Thinking about setting up a business in the UAE? Sharjah is a fantastic place to do it! It's one of the seven Emirates, known for its strong economy, great location, and lots of support for new companies.

At Safe Ledger, we specialize in business setup in Sharjah, offering end-to-end consultancy. Whether you're looking to form an LLC in Sharjah Mainland or launch a venture in Sharjah Media City (SHAMS), we simplify the process and ensure full compliance.

Sharjah is becoming a top choice for businesses for many good reasons:

• Robust & Diversified Economy: Sharjah has a well-balanced economy across sectors like manufacturing, tourism, education, logistics, and creative industries. This diversification creates numerous business opportunities across sectors.

• Strategic Location: Located centrally in the UAE, Sharjah borders both Dubai and the Northern Emirates. It’s well-connected through major highways, Sharjah International Airport, and ports like Port Khalid and Hamriyah Port, making it ideal for trade and logistics.

• Cost-Effective Setup: Compared to Dubai and Abu Dhabi, business setup in Sharjah is more affordable, especially when it comes to license fees, office rentals, and operational costs. This is ideal for startups and SMEs looking to minimize initial investment.

• Business-Friendly Regulations: Sharjah’s government promotes entrepreneurship through streamlined processes and clear regulations. Most documentation and approvals can now be completed online or with minimal in-person visits.

• 100% Foreign Ownership Available: Following the UAE’s updated commercial laws, foreign investors can now own 100% of many mainland businesses without needing a local sponsor—especially for LLCs in professional and service sectors.

• Access to Skilled Talent: With a mix of local and international universities, Sharjah provides access to a highly skilled and multicultural workforce.

• Startup Ecosystem & Free Zones: Sharjah is home to multiple Free Zones and startup incubators, offering tailored support, tax benefits, and flexible office options.

Take advantage of Sharjah’s business-friendly environment. Talk to our Sharjah setup experts now to get started quickly.

When you decide on a business setup in Sharjah, you mainly have two choices for where to register your company:

1. Sharjah Mainland Company:

This company is registered with Sharjah's Economic Development Department (SEDD). A Mainland company in Sharjah can sell products or services to anyone in the emirate and all across the UAE. The following are its characteristics:

• Ideal for businesses offering services within the UAE (e.g., retail, hospitality, consultancy)
• Physical office space is mandatory
• As per UAE law, 100% foreign ownership is permitted for many activities
• Subject to UAE Corporate Tax (9% on profits above AED 375,000 from June 2023)

2. Sharjah Free Zone Company:

These companies are set up in special areas called Free Zones. Examples include Sharjah Airport International Free Zone (SAIF Zone), Hamriyah Free Zone, and Sharjah Media City (SHAMS). The characteristics of the Sharjah Freezone business setup are:

• 100% foreign ownership from day one
• Full repatriation of capital and profits
• 0% import/export duties within the Free Zone
• No requirement for a physical office in many cases (shared desks, flexi-desks, or virtual offices allowed)
• Corporate Tax exemption if the company does not do business with the UAE mainland and qualifies as a Free Zone Person under UAE tax law

Sharjah Free Zone vs Sharjah Mainland vs Other UAE Free Zones

Before making the selection between zones in the UAE, it's crucial to compare all the aspects in Sharjah:

Setting up a business in Sharjah means you need to follow certain rules to meet UAE laws. Key things you'll need to do:

1. Define Your Business Activity

The first step is selecting your business activity and getting it approved by the relevant licensing authority — either the Sharjah Economic Development Department (SEDD) for Mainland businesses, or the relevant Free Zone Authority (e.g., SHAMS, SAIF Zone, Hamriyah Free Zone).

2. Choose Your Business Structure

Select the appropriate legal form for your business. Common types include:

• Limited Liability Company (LLC) – for the mainland
• Sole Establishment – for professionals
• Free Zone Company (FZC or FZE) – ideal for full foreign ownership.

Your choice affects ownership rights, visa eligibility, and office requirements.

3. Reserve a Trade Name

Register a unique trade name that aligns with UAE naming conventions. Avoid religious terms, abbreviations of your name, or names of existing companies.

4. Secure Office Space

• For Mainland businesses, a physical office lease is mandatory (Ejari attestation is required).
• For Free Zones, more flexible options like Flexi-desks, co-working spaces, or shared offices are available.

5. Local Partner or Service Agent (Only If Applicable)

• Most Mainland activities now allow 100% foreign ownership, but certain strategic sectors still require a UAE national as a partner (51% ownership) or a Local Service Agent (LSA) for professional licenses.
  Our Sharjah business setup experts will help you determine if this applies to your business.

6. Minimum Capital Requirement

• Most Sharjah Free Zones do not require a minimum share capital to be deposited.
• For Mainland LLCs, the minimum capital requirement used to be AED 300,000, but is now flexible and activity-dependent. A Memorandum of Association will specify the capital, even if not required to be deposited.

7. Obtain External Approvals (If Required)

Some activities require approvals from regulatory bodies, like:

• Ministry of Health (for clinics/pharmacies)
• KHDA or Ministry of Education (for training centers)
• Civil Defense, Municipality, etc.

Not sure how much capital you need to start your Sharjah business? Learn the minimum investment requirements here and get started the right way

The business setup cost in Sharjah varies for different companies; however, it's cost-effective than Dubai. The exact price depends on:

• Type of Company: Free Zones often have cheaper starting packages as compared to Mainland ones.
• Business Activity: Different activities might have different license fees.
• Office Space: Whether you choose a shared desk (Flexi-desk), a shared office, or your own private office. Flexi-desks in Free Zones usually cost less.
• Number of Visas: Each visa (for you, partners, staff, family) adds to the cost.

Rough Cost Estimates:

• Sharjah Free Zone (e.g., SHAMS): Basic license packages with few or no visas can start from around AED 5,750 to AED 15,000.
• Sharjah Mainland (LLC): The starting Sharjah LLC company formation cost can be from AED 15,000 to AED 30,000. This depends on what your business does and your office rent. This usually includes license fees and initial approvals.

These are just estimates. Safe Ledger can give you a detailed breakdown based on your specific needs. Our Sharjah business setup agent team is here to give you an exact price.

Want a detailed breakdown of Sharjah business setup costs and how they may be tax-deductible? Check this guide from Safe Ledger for expert insights

To start your business setup in Sharjah, you'll generally need these documents:

For Individual Shareholders / Owners / Managers:

• A clear copy of your valid passport (photo and signature pages).
• A copy of your UAE visa and Emirates ID (if you're already a UAE resident).
• Passport-sized photographs with a white background.
• No Objection Certificate (NOC) from your current UAE employer (required for certain Mainland setups).
• Proof of residential address from your home country (e.g., recent utility bill or bank statement).

If a Company is a Shareholder (Corporate Shareholding):

• Copy of the parent company’s Certificate of Incorporation or trade license.
• Memorandum & Articles of Association of the parent company.
• Board Resolution authorizing the formation of the Sharjah entity.
• Power of Attorney (PoA) in favor of the authorized signatory in the UAE.
• Passport copies of the ultimate beneficial owners and directors.

Other Common Requirements (Depending on Business Type):

• Initial trade name reservation certificate.
• Initial approval certificate from the relevant licensing authority.
• Tenancy contract or Ejari (lease agreement) for the physical office or flexi-desk.
• Business Plan (required for some Free Zones or regulated activities).
• Professional qualifications or certificates (for regulated sectors like healthcare, education, legal services).

Important: If any document is not in Arabic, it might need to be officially translated and stamped by the UAE Embassy in your home country. Then, it needs to be stamped again by the UAE Ministry of Foreign Affairs (MOFA) when it arrives in the UAE. Our Business Setup Services in Sharjah include helping with document preparation and getting them stamped.

Understanding the ongoing legal duties is key to running your business smoothly for a long time.

Free Zone vs. Mainland Companies:

1. Mainland Companies: 

• Can operate anywhere in the UAE, including the local market.
• Governed by the Sharjah Economic Development Department (SEDD).
• No local sponsor is required for many activities, thanks to the 100% foreign ownership policy (depending on activity type).
• May require additional approvals for certain business activities (e.g., construction, law, accounting).

2. Free Zone Companies: 

• Enjoy 100% foreign ownership, repatriation of profits, and customs duty exemptions.
• Cannot trade directly in the UAE Mainland without a local distributor or a Mainland branch.
• Offer faster and simpler setup procedures with bundled services (licenses, visas, office space).

Mandatory Compliance Requirements in the UAE

• UBO – Ultimate Beneficial Ownership

All UAE companies must declare the real individuals who own or control the company, especially those holding 25% or more shareholding. This is done via a UBO register and helps promote transparency.

• ESR – Economic Substance Regulations

Applicable to companies involved in relevant activities such as banking, insurance, leasing, headquarters, intellectual property, and shipping. Entities must demonstrate economic presence in the UAE (employees, premises, expenditure).

• AML – Anti-Money Laundering

All businesses must:

• Implement KYC (Know Your Customer) procedures.
• File Suspicious Transaction Reports (STRs).
• Maintain a compliance officer (in some cases).
• Follow the UAE’s Federal AML Law.

Annual Requirements and Renewals:

Safe Ledger helps make sure your company stays compliant with these important rules, acting as your reliable Sharjah business setup agent.

Safe Ledger offers custom business setup services in Sharjah for different industries, making sure you meet all specific requirements.

• Media & Creative Industries(e.g., SHAMS): Special help for businesses in film, advertising, digital media, publishing, and content creation. We use the benefits of Free Zones like SHAMS.
• Trading & E-Commerce: Expert help in getting trading and e-commerce licenses, setting up import/export, and handling customs rules.
• Consulting & Professional Services: Helping consultants in areas like management, IT, marketing, and legal services get their professional licenses and meet local agent rules (if needed).
• Manufacturing & Industrial Services: Helping set up factories and industrial units in Free Zones like Hamriyah Free Zone or SAIF Zone, including advice on permits and environmental rules.
• Education & Training: Guiding you through special rules and approvals needed by the Education Ministry or other groups for schools, nurseries, and training centers.
• Healthcare & Medical: Helping clinics, hospitals, pharmacies, and other health businesses get licenses from the Health Ministry or other health groups.
• Logistics, Warehousing & Transport: Setting up businesses that move goods, store them, and transport them, using Sharjah's great ports and airports.

Our business setup consultants in Sharjah understand what different businesses need and give you targeted support.