Business Setup in Sharjah Mainland

Sharjah Mainland, a thriving business hub in the UAE, offers entrepreneurs an ideal environment for starting and expanding their ventures. Governed by the Sharjah Economic Development Department (SEDD), this jurisdiction provides business-friendly regulations and an array of benefits that attract investors from around the world. With proximity to international airports, major seaports on the Arabian Gulf, and direct access to North Africa and the Indian Ocean, Sharjah is perfectly positioned to facilitate global trade.

At Filings.ae, we specialize in making the process of setting up a business in the UAE simple, seamless, and efficient. If you’re looking to establish a business in Sharjah Mainland, you’re in the right place. Our expert team has in-depth knowledge of the legal and procedural requirements, and we’re here to guide you through every step, from licensing and compliance to setting up your corporate bank account.  

Start your business in Sharjah Mainland effortlessly with Filings.ae!

What is Sharjah Mainland?

Sharjah Mainland is one of the UAE's fastest-growing business hubs and the third-largest Emirate after Dubai and Abu Dhabi. Known for its favourable business environment, Sharjah Mainland provides a strategic location with easy access to major global markets, including North Africa and the Indian Ocean. The city is home to several key industries, including manufacturing, education, healthcare, and logistics, making it an ideal location for diverse business activities.

Sharjah Mainland’s cost-effective setup, investor-friendly policies, and quality of life make it a prime destination for foreign entrepreneurs and established companies looking to expand. Additionally, it offers benefits such as 100% foreign ownership, zero personal and corporate taxes, and unrestricted repatriation of profits and capital.

Why Sharjah Mainland is the Ideal Business Hub?

Setting up a business in Sharjah Mainland offers a range of strategic advantages that make it an attractive option for entrepreneurs and established businesses alike. Here’s why Sharjah Mainland stands out as a perfect business hub:

No Mandatory Audits

Sharjah Mainland businesses aren’t required to undergo mandatory audits, freeing up time and resources to focus on growth and core operations.

Ease of Currency Regulations

Sharjah allows the use of various currencies without restrictions, making international transactions and financial dealings more accessible and flexible.

No Visa Limitations

UAE mainland companies in Sharjah can easily expand their visa quotas based on available office space, simplifying employee expansion as businesses grow.

Financial Viability

Sharjah Mainland companies enjoy tax exemptions and no minimum capital requirement, similar to free zone benefits, making it an economically attractive location.

Freedom to Operate Anywhere

Businesses in Sharjah Mainland are free to operate across the UAE, including free zones and international markets, allowing greater flexibility and market reach.

Stronger Market Presence

Mainland companies can establish physical offices throughout the UAE, helping them build a local presence, develop customer relationships, and enhance market visibility.

Ability to Work with Government Bodies

Sharjah Mainland companies can bid on government contracts, providing access to high-value projects that offer significant growth and revenue opportunities.

Sharjah Mainland’s supportive business environment, strategic location, and flexible regulations make it an ideal hub for businesses looking to thrive in the UAE and beyond.

Also read:  Can I Start a Business in the UAE Mainland Without Physical Office Space?

Regulatory Body for Sharjah Mainland Company Registration

As mentioned above, The Sharjah Economic Development Department (SEDD) is the regulatory body overseeing business operations in Sharjah Mainland. SEDD is responsible for issuing business licenses, regulating economic activities, and ensuring that all businesses adhere to local laws and standards. Through SEDD’s guidance, Sharjah Mainland has developed a reputation as a safe, stable, and transparent business environment, attracting investors from around the globe.

Types of Sharjah Mainland License

Choosing the right legal structure is essential to comply with UAE regulations and support your business needs. Here are the available options:

Limited Liability Company (LLC)

An LLC is a popular choice in Sharjah Mainland, providing:

• Limited liability for shareholders
• 100% foreign ownership for many business activities
• Flexibility in operational scope across the UAE

Our experts help you set up an LLC seamlessly, handling all regulatory requirements, documentation, and registration processes.

Partnership Company

Partnership Companies are structured for UAE nationals. Key points include:

• Full local ownership
• Equal liability based on ownership shares
• Suitable for joint ventures and local business partnerships

Local Service Agent License / Sole Proprietorship

This entity is ideal for foreign professionals who require a local service agent. It provides:

• Exclusive ownership for the foreign investor
• Representation by a UAE national as a local service agent
• Ideal for freelancers and single-owner service providers

Our team assists you in navigating the legal framework for this setup, ensuring compliance with UAE laws.

Public and Private Shareholding Companies

This structure allows companies to raise capital through the sale of shares. Features include:

• Limited liability based on shareholding
• Availability to raise funds through public or private share sales
• Best suited for large businesses intending to expand rapidly

Branch Companies

Already established companies can expand to Sharjah Mainland by setting up a branch. This structure provides:

• Ability to operate as an extension of the parent company
• Full access to the local market without a separate legal entity
• No restrictions on ownership or scope of business

Whether you’re a foreign company or a GCC-based firm, we can facilitate your branch registration for seamless entry into the UAE market.

Documents Required for Business Setup in Sharjah Mainland

When setting up a business in Sharjah Mainland, specific documents are required to complete the registration and licensing process. These include:

• Application form for business registration
• Copy of the business plan
• Notarised Memorandum of Association (MoA) and Articles of Association (AoA)
• Passport copies of partners, shareholders, and managers
• Power of Attorney (if applicable)
• Bank reference letters (if required)
• Board resolution for foreign companies
• Lease agreement for office space
• Feasibility report (for industrial licenses)

Our team at Filings.ae can assist in gathering, preparing, and submitting all the required documentation, ensuring accuracy and compliance with local regulations.

Business Entities Permitted in Sharjah Mainland

In addition to choosing the right license, selecting the appropriate business entity is essential for operating legally and successfully in Sharjah Mainland. Each structure provides unique advantages tailored to different business needs. Here are the most common types of business entities available:

Limited Liability Company (LLC)

An LLC is a popular structure offering limited liability protection to its shareholders. With only one shareholder required, LLCs allow 100% foreign ownership, making it a flexible option for investors.

Partnership Company

A Partnership Company is ideal for businesses formed by two or more individuals who share the responsibilities, liabilities, and profits. Partnerships in Sharjah can be general partnerships, where all partners share equal responsibility, or limited partnerships, where at least one general partner has unlimited liability while other partners have limited liability.

Public/Private Shareholding Company

For companies planning to raise capital by selling shares, a Public or Private Shareholding Company offers a viable structure. This entity type allows businesses to invite public or private investors, supporting rapid growth and expansion.

Local Service Agent License Company / Sole Proprietorship 

A Local Service Agent (LSA) company is a sole proprietorship owned by a single individual. Foreign entrepreneurs who wish to start a sole proprietorship must appoint a UAE national as their LSA. The LSA, however, has no ownership stake or claim on the company. This structure is typically used for professional service providers.

Branch Companies

Companies registered outside of Sharjah can open branches in the mainland, including UAE-based, GCC-based, and international companies. This option is suitable for businesses looking to expand into the UAE market.

Selecting the right business structure can help entrepreneurs meet legal requirements, optimise tax benefits, and scale their businesses efficiently.

Procedure for Setting Up a Mainland Company in Sharjah

The process of establishing a company in Sharjah Mainland is straightforward and efficient. Here’s a step-by-step guide:

Step 1: Identify Your Business Activity

Determine the specific nature of your business, as this will influence the type of license required and any additional approvals needed. Sharjah offers a wide range of permissible activities, so it's essential to clearly define yours.

Step 2: Select the Appropriate Legal Structure

Choose a legal form that aligns with your business objectives. Common structures in Sharjah include:

• Limited Liability Company (LLC): Requires 2 to 50 shareholders, with liability limited to their shares.
• Sole Proprietorship: Owned by a single individual, suitable for professional services.
• Branch Office: Allows existing companies to establish a presence in Sharjah.

Step 3: Reserve a Trade Name

Select a unique trade name that complies with Sharjah's naming conventions. The name should reflect the nature of your business and adhere to the guidelines set by the Sharjah Economic Development Department (SEDD).

Step 4: Obtain Initial Approval

Submit an application to the SEDD to receive initial approval for your business activities and legal structure. This step confirms that the authorities have no objections to your proposed business.

Step 5: Draft the Memorandum of Association (MoA)

Prepare the MoA outlining the company's structure, ownership, and operational guidelines. This document must be notarised and is crucial for company formation.

Step 6: Secure a Physical Office Space

Leasing an office space is mandatory for mainland companies in Sharjah. Ensure the premises meet the requirements set by the municipality and obtain a tenancy contract.

Step 7: Obtain Additional Approvals

Depending on your business activity, you may need approvals from other government bodies or ministries. For instance, industrial activities might require consent from the Ministry of Industry.

Step 8: Submit the License Application

 With all documents in place, submit your application to the SEDD, including the MoA, tenancy contract, and any additional approvals.

Step 9: Pay the Required Fees

Upon approval, pay the necessary licensing fees to the SEDD. The cost varies based on the business activity and legal structure.

Step 10: Receive Your Business License

 After processing, you'll be issued a trade license, officially allowing you to operate your business in Sharjah Mainland.

Step 11: Register for Immigration and Labor Cards

To hire employees and sponsor visas, register with the Ministry of Human Resources and Emiratisation and obtain the necessary labour and immigration cards.

Step 12: Open a Corporate Bank Account

With your trade license, you can open a corporate bank account to manage your business finances.

Navigating these steps can be complex, but with careful planning and adherence to local regulations, establishing a mainland company in Sharjah is straightforward.

Compliance Requirements in Sharjah Mainland

Operating in Sharjah Mainland requires adherence to specific compliance standards, including:

• Ultimate Beneficial Ownership (UBO): All companies must declare their ultimate beneficial owners.
• Economic Substance Regulations (ESR): Businesses in certain sectors must demonstrate substantial economic activity within the UAE.
• Anti-Money Laundering (AML) and Combatting the Financing of Terrorism (CFT): Companies are required to comply with UAE’s AML/CFT laws to prevent financial crime.

At Filings.ae, we provide compliance support, ensuring that your company meets all regulatory standards to avoid penalties or disruptions.

How Filings.ae Helps with Business Setup in Sharjah Mainland

Filings.ae is dedicated to simplifying the business setup process, providing expert guidance and end-to-end support. Here’s how we make it easy for you:

• Consultation and Planning: Our consultants assess your business needs and advise on the best structure, license type, and location.
• Document Preparation and Submission: We handle all the documentation, from drafting the MoA to preparing regulatory filings, ensuring accuracy and compliance.
• Coordination with SEDD and Government Departments: Our team liaises with SEDD and relevant government bodies to expedite approvals and secure special permissions.
• Bank Account Setup: We streamline the process of opening a corporate bank account so your business finances are ready for operation.
• Visa and Immigration Services: We facilitate visa processing for shareholders, employees, and dependents, allowing you to build your team without hassle.
• Compliance Support: We provide guidance on other regulatory requirements, helping you stay compliant and penalty-free.
• Ongoing Support: Filings.ae offers continued support beyond the setup stage, ensuring your business has all the resources to grow and thrive.

Get Started with Filings.ae Today!

Establishing a business in Sharjah Mainland has never been easier. With Filings.ae by your side, you can navigate the process with confidence and ease, knowing every detail is taken care of.

Contact us today for a consultation, and let’s turn your business vision into reality in Sharjah Mainland!