As the third-largest Emirate and a bustling business hub in the United Arab Emirates, Sharjah offers numerous business opportunities. Nonetheless, one of the first things you must do to open a business in Sharjah is to obtain a trade license. Given the Emirate’s position as the regional industrial powerhouse, the Sharjah government has taken several actions to stimulate investment and promote economic diversification.

Pros of Obtaining a Sharjah Trade License

  • Businesses can lawfully operate in Sharjah with a trade license. It guarantees adherence to regional laws and permits businesses to legally engage in economic activity.
  • Businesses may access the vibrant Sharjah market with a trade license, facilitating both domestic and foreign trade.
  • A trade license boosts a business’s credibility and confidence with potential customers and partners by acting as a seal of approval.
  • Sharjah has made it simpler for businesses to establish and run by streamlining the trade license application procedure.

Documents Required to Obtain a License in Sharjah

Documents may differ depending on the kind of business establishment in Sharjah. The common types of business setups are:

  1. Free zone limited liability company 
  2. Free zone establishment
  3. Branch office.

Basic Documents required to obtain a license:

Individual shareholder(s)

  1. Copies of the passport
  2. Visit visa copy
  3. Residence visa/Emirates ID (if applicable)
  4. Address proof
  5. Passport-size photo

Corporate shareholder(s)

  1. Memorandum of Association (MOA) and Article of Association (AOA)
  2. Business License
  3. Board Resolution
  4. Certificate of Incorporation

It Is important to note the variation of documents depending on the business type. Also, it is advisable to avail of professional assistance to ensure a seamless procedure.

Check Out: Business Setup in Meydan Free Zone

Procedure to Obtain a Trade License in Sharjah

Like the documentation, the process might also slightly change depending on the kind of Sharjah business establishment. The general steps involved in obtaining a license are as follows:

Step 1: Pick the business activities

Deciding the business activities you want to pursue is the first step. The Sharjah trade license activities list allows you to select a maximum of ten activities.

Step 2: Pick a trade name for your company

Choose a unique business name that hasn’t been registered by another UAE-based firm before and also falls under the regulations set by the government authorities.

Step 3: Business location and office type

You can choose a physical or a virtual office space for your operations in the free zone, depending on your needs.

Step 4: Obtain pre-approvals

Depending on the business operations you choose, you might need to obtain various pre-approvals from the relevant authorities in order to move forward with the application process.

Step 5: Send in your application for a trading license.

You will need to submit some documents at this phase, based on your business activity. The type of trade license will also depend on the activities chosen.

Step 6: Pay the license cost

You must pay the required licensing fee during the application process to be granted a trade license in Sharjah. 

You will obtain your trade license upon approval of your application, enabling you to lawfully carry out your company operations in Sharjah.

You May Also Like: IFZA Free Zone Business Setup

Kinds of Trade Licenses in Sharjah

Anyone looking to start a business in Sharjah can choose from several trade licenses, each with its requirements and benefits. Knowing the ins and outs of the various licensing types and their applications can help you make the best decision for your business. 

Industrial License

An industrial license is required for companies that perform manufacturing, assembly, packing, import/export, or other related industrial operations.

Professional License

Companies that provide engineering, design, and consulting services need to hold a professional license.

Commercial License

A commercial license is required for companies that trade, such as by importing and exporting items.

Price to Pay for a Sharjah License

The type of license, rental contract value, the ownership structure of the business, the business’s registration for VAT in the United Arab Emirates, and other variables all affect the Sharjah trade license fee.

Contact us for a personalized quote.

Sharjah Trade License Cancellation

The company will no longer be able to operate in Sharjah upon cancellation of its Sharjah trade license. Similar to obtaining approval for a trade license, you also need multiple permits from various agencies to cancel a trade license in Sharjah.

Three situations in which a Sharjah license could be withdrawn are:

1) When the license expires

2) Breaking the rules and regulations that the authorities have put in place

3) When your company isn’t making sufficient revenue

Renewal of Trade License in Sharjah

To renew a trading license in the Sharjah Free Zone, one needs to submit several documents to the free zone authorities in Sharjah. To renew your trade license, you must submit the following data and supporting documentation: 

  • The license renewal form. 
  • The No Objection Certificate (NOC) is issued by the Relevant Authorities. 
  • copies of national ID cards and passports issued in the United Arab Emirates.
  • a copy of the Notary Public’s authentication verification signature. 
  • Lease agreements that are certified. 

Once you have obtained all the necessary documentation, you can submit it to the Sharjah Free Zone authority along with the renewal fee. The free zone authority will review your application and provide your renewed trade license if all the requirements are met. 

Also Read: Company Formation RAKEZ Free Zone