Differences between Business Setup in Sharjah & Dubai

Business Setup in Sharjah & Dubai

The UAE is a country that offers a wide variety of options in terms of business locations and the benefits associated with a particular place. The country is diverse in its economic status, and each Emirate has its own set of advantages that can effectively aid businesses.

Dubai and Sharjah are two of the most economically involved Emirates in terms of business setup and other business-related opportunities. Many flock to these emirates to start a business that is accessible to a large crowd of people and ensures availability of resources. Each emirate offers businesses a different business landscape, that if used right can elevate the business to newer heights. In this article, we explore the various differences between setting up a business in Dubai vs. Sharjah.

1. Trade names

A trade name serves as a business’ identity. It is the official name under which a venture operates and customers, suppliers, and other parties will refer to the venture by this predetermined name. That is why trade name selection is important when setting up your business. Apart from the general process of applying for a trade name, there is one major difference in the trade naming process that differs between the emirates. Sharjah has a regulation that permits only Arabic names for business set-ups. So, the naming pool in Sharjah is limited to words within the Arabic language.

However, Dubai has no such restriction, and companies can freely name themselves based on other languages, as long as it does not break the regulations for trade names. Some of these regulations are related to the use of inappropriate language, religious names, and names of the emirate itself. Similar rules also apply to Sharjah, so the only difference here is the limitation to Arabic names in Sharjah.

2. Company set-up process

The process of setting up your venture also differs between the emirates. Particularly, in Sharjah, third party approvals are required to move certain documents and proceed to the next step. These approvals are not required in Dubai. SPC Free Zone is a free zone based in Sharjah that specializes in helping businesses receive the required approvals with ease, making this difference a minor one.

3. Operational costs

The operational costs involved in running a business from each emirate varies greatly. Sharjah is well known for its affordable cost of rent, and prime locations are still much cheaper compared to Dubai. This factor is incredibly important, as selecting the ‘wrong’ location for your business can lead to financial strain and lack of access to important markets.

4. Licensing

Licensing is one of the most critical aspects of setting up a business, as it directly determines the line of business your venture is legally allowed to engage in. The emirate you choose to settle in has a direct impact on the trade license you’ll be able to acquire. Both Emirates offer a variety of licenses that can best suit what your business has to offer, though Dubai offers flexibility and customization of licenses, and Sharjah provides more affordable licenses that may cost a lot in Dubai.

5. Investors and professional assistance

Dubai is a global emirate that houses a large variety of investors and professionals from various fields. This makes the place a more lucrative area to start business in. However, this does not mean that Sharjah does not have access to these professionals and investors, but rather they do not possess the same scale of resources for businesses within the emirate.

Understanding the know-how and benefits of starting a business in Sharjah and Dubai can be overwhelming at first. At SPC Free Zone, our expert consultants break down the dos and don’ts of company formation and recommend the location that is best suited for your dream business. Contact us at 800 SPC FZ today to start your business venture today.

Ayushi Doegar

A Content Marketer with a passion for fostering people to grow their businesses. As a dedicated business blog writer, I bring ideas to life through captivating storytelling and industry expertise, empowering businesses to connect with their audiences and thrive in the ever-changing market.

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