Steps to Acquire Sharjah Mainland License

Overview

The license to set up a business in the mainland of Sharjah is an important step in having a presence in the UAE’s lively business environment. The Sharjah Economic Development Department offers various license types, including Commercial, Professional, and Industrial, which are tailored to specific business activities. It requires several essential steps, including choosing a business activity, finding a local sponsor, registering a trade name, and obtaining the required approvals.

Understanding the associated costs, including government fees, sponsorship charges, and office rental, will allow for better financial planning. A Sharjah mainland license also has many benefits, including access to a wider market, a more favorable tax structure, and growth and expansion opportunities. Continue reading to learn about the process, costs, and benefits of obtaining a Sharjah mainland license and how it can lead to successful company formation on the mainland.

Types of Licenses in Sharjah Mainland

An understanding of the different types of licenses available would be the primary step for most businesses opening operations in Sharjah Mainland. The SEDD, or Sharjah Economic Development Department, provides the main types of licenses. Mainland licenses will provide greater freedom to conduct businesses in any corner of the UAE when compared to the free zone license.

Commercial License

If your business is trading goods, then you need a Commercial License. This license allows you to import, export, and sell products within the UAE and internationally. It is best suited for businesses dealing with physical goods and looking to tap into Sharjah’s thriving local and global markets. Its versatility makes it a popular choice for traders and entrepreneurs.

Professional License

Service-based business is suitable with the Professional License. The Professional License is a perfect one for persons or organizations who offer technical services such as consultancy, legal consultancy, and others. This ensures that you operate within the legal scope while presenting your skills and qualifications in Sharjah Mainland.

Industrial License

If you’re planning to manufacture or assemble products, an Industrial License is essential. This license covers activities like production, packaging, and selling of finished goods. It’s the go-to option for businesses setting up factories or production units in Sharjah, offering the legal framework to operate efficiently. The first step to starting your business in Sharjah Mainland is choosing the right license. Each license is designed for specific activities, ensuring that your business runs smoothly while staying compliant with local laws.

Steps in Getting a Sharjah Mainland License

Getting a Sharjah Mainland license is a simple process, but it has various important steps to be considered. The license that is provided by the Sharjah Economic Development Department, or SEDD, lets one operate freely across the mainland; this can be more flexible compared to free zones. This is a very simple breakdown of how it can be obtained below

1. Choose Your Business Activity

First, define what your business will do. Sharjah divides business activities into three categories: Commercial (trade of goods), Professional (services, such as consultancy), and Industrial (production). You can put up to ten activities under one license, so think about everything your business will offer.

2. Find a Local Sponsor

If you are not a GCC national, you will require a local sponsor. This sponsor – be it an Emirati individual or company – will own 51% of your business shares. Don’t worry; this does not mean they will take 51% of your profits. Instead, they act as your partner, helping you navigate local regulations. The right choice of sponsor is very important because they will play a big role in your business.

3. Register Your Trade Name

Next, pick a unique trade name that represents your business. Make sure it follows the SEDD’s naming rules and isn’t already in use. Once your name is approved, you’ll get a trade name reservation certificate, which you’ll need for the next steps.

4. Get Initial Approvals

Following registration of your trade name, apply for preliminary approval from the SEDD. Depending on the nature of your business activity, you might need to seek approvals from other government agencies. For instance, a financial business needs clearance from the UAE Central Bank, while a manufacturing business needs approval from the Ministry of Industry.

5. Document Preparation and Submission

Gather all necessary documents, including the passport or Emirates ID for all shareholders, and ensure all company details are accurate. Memorandum of Association (MOA): It is a paper that describes your company’s formation, shareholder’s role, and aims. It needs to be written in Arabic language and notarized. Business Location: It should be done at a location that is approved by the SEDD.

6. Final Approvals

Upon preparation of the documents, the same should be submitted to the concerned authorities seeking final approval, which includes checking the MOA, registration of the company, and ensuring fulfillment of all other legal and regulatory requirements.

7. Get Your License

You are now good to go; all things are in place, and you get your license to begin your operations here in Sharjah Mainland. Thus, if you have taken care of these steps carefully, then you will have successfully started your business here in Sharjah Mainland.

Why Choose a Sharjah Mainland License?

A Sharjah mainland license offers businesses numerous advantages, making it a preferred choice for entrepreneurs and companies looking to grow in the UAE. Here’s why:

1. Access to a Larger Market

With a mainland license in Sharjah, you don’t get tied to the location of a free zone. You can go about anywhere in the UAE. That way, you will get to interact directly with a large base of clients all over the Emirates. Also, you are open to bids for lucrative government and semi-government projects, opening avenues for much higher growth. 

2. Tax-Friendly Environment

Sharjah can be attractive business-wise, through its business-friendly tax policies such as no income tax on employees and no income tax on all companies unless defined otherwise. Profits and capita can also fully be repatriated giving that much-needed free movement of capital, which provides a good breathing space, especially with foreign investors.

3. Ability to Expand

A mainland license allows you to locate your office anywhere in Sharjah, which makes it easier to access your clients. You can also expand your business by opening branches in other emirates without restrictions. In addition, with no minimum capital requirement and over 1,000 activities to choose from, starting and scaling your business is more accessible than ever.

4. Enhanced Credibility

Operating under a mainland license in Sharjah enhances business reputation. Also, being within the mainland structure of the UAE allows you to build strong network relationships with various local and international companies, with which you create partnerships and collaborating relationships. Such a physical presence also strengthens one’s credibility towards banks, facilitating better financial services such as loans. Additionally, the mainland companies can sponsor employee and family visas, thereby indicating stability and a long-term commitment to the region.

Key Takeaways

A Sharjah mainland license offers businesses the flexibility to operate from anywhere in the UAE, along with access to lucrative government projects. It provides a tax-friendly setup with no personal or corporate tax for most sectors, making it an attractive option for entrepreneurs. The license also enables easy scalability and business expansion while enhancing trust and credibility for your brand. Whether you are a startup or an established enterprise, this license equips you to thrive in one of the Gulf’s most dynamic economies. Thinking of launching your business in Sharjah? Arnifi is your one-stop solution!

About Arnifi

We’re a digital Corporate service provider helping companies enter the Middle East region, starting with the UAE and Saudi Arabia markets. Founded and backed by professionals from Amazon, Souq, and other large companies operating in KSA – the team understands what it takes to succeed as a startup in both UAE and Saudi Arabian markets, apart from going through the setup process multiple times. Arnifi will provide a truly digital experience for the entry and scale-up of companies in both UAE and Saudi Arabia. Discover tailored solutions and strategic partnerships that propel your business forward. Check out at – www.Arnifi.com for more details.

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