About Sharjah Mainland company Formation
Sharjah is a prominent business hub and attracts substantial foreign investment annually. It is one of the fastest growing emirates in the UAE and accounts for 45% of all business revenue in the country. The government of Sharjah recognizes the importance of economic and business activity therefore has many favorable policies to promote commercial activity and foreign investment. The emirate has one of the most liberal economies with a fair and efficient judicial system. The business environment in Sharjah focuses on service, trading, and manufacturing. Forming a mainland company in Sharjah provides a broad range of access and business activities to its investors. Mainland companies can operate anywhere in the UAE and internationally. They can easily expand and diversify their operations. The flexibility to adapt and grow a business is one of the significant reasons why investors are attracted towards mainland company formation in Sharjah.
Advantages of company formation in Sharjah
- Infrastructure – State of the art infrastructure that supports economic development.
- The emirate has international banks and a modern effective communication system making company formation and operation easy
- Resilient financial market – No foreign No exchange controls, quotas, or trade barriers.
- Access – Mainland company set up gives you the freedom to operate anywhere in the UAE and internationally.
- Opportunity to expand – Setting up a mainland company allows investors to grow their business in the future. Mainland companies can apply for unlimited visas and open new office locations.
- Type of business activities – Mainland companies can conduct business throughout the UAE on a range of business licenses.
- Tax exemption– Mainland companies are exempt from corporate and income tax.
- Can take up lucrative government contracts and bid on government projects.
Types of licenses for Mainland company set up Sharjah
Commercial licenses – Covers all trading and market activities. Businesses involved in real estate, construction, retail, and transport require this type of license.
Industrial licenses – Required for conducting production and manufacturing activity.
Professional licenses – Required by businesses that provide a professional skills-based service.
Steps for Mainland company set up in Sharjah
There are various steps involved in mainland company formation in Sharjah such as navigating through government approvals, registration, and license requirements. LegalWorks can assist in each step to make the process easy and straightforward for business owners.
1. Choose a business activity.
This is an important first decision and determines the type of license needed by the company. Our team of experts will take you through the licenses available and help you choose the one best suited to your needs.
2. Choose your company structure.
There are many legal structures a Mainland company set up in Sharjah can take, such as LLC, sole proprietorship, civil company, and branch. We will assist you in choosing the company structure that is in line with your business activity.
3. Choosing a tradename
UAE has certain rules and restrictions regarding the trade name of a company. It is essential to check with the Department of Economic Development regarding the permitted trade names to prevent any unforeseen setbacks. A general list of rules regarding trade name are:
- The name must not violate the public morals or the public order of the country
- The name must be followed by the legal form of the company, for example (LLC)
- The name should not have been previously registered
- The name should be compatible with the type of activity and legal status
- Trade name should not contain names with religious significance, or governing authority, or logos of any external bodies.
4. Obtain Initial Approval
Companies must obtain initial approval from the Department of Economic Development (DED). The Sharjah Chamber of Commerce & Industry also works alongside the Department for company set up. The initial approval is an important document that conveys that the UAE government has no objection in establishing the business. Foreign investors also need the approval of the General Directorate of Residency and Foreigners’ Affairs before they can get the initial approval.
Our team will assist you in the collection of the required documents for approval which include passport copy, No Objection Letter from your sponsor and a business plan.
5. Get external approvals
Many government institutions work in tandem with the Department of Economic Development to issue a business license. These include the Ministry of Interior, Ministry of Economy and Local health departments. Depending on the nature of the business activity approval from these institutions is also required.
6. Get your license
This is the final step in the incorporation process. Obtaining a license requires the submission of the license application documents and legal documents. These include
- Initial approval receipt and all the previously submitted documents
- Duly attested memorandum of association
- Approvals from other government entities concerned
- Shareholder details and passport copies
At LegalWorks, our experts will assist you in every stage of the business set-up process. This includes determining the type of license and business structure, regulations compliance, selection of the right Mainland company set up plan, acquiring your visas and leasing your office space. We will guide you from start to end in the incorporation process
Cost of setting up a mainland company
|Initial approval||AED 335|
|Trade name approval||AED 700|
|Foreign trade name approval||AED 2000|
|License registration fee||AED 600|
|commercial license||AED 10,000 and above|
|Establishment card fee||AED 1000|