How to Start a Business in Sharjah Mainland: Benefits & Requirements

Setting up a business in Sharjah mainland is a wonderful opportunity. The city is developing fast because business opportunities abound. Moreover, with its stronger economy and cheaper cost of living, many entrepreneurs find a business setup in Sharjah to be an ideal destination in which to start a business. Furthermore, rules approved by the government of Sharjah lend great support to new businesses. You can also start a company in different industries like trade, services, or manufacturing.

Firstly, you choose the type of company you want to establish and get a license. Then, register your business, get a lease for an office, and go through the process of complying with all legal requirements. And you can certainly make a great business in the Sharjah mainland with detailed planning.

Why Choose Business Setup in Sharjah?

Many investors choose to set up new businesses in Sharjah because this location is not only economically viable but also very important. Reasons for starting your business in Sharjah:

Strategic Location

Sharjah is strategically located near Dubai and takes its place among the regional centers of trading, thus allowing enterprises to cater to the needs of key developed markets. Besides, its location further assists companies in typical expansion into developing customers around the globe.

Less Startup Cost 

Starting a business in Sharjah is much cheaper than in a city like Dubai. Thus, it is favorable for startups. Even lower cost input allows and lets you invest towards the further growth of your startup.

Strong Economy

The Sharjah mainland economy is rapidly diversifying into several income streams. Hence there are a lot of opportunities that lie for new businesses. The city also encourages trade, manufacturing, and service expansion among its business community.

Business-Friendly Regulations

The easy and business-friendly regulations adopted by the government support the easy establishment and operation of a business. Moreover, quick approvals make Sharjah the favorite in the eyes of an investor and entrepreneurs.

Wide Access to International Markets

Sharjah enjoys high standards of transport and shipping services; its airports and seaports help companies trade internationally. Moreover, a company can facilitate easy access to customers worldwide.

Steps for Business Setup in Sharjah Mainland

To start a business setup in Sharjah mainland, be sure to follow these steps:

1. Select a Type of Business

First, decide what kind of business you want to set up. Sharjah allows different types of businesses. Moreover, you have trading, manufacturing, or services to choose from.

2. Decide on a Business Structure

You need to brainstorm some ideas regarding the legal structure of your business. Some options include:

• Sole Proprietorship: Owned by a person.
• Limited Liability Company (LLC): Owned by two or more people.
• Branch of a Foreign Company: A company from another country can open a branch in Sharjah.

3. Initial Approval

Once you have decided to work out a business activity and the kind of structure it follows, you need to apply for initial approval. This is because an initial approval ensures that you can set up a business in Sharjah mainland.

4. Select a Business Name

Select your business name. It should at the least have a name that is not offensive. The naming application in Sharjah should also be followed.

5. Find a Local Sponsor

For some businesses, a local sponsor is also required. The local sponsor owns 51% of the firm. But, agreements can be settled to cover your business rights.

6. Obtain a Business License

A business license is extremely important because it gives you the authority to operate your business legally. Commonly accepted licenses include:

• Commercial License: For trading businesses.
• Professional License: For service providers.
• Industrial License: For manufacturing businesses.

7. Rent Office Space

To complete your business setup in Sharjah LLC, you need office space. You can get an office in the business center, or you might want to rent your own space.

8. Register Your Business

After completing all the steps, register your business with the Sharjah Economic Development Department (SEDD). Then, obtain your business license.

Benefits of Business Setup in Sharjah Mainland

Here are some vital benefits:

100% Repatriation of Profits

Repatriation of profits is up to 100 percent. There are no restrictions here. This eases doing business for international investors.

Sharjah Free Zone Offers the Lowest Setup Costs in the UAE

Establishing a base in Sharjah is less expensive than in other UAE cities. Startups benefit enormously, as the savings can be compared to future development!

Discounted Taxes for New Businesses

In Sharjah, businesses enjoy zero corporate tax. This reduction in expenditure results in healthy profits.

Supporting the Nature of Laws

The laws are advantageous for the investor. They give easy access to the establishment and running of a financial management scheme. Furthermore, it instills confidence among business proponents that every reward is predictable.

Recruitment with Ease

Sharjah provides a good array of labor to cater to different skill levels in the labor market. It gives comfort to the employing company in onboarding a professional. What also works great in favor of placing Sharjah on top is the cheap labor costs than other cities.

Business Setup in Sharjah FreeZone vs. Mainland:

Individuals often raise the question of whether to go for a free zone business setup in Sharjah or the mainland. Here is an elaborate comparison:

• The Mainland of Sharjah: You can conduct business anywhere in the UAE. It gives more opportunity. Moreover, it can also include government projects. Therefore, several businesses usually prefer the mainland for expansion.
• Sharjah Free Zone Business Setup: Businesses set up within free zones only operate inside free zones with several advantages. It offers tax exemption as well as full foreign ownership. However, trading outside the free zone requires special approvals.
• Mainland Business setup in Sharja: Some businesses require locals to serve as sponsors for the sake of any visa legal matters. The free mainland also serves to connect with local and international markets. This allows the owners the chance to grow their businesses with great flexibility.

However, free zones have restrictions when trading. In addition, the business may be asked to provide a local distributor to market outside the free zone.

Company Registration in Sharjah

To go about the new company registration in Sharjah, follow these steps:

• File the business papers.
• Get provisional approval.
• Select a business name.
• Rent an office.
• Get final approval.
• Receive your business license.

New Business Setup in Sharjah

If you want to set up a business in Sharjah, you will have to do some homework before that. Tips:

• Choose the right business activity.
• Obtain a license.
• Get in touch with Dubai-based business setup consultants.

Getting Help from Business Setup Experts

Starting a business can be very chaotic. However, you can seek the help of business setup consultants in Dubai. They will assist you with:

• Company registration
• Obtaining a business license
• Finding office space
• Opening a bank account

Documents Needed for Business Setup in Sharjah

You will need:

• Copies of the owners’ passports: Passport copies must be attached for registration. This helps in easy identification.
• Details of memorable business activity: This specifies the type of business licenses required. Consequently, this allows the license to be chosen according to the appropriate rules and regulations.
• Office lease: You will have to take an office on rent and submit the rent agreement, which is considered as proof of one business address. Additionally, it will be asked at the time of final approval.
• No objection certificate, if any: This may be necessary for some businesses in the organization. It would eliminate a smooth registration process as well as future legal issues.
• Get SEDD’s Initial Approval: Get the initial approval from the Sharjah Economic Development Department. This is the preliminary step, and consequently, it makes the entire process quick.

FAQs

How can I start a business in Sharjah?

Choose a type of business, get approvals and registrations, rent office space, and obtain a license. Hopefully, this should be easier if you also work with experts.

What are the merits of business setup in Sharjah?

Important low costs, plus the genuine location, simple and relaxed rules, tax incentives, and flourishing markets. Therefore, this is what draws many investors to Sharjah.

Is a local sponsor compulsory in Sharjah for business setup?

Yes, this applies to mainland businesses. A free zone allows 100% foreign ownership without a sponsor.

How long will the registration process take for a business in Sharjah?

Usually, a couple of days; but, if things get delayed, it shouldn’t worry you. Fast approval requests are solely dependent on the provision of proper documents and the hiring of suitable personnel.

Is it possible to start a low-cost Sharjah business setup?

Yes, Sharjah is cheap. Free zones, shared offices, and a limited number of employees cut down on costs when setting up a business.

Conclusion

Business setup in Sharjah is a good idea to venture into. This is an easy process. And has lower costs. The city is filled with opportunities. Be it a free trade zone or mainland, Sharjah guarantees success for both types of investors. One can consult business setup experts in Dubai for further information or even business setup consultants in Dubai, who will take you through this whole process in an easy and orderly manner.