Establishing a business license in Sharjah is a crucial step for individuals and companies wishing to conduct their commercial and investment business. Obtaining a business license in Sharjah is an important process that requires knowledge and a clear understanding of the specific procedures and requirements that must be adhered to.

The Emirate of Sharjah is characterized by economic diversity and an encouraging investment environment, as it provides broad opportunities for establishing and operating companies in various sectors. Whether you want to start a small company, a medium company, or even a branch of a major company, Sharjah provides capabilities and resources that support business success.

To obtain a business license in Sharjah, you must complete several steps and procedures. The steps are usually as follows: submit an application to the relevant authority, prepare and submit the required documents, pay the prescribed fees, and wait for approval and issuance of the commercial license.

How to create a business license in Sharjah

In order to  create a business license in Sharjah , several steps and procedures are required to be followed. Below are general steps to guide you in the process of creating a business license in Sharjah:

• Planning and Research: Before starting to create a business license in Sharjah, you should plan and research extensively about the type of business activity you want to practice. Study the market and identify the needs and opportunities available in the sector you are interested in. You can also consult local business consultants for proper advice and guidance.
• Choosing the legal type of company: Determine the appropriate legal type for your company, whether it is a sole proprietorship, a partnership company, or a limited liability company. The choice depends on the business activity and expectations for growth and expansion.
• Company Name: Select an appropriate name for your company that complies with Sharjah laws and regulations. Check the availability of the name and make sure it is not similar to existing company names.
• Application and preparation of documents: Submit an application to the relevant authority in Sharjah responsible for issuing commercial licenses. You may be required to submit documents such as filled out forms with personal and business information, passports, personal photos, financial records, and other required documents.
• Payment of fees: Pay the prescribed fees to process your application. Fees may vary depending on the type of business and company size.
• Approval and issuance of the license: After completing the procedures, submitting the required documents, and paying the fees, your application will be reviewed by the relevant authority. If your application is approved, your company will be issued a business license.

Types of commercial licenses available in Sharjah

There are several types of business licenses available in Sharjah for individuals and companies. Here are some common types of business licenses in Sharjah:

1. Sole Proprietorship License: Issued to individuals who wish to conduct business in their personal capacity without partners. The owner and the company are one person, who is responsible for all financial and legal obligations of the company.
2. Commercial License: Issued to commercial companies, local companies, and foreign companies that wish to engage in general commercial activities. The company can have limited or unlimited liability, and requires the presence of partners in the company.
3. Free Zone License: Issued to companies that wish to establish in one of the free zones in Sharjah. This license provides several advantages such as full foreign ownership, non-imposition of customs duties, and other tax and customs facilities.
4. Professional License: Issued to individuals who practice a specific profession in Sharjah, such as lawyers, doctors, engineers, accountants, and consultants. This license relates to professional services and requires a license from the relevant professional bodies.
5. Tourism and Hospitality License: Issued to companies and institutions operating in the tourism and hospitality sector, such as hotels, restaurants, tourism agencies, and companies related to travel and tourism.

Economic and investment advantages in Sharjah

Sharjah enjoys several economic and investment advantages that make it an attractive destination for business and investment. Here are some of the main advantages of Sharjah:

1. Economic and political stability: Sharjah enjoys a stable political and economic environment, which enhances confidence and stability for local and foreign businesses and investments.
2. Economic Diversity: Sharjah is characterized by wide economic diversity, providing opportunities in various sectors such as industry, trade, services, tourism, culture, technology, and education, providing a variety of options for investors.
3. Advanced Infrastructure: Sharjah includes a modern and advanced infrastructure, including ports, international airports, highways and advanced communications networks, which facilitates the movement of goods and people and enhances commercial activity and international trade.
4. Encouraging government policies: The Sharjah government adopts investment policies and legislation that enhance the investment climate, including providing incentives and facilities to investors, such as tax exemptions, financial facilities, and quick licenses.
5. Educated and multicultural workforce: Sharjah has a skilled and educated workforce, providing an outstanding educational system and high-quality educational institutions. Sharjah also attracts international talent from different nationalities, which contributes to diversity and economic development.
6. Access to regional and global markets: Sharjah is strategically located that provides easy access to neighboring regional markets, such as the GCC countries, India, Africa and Europe. Sharjah also provides strong trade networks and international communications, which enhances opportunities for export and global expansion.
7. Innovative investment environment: Sharjah is keen to promote innovation and economic leadership, and provides an innovative investment environment that encourages the spread of startups and modern technology, and provides support for innovative ideas and investment in research and development.

Basic steps to establish a company in Sharjah

There are some basic steps in order to establish a distinguished company in Sharjah, and these steps are represented in the following points:

• Determine the type of company: Determine the type of company you wish to create, such as a sole trade license, a commercial company, a free zone license, a profession license, or a tourism and hospitality license. Study the requirements of each type of company and choose the type that best suits your planned business.
• Company Name: Select a company name that is available and not similar to other existing company names. You must ensure compliance with local laws and regulations regarding business names.
• Arrangement of company partners: If you are setting up a trading company or free zone, identify the company partners and distribute their equity shares. Incorporation requirements and procedures will vary based on the type of partners and the type of company.
• Application and registration: Submit an application to obtain a company license to the competent authority, whether it is the Sharjah Economic Development Department or the General Authority for Free Zones and Industrial Estates. You will need to submit the required documents such as the application form, a copy of the founders’ passport, the partnership agreement (if there is a partnership), and other required documents.
• Obtaining other approvals and licenses: You may need to obtain additional licenses or approvals specific to your business, such as building permits, health and safety licenses, or occupational permits for certain professional activities. Ensure compliance with all relevant local requirements.
• Opening a bank account: Open a bank account for the company in one of the approved banks in Sharjah. You will need to provide the required and approved documents to open the account.
• Obtaining a work permit: If you plan to work for the company, you will need to obtain your work permit and residence visa from the relevant authority in Sharjah, such as the Immigration, Passports and Nationality Department.
• Compliance with legislation and regulations: You must comply with all local legislation and regulations in Sharjah regarding business, taxes, social insurance, consumer protection, etc. Make sure you follow legal and financial reporting requirements.

At the conclusion of this article, it can be said that the establishment of commercial licenses in Sharjah represents a great opportunity for individuals and companies wishing to enter the business market in the United Arab Emirates. Sharjah is distinguished as one of the leading emirates in the country and provides the appropriate business environment for success and development.

Sharjah provides many opportunities and advantages for investors, ranging from regulating legislation and advanced infrastructure to political and economic stability. You can contact Itqan Company and consult its experts on how to obtain commercial licenses in Sharjah.

The most important frequently asked questions: Creating a commercial license in Sharjah