Mainland Company Formation in Sharjah

1. Understanding Mainland Business Setup in Sharjah

A mainland company in Sharjah is registered under the Sharjah Economic Development Department (SEDD). This type of setup provides businesses with the flexibility to operate across the UAE without geographical limitations, and it allows direct access to local markets, unlike free zone companies, which are restricted to specific zones.

Key Benefits of Mainland Business Setup in Sharjah:

• No Trading Restrictions: Mainland companies in Sharjah can operate freely throughout the UAE and can expand into international markets.
• Eligibility for Government Contracts: Mainland businesses can participate in lucrative government projects.
• Ideal Location for Market Access: With proximity to Dubai and access to other UAE regions, Sharjah is strategically positioned for business expansion.
• Lower Business Setup and Rental Costs: Sharjah offers more affordable office spaces and rental rates compared to other emirates, reducing operational costs.
• Full Ownership Option: Recent UAE regulations allow 100% foreign ownership in many sectors, eliminating the need for local sponsors in several industries.

2. Legal Structures for Mainland Companies in Sharjah

Choosing the right legal structure is crucial, as it determines the framework of your business operations. The available structures for mainland businesses in Sharjah include:

1. Limited Liability Company (LLC): This is the most common business structure, allowing multiple shareholders with limited liability. Most business activities allow for 100% foreign ownership.
2. Sole Proprietorship: Suitable for individual professionals wanting full ownership, often applicable to service-based or consultancy businesses.
3. Civil Company: Designed for professional services where multiple partners come together to form a business, such as law, consultancy, or engineering.
4. Branch of a Foreign Company: Ideal for international businesses that want to establish a presence in Sharjah. This structure allows them to retain 100% ownership and tap into UAE markets.

3. Types of Business Licenses for Mainland Companies

The type of business license you will need depends on the nature of your business. The SEDD offers several licenses, such as:

• Commercial License: For businesses involved in trading activities, including import and export.
• Professional License: For consultancy, service-oriented, and professional activities.
• Industrial License: Required for businesses engaged in manufacturing, production, or industrial activities.

4. Steps to Setting Up a Mainland Business in Sharjah

Here is a step-by-step breakdown of the process for setting up a mainland business in Sharjah:

Step 1: Choose the Business Activity

Selecting your business activity is the first step, as it will dictate the type of license you need. Sharjah offers a wide variety of activities in sectors such as trading, real estate, manufacturing, and consultancy. Ensuring that your chosen activity aligns with SEDD guidelines is essential for approval.

Step 2: Determine the Legal Structure

Based on your business model and ownership preferences, select a suitable legal structure, such as an LLC or sole proprietorship. If your business requires multiple shareholders, an LLC is generally the most suitable option.

Step 3: Register the Trade Name

You will need to register a unique trade name for your company with SEDD. The trade name must comply with UAE regulations, meaning it should not include offensive language, religious references, or names of government bodies. Once approved, the trade name is reserved for your business setup process.

Step 4: Obtain Initial Approval

Next, you’ll apply for initial approval from SEDD, indicating that your business complies with Sharjah’s regulations. This stage involves submitting basic information about your company structure, shareholders, and proposed business activity.

Step 5: Draft the Memorandum of Association (MOA)

If you are setting up an LLC, you will need a Memorandum of Association (MOA) that outlines the company’s structure, share distribution, and roles of each partner. This document will be submitted to SEDD as part of the registration process.

Step 6: Lease Office Space

Mainland businesses in Sharjah require a physical office location to complete the registration process. You will need to secure an office space, finalize a lease agreement (Ejari), and submit the lease document to SEDD.

Step 7: Secure Additional Approvals

Certain business activities in Sharjah may require additional approvals from specific regulatory authorities. For example, if your business falls within the healthcare or construction sectors, additional approvals from relevant authorities will be needed.

Step 8: Submit Final Documents and Obtain Your Business License

Once all required documents are prepared, submit them to SEDD for final approval. Upon review and acceptance, you will receive your business license, officially establishing your mainland company in Sharjah.

5. Required Documents for Mainland Business Setup in Sharjah

Below are the standard documents required for mainland business setup in Sharjah:

• Shareholders’ passport copies
• Proof of address for foreign shareholders
• Trade name reservation certificate
• Initial approval certificate from SEDD
• Memorandum of Association (if applicable)
• Office lease agreement (Ejari)
• Additional approvals for specific activities (if applicable)

6. Cost of Setting Up a Mainland Business in Sharjah

The cost of setting up a mainland business in Sharjah can vary, influenced by factors like business activity, office rent, visa fees, and any required government approvals. Typical setup expenses may include:

• Business license fees
• Trade name registration fees
• Office rental fees
• Visa processing fees (for shareholders and employees)
• Local sponsor or service agent fees (if applicable)

It’s important to have a clear budget, including both initial setup costs and ongoing operational expenses.

7. Why Choose AYN Business Consultants for Mainland Business Setup in Sharjah?

Setting up a business in Sharjah involves navigating a range of legal, administrative, and regulatory requirements. AYN Business Consultants offers end-to-end services, including:

• Business Advisory: We help you understand and select the most suitable business structure and licensing.
• Trade Name Registration: Assistance with choosing and registering a unique trade name.
• PRO Services: Support in document submission, application tracking, and government interactions.
• Office Solutions: Guidance on choosing cost-effective office spaces.
• Local Sponsorship Arrangements: Where required, we assist in finding reliable local sponsors.

With our expertise and on-ground presence, we make setting up a business in Sharjah seamless and efficient.