Sharjah Mainland Company Incorporation: Detailed Analysis for Investors and Entrepreneurs (2025)
The Sharjah Mainland is one of the most cost-effective places to do business in mainland UAE , ideal for companies wishing to build up a strong foothold in the region. It has business friendly laws, cheap setup, and strategic location. As a new or seasoned business owner, the Sharjah Mainland has some appealing features that make it suitable for a new business establishment.
Every part of the process of the incorporation of a Sharjah mainland company is detailed and explained in this article to include the different types of licenses and legal structures, the step by step procedures with costs, compliance and other requirements. Also, there will be comparisons with free zones and the role of business consultants will be explored in detail as well.
Why Business Owners Opt for Sharjah Mainland Registration?
Sharjah is great for investors in terms of cost, availability and so many other factors. Here are the reasons that make Sharjah a great location for businesses owners, especially for those who want to do Sharjah Mainland Registration:
100% Foreign Ownership Scope:
As of June 2021, the majority of the mainland businesses in Sharjah do not require a local sponsor due to 100% foreign ownership being allowed for most sectors.
No Tax Penalties:
Because these companies operate in a tax-free atmosphere, their profit rates will increase.
Great Location:
Sharjah access to Middle Eastern and Indian Ocean ports, makes it the best option for global businessmen.
Inexpensive Living and Office Expenses:
Sharjah is less expensive in office space leasing and accommodation than Dubai.
Support Offered By Local Governments:
Sharjah has modern structures, along with the provision of infrastructure necessary for facilitation and promotion of industrial activities.
Range of Integration:
Sharjah serves companies in various sectors – from industrial giants to education and even tourism.
Benefits of Business Setup in Sharjah Mainland
Setting up a business in Sharjah Mainland comes with numerous advantages:
- Full Market Access: Operate freely across the UAE and internationally.
- Robust Infrastructure: World-class facilities, including industrial zones and free zones.
- Ease of Currency Regulations: No restrictions on currency usage for transactions.
- No Visa Limitations: Expand your visa quotas based on your physical office size.
- Proximity to Ports and Airports: Ideal for logistics, import/export, and global trade.
Types of Licenses for Sharjah Mainland Company Setup
The Sharjah Economic Development Department (SEDD) offers several types of licenses based on business activities. Selecting the right license is crucial for compliance and operational flexibility.
1. Commercial License
- For trading activities such as distribution, retail, import/export, and warehousing.
- Covers both specific and general trading activities.
2. Industrial License
- Required for manufacturing, processing, and industrial operations.
- Special approvals from the Ministry of Economy and other authorities may be necessary.
3. Professional License
- Designed for service-oriented businesses like consultancies, accounting firms, legal services, and medical practices.
- Allows 100% foreign ownership without a local sponsor.
4. Freelance Permit
- Best suited for independent professionals such as designers, IT consultants, and writers.
- Offers cost-effective and flexible options for solo entrepreneurs.
Types of Business Entities in Sharjah Mainland
Choosing the appropriate business structure depends on your ownership preferences, liability concerns, and operational requirements.
1. Limited Liability Company (LLC)
- Ownership: Allows 100% foreign ownership in most sectors.
- Liability: Limited to shareholders’ capital contributions.
- Flexibility: Operate across the UAE and globally.
2. Sole Proprietorship
- Ownership: Fully owned by one individual; non-GCC nationals require a local agent.
- Liability: Full personal liability for debts and obligations.
- Ideal For: Small-scale or professional businesses.
3. Partnership Company
- Ownership: Restricted to UAE nationals.
- Liability: Partners share liability based on their ownership percentage.
4. Branch of a Foreign Company
- Ownership: Fully owned by the parent company.
- Liability: Managed by the parent entity.
- Purpose: Expand operations without creating a new legal entity.
Step-by-Step Guide to Setting Up a Business in Sharjah Mainland
Step 1: Choose a Business Activity
Select a business activity aligned with Sharjah’s approved list. Activities include trading, manufacturing, and professional services. Certain activities, like healthcare, require additional approvals.
Step 2: Decide on a Legal Structure
Choose from LLC, sole proprietorship, or branch office based on ownership and operational needs.
Step 3: Reserve a Trade Name
Register your company name with the SEDD, ensuring it meets UAE naming regulations.
Step 4: Obtain Initial Approval
Apply for initial approval to confirm that your business activity complies with UAE regulations.
Step 5: Draft and Notarize the Memorandum of Association (MoA)
The MoA defines shareholder roles, capital distribution, and profit-sharing mechanisms. It must be notarized in Sharjah.
Step 6: Secure Office Space
Sharjah Mainland businesses require physical office space. Obtain a tenancy contract or lease agreement.
Step 7: Submit Required Documents
Submit the MoA, trade name certificate, passport copies, and other relevant documents.
Step 8: Apply for a Business License
Choose a license type based on your activity and submit your application to the SEDD.
Step 9: Open a Corporate Bank Account
With your trade license, open a corporate bank account to manage business transactions.
Step 10: Complete Visa Procedures
Apply for visas for owners, employees, and dependents. This includes medical tests and Emirates ID issuance.
Compliance Requirements for Sharjah Mainland Companies
Sharjah businesses must comply with the following:
- Ultimate Beneficial Ownership (UBO): Disclosing ownership details.
- Economic Substance Regulations (ESR): Demonstrating economic activity in the UAE.
- Anti-Money Laundering (AML): Preventing financial crimes.
Failure to comply may result in penalties, reputational damage, or license revocation.
Sharjah Mainland vs Free Zone
Sharjah Mainland
- Ownership: 100% foreign ownership in most sectors.
- Operations: Can trade across the UAE and internationally.
- Office Requirements: Physical office mandatory.
Sharjah Free Zone
- Ownership: Full foreign ownership across all activities.
- Operations: Limited to specific zones and exports.
- Office Requirements: Flexible, including shared and virtual offices.
Cost of Company Formation in Sharjah Mainland
Approximate Costs:
- Professional License: AED 18,000* (First Year)
- Trading License: AED 18,500* (First Year)
- General Trading License: AED 25,500* (First Year)
Additional costs include market fees, visa expenses, and SEWA deposits.
Role of Business Setup Consultants
Business setup consultants in Dubai and Sharjah provide end-to-end support, including:
- Document preparation and submission.
- Legal compliance and licensing.
- Visa processing and bank account setup.
Frequently Asked Questions
Q1: How long does it take to set up a company in Sharjah?
- Typically, 5–7 working days.
Q2: Can I own 100% of my company?
- Yes, in most sectors, 100% foreign ownership is allowed.
Q3: What’s the most affordable setup option?
- Sole proprietorship or freelance permits are cost-effective.
With this comprehensive guide, you’re equipped to make informed decisions about your Sharjah Mainland Company Setup. Contact expert consultants today to start your entrepreneurial journey!