Business Setup and Company Formation in Sharjah Mainland

It’s a simple process to establish a company in Sharjah Mainland, and you will find opportunities for success in the business landscape in the United Arab Emirates. As an overseas investor, entrepreneur or SME, you can benefit from Sharjah’s central location, duty-free zones and commercial-friendly policies to expand your business.

 This guide contains all the information on how to set up a business in Sharjah Mainland, the application process, required licenses, the costs, and the advantages of doing business in Sharjah Mainland. Whether you are considering company formation in Sharjah or if you want to compare with the business setup in Dubai, I will guide through Step by Step so that you start hassle-free.

Why Choose Sharjah Mainland for Your Business Setup?

Sharjah of the seven emirates of the UAE, is one of the ideal places for company set up. Its friendly investment climate, favourable location, and low-cost business environment suit entrepreneurs and SMEs to a tee. Close to Dubai and with direct access to major ports such as Sharjah International Airport and Hamriyah Free Zone, Sharjah gives you access to the Middle East market, Africa and Asia. Business setup in Sharjah Mainland is regulated by the Sharjah Economic Development Department (SEDD), which makes the process much easier.

Sharjah allows complete foreign ownership for most of the activities, no compulsory audits, and 0 tax, which makes your profits higher. Mainland Unlike in Sharjah free zones, the Mainland companies can do business anywhere in the UAE, bid for government contracts, and there are no minimum paid-up capital requirements. This flexibility makes business setup in Sharjah a preferred option over Business setup in Dubai or any other emirates.

What Are the Types of Business Licenses in Sharjah Mainland?

It is important to select the correct business license for your business setup in the Sharjah Mainland. Sharjah SEDD licenses are backed by your business activities. Here are the main types:

• Commercial License: Provides for commerce and retail, import/export, e-commerce, and wholesale. Perfect for companies in trade or sales.
• Professional License: Ideal for professional services such as consultancy, IT, or healthcare. You will have to provide proof of eligibility for this type of license.
• Industrial License: For manufacturing and industrial license/Sharjah free zone (production, processing or manufacturing in Sharjah Industrial Area.
• Tourist Licence: Suitable for hotels and tourism enterprises such as travel agencies or restaurants.
• Farm License: For agriculture use such as farming, animal husbandry.
• Businesses that produce and sell articles (handmade).

All of the licenses comply with business-friendly regulations. You can select more than one license if the activity of your company involves a mix of these activities

What Are the Business Entity Types for Company Formation in Sharjah Mainland?

Selecting the right business entity is crucial for your Sharjah Mainland setup. The legal structure affects your liability, ownership, and operations. Here’s a breakdown:

Business Entity	Key Features	Ownership/Liability	Ideal For
Limited Liability Company (LLC)	2–50 shareholders, 100% foreign ownership allowed since June 2021.	Limited to capital share.	Businesses seeking flexibility and limited liability.
Sole Proprietorship (LSA Company)	Single owner, requires a local service agent (LSA).	Unlimited liability for owner, LSA has no ownership.	Small businesses and freelancers.
Branch of a Foreign/UAE Company	Extension of an existing company, no local sponsor needed.	Liability tied to parent company.	Companies expanding into Sharjah.
Public/Private Shareholding Company	Capital divided into shares, allows raising capital.	Limited liability for shareholders.	Businesses aiming for public or private offerings.
Partnership Company	Formed by UAE nationals, general or limited types.	Varies by partnership type.	UAE nationals collaborating.

Choosing the right business entity ensures compliance with UAE naming regulations and aligns with your business goals.

Process of Setting Up a Company in Sharjah Mainland?

Here is how you set up your business in the Sharjah Mainland. Here’s how to get started:

Step 1: Define the Business:

Determine the economic activities of your business (for example, trading and retailing, professional services, or manufacturing and industrial). There are more than 2,000 activities to choose from at the Sharjah SEDD.

Step 2: Select a Trade Name:

Choose a distinctive trade name that complies with ITC’s naming rules in the UAE. It should contain your legal structure (like LLC) and not include government or offensive terms.

Step 3: Apply for Initial Approval:

Lodging of application with Sharjah SEDD for government NOC. This acknowledges the no objection with regard to your company’s setup.

Step 4: Draft the MoA:

Conceive and notarise the MoA, which contains a summary of your business objects and rights of shareholders. For sole proprietorship, an LSA (Local Service Agent) agreement is required.

Step 5: Find Premises Location:

Lease a physical space approved by the Sharjah Municipality zoning.

Step 6: Permits:

Some professions (such as medical and legal consultancy) need approval from the Ministry of Labour or the economy and commerce.

Step 7: Obtain an Establishment Card:

Issued by the Ministry of Labour, this card permits you to employ workers and for visa quotas.

Step 8: Documents submission and fees payment:

Submit all necessary documents along with the fee required to issue the license to the Sharjah SEDD, and get your trade license in hand.

Step 9: Open a corporate bank Account:

To safeguard your financial statements and make transactions, establish a corporate account.

Step 10: Register at Chamber of Commerce:

Membership to the Sharjah Chamber of Commerce and Industry allows you to complete your company registration.

The above business formation process would normally be completed within 2–4 weeks, subject to document submissions and approvals.

What Documents Are Needed for a Sharjah Mainland Business Setup?

Here are the key documents you will require to finalise your company formation in Sharjah Mainland:

• Passport Copies: Of all shareholders and directors.
• Copies of Emirates ID: For company stakeholders from the UAE.
• Trade Name Reservation Certificate: Indicating that your trade name is approved.
• NOC, if applicable, from Govt. of India in favour of the applicant.
• Memorandum of Association (MoA): Notary attested document stating business goals.
• Business Plan: Describes your goals, your plans, and your financial predictions.
• If your office is rented, then the Lease Agreement is stamped by the Sharjah Municipality.
• National ID and Family Book (if applicable) of the local service agent.
• The attorney if appoint a representative.
• Bank Reference Letters: To verify your financial status.
• Board Resolution: New branch in the Sharjah branch of the company.

Ensure all documents are complete to avoid delays in your Sharjah Mainland business license application.

How Much Does It Cost to Set Up a Company in Sharjah Mainland in 2025?

The cost of business setup in Sharjah Mainland varies based on your business activity, license type, and office size. In 2025, expect costs to range from AED 20,000 to AED 50,000, subject to updates. Here’s a hypothetical breakdown:

Cost Component	Estimated Cost (AED)	Notes
Trade License Fees	5,000 – 15,000	Depends on license type (commercial, industrial, professional, etc.)
Office Lease	10,000 – 20,000 (per year)	Required for mainland setup; price varies by location and office size
Visa Costs	3,000 – 5,000 (per visa)	Cost per residency visa (investor or employee)
Registration Fees	2,000 – 5,000	Fees for Sharjah Economic Development Department (SEDD) & Chamber
PRO Services	5,000 – 10,000	For document processing, approvals, and government liaison
Total Estimated Cost	AED 20,000 – 50,000	Varies based on business activity and number of visas

What Are the Benefits of Sharjah Mainland vs. Free Zone Setup?

Choosing between Sharjah Mainland and Sharjah free zones like Hamriyah Free Zone or Sharjah Airport International Free Zone depends on your goals. Here’s a comparison:

Feature	Sharjah Mainland	Sharjah Free Zone
Market Access	Operate anywhere in the UAE, including free zones, and globally.	Limited to free zone or international markets.
Ownership	100% foreign ownership for many activities.	100% foreign ownership guaranteed.
Local Sponsor	Required for some activities (e.g., 51% ownership).	Not required.
Government Contracts	Can bid on government contracts.	Cannot bid.
Tax Benefits	Tax exemptions, no mandatory audits.	Tax exemptions, no minimum capital.
Visa Quotas	Flexible visa quotas based on office size.	Limited by free zone rules.

Sharjah Mainland offers greater market presence and flexibility, while free zones suit export-focused businesses. For a broader UAE business setup, Mainland is often the better choice.

What Business Opportunities Are Available in Sharjah Mainland?

Sharjah Mainland supports a diversified economy with opportunities across multiple sectors. Here are key areas:

• Trading and Retail: Ideal for import/export, e-commerce, and wholesale, leveraging Sharjah’s marine and shipping infrastructure.
• Manufacturing and Industrial: The Sharjah Industrial Area supports manufacturing and processing businesses.
• Logistics and Warehousing: Proximity to ports and Sharjah International Airport makes it perfect for logistics businesses.
• Real Estate and Construction: Growing demand for real estate and infrastructure projects.
• Hotels and Tourism: Tourism and hospitality thrive due to Sharjah’s cultural heritage.
• Healthcare and Medical Services: Opportunities in healthcare services and medical equipment.
• Education and Training: Home to universities like Sharjah Research Technology and Innovation Park, supporting educational services.
• IT and Technology: Growing demand for IT services and software development.
• Media and Publishing: Opportunities in media and publishing, including Sharjah Publishing City.
• Environmental Services: Focus on sustainability and waste management.
• Beauty Parlours and Cleaning Services: High demand for professional services in these niches.

These sectors align with Sharjah’s stable economy and business-friendly policies, offering multiple visas for employees.

FAQs About Business Setup in Sharjah Mainland

Q1: What are the detailed costs of business setup in Sharjah Mainland in 2025?

Costs typically range from AED 20,000–50,000, including license fees, office rent, and visa costs. Check with the Sharjah SEDD for 2025 updates.

Q2: What are the latest regulations for the Sharjah business setup in 2025?

Regulations include 100% foreign ownership for many activities and compliance with UAE naming regulations. Confirm with Sharjah SEDD for 2025 changes.

Q3: How long does it take to register a company in Sharjah?

The process takes 2–4 weeks, depending on document submission and approvals. PRO services can expedite this.

Q4: What are the specific differences between the Sharjah Mainland and Free Zone setups?

Sharjah Mainland allows UAE-wide operations and government contracts, while free zones offer guaranteed 100% ownership but limit local market access.

Q5: What are the compliance requirements for Sharjah businesses?

Compliance includes ESR, UBO, and AML-CFT regulations. Submit accurate financial statements and renew your trade license annually.

Conclusion

Company formation in the Sharjah mainland is a wise decision for the foreign company setup, entrepreneurs and SMEs. Sharjah provides a cost-effective business hub, with tax-free, 100% foreign ownership, and a direct link to a dynamic growth economy. The company formation in Dubai has easy procedures that take 2 to 4 weeks with the correct papers and PRO services. Whether you are in a trading and retail business or tapping into IT and technology, Sharjah’s strategic location and business-supportive rules lead to growth. For a smooth business setup in Sharjah Mainland, you can refer Sharjah Economic Development Department or a business setup consultants in Dubai. Get your business set up in the UAE and open unlimited doors!