The Commercial License category is a popular business license category in the mainland of Sharjah. For a new company to start selling goods, import items, sell equipment, spare parts, start a cafeteria, saloon, etc., the Commercial License is the ideal legal document to conduct business.
Entrepreneurs can get 100% foreign ownership and the business consultants can help them obtain the Commercial License at ease. Also, seeking the assistance of business consultants will help in getting a low-cost office setup and trade license at the earliest.
Services License
The Services License in Sharjah Mainland will help in conducting services related to consulting, marketing, accounting, IT services, and more. Having a Services License will help the business owners to establish a services company in the mainland of Sharjah. There Services License in the Sharjah Mainland is a cost-effective option to establish and scale up a services company easily in the region.
Industrial License
The Industrial License is required for establishing small and large industrial units in Sharjah. The main advantage of having a factory in Sharjah is the low-cost land or infrastructure availability and availability of low-cost labour. The industrial area of Sharjah has many large and small factories manufacturing several goods.
Types of Companies in Sharjah Mainland
There are few popular Company Structures in Sharjah Mainland that business owners can opt for based on the number of shareholders and nature of their business. The Business Consultants in UAE will assist entrepreneurs to choose the right company structures.
The following are the popular Company Structures available in Sharjah Mainland in UAE.
Limited Liability Company.
The Limited Liability Company is the most popular company structure in Sharjah Mainland. The business owners can form a limited liability company and the shareholder's liability towards the company is limited to the extent of their share in the capital. There is 100% foreign ownership, and the business owner can choose their desired business activity and form an LLC Company in the Sharjah mainland.
Sole Proprietorship
Sole Proprietorship or single owner company is a type of company structure where the company is registered under the company owner's name. There are many professional services that can be carried out under a sole proprietorship company.
The business in entirely owned by the individual and business and owner share the same legal entity. It is a popular choice among consultants, legal professionals, etc.
Public/Private Shareholding Company
There are large public-private shareholding companies in Sharjah that are formed with national interest. These companies conduct large scale business activities such as Agriculture poultry farming, wind energy, energy management, steel and cement manufacturing, tele-communication, etc. Also, these companies have tradable shares in the stock market.
Branch of UAE Mainland Company in Sharjah
The companies based in Dubai or any other emirate in the UAE can start a branch in Sharjah mainland. Also, foreign company branch and GCC based companies can also open a branch in Sharjah mainland. Business Consultants can guide the business owners with the right documentation.
There are attestation of the parent company documents and preparation of a board resolution required for setting up a branch company in the Sharjah Mainland. Additionally, the company’s board resolution, memorandum of association, etc., must be counter attested by the UAE embassy and submitted to SEDD to issue the branch company License.
Documents Required
For starting a company in the mainland of Sharjah, the business owner must submit the following documents.
- Duly filled in company formation application form
- Passport copies of all partners and managers
- Photograph of all shareholderss
Steps in Setting up a Mainland Company
The process of setting up a company in the mainland of Sharjah is the follows. The steps are in line with the Sharjah Economic Development Department (SEDD) guidelines. Business owners can easily setup their company in the Sharjah Mainland by following the below steps.
- Choose the right business activity and company structure
- Select a Trade Name for the new company and fill out the application form
- Apply for the initial approval with SEDD
- CReview the draft for Memorandum of Agreement (MoA) (AURION will prepare and send for approval)
- Prepare the lease agreement for the office space/facility (AURION will help prepare the lease agreement)
- Submit the documents (MoA draft, Lease Agreement) for review to SEDD
- Make the fee payment to obtain the Trade License
Compliance Requirements
Companies operating in the Sharjah Mainland has to comply with the UAE regulations such as Ultimate Beneficial Ownership (UBO), Anti-Money laundering, Corporate Tax registration. They must adhere to the compliance regulations even if they are planning for closing the company.
Failure to compliance may lead to heavy fines and revocation of trade license. So, business owners must get in touch with expert business consultants and ensure they company is in good standing.
Corporate Tax Applicability
The Corporate Tax applicability for a Sharjah mainland company is 9%. New Companies that are formed in the mainland must register for corporate tax within 3 months from the incorporation.
Connect with our expert Business Consultants for corporate tax registration on time to avoid any delays and penalty.
