Register a company in Sharjah – step by step
The Definitive Guide to Business Setup in the UAE
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. In this regard, the location where the business is registered plays a pivotal role. It is important to remember that the ease of regulations and performance standards depend on the rules and restrictions of a company’s home country.
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.
If you are planning to register your company, read on for a detailed guide on everything you need to know.
Advantages of Registering a Company 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. To add zest to the opportunities, it is worth noting that 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.
Moreover, 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.
No capital requirement
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.
If these advantages seem lucrative to you, read on to find out the different types of business structures you can choose from.
Business Structures in the UAE
The two main types of business structures that a company in the UAE can adopt include:
1. Free zone company
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.
2. Mainland Companies
A mainland company is simply an onshore entity that is registered with the relevant emirate’s government body.
The fundamental feature of a mainland company is that there are no restrictions on its commercial activities.
Once you have decided whether you want to set up a free zone company or a mainland company, you need to understand which type of license suits your business the best.
Types of Business Licenses
There are four types of licenses available in Sharjah:
1. E-commerce License
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.
2. Service License
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 accounting, business setup, education, HR, immigration, marketing, and more. To apply for a service license, you will need to have experience and knowledge of the relevant industry.
3. Commercial License
Commercial licenses enable entrepreneurs to trade and sell specific goods and services in the UAE, export and sell outside the UAE or trade solely within the UAE.
4. General Trading Licence
General trading licenses allow entrepreneurs to export, re-export, import and trade any number of unrelated goods under one license. So, this means that you could choose to trade in everything from food to furniture. Some specific commodities are not permitted, including tobacco, oil and goods that do not meet health and safety requirements.
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.
Step by step guide to register a company in Sharjah
Setting up a company in Sharjah is a relatively straightforward process that can be broken down into three simple steps:
Step 1: Submit your application
First, you’ll need to select your business activity and choose your company name. The UAE has strict naming conventions, so make sure it isn’t already registered and avoid using blasphemous or obscene language. If your initial application is approved, the Sharjah authorities will issue your license in less than two hours.
Step 2: E-channel services and entry permit
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. Once your entry permit has been issued, you can stay in the region for up to 60 days.
Step 3: Status change
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. Then, you’ll need to undergo medical tests to apply for your Emirates ID card. This ID card will allow you to open a bank account, take out contracts and rent a property.
Cost of registering a company in Sharjah
The cost to register a company in Sharjah starts at AED 5,750. However, you’ll need to factor in additional costs too, such as multi-year licenses, types of business activities and visa quotas. If you require offices, warehouse premises or storage spaces, you will need to pay for these too.
Interested in finding out exactly how much it costs to register a company in Sharjah?
Reach out to our business advisors at SPC Free Zone for an accurate quote tailored to your specific situation and requirements.
Why work with SPC Free Zone?
Our team are experts in company formation in Sharjah. SPC Free Zone offers fast and flexible business setup in the UAE, conveniently located in the heart of the emirate. Entrepreneurs can benefit from unrivaled connectivity, just 15 minutes from Dubai International Airport and seven minutes from Sharjah International Airport.
Our offices also offer immigration services on-site, which means you can get company documents issued within a day and a license issued in under two hours. What’s more, you can choose from more than 1,500 business activities and maximize your profits with 0% corporate and personal income tax, zero paid-up share capital and a whole host of more affordable setup packages. SPC Free Zone also offers up to 20 visas under one license and a dual-license option that offers both mainland and free zone on the same license.
Ready to get started with company formation in Sharjah? SPC Free Zone is ready to help you make it happen.