Sharjah Mainland Business Setup: Step-by-Step Process

Starting a business in Sharjah's mainland presents a unique opportunity due to the nature of the United Arab Emirates' growing economy. Our guide, "Sharjah Mainland Business Setup: A Step-By-Step Guide," provides readers with comprehensive information on how to develop a successful business in one of the best locations to conduct business in the Middle East - Scharjah.

Why Choose Sharjah for Your Business?

Sharjah is rapidly becoming one of the most desirable locations for entrepreneurs due to its strong supporting infrastructure and government incentive programs. Sharjah has many advantages over most UAE jurisdiction areas:

1. An open economy with very few restrictions on trade;

2. Freedom to do business locally as well as internationally compared to free zones;

3. Located close enough to many other UAE States to allow for quicker business growth.

Step 1: Selecting the Business Activity

The first step in the Sharjah mainland business setup process is to define the scope and type of your business activity. Sharjah's Department of Economic Development (DED) offers a general list of categories you can choose from, including commercial, professional, and industrial activities. Aligning your business activity with DED's list ensures a smoother registration process.

Step 2: Legal Structure and Trade Name

Choosing an appropriate legal structure is pivotal. The options typically include:

Limited Liability Company (LLC)
Branch Office
Sole Establishment

Once the structure is decided, selecting a trade name is the next step. The trade name should be unique, not violate public morals, and align with the DED regulations. Itâs essential to check with DED to ensure the availability of your chosen name.

Step 3: Initial Approval from DED

After finalizing the legal structure and trade name, obtain initial approval from the DED. This approval demonstrates that your business activities are legal and unobjectionable within the UAE. It includes submitting your business plan and supporting documents.

Step 4: Preparing the Memorandum of Association (MOA)

It is important for an LLC and all types of businesses to draft a MOA because it establishes the overall operation of the business and how it is owned. Although there are standard MOA formats available, it is strongly suggested that you seek legal counsel to help modify them based on your individual business needs.

Step 5: Leasing Office Space

It is important to secure an office that meets the requirements of your type of business in order to receive the appropriate lease agreement for the next steps in your business expansion. In addition, it is critical that the office meets all applicable business space regulations for the Emirate of Sharjah and is functional for your day-to-day business activities.

Step 6: Securing Additional Approvals

Some business activities may require extra approvals from relevant government bodies, such as:

Sharjah Municipality
Ministry of Economy
Ministry of Infrastructure Development

Be prepared to submit additional documentation as necessary.

Step 7: Obtaining the Trade License

With all prior steps completed, it's time to apply for your trade license. The type of license - commercial, professional, or industrial - is contingent on your main business activity. This step involves filing all necessary documents and paying the determined fees.

Step 8: Additional Registrations

Completing your business setup entails other registrations, including:

Registering with the Ministry of Human Resources and Emiratisation for employment visas.
Getting approval from the General Authority for Pension and Social Security (GPSSA) if hiring UAE nationals.

Final Thoughts

Sharjah is a vibrant and stimulating Emirate that opens up its local market to allow entrepreneurs and organisations to thrive. Working along with talented professionals and understanding what is required to successfully navigate local as well as global markets will help you build a successful business in Sharjah. Whether you are a local Foriegn Investor or Local Business owner, establishing a business on the Sharjah mainland provides unlimited growth potential and opportunity for success. The steps involved in establishing your business can appear daunting, however, with some sound planning and a complete understanding of the requirements involved, you can create a profitable future for your business in Sharjah.