LLC Company Formation in Sharjah

A Limited Liability Company (LLC) is a most preferred business structure among entrepreneurs and investors since it offers a unique blend of flexibility, liability protection, and tax advantages. Establishing an LLC company in Sharjah is beneficial as it provides 100% foreign ownership in certain sectors, a strong economy, and a business-friendly environment. LLC company formation in Sharjah involves choosing a business activity and location, securing a local sponsor, and obtaining approval from the Department of Economic Development (DED). This article gives detailed information and instructions regarding LLC Company formation in Sharjah.

Filings.ae streamlines the LLC Company Formation in Sharjah with expert assistance!!

What is a Limited Liability Company (LLC)?

A Limited Liability Company (LLC) is a well-known business structure in the United Arab Emirates (UAE), particularly well-suited for foreign investors. It offers several advantages, including limited liability protection for its owners, which meas personal assets are shielded from business debts. LLCs provide flexibility in management and profit-sharing arrangements. They can be established with a minimum of two and a maximum of 50 members, and in some cases, foreign ownership can reach 100% within specific sectors. This makes LLCs an attractive option for entrepreneurs seeking to establish a business presence in the UAE.

Benefits of Starting LLC in Sharjah

Sharjah is a suitable location for an LLC Company Formation for a variety of benefits:

• Limited Personal Liability: A core advantage of LLCs is the protection they afford to their members. Members' personal assets are shielded from liability, meaning they are only accountable for the amount they invested in the company. This financial safeguard provides peace of mind and allows for greater risk-taking in business endeavours.
• 100% Company Ownership: A recent policy shift in Sharjah allows foreign investors to hold complete ownership (100%) of commercial and industrial LLCs. Sharjah empowers foreign businesses to have full control over their operations and decision-making processes within the emirate.
• Flexible Management Structure: LLCs offer a versatile management structure. Members can choose a management style that aligns best with their needs. This flexibility enables for a more customized approach business leadership, fostering collaboration and efficient decision-making.
• Tax Advantages: Establishing an LLC in the UAE offers significant benefits, including an attractive tax regime. LLCs are not subject to corporate tax until their net profits exceed AED 375,000 (approximately USD 102,000). Even after exceeding this threshold, the corporate tax rate remains competitive at just 9%.
• Competitive Taxation: Beyond the UAE's general tax benefits, Sharjah is recognised for its competitive tax structure. This positions Sharjah as a highly tax-friendly jurisdiction helps the businesses minimzing their tax burden.
• Ease of Company Formation: The process of forming an LLC in Sharjah is streamlined and efficient. Mostly, the entire process can be completed within a few weeks, allowing businesses to become operational swiftly.
• Strategic Location: Sharjah boasts a strategically advantageous location. Its proximity to major transportation hubs like Dubai International Airport and the Jebel Ali Free Zone translates to easier access to a vast network of potential customers, suppliers, and logistical resources.
• Supportive Government: The Sharjah government actively fosters a business-friendly environment. They offer various programs and incentives designed to support and accelerate the growth and success of companies operating within the emirate.
• Affordable Costs: Operating an LLC in Sharjah is generally more cost-effective compared to other emirates like Dubai. Lower costs for office space, labor, and other operational expenses contribute to a more budget-friendly business environment.

Documents required for LLC Company Formation in Sharjah

The number of documents might differ depending on the nature of the business and other factors. However, here are the general documents you required to incorporate an LLC company in Sharjah:

• Passports and Visas: Copies of valid passports and visas for all shareholders and directors of the company. This serves as identification and verification of legal residency status.
• Passport Copies of All Shareholders: Similar to the above, passport copies are required for every individual holding shares in the LLC.
• Certified Lease Contract Copy: A certified copy of your company's signed lease agreement for the office space in Sharjah demonstrates a physical presence within the emirate.
• License Form: A completed application form for a trade license is mandatory. This form can usually be obtained from the Sharjah Department of Economic Development (SEDD).
• Company Bank Account Bank Statement: In some cases, a bank statement from the company's corporate bank account may be requested. This can serve as proof of financial viability.
• Legal Approvals: Depending on your chosen business activity, you may need to acquire additional approvals or licenses from relevant government departments in Sharjah. These approvals may necessitate specific documents related to your industry.
• Trade Name Certificate: While not always mandatory, obtaining a trade name certificate beforehand can expedite the registration process. This certificate verifies the availability of your desired business name.

Step-by-Step Procedure to Form an LLC Company in Sharjah

The following are the steps for an LLC Company Formation in Sharjah,

Step 1: Choose a Unique Business Name

Choose a unique name that suitable to your brand identity and accurately reflects your business activity. You can check the availability of your chosen business name using the Sharjah Department of Economic Development (SEDD). 

Step 2: Choose a Business Location

It is essential to decide whether to set up your business in the Mainland or the Freezone, as this will impact your business setup and operations.

• Mainland: These companies can operate anywhere within Sharjah and the UAE. They offer greater flexibility in business activities but involve a more complex and potentially expensive setup process.
• Free Zone: Free zones offer benefits like tax exemptions, 100% foreign ownership (for specific activities), and simplified procedures. However, free zone companies may be restricted to conducting business within the designated free zone area. Some popular freezones in Sharjah are Sharjah Airport International Free Zone (SAIF Zone), Hamriyah Free Zone, and Sharjah Media City (SHAMS).

Step 3: Register your Business and Get a Trade License

Complete your application form and submit it along with all the required documents. Sharjah Department of Economic Development (SEDD). The SEDD will review your application. Once approved, you'll receive a trade license, signifying your LLC's official registration in Sharjah. Depending on your chosen business activity, you may require additional licenses or approvals from relevant government departments. 

Step 4: Open a Corporate Bank Account for Financial Transactions

Select a reputable bank and open a corporate account in the UAE to receive payments and make payments for your LLC. 

Step 5: Secure Office Spaces and Premises

Depending on your business needs, secure a physical office space that complies with local regulations and requirements for your chosen business activity. Finalise a lease agreement with the landlord, outlining all terms and conditions.

Step 6: Visa and Employee Registration

Once your LLC is operational, you can apply for residency visas for your employees. When hiring and sponsoring employees, ensure you follow the UAEâ??s labour laws and regulations.

Sharjah LLC Company Formation Cost

The cost of setting up an LLC company in Sharjah can vary depending on several factors. These include the type of business you plan to operate, the size of your company, and whether you choose to set up in the Sharjah mainland or a free zone. Each location has its own set of fees and regulations. On top of the core license fees, there are additional costs to consider such as business name reservation, bank account opening, and potentially legal fees.

Conclusion

Forming a Limited Liability Company (LLC) in Sharjah offers several benefits for entrepreneurs and investors, including limited liability protection, 100% foreign ownership in certain sectors, and a competitive tax environment. The process involves choosing a business activity and location, obtaining necessary approvals, and completing registration steps. Sharjah's strategic location, supportive government, and affordable operating costs make it an attractive location for LLC formation.

Get expert help from Filings.ae to form your LLC in Sharjah effortlessly!!