Setting Up Your Company in Sharjah: What You Need to Know

Sharjah, one of the seven emirates of the UAE, offers a straightforward process for company registration while ensuring compliance with local laws. Company formation in Sharjah comes with numerous tax incentives and benefits. Additionally, the availability of free trade zones in Sharjah makes it an ideal destination for investors looking to conduct business.

To take advantage of the benefits of forming a company in Sharjah, it's important to follow the proper legal procedures. This ensures that your company operates within the bounds of the law and can fully utilize the opportunities that Sharjah has to offer. With its strategic site and profitable business conditions, Sharjah is an excellent choice for company formation in the UAE.

The Process of a Company Formation in Sharjah 

1. Business Type 

One of the initial decisions to make when starting a company formation in Sharjah is choosing the appropriate business type. For those seeking complete foreign ownership, the ideal structure is a Sharjah free zone company. On the other hand, those who wish to retain some level of control and independence through foreign managers may find a limited liability company to be more suitable in Sharjah.

It's important to choose the appropriate business structure to ensure that the company is set up in accordance with UAE laws and regulations and to optimize the benefits available in Sharjah.

2. Local Sponsor 

As per the laws of the UAE, a foreign company looking to register in Sharjah must secure a local sponsor. The local sponsor is required to hold a majority stake in the company, which means they must have ownership of more than 51% of the shares.

The foreign company can hold around 49% of the shareholding in the corporation. It's crucial to comply with these regulations to ensure legal company formation in Sharjah and to receive the benefits available for foreign companies in the UAE.

3. Register the Company with the Department of Economic Development

Once a suitable business structure has been chosen and a local sponsor has been found, the next step is to register the company with the Department of Economic Development (DED). The process of company registration can also be initiated by visiting the Sharjah Chambers of Commerce website.

4. Trade Name Registration 

Once the trade license is obtained, the next step is to record the trade name of the business. The trade name should be unique and not intrude on any academic property ownership.

It must be unusual and not identical to any current trade names in Sharjah. This can be done through the Department of Economic Development (DED) or online through the Sharjah Chambers of Commerce and Industry.

5. Drafting of Memorandum of Association

Drafting the Memorandum of Association is a crucial step in the process of company formation in Sharjah. The applicant must provide accurate and valid information about the company in the memorandum.

Once the memorandum is drafted, it must be notarized by a qualified notary public. This is a legal requirement and ensures the legality of the document. The memorandum must include important information such as the company's name, registered address, objectives, activities, and the details of the shareholders and their shares. 

6. Make Payment for License Fee

Payment for the license fee is the final step in the process of company formation in Sharjah. After completing this step, the applicant must obtain approval from the name board for the company. Once approved, the registration process is considered complete.

Conclusion 

Company formation in Sharjah can be a lucrative opportunity for businesses looking to expand into the UAE. Nevertheless, it is necessary to comprehend and adhere to the legal conditions and regulations of the UAE when forming a company in Sharjah. By following the proper procedures for business registration, entrepreneurs can successfully establish their presence in the market and take advantage of the many opportunities available in Sharjah. 

 Also Read: How to Set Up a Business in Sharjah