Sharjah Trade License 2023: Check all The Important Details
If you have planned to start and run a business in Sharjah, it is a wise decision, as it is a growing economy. But you need to obtain a trade license there to operate. To obtain a Sharjah trade license, you need to follow a set procedure. You need to fulfil the conditions and submit relevant documents.
This blog takes you on a journey of information exploration on the Sharjah trade license. We talk about all the important details of the Sharjah trade license, including:
- Different types of trade licenses
- Businesses that must obtain a trade license
- Complete the procedure of obtaining a license
- Required documents
- The procedure for renewal and cancellation
- Benefits of Sharjah trade license
Who Needs to Obtain a Sharjah Trade License?
Businesses operating in any industry sector can obtain a Sharjah trade license. Manufacturing, wholesale and retail trading, real estate, energy, and mining are some of the strong sectors in Sharjah. Verticals like Greentech, tourism, healthcare, advanced manufacturing, agri-food technology, and logistics are attracting huge investments.
With so many industry sectors in high-performing phases or poised to grow in the future, you have many options to choose from. Moreover, the industry-specific free zones are an excellent opportunity to enjoy their benefits. Some of the examples are:
- Sharjah Media City (SHAMS) provides innovative facilities and initiatives for media businesses.
- Sharjah Healthcare City (SHCC) is dedicated to health and wellness businesses. So, if you have business interests in developing hospitals, health R&D centres, rehabilitation centres, or laboratories, you can set up your office here.
- Sharjah Research, Technology, and Innovation Park (SRTI Park) aims to promote R&D initiatives in new business ideas. For example, it houses businesses in digitalization, water management, environmental technology, smart manufacturing, transport and logistics, and renewable energy sectors.
- Sharjah Publishing City is focused on publishing and consultancy services.
Other free zones also exist with a focus on specific industries.
Like Sharjah Airport Free Zone (SAIF) has businesses in food, steel, timber, petrochemicals, textiles, heavy industry, recycling, packaging, building materials, and aviation. This is because it has many pre-built warehouses and enormous spaces for MNCs to build warehouses. Hamriyah Free Zone houses companies in similar industries like SAIF.
So, if you want to see your business ideas in these sectors to get successful, form a company in Sharjah. We can help you with the procedures, paperwork, and all compliances necessary for a Sharjah trade license.
What are the Different Types of Trade Licenses in Sharjah as per The Business Activities
Any business or entrepreneur wanting to start a company in Sharjah can obtain different types of trade licenses. Each license is for a specific type of business activity. You must know what activity you want to operate in and obtain the relevant trade license.
The three types of Sharjah trade licenses are:
Commercial license in Sharjah
If you have interests in the import and export of goods, you must get a commercial license in Sharjah. This commercial license allows you to conduct such trading activities locally and/or internationally.
Industrial license in Sharjah
Businesses interested in manufacturing, production, assembly, construction, and packaging must obtain an industrial license in Sharjah. With this license, you can import raw materials, manage production in Sharjah, and export finished products.
Professional license in Sharjah
For consultants, freelancers, and professional services providers, a professional license is a must. You can engage in professional activities, such as engineering, consulting, law, creative arts, crafts, and others.
Besides these three licenses, you have two more license options, but these are possible only in particular circumstances.
- Entrepreneurial Business License
- Business Operation Permit
Sharjah free trade zones allow an eCommerce license to allow online buying and selling of goods and services.
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The Complete Process for Sharjah Trade License Explained
The procedure is a critical Sharjah license information you must be aware of. It follows a systematic process. It includes the following steps
Select your business activity
The first step is choosing the business activity you want to engage in. It depends on your interests, market demands, and expertise. Under one license, you cannot choose more than 10 business activities.
You must conduct proper research before deciding on your business activity. Checking the feasibility of your business idea in terms of location, budget, and concept is crucial.
Choose the license type
Once you choose your business activity, you know the license you need to apply for depending on the activity.
Apply for trade name registration
Now, you must get a unique, relevant name for your business. This trade name will serve as a unique identity for your business.
While considering your business trade name, you must follow the naming conventions of the Sharjah licensing authority. Besides, it must relate to the activities you will be engaging in. It must be a name that people find easy to remember and resonate with your business. You must register the name.
Choose your business’s legal structure
After trade name registration, the next step in Sharjah license information is choosing an appropriate legal structure. This is a parallel decision to deciding whether to operate in mainland Sharjah or a free zone. Both allow some specific legal structures and have different rules and regulations for it.
In the free zones of Sharjah, you can form a Sharjah free trade zone company or a free zone establishment.
In the mainland Sharjah, you have the following options:
- Partnership firm
- Limited liability company
- Sole proprietorship firm
- Public joint stock company
- Private joint stock company
- Branch of a local, GCC, or a foreign company
So, you must consider the pros and cons of a free zone vs the mainland. Parallel to that, you must determine an appropriate legal structure for your business.
Get initial approval
So, you have made all the necessary decisions for your business. The activity, mainland vs free zone, name, and legal structure. It’s time to apply for an initial approval for your Sharjah trade license. You must prepare all the necessary documents and details for your business. You must submit these documents to the Sharjah Economic Development Department (SEDD). EDD issues the initial approval immediately.
Get necessary approvals
Related to your business activity, you might need to apply for other approvals. These approvals are from authorities, departments, or Ministries of your relevant activity. For healthcare business, you must get approval from the Ministry of Health. The Ministry of Finance and Industry handles the approvals for industrial licenses. Similar other authorities exist for different business activities, whose approval is essential to advance.
This step also involves approval for your business office space. You must select a space for your commercial operations, depending on the business activity. The space can be rented or leased. You need to get approval from the Sharjah Municipality for this space.
Get the Sharjah trade license
Now, submit these approvals, licensing application form, and initial approval to EDD. Settle the relevant fee amount depending on your activity and legal form. The EDD assesses your documents and form and approves or rejects the application. Once it is approved, it will issue you the Sharjah trade license. If it is rejected, you might need to submit more documents, furnish more details, or make some changes to the form.
Now, you are legally authorized to operate your business in Sharjah.
Check These Required Documents for Sharjah Trade License
Sharjah license information is not complete without the necessary documents you must submit to the EDD. These documents are:
- Application form
- Trade name certificate
- Copy of MoA and AoA
- Lease contract or tenancy agreement of the business office space
- Map image or property certificate
- A no-objection letter
- Business plan
- Technical assessment report
- Notarized legal structure
- Approvals from Ministries and Departments
- Reports proving capital investment and bank account details
- Copies of passports of owners and shareholders
- Identity proof: if UAE nationals, copies of Emirates IDs and if foreigners, residency visas
For a foreign branch, you need to get approval from the UAE Ministry of Foreign Affairs. There can be slight differences in one or two documents for different legal structures. But the primary documents remain the same.
What to do to Renew the Sharjah Trade License?
The validity period for a Sharjah trade license is a year. So, you must apply for license renewal to continue your operations in Sharjah. You must apply for renewal before the expiry of the validity period.
In the case of a local company, SEDD manages the process. For a branch of a foreign company, you must submit the documents to the Ministry of Economy. If three months have passed since the expiry of the license, you must contact the Inspection Division in SEDD.
The documents for license renewal include:
- License renewal form
- Approval from the relevant authority
- Lease agreement
- Photocopies of passports of owners and shareholders
- Photocopies of Emirates IDs or visas of owners and shareholders
You must submit these documents to SEDD, along with the renewal fee. SEDD will process it and renew your license.
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Know the Process for Cancelling Sharjah Trade License
If you decide to stop your operations in Sharjah, you can apply for license cancellation. It means you can close the company in Sharjah. You must get approvals from relevant departments, authorities, or Ministries. To get approval, you must submit the necessary documents, along with the reason for cancellation.
You must pay the DED cancellation fees. The documentation depends on your legal structure and license type. But you must submit the following:
- A copy of the resolution of the board of directors
- A copy of the license cancellation fee payment receipt
- License cancellation application
- A copy of the newspaper advertisement on license cancellation
- Clearance letter from authorities
- A copy of the financial statements
What Benefits Come With Your Sharjah Trade License
Sharjah is one of the growing business centres in the UAE. It offers many new and unique business opportunities to entrepreneurs and investors. With a Sharjah trade license, you get the following benefits:
- A vibrant business landscape
- Easy access to both local and international markets
- Complete repatriation of capital and profits
- Exemption from import and export duty and tax
- State-of-the-art infrastructure and advanced facilities
- Excellent road, railway, and airway connectivity
- Flourishing businesses and economy
- A large pool of distinct and skilful workers
- Investment-friendly initiatives and environment
- Programs for economic diversification
- No currency restrictions
- A wide range of business activities to choose from
- Limited taxation rules
Get a Sharjah Trade License with Business Setup HQ's Support!
Business Setup HQ is a distinguished provider of company formation services in the UAE. We help local and foreign businesses, entrepreneurs, and investors form their businesses in the UAE. Whatever Emirate you choose as your business base, we can help you form a company.
We can help you identify the best location for your business. We assist you in deciding the legal structure, trade name, and business activity. You can have an easy ride through the licensing process with our complete handholding. You can also find required support in license cancellation and renewal.
We study your business idea and your unique business needs. Based on this knowledge and our expertise, we recommend the best options for you. Thus, while you spend time on your core business activities, we engage in your Sharjah trade license processing. We handle every part of the process from start to finish to ensure a smooth operation. You can enjoy a hassle-free and cost-effective process of company setup and operations.
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Sharjah Trade License 2023: Frequently Asked Questions
It takes only a few days to get a Sharjah trade license. But the actual duration depends on how accurate and organized you are in your process. The application form, fee amount, and paperwork must be in order and in the required format to expedite the licensing procedure. For a Sharjah trade license in some of the free zones, it takes only a few hours to get the license.
There is no fixed cost for a Sharjah trade license. Various factors play a critical role here. The license fees for different legal structures and license types are distinct. You must also include the visa fees, office rent, notarization expenses, and many other expenses. You must also include the costs you pay to a professional services provider who will take care of your smooth company formation.
Connect with our business consultants to know more about the costs.
Getting a trade license in Sharjah is not complicated. Follow the procedure as described in this blog to obtain your license. Adhere to the guidelines of SEDD and maintain clear communication with all the relevant authorities for an easy business setup process. But if you want a hassle-free and seamless procedure, contact a business formation consultant like us. We will handle all the paperwork, procedures, and approvals for your Sharjah trade license.