Welcome to your comprehensive guide on forming a Limited Liability Company (LLC) in Sharjah, UAE. If you’re an entrepreneur or investor considering setting up a business in this dynamic emirate, you’re in the right place. An LLC structure in Sharjah offers numerous advantages, including limited liability, tax benefits, strategic location, and the potential for 100% foreign ownership. In this guide, we’ll walk you through the process of starting your LLC in Sharjah and provide essential insights to help you make an informed decision.
What is an LLC Company?
A Limited Liability Company (LLC) is a customizable corporate form that provides its owners with limited liability. This implies that your assets are safe if your firm runs into financial troubles. LLCs are the most common business structure in the UAE, with a minimum of two and a maximum of 50 shareholders.
Procedure for Formation of LLC in Sharjah?
Here are the procedures for formation of an LLC in Sharjah:
- Choose a Business Name: Select a unique business name that is not already registered in the UAE.
- Choose a Business Location: Decide whether to set up your LLC on the mainland or in a free zone, considering factors like business activities and costs.
- Obtain a Trade Licence and Register Your Business: Submit your legal paperwork for examination and approval to the Department of Economic Development (DED).
- Open a Corporate Bank Account: You’ll need a corporate bank account in the UAE for financial transactions.
- Office Space and Premises: Check that your office space meets the precise needs of your chosen company activity.
- Visa and Employee Registration: Apply for staff visas while complying with UAE labor rules and regulations.
Documents Required for LLC Formation in Sharjah
Common documents needed for LLC formation in Sharjah include:
- Passport copies of all shareholders
- License form
- Trade name certificate
- Legal approvals if required
- Copy of your passport and visa
- Company bank account bank statement
- Certified Lease Contract copy
Cost of LLC Formation in Sharjah
The cost of a Sharjah LLC license varies depending on criteria like as business activity, firm size, and location (mainland or free zone). In general, the cost begins at AED 14,900 and may include other costs such as business name reservation, bank account setup, legal fees, and so forth.
Benefits of Start a Limited Liability Company in Sharjah
Sharjah is an attractive destination for LLC company formation for a variety of benefits. Some of the benefits are:
- Limited Personal Liability: Members of an LLC are solely accountable for the amount they invested in the firm, protecting their assets in the case of bankruptcy or financial difficulty.
- 100% Company Ownership: Foreign investors can hold 100% of commercial and industrial enterprises in Sharjah, giving them complete control over their activities.
- Flexible Management Structure: LLCs provide a flexible management structure, allowing members to select an arrangement that best meets their needs.
- Tax Benefits: LLCs in the UAE enjoy significant tax benefits. However, taxes are applied only after crossing a specified threshold, with a corporate tax rate of 9% applied on net profit beyond AED 375,000.
- Competitive Taxation: Sharjah is well-known for its beneficial tax rules, which make it one of the most tax-competitive jurisdictions in the world.
- Ease Company Formation Process: The procedure of incorporating an LLC in Sharjah is quite simple and may be finished in a few weeks.
- Strategic Location: Sharjah, which is ideally situated near key transportation hubs such as Dubai International Airport and the Jebel Ali Free Zone, gives quick access to a diverse consumer and supply base.
- Supportive Government: The Sharjah government actively supports businesses by offering programs and incentives to foster growth and success.
- Affordable Costs: Business expenses in Sharjah, such as office space and labor, are more affordable compared to other emirates like Dubai.
Sharjah LLC Formation with OnDemand International
To make LLC formation in Sharjah easier, work with experienced specialists who are familiar with UAE company legislation. OnDemand International is a renowned business establishment firm in the UAE. We’ve helped over 100 entrepreneurs realize their business aspirations, and our experience might be a great tool on your path to Sharjah’s business success.
There is no restriction on purchasing a real estate property.
In the UAE, a single-owner LLC is a limited liability corporation (LLC) with only one member who also owns the firm.
The business registration cost in the UAE is between AED 22,000 and AED 24,000.