Setting up a business in the Sharjah Free Zone offers many advantages for entrepreneurs and investors looking to establish a company in the UAE. This article aims to provide a comprehensive overview of the process involved in obtaining a license within the Sharjah Free Zone, highlighting the benefits and opportunities it presents for businesses
What is a Sharjah Free Zone?
Sharjah Free Zones are designated economic zones located in the emirate of Sharjah, and they offer a favorable environment for trade, investment, and entrepreneurship. The significance of the Sharjah Free Zone lies in its strategic location, advanced infrastructure, and diverse range of sectors thriving within its boundaries. Some of the key industries flourishing within the free zone include:
Manufacturing and Industrial Sector.
Media and Creative Sector.
Trading and Logistics Sector.
Information Technology and Innovation.
Healthcare and Education.
Types of licenses Sharjah free zones offer
Sharjah Free Zones offer different types of licenses to accommodate various business activities and legal structures. Each license category has specific requirements and restrictions. Here is an overview of the common license types available in a Sharjah Free Zone:
Trading License: a trading license allows businesses to import, export, distribute, and store goods within the Sharjah Free Zone. It is suitable for companies engaged in trading activities. Some essential requirements of a trade license are a formal application and other necessary documentation, such as a business plan, passport copies, and proof of address. This license requires a physical office space within the free zone. A free zone trade license restricts selling goods directly within the UAE market except through local distributors or agents.
Service License: A service license is designed for businesses that offer professional or consulting services. It covers various activities, such as legal, accounting, marketing, consulting, and IT services. Like a trading license, a service license requires a license application, other necessary documentation, and office space within the free zone. Under the service license, you can only offer services related to the license activities, and it does not allow you to engage in any trading activity.
Industrial License: An industrial license is suitable for companies involved in manufacturing, processing, and production activities within the Sharjah Free Zone. It allows businesses to set up manufacturing plants, assembly lines, and related industrial facilities. in addition to the aforementioned requirements, you need suitable industrial premises within the free zone. Your business should comply with environmental and safety regulationsand the specific guidelines for industrial activities and production standards.
Media License: For companies operating in the media and creative industries, Sharjah Free Zones offer a media license that is suitable for businesses involved in publishing, broadcasting, advertising, production, and other media-related activities. Like other free zone licenses, a media license only allows you to engage in business activities related to the licensed media services.
Steps to Obtain a Sharjah Free Zone License
The process of obtaining a license in Sharjah Free Zones can be broken down into the following steps:
Step 1: Determine the License Type
Identify the most suitable license type for your business activity, such as a trading license, service license, industrial license, or media license.
Step 2: Company Name Reservation
Reserve a unique name for your company through the online portal or by submitting a name reservation application. The name should comply with the free zone’s naming conventions and should not breach any existing trademarks or copyrights.
Step 3: Submit the Initial Application
Complete and submit the initial application form provided by the free zone that includes accurate information about your business.
Step 4: Lease Office Space
Lease an office space within the free zone. Ensure that the chosen office space meets the free zone’s specifications and requirements.
Step 5: Prepare Required Documentation
Gather the necessary documentation for the license application. The specific documents may vary based on the license type, but commonly required documents include:
An application form.
Passport copies of shareholders, directors, and managers
Business plan.
Memorandum and Articles of Association (MOA/AOA)
Lease agreement for the office space.
Relevant educational and professional qualifications (for certain license types)
Step 6: Submit Documentation
Submit the completed application form and required documentation to the Sharjah Free Zone authority.
Step 7: Pay Fees
Pay the required fees within the specified timeframe. Once the payment is confirmed, you will receive the license, along with other relevant documents and certificates.
Compliance with legal and regulatory requirements is crucial when obtaining a license in Sharjah Free Zones to ensure the legitimacy and credibility of your business operations and protects you from potential legal issues.
Benefits of Setting Up a Business in the Sharjah Free Zone:
Business setup in Sharjah free zone offers many benefits and advantages to companies. Some of the key benefits of setting up a company in Sharjah free zones are:
100% Foreign Ownership: This means that entrepreneurs and businesses can have complete control over their companies without requiring a local partner or sponsor.
Strategic Location: Sharjah is strategically positioned in the heart of the UAE, offering easy access to major international markets in the Middle East, Asia, and Africa. The well-connected transportation infrastructure, including ports, airports, and highways, facilitates efficient logistics and global trade.
State-of-the-Art Infrastructure: Sharjah Free Zone provides world-class infrastructure, including modern office spaces, warehouses, manufacturing facilities, and advanced telecommunications services. These facilities are designed to meet the diverse needs of businesses across various industries.
Business Support Services: Sharjah free zones, like Sharjah Publishing City Free Zone (SPC Free Zone), offer a range of business support services to help entrepreneurs establish and grow their companies. These services include assistance with company registration, licensing, visas, and permits, as well as access to banking, legal, and consultancy services.
Sector-Specific Zones: The Sharjah Free Zone caters to various industries through sector-specific zones, such as Sharjah Publishing City, the first publishing free zone in the world. This specialization fosters a favorable business environment and enables companies to benefit from industry-specific infrastructure and networking opportunities.
Sharjah free zone license cost
The cost of a Sharjah free zone license starts at AED 5,750, but there are additional costs and fees to consider too. For instance, if you require office or warehouse space, multi-year visas, or enhanced visa quotas, this will cost you more.
Obtaining a Sharjah Free Zone license involves certain costs, including initial setup fees and annual renewal fees. Here is an overview of the cost structure and the annual renewal process:
Initial Setup Costs: The initial setup costs for obtaining a Sharjah Free Zone license typically include the following:
License fee: The license fee varies depending on the type of license and business activity. It is a one-time payment made during the initial application process.
Office space rent: You will need to lease office space within the Sharjah Free Zone, and the cost will depend on the size and location of the premises.
Annual Renewal Process: To maintain the validity of your Sharjah Free Zone license, it is essential to renew it annually. The renewal process involves the following:
Renewal application: Submit a renewal application to the free zone authority within the specified timeframe, usually before the license expiry date. The application may require updated information and documentation.
Renewal fees: Pay the annual renewal fees, which vary based on the license type and the size of the business.
To maintain the validity and legality of your business operations in the Sharjah Free Zone, it is essential to prioritize the timely renewal of your license. This helps you stay compliant, and avoid any unnecessary disruptions or penalties.
Why Choose SPC Free Zone
When it comes to setting up a business in the UAE, there’s no reason to go it alone. SPC Free Zone offers a wide range of services to suit your business needs, from the start of your journey and beyond. Whether you’re looking to ensure you have your documents in order or need help setting up a bank account, we can help.
SPC Free Zone offers more than 1,500 business activities that you can choose from when registering for a free zone business license. From publishing to e-commerce and more, our activities are all-encompassing. We also offer viable incentives including 100% foreign ownership and an option to expand your business with a dual-license option that offers both mainland and free zone on the same license. You can also get up to 20 visas under one license, too.
Sharjah Free Zones are designated economic zones located in the emirate of Sharjah, and they offer a favorable environment for trade, investment, and entrepreneurship. The significance of the Sharjah Free Zone lies in its strategic location, advanced infrastructure, and diverse range of sectors thriving within its boundaries.
2. Why should I consider obtaining a Sharjah Free Zone license?
Business setup in Sharjah free zone offers many benefits and advantages to companies. Some of the key benefits of setting up a company in Sharjah free zones are:
100% Foreign Ownership.
Strategic location.
Easy and fast business setup.
State-of-the-art infrastructure.
Business support services.
3. Can I have 100% ownership of my business in the Sharjah Free Zone?
Yes, you can own 100% of your business without the need for a local sponsor.
4. Are there any restrictions or regulations I should be aware of?
The requirement and restrictions of the Sharjah free zone license may vary based on the zone within the Sharjah Free Zone and the nature of the business activity. It is advisable to consult with the free zone authority or a business setup consultant to determine the most suitable license category for your business.
5. How long does it take to obtain a Sharjah Free Zone license?
obtaining a Sharjah free zone license is relatively easy and fast. With SPC Free Zone you can get your business license in 45 minutes only.
Online publishing of statistics or other information
Online Publications and media Materials E-Trading
Online Sound recording service activities in a studio or elsewhere, including the production of taped (i.e. non-live) radio programming, audio for film, television etc.
Online Publishing of music and sheet books
Online Retail Sale of Books, Newspapers and Stationary in Specialized Stores
