Foreign businessmen have the possibility of opening various types of companies in Sharjah, among which are limited liability companies, joint stock companies, branch offices, and subsidiaries. Foreign citizens may also set up sole proprietorships; however, information about how to set up a company in Sharjah can be found in the following lines. Plus, our company formation agents in Dubai can assist with the procedures and formalities of business setup.
| Quick Facts | |
|---|---|
| About Sharjah | – 3rd largest emirate in the UAE, – it has 6 free zones, – no import-export taxes, – no currency restrictions, – great destination for technology and innovation startups. |
Available business structures | The limited liability company is the most popular structure for business in Sharjah. |
Ownership | 51% owned by a local partner, except special free zones |
| Required licenses for opening a company in Sharjah (YES/NO) | YES |
| Registration authority | Sharjah Economic Development Department (SEDD) |
| No Objection certificate required (YES/NO) | YES |
| Employee registration | With the Ministry of Labor |
| Age requirements for opening a company in Sharjah | At least 21 |
| Tax ID for companies in Sharjah | Tax Registration Number (TRN) issued by the Federal Tax Authority in the UAE |
| Legal representative | Required |
| Business address in Sharjah | Mandatory |
| Trademark registration | Can be done with the help of our Dubai agents |
| Opening a branch in Sharjah | Available option for foreign investors in Sharjah |
| Minimum share capital | Not required |
| Free zones in Sharjah | – Hamriyah Free Zone, – Sharjah Healthcare City, – SAIF Zone, – SRTI Park, – SHAMS, – Sharjah Publishing City |
Table of Contents
What are the requirements for opening a company in Sharjah?
In order to register a company in Sharjah, foreign investors must meet certain requirements. Foreign businessmen may open a company in Sharjah if 51% of the company is owned by a UAE national. However, full foreign ownership is allowed in the free zones. Foreign companies may also open branches in Sharjah. Depending on the type of company, the following types of licenses are required when registering a business in Sharjah:
- commercial licenses,
- professional licenses,
- industrial licenses.
Our specialists in company incorporation in Dubai may help you with the licensing procedure when opening a company in Sharjah. Before starting to operate in Sharjah, foreign investors are required to satisfy the legal requirements of the UAE Companies Law. The steps to register a company in Sharjah are:
- file a company registration application with the Department of Economic Development,
- draft the company’s memorandum of association,
- obtain the trade license,
- file for an establishment card with the Ministry of Labor,
- register employees with the Ministry of Labor.
Our localexperts in Dubai can draft the articles of association for company registration in Sharjah. You can also discover this infographic:
Taxes imposed in Sharjah and its free zones
Sharjah has its own taxation system, but it also falls under the tax regulations imposed by the UAE’s government which provides for the taxation of companies operating in the oil and gas industry and branches of foreign banks. However, the Sharjah Free Zone Authority has autonomy when it comes to the taxation of companies and it has established a tax-free environment for businesses registered in the free zone. Moreover, thanks to these tax exemptions Sharjah Free Zone has become one of the most important commercial and trading hubs in the UAE and in the Middle East.
When it comes to tax exemptions for companies and their foreign shareholders, Sharjah Free Zone is one of the best free zones in the UAE. Among the tax benefits offered to Sharjah free zone companies are:
- full exemptions from the income tax;
- full exemptions from the corporate tax;
- tax-free repatriation of capital;
- tax-free repatriation of profits.
The UAE has signed numerous agreements for the avoidance of double taxation through which foreign shareholders of companies registered in the Sharjah Free Zone will be exempt from the taxes they would pay in their home countries. These treaties apply to both individuals and companies owning shares in free zone companies in Sharjah.
If you want to open a company in Dubai or in Sharjah, you can rely on our local representatives.
Do I need a local agent to open a company in Sharjah?
Yes, setting up a business in Sharjah as a foreign entrepreneur involves appointing a local service agent, in charge of a wide range of matters and business responsibilities. Moreover, this agent ensures good communication with the local authorities and represents the company in question. It is good to specify that the local agent does not own shares in the company and is not involved in its operations. You can opt for our company formation in Dubai or Sharjah and ask for information about the services offered by our agents. Plus, this video below explains some of the formalities for setting up a company in Sharjah:
In which sectors can you develop your company in Sharjah?
If you are interested in opening a company in Sharjah Free Zone as a foreign entrepreneur, we recommend that you ask for our support and advice to make the best business decision. If you have doubts regarding the sectors of interest where you can develop your operations efficiently and profitably, these recommendations may be useful to you:
- Real estate – One of the most developed economic sectors is real estate in Dubai, the UAE. You can opt for Sharjah when opening a company in the real estate sector. Around 3.4% represents Dubai’s economic growth, supported only by the real estate sector.
- Manufacturing – A strong and expanding sector is that of manufacturing in Sharjah and Dubai. Foreign and local entrepreneurs alike have a lot of business opportunities in this sector at their fingertips, so it is recommended to explore options for future investments here.
- Construction – As strong as the real estate sector, the construction field in Sharjah, Dubai, can be the proper choice for those who want to develop their businesses here. Residential and commercial property constructions are in high demand and have their place among the development plans of the region.
- Healthcare – It is known that Dubai is a top destination for those looking for quality healthcare services. You can open a medical services company in Sharjah and focus on professionalism, efficiency, attention to detail, and quality. The healthcare sector in Dubai already benefits from artificial intelligence and robotics in most sub-sectors of medicine.
- Food & Beverages – Dubai is a multicultural city, and food & beverages are no exception. If you want to open a company in Sharjah, Dubai, you can opt for setting up a restaurant/bar/catering and address your services to tourists.
- IT & consulting – Companies that offer IT services and/or specialized consultancy are highly sought after by both foreigners and locals who have businesses in Sharjah and Dubai. You can enter this niche and develop your business quickly.
These business recommendations in Sharjah, Dubai, can be taken into account when setting up a company in Sharjah or relocating one from another country, and with development plans. You have multiple opportunities at your fingertips and, of course, help and representation in the formalities imposed by the UAE Trade Registry with the business registration.
The economy of Sharjah, outlined
The results offered by the Sharjah economy have been noted repeatedly in recent years. The good direction of the economy is due to business-friendly policies for attracting investors in as large a number as possible in Sharjah. The city has solid connections with over 160 countries due to its geographical location. On the other hand, around 13,500 companies are already active in Sharjah. Moreover, various businesses can be developed in free zones such as:
- Sharjah Media,
- Hamriyah Free Zones,
- Sharjah Airport Free Zone, etc.
Short facts about Sharjah
Al Mahatta is the first location where an airport was established, for the first time in the Gulf Region. It was also here that the municipality, library, and school were established for the first time, offering the right to education to women, since 1942. Another interesting thing about Sharjah is the fact that the city was named “Cultural Capital of the Arab World” by UNESCO in 1998. Here are other interesting matters:
- Sharjah is the 3rd most popular city in the United Arab Emirates.
- Around 16.7% was the contribution of the manufacturing sector to the GDP growth of Sharjah in 2023.
- More than 1,279 people live in Sharjah.
These are some of the interesting facts about Sharjah, which can help when foreign entrepreneurs want to know the culture and history, in addition to economic and business data, to know how to open a company.
In addition to the services for opening a business in Dubai or Sharjah, our specialists can also help you in other aspects. For example, they can take care of the formalities related to immigration to Dubai. For details about company incorporation in Dubai – Sharjah, please contact our agents.