Sharjah is a highly sought-after location among enterprises seeking to broaden their presence within the United Arab Emirates (UAE). The emirate offers a variety of trade license classifications, each associated with specific commercial activities. This license is important for company formation in Sharjah. We will provide a thorough overview of the process for obtaining a general trading license in Sharjah in this article.
Procedure to Obtain A General Trade License in Sharjah
The getting of a general trading license in Sharjah entails the subsequent procedures:
- Determine the category of the business: Choose the business category that is most suitable for your organization, such as professional, industrial, or commercial, by its nature.
- Identify commercial activities: Define the specific commercial activities that pertain to your chosen business category, with the option to list up to 10 activities under a single license.
- Legal company status: Ensure that your company has the necessary legal status to conduct business in Sharjah.
- Company name selection: Select a name that is distinct and does not bear resemblance to or overlap with any pre-existing company in Sharjah.
- Documentation preparation: Prepare the necessary documentation, including identification documents of directors, shareholders, and company secretary, Memorandum of Association and Articles of Association, and Registered office address.
- Fee payment: Pay the necessary fees to complete the application process.
Requirements to Apply for Sharjah General Trade License
To acquire a general trading license in Sharjah, the following prerequisites must be satisfied:
- Legal company status: Your company must have the necessary legal status to conduct business in Sharjah.
- Single Shareholder: A minimum of one shareholder is required, and that shareholder may be a corporation or an individual.
- Single Director: It is mandatory to have a minimum of one director who is a Sharjah resident. A corporation or an individual may serve as the director.
- Company Secretary: A company secretary must be appointed within six months of the incorporation of the business.
- Paid-in minimum capital: Sharjah does not mandate a minimal paid-up capital requirement for the formation of a corporation.
Types of Business Entities in Sharjah
There are several types of business entities that you can set up in Sharjah. Here are the most common ones:
- Limited Liability Company (LLC): A common business structure, a limited liability company provides its members with limited liability.
- Branch Office: A branch office is an extension of a foreign corporation that has obtained authorization to operate within the jurisdiction of Sharjah.
- Free Zone Corporation: A free zone corporation is an organizational structure that is formed within a specifically designated free zone region in the Islamic emirate of Sharjah.
Benefits of General Trade License in Sharjah
Obtaining a general trading license in Sharjah has several benefits. Here are some of them:
- Sharjah’s central location in the United Arab Emirates makes it an ideal location for companies seeking to expand throughout the region.
- The political climate in Sharjah is stable, rendering the region a secure location to conduct business.
- Numerous business-friendly policies exist in Sharjah, including advantageous tax rates, which contribute to the region’s appeal as a business hub.
- Sharjah’s proficient labour force facilitates the recruitment of the necessary personnel for enterprises.
- Sharjah has received consistent rankings as one of the world’s most streamlined business environments.
The obtaining of a general trading license in Sharjah grants businesses and proprietors a significant advantage, enabling them to participate in an extensive array of commercial operations within the Emirate. The streamlined license acquisition process, in conjunction with Sharjah’s advantageous geographical position and conducive business environment, renders it an appealing hub for trade and commerce. The general trading license allows businesses to import, export, and trade in various goods and services, fostering economic growth and diversification.
Furthermore, the regulatory framework and support provided by the Sharjah Economic Development Department (SEDD) contribute to a transparent and conducive business environment.
You can contact OnDemand International by visiting their website at ondemandint.com. They are a leading market entry consulting firm that can help you with obtaining a general trading license in Sharjah.
Sharjah general trading license is a legally binding authorization that enables organizations to engage in the import, export, and re-export of an unlimited quantity of unrelated merchandise.
Sharjah permits the formation of limited liability companies (LLCs), branch offices, and free zone corporations.
A general trading license in Sharjah can only be obtained with the following requirements: legal status permitting business in Sharjah, at least one shareholder, one director residing in Sharjah, and a company secretary.
A general trading license grants access to talent, an ideal location, a stable political environment, business-friendly policies, and an environment conducive to conducting business in Sharjah, among other advantages.