A complete guide on how to secure a Trade License in Sharjah

Each emirate has unique advantages and limitations. However, one of the things that all of them have in common are the job opportunities they offer for local and foreign entrepreneurs. In the following lines, we will talk about the Sharjah Trade License and how to acquire one.

In this article, you will find information about what a trade license is, some aspects of the Sharjah Trade License, how the renewal process of this license is, and how we can help you with your application process.

1. What is a Trade License?
2. Aspects of the Sharjah Trade License
3. What are the different types of Sharjah Trade Licenses?
4. How to get this type of license in Sharjah?
5. The renewal process of a Sharjah Trade License
6. How can we help you obtain a Trade License in Sharjah?

1. What is a Trade License?

A trade license is an official document that defines what kind of activities can be carried out in the United Arab Emirates. The government entity in charge of issuing them is the Department of Economic Development of the Emirate where you decide to settle.

This type of license covers different activities, from the production and transformation of products to their export and marketing. Also, any established company, either in a Free Zone or on the Mainland, can get this license.

2. Aspects of the Sharjah Trade License

In recent years, the Sharjah government has taken decisions to boost investment and promote economic diversification, taking into account that Sharjah is known as the regional industrial hub. Both local and foreign companies are granted a unique facility at the time of establishment. However, to comply with the standards of the area, all companies must acquire a Sharjah Trade License.

The Sharjah Trade License helps the government to maintain order regarding the companies that work in the city and to protect the rights of the customers. The government entity in charge of the entire process related to the license (renewals, issuance, etc.) is the Sharjah Economic Development Department.

Note that if you are a business owner in Sharjah, acquiring a trade license is the first formal step in starting your business. You must remember that running a business without a license is not allowed. Also, the possession of a license means that you need to renew it in order to continue your business operations.

3. What are the different types of Sharjah Trade Licenses?

There are three types of Sharjah Trade Licenses:

3.1 Commercial License

A Commercial License is aimed at those businesses whose main activities are related to the commercial sector. Some of these activities are the following:

• Trading products
• Importing products
• Exporting products
• Brokerage Activities
• Rental Activities

Note that your company is established in Sharjah and you want to market your products or services outside the United Arab Emirates, you will still need this license to be able to carry out any commercial activity outside the territorial limits of the UAE.

3.2 Professional License

The Professional License is a type of license that must be acquired by all companies whose productive activity is related to the offer of products or services based on some skill, talent, or profession of the individual.

If this license suits the nature of your company, then you can make agreements with the government to sell your products in certain areas. Similarly, you will have the opportunity to make lucrative government contracts.

Some of the activities that you can carry out by acquiring a professional license are the following:

• Healthcare services
• Auditing
• Digital marketing services
• Consultancy services
• Designing and crafting of products
• Accounting
• Educational services
• Business setup consultancy

3.3 Industrial License

This Sharjah Trade License is aimed at those companies whose productive activities are related to the manufacturing sector of the country. Also, one of the requirements to obtain an industrial license in Sharjah is the physical office space.

Some of the activities that you can carry out with this license are the following:

• Processing raw material
• Importing raw material
• Packaging the final product
• Selling the final product
• Exporting the final product

4. How to get this type of license in Sharjah?

 

The process of obtaining a Sharjah Trade License license will depend on the type of business you want to run. For example:

4.1 Limited Liability Company

The process you must follow to start a Limited Liability Company is the following:

Firstly, the applicant must submit the necessary documents to the Sharjah Department of Economic Development (SEDD) and complete certain obligations. For example, trade names, inspections, and any other legal transactions. Then, a SEDD employee will be in charge of reviewing all the documentation. This can either be endorsed or they can ask you to make amendments to the application or add things to the required documents.

Once your application has been approved, you must make the corresponding payment for the auditing and permission. Lastly, your license will be issued by the SEDD along with the registration certificate.

The list of documents required to start a Limited Liability Company are the following:

• Brand certificate
• Trade license form
• Official approvals, if any
• Emirates ID and Passport copies
• Approval from the Ministry of Economy
• Lease contract certified
• No objection letter from the applicant
• Residence visa copy
• Partnership contract duly certified
• Approval related to legal affairs
• Property certificate copy or a map image

4.2 Partnership Company

The process of starting a Partnership Company is the following:

Individuals interested in forming this type of company must submit the necessary documents along with the application form. The SEDD will then be responsible for conducting the review. Once your application is approved, you must pay the corresponding fees, and in a period not exceeding thirty days, you will have your license and your registration certificate.

The documents required for a partnership company are the following:

• Trade license form
• Passport copy
• Civil register applicant
• Emirates ID
• Resident ID card of the expat
• Lease contract certified
• Official approval, if any
• Approval of the Ministry of Economy
• Official technical assessment report
• Brand certificate
• Certified partnership contract

4.3 Business Partnership license or Local Service Agent license

The process for obtaining a Local Service Agent License or a Business Partnership License is the following:

The interested parties must be present at the time of approval of the license in the trade name sector. Then, the license parties (or legal representatives) must sign the business partnership contract or local service agent agreement. Next, entrepreneurs must contact the license section of the SEDD after meeting all preliminary requirements. Finally, once your application is approved, you will have to pay the corresponding fees and soon you will have your registration certificate and your license.

The documents you need for this license are as follows:

• Certificate of business name
• Certified lease contract
• License form
• Passport copy
• Photocopy of property certificate
• Emirates ID
• Civil register abstract (family book)
• Billboard design
• Official technical assessment report

4.4 Foreign Company Branch

To start a Foreign Company Branch you must follow these steps:

First, you must apply for a license in the Sharjah Department of Economic Development, then you must get the approval of the company’s BOD (Board of directors). This must include a legal translation and a statement issued by a company representative.

The next step to follow is to submit the authenticated documents from the United Arab Emirates Ministry of Foreign Affairs and the UAE Embassy in a foreign country. Note that translation is necessary.

Then, you must submit your license application with the required documents along with the power of attorney issued in the name of the company’s representative. Lastly, you will need to check the trade name section and contact the Ministry of Economy for approval to open the branch.

The documents required for a Foreign Company Branch are the following:

• License form
• Memorandum of Association duly translated or certified
• Photocopy of the parent’s company statue duly translated and certified
• Registration certificate duly certified
• Resolution from the parent company’s board of directors
• Certified photocopy of agency signed contract between the local agent and the foreign company

4.5 Local Company Branch

To apply for a Sharjah Trade License and open a Local Company Branch, you must follow these steps:

You must complete the application form designated by the Sharjah Department of Economic Development. Then, you should fulfill all the requirements and visit the section of the trade name for approval. Once they approve your name selection you will be able to receive your Sharjah Trade License.

If you want to open a local company branch, you must submit the following documents:

• Memorandum of Association of the parent company duly certified
• Certified copy of the registration certificate and the commercial license of the parent company
• Company’s board consent
• Parent company’s statued authenticated photocopy (only for private and public shareholder companies)

4.6 GCC Company Branch

To start a GCC Company Branch you must follow these steps:

Complete the application form designated by the Sharjah Department of Economic Development. Next, you must get the consent of the company’s board of directors and the power of authorization.

The documents you need for this process are the following:

• Copy of the Memorandum of Association duly authenticated
• Certified copy of the registration certificate and the commercial license of the parent company
• Consent of the company’s board of directors
• Parent company’s statue authenticated photocopy (only for private and public shareholder companies)

4.7 Public and private shareholding companies

To acquire a Sharjah Trade License that allows you to manage public and private shareholding companies, you must complete the following steps:

Submit the application to the Ministry of Economy and the Department of Economic Development. The application must comply with the conditions stipulated in the Commercial Registry Act. This must be done before the ministry decides to establish your company.

Then, a committee is made up of a representative from the ministry and a representative from the Department of Economic Development. This committee is in charge of deciding if a company can be established or not, this decision is sent to the head of department (HOD)

Later, the HOD must finalize the decision regarding the establishment of the company. The decision, together with the required documents, will be sent to the Ministry of Economy.

Note that if they approve the establishment of your company, the trade name of your company must be accompanied by the term “public company”. In the same way, for a private  company, the name must be followed by the term “Private Joint-Stock Company”.

These types of companies can start operating after registering in the trade registry by the relevant authority.

The documents necessary for the process of forming this type of company are the following:

• Two certified copies of the Memorandum of Association and Articles
• Feasibility study
• Copy of the certified statue
• Two certified copies of the board’s member nationality along with their place of birth

5. The renewal process of a Sharjah Trade License

The Sharjah Trade License is only valid for a specific amount of time, when the expiry time approaches, the company must apply for a renewal. Some of the documents you need to renew your license are the following:

• License renewal form
• Family book photocopies of UAE citizens
• No objection letter from the competent authority
• Attested lease agreement
• A notary public authenticated copy of the signature verification
• Passport copies of the UAE Nationals

Keep in mind that the Sharjah Trade License has exceeded the expiration period by three months, then you will need to contact the Inspection Division in the Department of Economic Development. It must be remembered that if the license is for a foreign company branch, your application is submitted to the Ministry of Economy.

6. How can we help you obtain a Trade License in Sharjah?

With more than 20 years of experience, we are your best option regarding formation of companies in the Mainland or in the Free Zone of your choice. Deciding to start a business in a country, whether as a local or a foreigner, is always a long and tedious process if you do not have the ideal partners to carry out your ideas.

For this reason, at Connect Zone, we help you with the entire process of your Sharjah Trade License, we will help you with the application process for visas and Emirates ID and we can even take the role of a local agent if you need it.

Would you like more information about the process of opening a company in the UAE? You can contact us at the following number +971 43 316 688. Also, feel free to email us at contact@connectzone.ae  where one of our advisors will be in charge of answering all your questions.

Finally, The Talent Point is looking for new talents to cover a variety of positions in diverse sectors. Apply now by creating an account on thetalentpoint.com. You can also send your CV through contact@thetalentpoint.com. Do not worry, your information will always be safe, we will not share it or store it.