/ Blogs / Company Formation / Company Formation In Sharjah

What is the cost of Company formation in Sharjah

By Ananya - 02 Apr 2022 Last Updated: 02 Apr 2022
What is the cost of Company formation in Sharjah

Sharjah is the third most populous emirate after Dubai and Abu Dhabi. This emirate is part of the Dubai-Sharjah-Ajman metropolis. Sharjah is located between the cities of Dubai, Ajman, Umm Al Quwain, and Ras Al Khaimah. As a result, it is a popular choice for investors seeking Sharjah company registration. The Persian Gulf is accessible from this emirate.

Sharjah is known as an industrial hub, attracting many manufacturing companies from around the world. Sharjah accounts for more than 80% of all manufacturing. As a result, it would be ideal to establish a manufacturing or production company in Sharjah. Sharjah is regarded as one of the top ten business-friendly destinations in the UAE. Investors can easily incorporate a business here. In Sharjah, there are various types of free trade zones that allow for 100% foreign ownership of a company.

Advantages of Sharjah Company Registration World-Class Infrastructure

World Class Infrastructure

Sharjah is a part of the United Arab Emirates, and it is the third most populous after Dubai and Abu Dhabi. This is a well-known location that is close to Dubai. It is quite simple to incorporate a business in this country, as the government offers a lot of assistance to businesses. Investors can form a company in either Sharjah's non-free trade zones or Sharjah's free trade zones. More benefits and incentives can be provided by the government if they incorporate a company in Sharjah free trade zones.

Avaibility of Resources

Manufacturing facilities are inexpensive in Sharjah due to abundant resources such as water and electricity. As a result, manufacturing companies can use the resources listed above to produce the output they require. More than 60% of the cost of resources used in day-to-day production activities is borne by the government.

Free Trade Zone

Sharjah has several free trade zones, including the Sharjah Airport International Free Zone and the Hamriyah Free Trade Zone. Establishing a business in a free trade zone allows for 100 percent foreign ownership. Aside from that, the government provides various types of benefits and incentives.

Large Cargo Hub

Sharjah is one of the world's largest cargo hubs due to its location at the crossroads of four emirates. This is due to the Sharjah International Free Trade Zone's presence.

Eligible Business Structures for Company Registration in Sharjah

The following are the business structures which can be utilized for company registration in Sharjah:

Limited Liability Company (LLC)

This is one of the most popular types of business structures used for Sharjah company formation. The partners of this type of entity have limited liability. An LLC formed in Sharjah must have a minimum of two partners, according to the Second Federal Company Law. The maximum number of partners, however, cannot exceed 50. A foreign resident can be the managers of an LLC in Sharjah.

Branch Office

A Sharjah branch office is merely an extension of the foreign parent company. The branch office can be established in either a Sharjah Free Trade Zone or a non-Sharjah Free Trade Zone. However, foreign ownership would be restricted if the company was formed outside of the Sharjah Free Trade Zone.

Joint Stock Corporations

Companies can be registered as Joint Stock Companies in Sharjah. Joint stock companies are similar to public companies in that their shares are listed on a public limited stock exchange.

Sharjah Free trade Zone Company

Sharjah is home to a number of free trade zones. In the Sharjah Free Trade Zone, a foreign company can establish a branch office. There are numerous advantages to incorporating the company here. The company could be entirely owned by foreigners.

Minimum Eligibility Criteria for Company Registration in Sharjah

The following eligibility criterion is required for company registration in Sharjah:

Ownership

If the company is incorporated in a non-free trade zone, an applicant pursuing company registration in Sharjah would be required to own only 49 percent of the company. To have 51 percent ownership in the company, the company must appoint a local Emirati resident. As a result, no foreign ownership is permitted for this type of entity. If the company is incorporated in the Sharjah Free Trade Zone, it is permitted to have 100 percent foreign ownership.

Capital

The minimum capital required for Sharjah company registration varies by company. The minimum capital required for the formation of an LLC

Foreign Directors

A Limited Liability Company (LLC) can appoint foreign managers and directors. The applicant must ensure that the directors meet the Sharjah company registration requirements. One such requirement would be for the foreign directors to obtain appropriate visas.

Procedure for Sharjah Company Registration

The following steps must be taken in order to register a company in Sharjah:

Brown Pastel Fishbone Diagram Graph Template.png

Type of Business

First and foremost, an applicant must determine the type of business that is appropriate for Sharjah company registration. If the applicant wishes to have 100 percent foreign ownership of the company in Sharjah, the Sharjah free zone company is the best option. However, if the applicant desires some degree of independence and control by foreign managers, a limited liability company is the best option in Sharjah.

Local Sponsor

According to UAE law, a foreign company must find a local sponsor. The local sponsor must be the company's majority shareholder. This means that the local sponsor must own more than 51 percent of the company. The foreign company must own up to 49 percent of the company. However, if the applicant for Sharjah company registration wishes to have 100 percent foreign ownership, a free zone company would be the best option.

Register the business with the Department of Economic Development.

Following the selection of an appropriate structure and the identification of a local sponsor, the applicant would be required to register with the Department of Economic Development (DED). Aside from that, the applicant can go to the Sharjah Chambers of Commerce website to start the company registration process.

Application for a Respective License

The applicant would apply for the appropriate license after registering the company. There are three types of licenses available: trade licenses, industrial licenses, and professional licenses.

Trade Name Registration

Following its acquisition of the trade license, the applicant would be required to register the trade name. The company's name would be the trade name. Such a name must be unique in the eyes of the general public. There must be no infringement of intellectual property rights on the chosen name. The name must be distinguishable from all others.

Drafting of Memorandum of Association

The applicant would be responsible for drafting the memorandum of association. The applicant would be required to provide accurate information about the company in this section. Once the memorandum has been drafted, it must be notarized in the presence of the appropriate notary.

Make Payment for License Fee

The applicant is required to pay the applicable license fee. Once this is completed, the company must obtain approval from the name board. The Sharjah company registration process is now complete.

Required Document

The following documents are required for Sharjah company registration:

  • Form for registering a corporation
  • The contact person's business card
  • A copy of the Business plan
  • Notarized and Attested Memorandum of Association (MOA)
  • Notarized and Attested Articles of Association (AOA)
  • Copies of the partners' and business managers' passports
  • Original bank reference letters and, if applicable, the license of the partner's existing company
  • Lease contract
  • Parent Company Bank Statements (Last three months)
  • Attorney-in-fact (For representative)
  • Resolution of the Board of Directors of the Foreign Parent Company
  • The feasibility report for the project that will be carried out.

Conclusion

This brings us to the end of our guide on the cost of company formation in Sharjah. Remember that the most difficult part of the process begins after you receive your license.

For more information, Connect with Dhanguard if you want to stay up to date. We will gladly like to assist you in every manner!

Dhanguard provides the business setup and company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free company setup in Mainland and Freezone in UAE.

Dhanguard provides the company formation services in Dubai, UAE with the guidance of our professional team of consultants. Faster and hassle-free offshore company formation services and company formation services in Mainland and Freezone in UAE.

Get Instant Advice