Company Formation in Sharjah, UAE
Sharjah is a growing economy, a tax-free city with no income or capital gains tax, which is why its economic growth has been convenient and practical. Sharjah has many investor and entrepreneur that is involved in company formation. It is a process of registering (incorporating) a business as a limited company. When your company has been registered, it becomes a separate legal establishment with distinct and independent existence.
Our company formation services give the best mainland solutions and are spread across all free zones.
Sharjah is continually attracting foreign investors not only because it offers excellent facilities and infrastructure but also because the UAE is a tax-free country. Company formation in Sharjah requires carefully planned steps and local agents to take over the company registration process.
Types of Company Formation in Sharjah
There are 3 different types of jurisdictions available for company formation in Sharjah. All these jurisdictions have their own rules and they prove beneficial for different types of businesses.
A Sharjah mainland company is also called an onshore company which is licensed by the Department of Economic Development (DED) of Sharjah. Mainland Company is allowed to conduct business in the local market as well as outside UAE without any restriction.
Free Zone Company
Free zones in Sharjah or in UAE are designed to conduct international business or business between the free zones. To date, more than 40 free zones are operating in the UAE. A local sponsor is not required in a free zone company; thus, a foreign investor will enjoy 100% ownership of the company formation. Likewise, external approvals from agencies that do not belong to the free zone will also not be necessary.
Most businesses prefer to set up an offshore company, also known as a non-resident company, in Sharjah however this is the best option to conduct international business only and you cannot do business in UAE under the offshore company. People also prefer to setup an offshore company as a holding company so that they can hold:
- The shares of other companies in other jurisdictions as holding company
- Intellectual property rights like patent, trademark, copyright, etc.
- Licensing of franchises of companies
Types of Entities for Company Formation in Sharjah
The type of company formation that is right for you will depend on your business activities, your chosen jurisdiction, and others. All of these entities for company set-up can be established on the mainland, while many can also be allowed to register within the UAE free zones.
- Public shareholding company
- Limited partnership
- Private shareholding company
- Joint venture
- General partnership
- Limited liability company (LLC)
Process of Company Formation in Sharjah
The process involved in company formation in Sharjah is fairly easy.
- Select a business activity. If you are doing business in production, segregation accumulation and packaging, you will apply for an industrial license. Other businesses such as import/export, sales, real estate, brokerage services, retail and rent-a-car will require a commercial license.
- Choose the area of company formation – free zone or mainland. Both have advantages; however, for new entrepreneurs, it is suggested that you choose a free zone because it offers more benefits than the mainland.
- Prepare a Memorandum of Association (MoA) which contains the basic conditions in which the company will operate.
- Get initial approval from DED (Department of Economic Development).
- Register your business under a unique trade name.
- Arrange a physical office space for your company formation.
- Apply for a trade license.
- Open a bank account in an Islamic, international, or local bank.
- Foreigners need to go through visa and immigration processes.
Benefits of Company Formation in Sharjah
When you register your business in Sharjah, you can benefit greatly. Here are a few of these.
- No taxation
- Ease of business set-up
- Technological advancements
- Top-notch infrastructures
- Easy visa processing
- Recruit ex-pat employees
- More than 40 free zones
- Great geographical location
- Comfortable and quality lifestyle
- Exceptional government support
How Finace Consultancy will help
- Study all the important aspects of your business and suggest the appropriate license and best place for your business on UAE Mainland.
- Help in devising your business plan.
- Guiding in completing the application form that is to be submitted to DED
- Creating Memorandum of Association of the company
- Getting approval for your trade name including initial and security approval
- Employee recruitment services for your newly formed company
Frequently Asked Questions on Company Formation in Sharjah
It can take as little as five days or can take up to six weeks to start your business in Sharjah depending on the company type and structure. Company registration is the initial step of which it is a matter of gathering all documentation.
The company does not need to maintain a physical presence in the free zone but is required to have a registered agent, whose address must be listed as the registered address for the offshore company in the place of its incorporation.
There are more than 40 Free Zones operating in UAE, with over 20 free zones in Sharjah alone. We can make things simple for you by helping you choose the right free zone for your business.
Real estate, travel and tourism, facility management, maintenance, economy Islamic, electronics, renewable and alternative energy, medical tourism, education and manufacturing are among the most promising sectors in UAE.