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Sharjah! The Ultimate Location for Mainland Company Formation. Here’s Why

By Sakshi Srivastava - 28 May 2022 Last Updated: 28 May 2022
Sharjah! The Ultimate Location for Mainland Company Formation. Here’s Why

Table of Contents 

  1. 1. Procedure for Mainland Company Formation
  2. 2. Sharjah Mainland Business Licenses
  3. 3. Are there any Restrictions on the Use of Trade Names?
  4. 4. Advantages of Starting a Mainland Company in Sharjah
  5. 5. Conclusion

About Sharjah

Sharjah is one of the United Arab Emirates's seven emirates. Now, before we get into the specifics of setting up a business in Sharjah or forming a corporation in Sharjah, let's take a look at why Sharjah should be your next business location. After Dubai and Abu Dhabi, Sharjah is the UAE's third most populous city. It is a cultural and industrial hub that accounts for 7.4% of the UAE's GDP on its own.

  • The fact that it is the only emirate having views of both the Persian Gulf and the Gulf of Oman on both sides, as well as the coastal cities of Kalba and Khor Fakkan, aids in the transportation of commercial goods and cargo.

  • Sharjah is a federal emirate that shares legal, political, military, and economic functions with the other UAE emirates. Sharjah is also renowned as a health city by the World Health Organization (WHO) because of its strict alcohol restrictions.

  • It is also known as the UAE's cultural center, and in 2019, it was crowned World Book Capital. It is home to a varied range of firms from various industries.

  • Sharjah has a thriving economy that draws in investors from all around the world.Sharjah's government places a high value on trade and business within the country.

  • Sharjah has a number of investor-friendly policies that make it easier to start a business in the region.

  • The legal authorities provide full support and simple procedures to ensure that new enterprises feel at ease when forming their companies.

As a result, it is one of the best places in the UAE to start a business and attracts investors from all over the world. Thus in today's blog, Dhanguard will discuss extensively about a mainland Company Formation in Sharjah Region. So without any further ado, let's learn!

Procedure for Mainland Company Formation

In Sharjah Mainland, the procedure for forming a company is as follows:

The Sharjah authorities have established a complicated procedure for Sharjah Mainland Company registration. You can delegate the duty to us and focus on planning your business activities while our team takes care of the registration processes.

  1. Decide on the type of business you want to run.

  2. Locate the ideal location for your company.

  3. Decide on a commercial name and put it on hold.

  4. Prepare and notarize a Memorandum of Association (MOA).

  5. Get SDED's initial permission.

  6. According to the type of business activity you plan, apply for approvals from the municipality, ministries, and agencies as needed.

  7. Rent/lease arrangement with the owner for official and commercial space. It must be attested by the appropriate authority.

  8. Obtain authorization for staff recruiting from the Ministry of Labor.

  9. To the Department of Economic Development, submit all documentation, including shareholder passport copies, municipal/ ministry/ department approvals, rent/ lease agreement, and MOA.

  10. Pay the cost of the license.

  11. Obtain a business license and begin operating your business.

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Sharjah Mainland Business Licenses

The first step in starting a business in Sharjah is to obtain a business license. DED must receive an application in the required format, along with all required papers, for initial approval. You must be certain about the type of business activity you intend to engage in before you begin the procedure. The type of business license that is necessary is determined by the type of business.

Professional License

A professional license is required to start a professional firm. Professional licenses are available for artists, architects, tutors, and other professionals. The authority will require you to present certificates and documentation validating your qualifications. Subject to certain requirements, you may possess 100% of the professional firm.

Commercial License

Do you want to create a business? If so, you will need a commercial license. Will your company engage in any commercial endeavors? Buying, selling, and general trade, for example, are all part of this. A commercial license is then required. Following a comprehensive examination of the paperwork, the Department of Economic Development (DED) will provide a business license. After receiving permission from the appropriate ministries and departments.

Industrial License

Industrial licenses are required for businesses that manufacture, assemble, or mold products. The license will only be granted after a thorough examination of the manufacturing plant's environmental and social impacts. Depending on the type of industry you plan, approvals from departments and ministries such as the ministry of health, the ministry of business and trade, the department of public welfare, and the electrical and water authority will be required.

Are there any Restrictions on the Use of Trade Names?

You must choose a trade name and reserve it with the authority before applying for a business license. The trade name is subject to certain restrictions imposed by government bodies. You are not allowed to use the trade name to express your political or religious beliefs. If you wish to, you can use your own name as a trade name. If you're going to use your business name, make sure it's in its full form, as abbreviations aren't allowed.

Documents Required to be Submitted

For Sharjah company registration, the following documents are required:

  1. Sharjah firm registration and creation of application form

  2. Copy of the business plan

  3. Memorandum of Association (MOA) and Articles of Association that have been notarized and attested.

  4. All partners and business managers must have a copy of their passports.

  5. Original bank reference letters and company licenses, or a partner's company's licenses (as applicable)

  6. In the event of a foreign corporation, a resolution of the Power of Attorney Board is required.

  7. A lease contract

  8. Feasibility report for the company's intended project

  9. The parent company's three-month bank statements

Advantages of Starting a Mainland Company in Sharjah

The following are the main advantages of establishing a business in Sharjah:

  1. Sharjah is one of the fastest-growing economies in the UAE, which makes it easy for businesses to thrive.

  2. Its GDP was around AED113.89 billion in 2014.

  3. Sharjah has 19 industrial zones, which account for more than 48% of the UAE's total industrial output.

  4. International banks are well-represented, and a contemporary communication system is in place.

  5. Sharjah is regarded as a tax haven. There are no taxes imposed on businesses.

  6. Import, export, and commercial levies are all exempt to 100%.

  7. For international enterprises, 100 percent repatriation of profits and cash is permitted, as is full ownership of the company.

  8. Businesses can store products for up to two months in a warehousing facility.

  9. It provides substantial government incentives to all types of investors.

  10. The Sharjah government declared in 2020 that investors dealing in the planning and survey department would be exempt from contractual dues for three months, as well as economic facilities from costs.

  11. It has also given the tourist and hospitality industries a 50% rental cut for three months.

  12. Entrepreneurs have access to a variety of entrance visa alternatives.

  13. Sharjah has a variety of infrastructure-related activities.


Establishing a Business in the Mainland of Sharjah has tremendous growth potential. Sharjah, the emirate with an investor-friendly attitude, has been one of the most popular business destinations since the turn of the millennium. Recognizing the emirate's expanding importance as a vital business location, an increasing number of expats and foreign investors are forming companies in Sharjah Mainland. Thus we hope this blog provided you with insightful information. For more information on other related aspects, feel free to check out our website as well.

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.

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