Sharjah

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Business Licensing

Sections

1. Categories of Business Licenses in Sharjah

Sharjah offers several types of business licenses, depending on the nature of the business activity. The main categories include:

a. Commercial License

  • For businesses involved in trading activities (e.g., import/export, retail, wholesale, general trading).
  • Examples: Electronics trading, foodstuff trading, textile trading.

b. Industrial License

  • For businesses engaged in manufacturing, production, or industrial activities.
  • Examples: Factories, assembly plants, and production units.

c. Professional License

  • For service-oriented businesses or individuals offering professional services.
  • Examples: Consultancy firms, IT services, legal services, and medical clinics.

d. Tourism License

  • For businesses in the tourism and hospitality sector.
  • Examples: Travel agencies, tour operators, and hotels.

e. Freelancer Permit

  • For individuals offering freelance services in specific fields (e.g., media, design, technology).
  • Available through Sharjah Media City (Shams) or other free zones.

f. E-commerce License

  • For businesses operating online or conducting e-commerce activities.

g. Free Zone License

  • For businesses operating within Sharjah’s free zones, such as Sharjah Airport International Free Zone (SAIF Zone) or Sharjah Media City (Shams).
  • Free zone licenses are further categorized into trading, service, or industrial licenses.

2. Costs Associated with Business Licensing in Sharjah

The cost of obtaining a business license in Sharjah depends on several factors, including the type of license, business activity, and location (mainland or free zone). Below is a general breakdown:

a. Mainland Business License Costs

  • Initial Approval Fee: AED 100–500 (varies by activity).
  • Trade Name Registration Fee: AED 500–2,000 (depending on the name type).
  • License Issuance Fee: AED 5,000–15,000 (varies by activity and business size).
  • Other Fees: May include notary fees, tenancy contract attestation, and municipality fees.

b. Free Zone Business License Costs

  • Sharjah Airport International Free Zone (SAIF Zone):
    • Starting from AED 13,500 annually for a basic license.
    • Includes office space or flexi-desk options.
  • Sharjah Media City (Shams):
    • Starting from AED 5,750 annually for a freelancer or service license.
    • Includes visa eligibility and other benefits.

c. Additional Costs

  • Visa Costs: AED 3,000–5,000 per visa (approximate).
  • Office Space Rental: Varies based on location and size (mandatory for mainland businesses).
  • Local Sponsor/Agent Fees: AED 5,000–25,000 annually (for mainland businesses requiring a local Emirati sponsor or agent).

3. Step-by-Step Procedure for Obtaining a Business License in Sharjah

A. Mainland Business License

  1. Determine Business Activity:

    • Choose the type of business activity and ensure it aligns with the Department of Economic Development (DED) regulations in Sharjah.

  2. Choose a Legal Structure:

    • Options include Sole Proprietorship, Limited Liability Company (LLC), Civil Company, or Branch of a Foreign Company.

  3. Reserve a Trade Name:

    • Submit 3–5 name options to the DED for approval.
    • Ensure the name complies with UAE naming conventions (e.g., no offensive terms, no religious references).

  4. Obtain Initial Approval:

    • Submit an application to the DED for initial approval of the business activity and legal structure.

  5. Draft a Memorandum of Association (MOA):

    • For LLCs, draft the MOA with the help of a legal consultant.
    • The MOA must be notarized by a public notary.

  6. Secure a Business Location:

    • Rent an office or commercial space and obtain a tenancy contract.
    • The tenancy contract must be attested by the Sharjah Municipality.

  7. Submit Final Documents:

    • Submit all required documents to the DED, including:
      • Initial approval certificate.
      • Trade name certificate.
      • MOA (if applicable).
      • Tenancy contract.
      • Passport copies of shareholders.

  8. Pay Fees and Collect License:

    • Pay the applicable fees to the DED.
    • Once approved, collect your business license.

B. Free Zone Business License

  1. Choose a Free Zone:

    • Select a free zone based on your business activity and requirements (e.g., SAIF Zone, Shams).

  2. Select a Business Activity and License Type:

    • Choose the appropriate license type (trading, service, or industrial).

  3. Submit Application:

    • Provide the required documents, including:
      • Passport copy.
      • Visa copy (if applicable).
      • Business plan (for certain activities).

  4. Choose Office Space:

    • Select from available options such as flexi-desk, shared office, or dedicated office.

  5. Pay Fees and Collect License:

    • Pay the applicable fees to the free zone authority.
    • Once approved, collect your business license.

4. Local Considerations and Requirements in Sharjah

a. Local Sponsor/Agent Requirement (Mainland Only):

  • For mainland businesses, a local Emirati sponsor (51% ownership) or a local service agent (for professional licenses) is required.
  • Free zones do not require a local sponsor, allowing 100% foreign ownership.

b. Office Space Requirement:

  • Mainland businesses must have a physical office or commercial space.
  • Free zones offer more flexible options, such as virtual offices or flexi-desks.

c. Cultural Sensitivity:

  • Business activities must align with UAE cultural and religious values.
  • Certain activities (e.g., alcohol trading, gambling) are prohibited or heavily regulated.

d. Taxation:

  • The UAE has no personal income tax, but businesses may be subject to:
    • Corporate Tax: 9% (effective from June 2023) for businesses earning over AED 375,000 annually.
    • Value Added Tax (VAT): 5% on goods and services.

e. Compliance with Regulations:

  • Businesses must comply with Sharjah Municipality, DED, and other regulatory authorities.
  • Regular renewals and inspections may be required.

f. Visa Quotas:

  • The number of visas a business can sponsor depends on the size of the office space and the business activity.

5. Key Authorities and Resources

  • Sharjah Department of Economic Development (DED): For mainland licenses.
  • Sharjah Airport International Free Zone (SAIF Zone): For free zone licenses.
  • Sharjah Media City (Shams): For media and creative businesses.
  • Sharjah Municipality: For tenancy contract attestation and other approvals.

6. Tips for a Smooth Process

  • Engage a Business Consultant: If you are unfamiliar with the process, hiring a consultant can save time and ensure compliance.
  • Plan for Renewal Costs: Business licenses must be renewed annually, with similar costs as the initial issuance.
  • Stay Updated on Regulations: UAE laws and regulations can change, so stay informed about updates.

By following this guide, you can efficiently navigate the business licensing process in Sharjah and set up your business for success.