Difference Between Setting Up a Company in Dubai and Sharjah

Overview

When establishing a business in the UAE, choosing the right emirate plays a crucial role in determining costs, flexibility, and overall ease of setup. Dubai and Sharjah are two of the most popular locations for business formation, each offering unique advantages and challenges. While Sharjah provides lower office rental costs and more budget-friendly options for startups, Dubai offers greater flexibility in office types, trade name selection, and a more streamlined approval process.

This guide highlights the key differences in office rent, license costs, trade name regulations, setup procedures, and professional service fees to help entrepreneurs make an informed decision when selecting between Dubai and Sharjah for their business setup.

1. Dubai Sharjah Office Rental

The principal difference between opening a business in Dubai and Sharjah is the office rental. Sharjah varies in range because of affordable prices, and for start-ups, it is very economic. In Dubai, there are a lot more variations in offices depending upon the requirements, from shared offices to smart offices and the latest legally approved virtual offices.

2. License charges for Business.

In Sharjah, a license for a business costs about 13% of the office rentals and all ancillary charges included. 
In any case, going by our consultative experience within the business hub, the price difference between these two emirates is relatively a small variation factor except in rents. Because of this, however, most entreprenueurs still take their business options to Dubai owing to more available customized business settings.

3. Trade Name requirements

Sharjah requires that business names be in Arabic, while Dubai permits the use of any language, thus giving more flexibility in the name of the company.

4. Company Setup Process

The procedure for opening a business is different between Dubai and Sharjah. One of the main issues in Sharjah is getting third-party approvals if necessary, while in Dubai, it is usually much easier to get approvals.

5. Professional Fees for Company Formation

Professional service fees for company setup vary between the two emirates based on the nature and complexity of business activities. For a more detailed quote specific to your business needs, please do not hesitate to contact us.

Conclusion

Choosing between Dubai and Sharjah for company setup depends on business priorities such as cost, flexibility, and regulatory requirements. Sharjah is a cost-effective option, especially for startups looking for affordable office spaces and lower rental expenses. However, Dubai offers more flexibility in office types, trade name selection, and a smoother setup process, making it a preferred choice for many investors.

Ultimately, businesses should weigh the advantages of each emirate based on their operational needs, budget, and long-term goals. Consulting with experts can help navigate the setup process efficiently and ensure compliance with local regulations.

Arnifi – As Your Trusted Partner

Arnifi simplifies business setup, whether for holding companies or subsidiaries, by taking care of licensing, documentation, and regulatory compliance. Our expert team takes care of smooth visa processing, effective accounting and tax services, and continuous post-establishment support. Whether you opt for a free zone, mainland, or offshore setup, we assist you in navigating legal and tax obligations with ease. Concentrate on business expansion while Arnifi takes care of the rest.

Also Read – UAE Subsidiary or Holding Company | Best Locations to Register