Company Formation in Sharjah

Sharjah company formation refers to the legal process of establishing a business in the Emirate of Sharjah. The process starts with selecting a business structure and reserving a trade name. Authorities issue licenses through the Sharjah Economic Development Department (SEDD) or the relevant free zone. The company prepares and submits incorporation documents, such as the Memorandum of Association (MOA). 

The business opens a corporate bank account and processes visas for owners and employees. This process ensures full compliance with local laws and establishes a legal foundation for mainland, free zone, or offshore operations.

Sharjah provides a strategic location in the UAE, connecting businesses to key markets across the Middle East and beyond. Companies gain easy access to major trade routes, ports, and airports, which makes logistics and distribution smooth and efficient. The Emirate’s position supports both regional and international business growth.

The business environment in Sharjah offers cost-effective solutions for startups and established companies. Rent, labor, and operational costs remain lower than in some other UAE Emirates, allowing companies to maximize profits. Besides, the government actively supports entrepreneurs and investors with initiatives that encourage business expansion and innovation.

Investors can take full advantage of free zones that allow 100% foreign ownership and provide a tax-free environment. These zones offer modern infrastructure, business-friendly regulations, and quick setup processes. Whether you are considering to  Start a company in the UAE or expanding an existing venture, Sharjah’s free zones provide a seamless setup process. They support businesses across industries, from manufacturing and trade to services and technology. 

Sharjah also maintains a stable economy with steady growth, providing long-term opportunities for investment. Companies benefit from a skilled workforce, reliable utilities, and access to a wide network of suppliers and partners. All these factors make Sharjah a practical and attractive choice for establishing a legal business entity and scaling operations successfully.

Sharjah provides multiple options for investors and entrepreneurs to start a company in the UAE. Each type serves different goals, ownership preferences, and operational needs. Selecting the right type helps maximize growth, access markets, and benefit from the Emirate’s business-friendly environment.

• Mainland Company: Trades freely in the UAE market and can work with government and private clients. Also Business setup in the Sharjah mainland is suitable for entities targeting a wide local customer base.
• Limited Liability Company (LLC): A type of mainland company where liability remains limited to share capital. Limited liability company formation is ideal for SMEs and partnerships with a local sponsor if outside a free zone.
• Free Zone Company: Allows 100% foreign ownership. Focuses on specific sectors like trading, manufacturing, and technology. Business setup in Sharjah Free Zone offers tax-free benefits, modern infrastructure, and streamlined setup processes.
• Offshore Company: Supports international operations and asset protection. Cannot trade within the UAE, but provides legal and financial advantages for global investors.
• Sole Proprietorship: Owned and operated by a single individual. A sole proprietorship in UAE is ideal for small businesses, freelancers, and entrepreneurs who want full control, a simple setup, and lower regulatory requirements compared to other company types.
• Professional License: Designed for service-oriented businesses such as consultants, engineers, or specialists. Requires minimal physical infrastructure.
• Branch of a Foreign Company: Extends an existing international company into Sharjah. Operates under the parent company’s structure but registers locally.
• Civil Company: Targets professionals like doctors, lawyers, and accountants. Allows partnerships with local sponsors while providing specialized services.

Larger-scale operations may also explore Ajman Free Zone company formation , which provides access to a broader market and premium infrastructure and a budget-friendly alternative with fast setup timelines.

The required documents in Sharjah vary by company type and business activity, but generally include:

General documents (for all companies)

• Completed registration/application forms
• Copies of valid passports for all shareholders, partners, and managers
• Passport-size photographs of shareholders and managers
• Memorandum of Association (MOA) and Articles of Association (AOA)
• Proof of a registered office or lease agreement
• Bank reference letters for shareholders or the company
• No Objection Certificate (NOC) from a local sponsor, if applicable
• Initial approval from the relevant free zone or government authority
• Trade name reservation documents

Additional documents for specific company types or activities

• Professional companies: Qualification certificates and professional licenses of owners or partners.
• LLCs/Mainland companies: Local sponsor agreement (if required).
• Offshore companies: Board resolution or parent company documents.
• Free zone companies: Approval letters specific to the free zone authority.
• Regulated sectors (finance, healthcare, education, etc.): Approvals or permits from the respective regulatory body.
• Visa processing: Copies of family or employee passports, passport-size photographs, and employment contracts.

Collecting all necessary documents in advance ensures a smooth company formation process and helps establish the business legally and efficiently in Sharjah.

The steps to form a company in Sharjah are as follows:

Step 1: Decide on the Type of Company

• Determine whether the business will be a Mainland, Free Zone, Offshore, LLC, or Professional company.
• Choose the company type based on ownership preference, business activity, and target market.
• Consider the benefits of each type, such as 100% foreign ownership in free zones or full local market access in mainland setups.

Timeline: 1–3 days

Step 2: Choose a Trade Name

• Select a unique trade name that aligns with the business activity.
• Ensure the name complies with the SEDD or free zone naming regulations.
• Submit the trade name for initial approval. Authorities check for duplication, prohibited words, and adherence to UAE rules.

Timeline: 1–3 days

Step 3: Obtain Initial Approvals

• Submit the initial approval application to the SEDD or the relevant free zone authority.
• Authorities verify the proposed business activity and ownership structure.
• Receive approval to proceed with incorporation and licensing.

Timeline: 7–10 days

Step 4: Prepare Incorporation Documents

• Draft the Memorandum of Association (MOA) and Articles of Association (AOA) according to UAE laws.
• Include shareholder details, ownership percentages, and business activities.
• For professional or regulated companies, attach professional qualifications or permits.
• Ensure all documents are signed by all partners or shareholders.

Timeline: 3–7 days

Step 5: Secure a Business License

• Submit the incorporation documents and approvals to the SEDD or free zone authority.
• Pay the required license fees for the selected company type.
• Authorities issue the business license, officially allowing the company to operate.

Timeline: 5–10 days

Read our blog titled “How Does a Sharjah Mainland License Help Businesses” for more details about the importance of licenses in the Sharjah mainland.

Step 6: Rent Office Space

• Provide proof of a physical office or flexi-desk within Sharjah or the relevant free zone.
• Submit the tenancy contract or lease agreement to the authority as part of the licensing process.
• Ensure the office meets regulatory requirements for the type of business.

Timeline: 7–10 days

Step 7: Open a Corporate Bank Account

• Choose a local bank and submit the business license, incorporation documents, and shareholder identification.
• Deposit the required capital (if applicable, depending on company type).
• The corporate account allows the company to manage transactions, receive payments, and process salaries.

Timeline: 3–7 days (may vary by bank)

Step 8: Process Visas for Owners and Employees

• Apply for visas for owners, partners, and employees.
• Submit passports, photographs, employment contracts, and medical tests where required.
• Authorities issue residency visas and work permits, completing the legal setup for business operations.

Timeline: 2–4 weeks

Step 9: Register with Relevant Authorities

• Register for VAT, labor, and social security, if required.
• Comply with sector-specific regulations for health, education, finance, or other regulated industries.
• Ensure all approvals and registrations are active to avoid penalties.

Timeline: 1–3 weeks

Following these steps ensures a smooth and legal company registration in Sharjah. Proper planning and documentation reduce delays and allow the business to start operations quickly and efficiently.

Below is a detailed breakdown of the estimated costs involved in setting up a company in Sharjah's mainland and free zones.

For a detailed look at the costs involved in setting up a free zone company, check out Sharjah Free Zone License Cost.

Notes:

• Visa Fees: Vary based on the number of visas required and the type of visa (Investor/Partner or Employee).
• Office Rent / Package: Costs depend on the size and type of office or warehouse space chosen.
• E-Channel Registration & Refundable Deposit: Applicable for visa processing and registration with the UAE's immigration system.
• VAT Registration & Compliance: Mandatory if annual turnover exceeds AED 375,000.
• Employee Health Insurance: Required for all employees; costs vary based on provider and coverage.
• Corporate Bank Account Setup: Some banks may charge account opening fees or have minimum deposit requirements.
• PRO / Consultancy Fees: Optional but recommended for handling documentation and regulatory compliance.

Setting up a company in Sharjah requires following specific legal procedures and regulations. These requirements vary depending on whether the company is established on the mainland or in a free zone. Adhering to them ensures compliance and a smooth start for business operations.

1. Mainland Company Setup

Company setup in the mainland involves meeting regulatory obligations set by the Sharjah Economic Development Department (SEDD). These steps ensure the company can operate legally in the local market and enter into contracts with private and government entities.

• Legal Structure Selection: Choose an appropriate legal structure, such as a Limited Liability Company (LLC), based on business type and ownership.
• Trade Name Reservation: Reserve a unique trade name that complies with UAE naming conventions.
• Memorandum of Association (MoA): Draft and notarize the MoA, outlining ownership and operational guidelines.
• Local Sponsor Agreement: For certain business activities, a UAE national may hold a 51% stake in the company. However, 100% foreign ownership is allowed for most activities.
• Office Space Lease: Secure a physical office in Sharjah with a valid lease agreement. The lease must be registered (like an Ejari agreement for Dubai) and must meet local zoning laws.
• Trade License Application: Submit an application for a trade license with the SEDD.
• Employee Registration: Register employees with the Ministry of Human Resources and Emiratisation (MOHRE) and obtain labor cards.
• Establishment Card: Apply for an establishment card from MOHRE to hire employees.
• Visa Processing: Process residency visas for shareholders, employees, and dependents through the Federal Authority for Identity and Citizenship (ICA).
• Compliance with Economic Substance Regulations: Conduct substantial economic activities to meet the UAE economic substance requirements.

Completing these requirements ensures that a mainland company in Sharjah operates legally, protects investors, and maintains eligibility for local business contracts.

If you want full UAE market access and government contracting opportunities, see how mainland company formation in Abu Dhabi compares to Sharjah.

2. Free Zone Company Setup

Setting up a company in a free zone provides benefits like 100% foreign ownership and tax exemptions, but requires compliance with specific free zone regulations. Meeting these requirements allows the company to operate smoothly within the free zone.

• Free Zone Selection: Choose a suitable free zone such as SHAMS, SAIF, or Hamriyah Free Zone based on business activity.
  • SHAMS: Ideal for startups, freelancers, and SMEs in media, creative, and digital industries. Company formation in Sharjah Media City offers flexible licenses, 100% foreign ownership, and a fast registration process.
  • SAIF Zone: Best suited for trading, logistics, and manufacturing companies due to its proximity to Sharjah International Airport. Business setup in the SAIF Free Zone provides modern infrastructure, flexible licenses, and competitive lease rates.
  • Hamriyah Free Zone (HFZ): Located near the Sharjah-Kalba highway, HFZ is focused on industrial, manufacturing, and shipping activities. It offers large plots for warehouses and factories, 100% foreign ownership, and strategic access to sea and road transport, ideal for heavy industries and logistics companies.
  • Sharjah Publishing City Free Zone (SPC Free Zone): Company formation in the SPC Free Zone offers specialized licenses designed for creative, publishing, and media-related businesses. It provides access to shared office spaces and cost-effective solutions, making it ideal for SMEs and startups seeking a professional business presence without high overheads.
  • Sharjah Research, Technology & Innovation Park (SRTIP): Designed for tech startups, R&D firms, and innovation-driven enterprises. SRTIP provides a supportive ecosystem for tech companies, including incubation programs, access to funding, and flexible office solutions.
• Legal Structure Determination: Decide on the legal structure, such as Free Zone Establishment (FZE) or Free Zone Company (FZC). Read our blog to learn about the difference between FZE and FZC.
• Trade Name Reservation: Reserve a trade name according to the free zone’s regulations.
• License Application: Apply for the relevant business license (commercial, industrial, or service). If you’re considering setting up in a free zone, getting full details about How to Get a Sharjah Free Zone License can help you understand the steps involved and the required documentation.
• Office Space Requirement: Secure a physical office or shared desk facility as per the license requirement.
• Shareholder Documentation: Provide copies of passports and visas for all shareholders and directors.
• Legal Documentation: Submit notarized and attested Memorandum of Association (MoA) and Articles of Association (AoA).
• Bank Reference Letters: Provide bank reference letters if required by the free zone authority.
• No Objection Certificate (NOC): Obtain an NOC from the current sponsor if the shareholder is an existing UAE resident.
• Visa Processing: Process residency visas for shareholders, employees, and dependents through the free zone authority.
• Compliance with Free Zone Regulations: Follow all rules and operational guidelines set by the chosen free zone.

Completing these steps ensures free zone companies operate legally, enjoy full ownership benefits, and comply with free zone regulations. 

3. Offshore Company Setup in Sharjah

Establishing an offshore company offers numerous advantages, including 100% foreign ownership, tax exemptions, and enhanced confidentiality. However, it's essential to understand the legal framework governing such entities to ensure compliance and smooth operations.

• Registered Agent: Offshore companies must appoint a registered agent based in the UAE. This agent facilitates the incorporation process and ensures compliance with local regulations.
• Shareholders and Directors: A minimum of one shareholder is required, with no nationality restrictions. Directors can be individuals or corporate entities.
• Company Name: The proposed company name must adhere to UAE naming conventions and must not infringe upon existing trademarks.
• Memorandum and Articles of Association: These documents outline the company's objectives, governance structure, and operational guidelines. They must be notarized and submitted during the registration process. 
• Registered Office Address: While a physical office is not mandatory, an official registered office address within the UAE is required for correspondence and legal purposes.
• Bank Account: Offshore companies can open corporate bank accounts in the UAE, subject to the bank's due diligence and compliance checks.

By understanding and fulfilling these requirements, entrepreneurs can establish a legally compliant and efficient offshore entity in Sharjah.

Setting up a company in Sharjah provides opportunities to obtain residency visas for investors, partners, and employees. The type of company, mainland, free zone, or offshore, determines the visa eligibility, process, and duration. Securing visas legally allows the business to hire staff, bring in family members, and ensure smooth operations.

1. Mainland Company Visa Options

Starting a mainland company in Sharjah allows owners and employees to obtain UAE residency visas through the Ministry of Human Resources and Emiratisation (MOHRE) and the Federal Authority for Identity and Citizenship (ICA).

• Investors and partners can apply for residency visas valid for 2–3 years.
• Employee visas can be issued based on the number of visas allocated in the trade license.
• Family members of investors and employees can also apply for dependent visas.
• Companies must comply with labor regulations, including employment contracts, medical tests, and Emirates ID registration.

Mainland company visas provide full access to the UAE labor market and enable legal employment and residence for owners, employees, and their families.

2. Free Zone Company Visa Options

Free zone companies in Sharjah, such as SHAMS, SAIF Zone, or Hamriyah Free Zone, offer flexible visa options tailored to the company’s license package.

• Free zone investors can obtain residency visas for themselves and eligible dependents.
• Employee visas depend on the free zone package and the number of visas permitted by the license.
• Free zones handle the visa processing, including medical tests and Emirates ID applications.
• Some free zones allow multiple visa renewals as long as the company maintains an active status.

Free zone visas offer a streamlined process with flexibility for investors and employees, making it easier to establish a team and operate within Sharjah.

Note: Offshore companies in Sharjah do not provide UAE residency visas directly, as they are mainly used for international trade, asset protection, or holding investments. Investors seeking residency must establish a mainland or free zone entity in parallel. Offshore companies are ideal for non-resident business owners who wish to manage assets or conduct business internationally without residing in the UAE.

Starting a company in Sharjah requires understanding the local taxation rules and compliance obligations. While the UAE is known for its business-friendly tax environment, companies must follow regulations to avoid penalties and ensure smooth operations. Taxation and compliance requirements differ based on whether the business operates on the mainland, in a free zone, or offshore.

1. Taxation Overview

Sharjah offers a favorable tax environment for companies:

• Corporate Tax: Mainland companies and free zone companies generally enjoy low or zero corporate tax, depending on the activity. From June 2023, the UAE introduced a federal corporate tax of 9% on profits exceeding AED 375,000.
• Value Added Tax (VAT): Businesses with taxable supplies exceeding AED 375,000 must register for VAT at 5%. Free zone companies are subject to VAT only if they conduct business with the UAE mainland.
• No Personal Income Tax: Shareholders and employees do not pay personal income tax.
• Custom Duties: Companies importing goods into Sharjah may be subject to customs duties at standard UAE rates, typically 5%.

2. Compliance Requirements

Compliance ensures legal operations and avoids fines:

• Trade License Renewal: Companies must renew licenses annually.
• Financial Reporting: Mainland companies must maintain accounting records and prepare annual financial statements. Free zone companies follow specific free zone guidelines.
• Economic Substance Regulations (ESR): Certain business activities must demonstrate substantial economic presence in the UAE.
• Anti-Money Laundering (AML) and Ultimate Beneficial Ownership (UBO) Reporting: Companies must submit information on UBOs and comply with AML regulations.
• VAT Filing: Companies registered for VAT must file periodic returns (usually quarterly).

Setting up a company in Sharjah requires meeting specific office requirements, which vary depending on whether the business is established on the mainland, in a free zone, or offshore. A valid office space is essential for obtaining a trade license, visa processing, and regulatory compliance.

1. Mainland Companies

Mainland companies in Sharjah must secure a physical office within the Emirate.

• The office must comply with SEDD regulations and local zoning laws.
• The size of the office depends on the type of business and the number of employees.
• A tenancy contract or Ejari (lease agreement) is required for license approval.
• Shared or flexi-desk arrangements are generally not permitted for mainland companies.

Mainland companies need a dedicated physical office to legally operate in Sharjah, support licensing, and hire employees.

2. Free Zone Companies

Free zone companies have more flexibility in office requirements.

• Many free zones provide options for flexi-desks, virtual offices, or physical office spaces.
• The type of office chosen may affect the number of visas the company can sponsor.
• Office space must comply with free zone guidelines for the chosen business activity.
• Some packages include office facilities as part of the licensing fee.

Free zone companies benefit from flexible office solutions, allowing cost savings and ease of setup while remaining compliant.

3. Offshore Companies

Offshore companies in Sharjah do not require a physical office within the Emirate.

• A registered office address is mandatory, usually provided by the offshore registration agent.
• Offshore companies are not permitted to conduct business locally without a mainland or free zone license.

Offshore companies can operate without a physical office in Sharjah, making them ideal for asset management, international trade, or holding purposes.

If your business expansion goes beyond Sharjah, our experts also support company formation in Dubai, and Abu Dhabi company formation for greater market access and international connectivity.