Company Formation in Sharjah in 2024-25: Process & Benefits

Learn about the process and advantages of company formation in Sharjah in 2024-25. Our website offers comprehensive information and expert advice. Begin your entrepreneurial venture now!


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    Sharjah, one of the seven emirates that make up the United Arab Emirates (UAE), has long been a hub for trade, culture, and education. Over the years, it has also emerged as a prime destination for businesses looking to establish a foothold in the Middle East. This article delves deep into the intricacies of company formation in Sharjah, offering insights and guidance for entrepreneurs and businesses alike.

    Why Start a business in Sharjah, UAE?

    Easy Company Formation

    The process of LLC formation in Sharjah is streamlined, and you can expect to complete it within a few weeks. This efficiency is a valuable asset for entrepreneurs looking to hit the ground running.

    100% Business Ownership

    Foreign investors in Sharjah can possess 100% of commercial and industrial companies, giving them complete control over their operations. This level of ownership is a considerable advantage for investors looking for autonomy.

    Competitive Taxes

    Sharjah stands out for its tax-friendly policies, making it one of the most tax-competitive jurisdictions worldwide. This is a vital consideration for businesses aiming to optimize their profits.

    Strategic Location

    Sharjah’s strategic location, in close proximity to Dubai International Airport and the Jebel Ali Free Zone, provides easy access to a wide network of customers and suppliers. This location advantage is a catalyst for business growth.

    Supportive Government

    The Sharjah government is known for its business-friendly stance, offering numerous programs and incentives to support businesses in their growth journey. This assistance can be a huge benefit to entrepreneurs.

    Affordable Costs

    In comparison to other emirates, Sharjah provides a more cost-effective business environment. This includes lower expenses related to office space, labor, and other operational costs, making it an attractive destination for entrepreneurs.

    How to Form a Company in Sharjah?

    To ensure compliance with local legislation, forming an LLC in Sharjah requires a well-defined process. 

    Choose a Business Name: Select a unique business name that is not already registered in the UAE. You can verify name availability through the Department of Economic Development.

    Choose a Business Location: Decide whether to set up your LLC on the mainland or in a free zone.

    • Mainland: Offers flexibility in business activities but is more complex and relatively more expensive.
    • Free Zone: Provides advantages like tax exemptions, 100% foreign ownership, and simplified setup procedures, although it may restrict your operational area.

    Register Your Business and Obtain a Trade License: Submit your legal documentation to the Department of Economic Development (DED) or the local free zone authorities for examination and approval. Upon compliance, you will receive a license for your LLC.

    Open a Corporate Bank Account: A corporate bank account in the UAE is required to manage financial transactions.

    Office Space and Premises: Ensure your office space meets specific requirements for your chosen business activity.

    Visa and Employee Registration: After registering your LLC, you can apply for visas for your employees, ensuring compliance with UAE’s labor laws and regulations.

    Types of Business Entities in Sharjah

    Before setting up a company in Sharjah, it’s crucial to understand the different types of business entities available:

    • Sole Proprietorship: Owned by an individual who is responsible for all assets and liabilities.
    • Public and Private Shareholding Companies: Suitable for large projects or operations. Public ones can offer shares to the public, while private ones cannot.
    • Limited Liability Company (LLC): The most common form in the UAE, where the liability of shareholders is limited to their shares in the company’s capital.
    • Partnership: Two or more partners share ownership. They can be general or limited partnerships.
    • Branch Offices: Foreign companies can establish branch offices in Sharjah to conduct activities similar to their parent company.

    Documents Required for LLC Formation in Sharjah

    The documentation required for Sharjah LLC establishment may vary depending on the type of the firm and the unique criteria. However, the following are the general documents required:

    • Photocopy of visa and passport
    • All stockholders’ passport copies
    • Copy of the certified leasing contract Licence form 
    • Bank statement of the company’s bank account
    • Legal approvals, if necessary
    • Trade name certificate

    Cost of Company Registration in Sharjah

    The cost of obtaining an LLC license in Sharjah depends on various factors, including business activity, company size, and location (mainland or free zone). As a general guideline, the cost typically starts at AED 14,900. Additionally, other expenses may include business name reservation fees, bank account opening fees, legal fees, office space rental, visa fees, and more. It’s advisable to consult a legal and business setup consultant to get a precise cost estimate.


    Sharjah offers a dynamic and growth-oriented environment for businesses. It is an appealing site for company creation due to its strategic position, cutting-edge infrastructure, and business-friendly legislation. However, like with any company initiative, rigors research, understanding local legislation, and seeking professional advice from a reputable consulting agency such as OnDemand International are all crucial.

    By understanding the landscape, potential challenges, and opportunities, businesses can thrive and grow in Sharjah, making the most of what this vibrant emirate has to offer.


    How long does it take to set up a company in Sharjah?

    The time it takes to set up a company in Sharjah varies depending on the type of business entity and the complexity of the business. However, it typically takes around 2-4 weeks to set up a company in Sharjah.

    What are the tax implications of setting up a company in Sharjah?

    There is no corporate income tax in Sharjah. However, there is a 5% value-added tax (VAT) on most goods and services.

    What are the visa requirements for company owners and employees in Sharjah?

    Company owners and employees in Sharjah require a business visa. Business visas can be obtained through the Ministry of Labor or the Department of Immigration and Naturalization.

    What is the minimum capital required to set up a company in Sharjah?

    The minimum capital required to set up a company in Sharjah varies depending on the type of business entity and the business activity. For example, the minimum capital required for a mainland trading company is AED 150,000, while the minimum capital required for a free zone trading company is AED 50,000.