Author: Ayushi Doegar
Published: December 9, 2025
In the high-paced world of today, developing a business is one of the top priorities for individuals who pursue change. Climbing the corporate ladder demands enthusiasm, which entrepreneurs demonstrate with good grace.
Before establishment, a corporation must be registered in the country it plans to function within. The location where the business is registered plays a pivotal role, as the ease of regulations and performance standards depend on the rules and restrictions of a company's home country.
The UAE ranks on top amongst the many tax-free countries in the world because of the competitive options it provides. With government-based incentives to attract foreign investments and options like the golden visa, foreigners and citizens prefer registering their companies in the UAE.
Compared to many other countries in the world, the taxation laws of the UAE are lenient. With Sharjah emerging as competitive business centres of the world, they have become a magnet for startups and established companies alike.
The UAE government imposes income tax only if the incorporated company is in the foreign banking, oil, or gas industry. Otherwise, corporations of every kind are exempt from taxation in the UAE. Moreover, the free zone areas of the UAE offer lucrative opportunities for businesses.
In tax-free zones, individuals can enjoy tax-free profits. The UAE has signed double taxation agreements with various countries to ensure that foreign entrepreneurs do not have to pay taxes to their country of origin.
If you register a company in the UAE, it provides you with an opportunity to take up residence as well. The UAE offers long-term visas for entrepreneurs, business owners, and their families that allows them to stay in the UAE for up to 10 years. The UAE also offers tax residency that significantly reduces the overall tax burden and provides the chance of higher profits increasing by leaps and bounds.
The UAE, with emirates like Sharjah, takes pride in being the hub for astounding infrastructure. Businesses often thrive in regions where other businesses have successfully established their foundations, mainly because of improved infrastructure, accessibility to talent, and ease of transportation.
A well-developed city with firmly established infrastructure and economy allows companies to thrive in the market. The UAE is one of the most well-reputed countries and, as a result, serves as a great option for business owners from around the world.
Businesses around the globe often prefer countries where the transaction is easy. The genuine boost of an organized bank system in a company's home country is essential for growth.
A company's success is mainly dependent upon the right form of credit, ease of banking, and accessibility to banks with a global presence. For companies, this notion is not a hassle since there are a multitude of international banks to choose from in the UAE.
Registering a company in the free zone of the UAE implies that foreign investors will have complete ownership of the company they have established. However, keep in mind that the majority of foreign investors who aim to develop a business on the UAE mainland will need the assistance of a local sponsor.
Amongst the various types of companies registered in the UAE, the free zone possibility is one of the most remunerative. A free zone company is ideal for those who are looking for a "tax relief-invoicing facility."
To set up a free zone company, there is no minimum capital required or a necessity for an actual office facility.
The two main types of business structures that a company in the UAE can adopt include:
This form of business structure is 100% owned by the person who has set it up. One would not need a sponsor or an agent to act as a liaison to manage the venture.
Key Features:
A mainland company is simply an onshore entity that is registered with the relevant emirate's government body.
Key Features:
There are four types of licenses available in Sharjah:
E-commerce licenses enable entrepreneurs to set up online businesses. It means they can buy and sell goods through their own websites or through online portals, such as Amazon. This is a popular option for those looking to leverage a booming e-commerce market in the UAE.
Service licenses allow entrepreneurs to set up businesses without tangible assets, such as consulting, project management and legal services. There is a wide range of business activities to choose from, including:
Requirement: To apply for a service license, you will need to have experience and knowledge of the relevant industry.
Commercial licenses enable entrepreneurs to:
General trading licenses allow entrepreneurs to export, re-export, import and trade any number of unrelated goods under one license. This means you could choose to trade in everything from food to furniture.
Restrictions: Some specific commodities are not permitted, including:
Important Note: As with all the UAE's free zones, it's important to make sure you acquire the correct license before launching your business. Failure to do so could result in heavy penalties and loss of credibility in the market.
Setting up a company in Sharjah is a relatively straightforward process that can be broken down into three simple steps:
First, you'll need to select your business activity and choose your company name.
Naming Requirements:
Processing Time: If your initial application is approved, the Sharjah authorities will issue your license in less than two hours.
To help speed up business setup in Sharjah, the local authorities have introduced e-channel services. This online portal removes unnecessary paperwork and makes it easier for you to obtain your entry permit.
Entry Permit Duration: Once your entry permit has been issued, you can stay in the region for up to 60 days.
The final stage involves activating your status change. You can do this in-country or by exiting and re-entering Sharjah, depending on your country of origin.
Required Actions:
Emirates ID Benefits: This ID card will allow you to:
The cost to register a company in Sharjah starts at AED 6,875.
Additional Costs to Consider:
Note: For an accurate quote tailored to your specific situation and requirements, reach out to business advisors at SPC Free Zone.
SPC Free Zone offers fast and flexible business setup in the UAE, conveniently located in the heart of the emirate.
| Feature | Details |
|---|---|
| Immigration Services | On-site services available |
| Document Processing | Company documents issued within a day |
| License Issuance | License issued in under two hours |
| Business Activities | Choose from more than 1,500 business activities |
| Paid-up Capital | Zero paid-up share capital required |
| Visa Allocation | Up to 20 visas under one license |
| Dual-License Option | Both mainland and free zone on the same license |
SPC Free Zone offers affordable setup packages and value-added services including:
Advantages:
Business Structure Options:
License Types:
Registration Process:
Starting Cost: AED 6,875 (additional costs may apply)
Processing Speed: License can be issued in under two hours with SPC Free Zone
Ready to get started with company formation in Sharjah? SPC Free Zone is ready to help you make it happen.