Business Setup in Sharjah Mainland

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Sharjah is located just 20 minutes from Dubai. Setting up a business on the mainland in Sharjah makes a lot of financial sense, as initial company setup costs are comparatively lower than that of Dubai. A company located on the mainland in Sharjah is allowed to do business anywhere in the United Arab Emirates, so it also gives you access to Dubai’s wide market.

Since housing costs are lower in Sharjah, it is not uncommon for many employees to live in Sharjah and commute to Dubai for work. Operating your company in Sharjah means your employees are likely to arrive in the office fresh instead of being hassled by the morning commute were your company to be located in Dubai. This can work wonders for their productivity.

Sharjah also has its own international airport, which is home to Air Arabia, the international airline that connects 170 destinations worldwide. In case, the destination you want to fly into is not served by Air Arabia, the Dubai International Airport is only 16 km from Sharjah. The Dubai International Airport is home to Emirates, a leading international airline that flies to 85 countries around the world. Two-thirds of the world’s destinations can be reached by means of an eight-hour flight or less from Dubai / Sharjah.

Because of all these reasons, more and more entrepreneurs are establishing their companies on the mainland in Sharjah.

How to Register a Company in Sharjah

The first step involves identifying what kind of company it will be. It could be a Sole Establishment (this is the same as a Sole Proprietorship), a Limited Liability Company, a Private Joint Stock Company, a Public Joint Stock Company, a Branch Office, or a Representative Office.

The Sole Establishment company structure is best suited for solo entrepreneurs, that is to say there will be only one owner for the company. In case there is more than one owner, you could look at setting up your company as a Limited Liability Company. The minimum number of shareholders required for a Limited Liability Company is two and the maximum number permitted is 50. In a Limited Liability Company, all the shareholders hold an equal stake in the company.

If you want to have minority shareholders and majority shareholders, it is recommended that you look at the Private Joint Stock Company structure. If you plan to take your company public later on, you need to register it as a Public Joint Stock Company.

A Branch Office is fully owned by another company, known as the parent company. It must undertake the same business activity as the parent company. A Representative Office is similar to a Branch Office, except for the fact that it is not allowed to make a profit. It must outsource all its work back to its parent company.

An experienced company formation expert can advise you on the best company structure for your business, keeping your business model in mind. He/She will also help you draw up the company formation documents that outline the name of the company, the reason for which it is being set up, and who the shareholder(s) is / are.

When selecting a name for your company, it is important to note that ideally, a Branch Office or a Representative Office must have the same name as the parent company. However, this may not always be possible owing to the name being registered earlier by another business entity. In such a case, your business setup consultant might suggest appending the term ‘Middle East’ to the parent company’s name to come up with a name for the Branch Office / Representative Office; one that can be registered.

Even otherwise, a business setup consultant can run a search to see if the name you have in mind is available. He/She can let you know of the rules pertaining to company nomenclature. For instance, religious names are not allowed. Terms like ‘Global’ and ‘International’ cannot be the first part of the company name. First names are permitted only if they are the first name of one of the shareholders. The names of countries are not allowed, but nationalities and geographical regions are allowed to be a part of the trade name.

So it pays to have a company formation expert in your corner throughout the process.

He/She will also help you find a suitable commercial space for your company. If you were into general trading, you need a dedicated warehouse [an office cannot be used as a warehouse]. If you were into foodstuffs trading, you might need a temperature-controlled warehouse so that the food is stored safely, in a manner that it does not spoil. Your company formation expert can help you procure the necessary approvals from Government agencies such as the Sharjah City Municipality & the Ministry of Health and Prevention.

You need to enter into a Tenancy Contract with the owner of the space you have finalized. Any additional approvals required are obtained after renting out the premises and before applying for company registration and a Business License.

All the required documentation, including the company formation documents, the Tenancy Contract, and additional approvals are submitted to the Sharjah Economic Development Department. If everything is in order, company setup in dubai and a Business License are granted in a matter of days.

Upon receiving company registration and your Business License, you can commence operations immediately. The address of the commercial space you have leased out becomes the registered office address of your company. It is to be kept in mind that the Business License needs to be renewed every year. If you plan to move into another space, a change of company address can be effected only at the time of renewing your Business License and not at any time in between.

You may also be required to furnish additional documentation as part of the process, such as a copy of your passport. If you are not ordinarily resident in your country of citizenship, you are required to provide proof of residency in your country of residence. If you are already in the United Arab Emirates, you also need to submit a copy of your visa. If you are on an employment visa, a No Objection Certificate from your Local Sponsor is required, as is your Emirates ID.

Why Choose Us for
Company Formation in Sharjah?

We have years of experience helping set up companies on the mainland in the United Arab Emirates. We take care of all the paperwork, so that you don’t have to. This way, you can focus on doing what you do best – running your business.