Business Setup in Sharjah | Mainland Company Formation in Sharjah
                     Company Formation in Sharjah, UAE: 
Legal Requirements & Licenses
Introduction
Sharjah, the cultural capital of the UAE, offers a dynamic environment for business 
ventures. Whether you're an entrepreneur or a seasoned investor, understanding 
the legal framework and licensing requirements is crucial for establishing a 
company in this emirate.
This guide provides a comprehensive overview of the steps involved in company 
formation in Sharjah, covering both mainland and free zone setups. From legal 
structures to licensing procedures, you'll find all the information needed to navigate 
the process efficiently.
Understanding Company Formation in Sharjah
What Is Company Formation?
Company formation refers to the legal process of establishing a business entity in 
Sharjah. This involves selecting a business structure, obtaining necessary licenses, 
and complying with local regulations to operate legally within the UAE.
Why Choose Sharjah?
Sharjah stands out as a strategic location for businesses due to its proximity to 
major ports, access to a skilled workforce, and a supportive regulatory 
environment. The emirate's diverse free zones cater to various industries, offering 
tailored solutions for entrepreneurs.
Legal Structures for Company Formation
1. Mainland Company
A mainland company allows you to operate directly within the UAE market. It 
requires a local sponsor who holds 51% ownership, while you retain 49%. This 
structure is suitable for businesses aiming to engage with the local market and 
government entities.
2. Free Zone Company
Free zone companies offer 100% foreign ownership, making them attractive for 
international investors. These zones provide benefits like tax exemptions, 
simplified procedures, and infrastructure tailored to specific industries.
Licensing Requirements
Types of Licenses
● Commercial License: For trading activities.
● Professional License: For service-oriented businesses.
● Industrial License: For manufacturing operations.
● Tourism License: For travel and hospitality services.
License Application Process
The application process involves:
3. Choosing a Business Activity: Define the nature of your business.
4. Selecting a Trade Name: Ensure the name complies with UAE regulations.
5. Applying for the License: Submit necessary documents to the relevant 
authority.
6. Obtaining Approvals: Depending on the business type, additional approvals 
may be required.
5. Issuing the License: Upon approval, the license is granted, allowing you to 
commence operations.
Documentation Required
Essential documents typically include:
● Passport Copies: For all shareholders and managers.
● Proof of Address: For the business location.
● Business Plan: Outlining the company's objectives and strategies.
● Shareholder Agreements: Detailing ownership and responsibilities.
● No Objection Certificate (NOC): If applicable.
Steps to Register a Company in Sharjah
1. Determine Business Activity: Choose the activity that aligns with your business 
goals.
2. Select Legal Structure: Decide between a mainland or free zone company.
3. Choose a Trade Name: Ensure the name is unique and adheres to naming 
conventions.
4. Prepare Documentation: Gather all necessary documents for submission.
5. Submit Application: Apply to the relevant authority, such as the Sharjah 
Economic Development Department (SEDD) or the respective free 
zone authority.
6. Obtain Approvals: Secure any additional approvals required for your 
business activity.
7. Receive License: Once all steps are completed, your business license will 
be issued.
Costs Involved
The cost of company formation varies based on factors like business activity, legal 
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● Cost-Effective: Competitive setup and operational costs.
● Skilled Workforce: Access to a diverse talent pool.
● Government Support: Incentives and support for new businesses.
● Infrastructure: Modern facilities and services to support business 
operations.
Challenges to Consider
● Local Sponsorship: Mainland companies require a local sponsor, which may 
involve profit-sharing arrangements.
● Regulatory Compliance: Adhering to local laws and regulations can be 
complex.
● Cultural Differences: Understanding and respecting local customs and 
business practices is essential.
Conclusion
Establishing a company in Sharjah offers numerous opportunities for growth and 
expansion. By understanding the legal requirements and licensing procedures, you 
can navigate the setup process with confidence. Whether you opt for a mainland or 
free zone company, Sharjah provides a conducive environment for business 
success.
For personalized assistance and expert guidance on company formation in Sharjah, 
consider partnering with a reputable business setup consultant. They can provide 
tailored solutions to meet your specific business needs and ensure a smooth 
establishment process.