How Does a Sharjah Mainland License Help Businesses?

The SEDD offers three main categories of mainland licenses. The right choice depends entirely on the nature of the business activities.

Opting for a mainland license in Sharjah provides several powerful advantages for a business. These benefits help companies grow and operate without limitations:

• Full Access to the UAE Market: A mainland license removes all geographic restrictions within the UAE. A company can trade with businesses and customers in Sharjah, Dubai, Abu Dhabi, and all other emirates.
• Ability to Work with Government Entities: Mainland companies are eligible to apply for and win lucrative government contracts, a market not easily accessible to free zone entities.
• Flexibility in Office Location: A business can rent an office or retail space anywhere in Sharjah. This freedom allows companies to choose a location that best suits their clients and employees.
• Unlimited Visa Quota: There is no cap on the number of employee visas a mainland company can obtain. The visa quota is directly linked to the size of the office space, allowing for scalable growth.
• Regulatory Reforms & Ease of Doing Business: The SEDD has introduced schemes like the Instant License for certain office-based activities, allowing license issuance in just one day with relaxed initial requirements, such as no MoA or lease needed in the first year.
• Competitive Costs: One of the main benefits of the Sharjah Mainland license is its affordability. The setup and renewal fees are often more cost-effective compared to larger hubs like Dubai (setup: AED 15,000–30,000; renewal: AED 10,000–20,000, depending on office size and business activity).     
• Government Contracts and Local Credibility: Mainland companies can access government contracts more easily than many free zone or offshore businesses. Local customers also tend to trust mainland-licensed companies more for certain goods and services.

The process of setting up a company on the Sharjah mainland is clear and well-structured. It involves several distinct stages, from initial planning to post-license setup.

A. Initial Planning

The first step is to plan the business carefully. An entrepreneur must choose a specific business activity from the list approved by the SEDD. Next, a legal structure for the company must be selected (e.g., Sole Proprietorship, LLC).

Finally, a unique trade name for the business must be reserved through the SEDD portal.

B. Documentation & Approvals

This stage involves gathering and submitting all necessary paperwork. The documents required for a Sharjah Mainland license typically include passport copies of all shareholders, a Memorandum of Association (MoA), and a tenancy contract for the office space.

These documents are submitted to the SEDD to obtain initial approval. The MoA may need to be notarized by a public notary.

C. Final Licensing

After receiving initial approval, the next step is to secure a physical office. A valid tenancy contract and Ejari (lease registration) are mandatory. Once the office is confirmed, the final government fees must be paid to the SEDD. 

Upon payment, the authority issues the official Sharjah mainland trade license.

D. Post-License Setup

With the license in hand, the company can begin its operations. Key post-license tasks include:

• Applying for a company establishment card from the immigration authority.
• Opening a corporate bank account with a local or international bank.
• Registering for Value Added Tax (VAT) with the Federal Tax Authority is required if the company’s annual revenue is expected to exceed the mandatory threshold of AED 375,000.

E. Cost Breakdown

Understanding the financial aspect is vital. The overall Sharjah Mainland license cost generally ranges from AED 15,000 to 50,000. The exact amount depends on factors such as the business activity, office rent, and the number of visas required for partners and employees.

Note: The total setup cost may reach AED 50,000 depending on office size, number of visas, and additional approvals.     

For businesses considering an alternative, learn more about setting up in the Sharjah Free Zone.

Both Sharjah and Dubai offer excellent opportunities for mainland businesses. However, they cater to slightly different market segments. This comparison helps in making an informed decision.

A Sharjah mainland license is a strategic choice for a specific profile of entrepreneurs and businesses. It is particularly well-suited for:

• SMEs and Startups: New businesses seeking a cost-effective way to enter the UAE market will find Sharjah’s lower costs highly attractive.
• Consultants and Service Providers: Professionals in fields like IT, education, and marketing can benefit from the simple Professional License structure.
• Traders Targeting Northern Emirates: Companies that plan to trade or distribute goods in Sharjah, Ajman, and other northern emirates benefit from a strategic local presence.
• Entrepreneurs Avoiding Premium Costs: Business owners who want full UAE market access without the premium price tag of Dubai will find Sharjah to be an ideal alternative.

The Sharjah Mainland License is a powerful tool for company formation in the UAE. It offers an affordable, flexible, and direct route to the entire local market. With a straightforward setup process and a supportive regulatory environment under the SEDD, Sharjah provides a fertile ground for startups, SMEs, and service-based companies to thrive. 

Its combination of low costs and extensive market access makes it a compelling choice for any entrepreneur looking to establish a strong presence in the Middle East.