How to Start a Business in Sharjah: Step-by-Step Guide for Expats and Entrepreneurs

by Adam g

Sharjah, one of the UAE’s most culturally rich and economically growing emirates, is becoming an increasingly attractive hub for entrepreneurs and foreign investors. With its strategic location, investor-friendly policies, and lower setup costs compared to Dubai or Abu Dhabi, Sharjah offers a compelling opportunity to start or expand a business. Whether you’re a resident or an expat, this guide walks you through the essential steps for setting up a business in Sharjah.

Why Choose Sharjah?

Sharjah offers several advantages to businesses:

  • Competitive setup and operational costs.

  • Access to both UAE and international markets.

  • A wide range of free zones and mainland opportunities.

  • Simplified registration processes and business-friendly regulations.

Whether you’re venturing into retail, consultancy, manufacturing, or e-commerce, Sharjah offers a fertile ground for growth.

Mainland vs Free Zone: Which is Right for You?

Before you begin, you need to choose between setting up in the mainland or a free zone:

  • Mainland: You can trade directly within the UAE market and take government contracts. A local sponsor (UAE national) is required, but with 100% ownership now possible in many sectors, the process is more favorable than ever.

  • Free Zones: Ideal for 100% foreign ownership, full repatriation of profits, and minimal customs duties. Sharjah has popular free zones like Sharjah Media City (Shams), Sharjah Airport International Free Zone (SAIF Zone), and Hamriyah Free Zone.

Step-by-Step Business Setup Process

  1. Choose Your Business Activity
    Decide on the nature of your business. Each activity has specific licensing and location requirements.

  2. Select Business Structure
    This could be an LLC, sole proprietorship, or branch office, depending on your needs and ownership preferences.

  3. Choose a Company Name
    Follow UAE’s naming conventions. Avoid religious or offensive terms. Submit 2–3 name options for approval.

  4. Apply for Initial Approval
    This approval confirms that the authorities have no objection to you starting a business in Sharjah.

  5. Draft the MOA and Lease Agreement
    The Memorandum of Association (MOA) and lease contract (Ejari) are required for mainland businesses. Free zones offer shared or private office space packages.

  6. Obtain the Trade License
    Once documentation is complete, submit to the Sharjah Economic Development Department (SEDD) or respective Free Zone Authority for the trade license.

  7. Register for Visas and Open a Bank Account
    Apply for residence visas for you and your employees and open a corporate bank account to begin operations.

Documents Required

  • Passport copies of shareholders

  • Visa and Emirates ID copies

  • NOC (if applicable)

  • Business plan (for some activities)

  • Tenancy contract

  • MOA and name reservation certificate

Final Thoughts

Sharjah provides an excellent launchpad for small businesses and global startups alike. With the right guidance and preparation, setting up your business in Sharjah can be a smooth and rewarding experience. Consider consulting with a local business setup consultant to fast-track the process and ensure compliance.

 

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