One of the biggest business centers in the world, UAE offers astute investors countless options and a booming economy. And establishing a business in Sharjah is a smart move for individuals wishing to benefit from the city’s beneficial economy. Do you intend to launch your company in UAE? You can acquire a trade license. This document gives you permission to carry out business operations in the Sharjah emirate. Along with the many trade licenses classifications, there are also the commercial activities that each license permits. In this blog article, we’ll walk you through the process of obtaining your trade license in Sharjah, including advice on business setup and the processes required to get a UAE trade license.
This article will offer helpful advice on creating a successful business setup in the Sharjah Free Zone, regardless of your level of experience as an entrepreneur. So, let’s get going!
Sharjah’s Economic Development Department’s Role
The Department of Economic Development (DED) in Sharjah is crucial in regulating and supervising the establishment of new businesses.
Trade licenses and permits for companies operating in Sharjah, including Sharjah Mainland, are issued by the DED. This covers everything, from modest retail establishments to substantial industrial enterprises. To make sure that enterprises abide by all pertinent laws and regulations, the DED also collaborates closely with other governmental organizations.
The SEDD offers a variety of services to businesses in addition to issuing trade licenses, including assistance in locating appropriate locations for new firms and direction on how to incorporate a new company. They also aid and direct start-up companies on a variety of company establishment matters in the UAE.
However, certain economic activities necessitate approvals and licenses from other government bodies. These consist of:
- Pharmaceutical and healthcare organizations must obtain clearance from the Ministry of Health.
- Financial institutions and banks must have approval from the UAE Central Bank.
- The business operations of industries are approved by the Ministry of Finance and Industry.
- Companies that provide insurance and related services are allowed by the Ministry of Economy and Commerce.
Types of Trade License in Sharjah Free Zone
There are various trade licenses available for anyone starting a business in the Sharjah Free Zone, each with unique criteria and advantages. Making the right choice for your company can be aided by having a thorough understanding of the various license types and their applications.
1. Industrial License
Businesses engaged in manufacturing, assembly, packing, or other comparable industrial activities need to get an industrial license. This permit enables businesses to import machinery and raw materials and export finished products. Companies that have an industrial license are also eligible for the corporate and individual income tax exemptions offered by the free zone.
2. Professional License
Businesses that offer consulting, engineering, and design services must have a professional license. This license entitles businesses to the importation of tools and equipment required for the provision of their services, as well as tax exemptions from both corporate and individual income taxes.
3. Commercial License
Businesses that engage in trading activities, such as importing and exporting goods, must have a commercial license. This kind of license enables businesses to import products, store them in the free zone, and then export them abroad. Tax exemptions for corporate and individual income in the free zone are also available to businesses possessing a commercial license.
Before making a choice, it is important to understand the rules and restrictions of each license because each one has unique requirements and advantages.
How to Get a Trade License in Sharjah
It can be difficult to start a business in Sharjah, United Arab Emirates, but with the right assistance, it can be completed quickly and effectively. This section will describe the procedures you must follow to get a Sharjah trade license, including advice on business formation and the steps required to get a UAE trade license.
To get a trade license in Sharjah, follow these simple steps:
1. Select your Business Activity
You must decide on your business activity before you begin the establishment process. This will assist you in determining the kind of trade license you require and the appropriate authorities to contact.
2. Choose the Appropriate Business Licensing Category
Once you have chosen your line of business, you must determine the appropriate licensing category. This will assist you in comprehending the rules and laws that relate to your company.
3. Submit a Request for a Trade Name
You must select and register a trading name for your company before you can submit an application for a trade license. The Department of Economic Development (DED) in Sharjah is the place to achieve this.
4. Choose a Legal Framework
A legitimate business structure that complies with UAE rules and regulations must be created. In many cases, an investor will choose to form their business as a: –
- Limited Liability Corporation.
- Sole Proprietorship.
- Partnership firm.
5. Submit an Initial Application for a Trade License
You can submit your initial trade license application, the required paperwork, and payment for fees after completing the stages.
6. Obtain the Necessary Government Approvals
The Central Bank of the UAE, the Ministry of Economy and Commerce, the Ministry of Health for pharmaceutical and medical companies, the Ministry of Finance and Industry for industries, and the Ministry of Economy and Commerce for financial institutions are just a few of the relevant government agencies from which you will also need approvals.
Cost of Getting a Trade License in Sharjah
Starting a business in Sharjah is affordable, with initial costs starting from just AED 10,000*. The final expenses will vary based on factors like office rent, visa processing fees, and other business setup requirements.
Get in touch with Shuraa Business Setup for a tailored quote and expert guidance on the exact costs based on your specific requirements.
Renewal of a Trade License in Sharjah
The Department of Economic Development (DED) in Sharjah must receive a number of documents in order to renew a trading license in the Sharjah Free Zone. The following information and documentation must be provided to renew your trade license:
- Form for License Renewal.
- The Relevant Authorities’ NOC, or No Objection Certificate.
- Copies of UAE passports and national ID cards.
- A photocopy of the Notary Public’s signature authentication verification.
- Certified lease contracts.
When you’ve acquired all the required paperwork, you can send it to the DED along with the renewal money. If everything is in order, the DED will examine your application and award your renewable trading license.
It’s crucial to keep track of the renewal procedure and to have all the necessary documentation available because failing to renew your trade license by the due date may result in penalties and fines.
Read more: How To Get A General Trading License In Sharjah
Get your Trade License in Sharjah with Shuraa!
Shuraa Business Setup is a one-stop shop for expats and businesses looking to excel in the UAE business environment. From Sharjah company formation to PRO services, we have the competence to guide you through every stage of your business journey.
We can guide you through the procedure, make sure your business complies with all rules, and help you take advantage of every business opportunity whether you’re trying to establish your operation in the Sharjah Mainland or Free Zone.
Don’t let the difficulties in setting up a business in the United Arab Emirates prevent you from following your entrepreneurial goals. Please allow us to guide you through the procedure and ensure your success in the UAE market. Call us at +971 4 4081900 right away. Additionally, you can reach us by WhatsApp at +971 50 7775554 and email at [email protected].
