Business setup in Sharjah with Connect Zone's expert assistance

100% Foreign Ownership: Sharjah free zones’ enterprise structure allows foreign capital owners to own up all the enterprises with no local sponsorship.

Tax Exemptions: Companies set up in Sharjah free zones are entitled to 100% and personal income tax relief, as well as no charges on import and export duties.

Repatriation of Profits: Sharjah free zones offer 100% of profits and capital repatriation, which means you can freely manage your business in the currency you want without getting any currency restrictions.

Streamlined Processes: Free zones encourage the simplification of administrative processes for company setup, from easier licensing and registration to overcome bureaucratic insufficiencies.

World-Class Infrastructure: Sharjah’s free zones offer a wide range of essential services such as superior infrastructure, well-equipped facilities, and business amenities. This helps increase overall productivity.

Business Support Services: Free zones vary in terms of business enabling services they offer, which may include facilitation of visas, permits, and other bureaucratic processes, thus simplifying the beginning and operation of a business.

Strategic Location: The free zones in Sharjah are well positioned near international seaports and airports, which supports the export and import process as well as the cargo handling operations.

Access to Skilled Workforce: Also, the companies in Sharjah free zones might enjoy the benefit of having a wide range of skilled workers and labor that helps business growth and development.

Flexibility: In free zones, companies not only have the privilege of choosing between various options of office and warehouse rentals, but they are also able to select their preferred type of leasing.

License Fees: Such fees consist of taking care of paying for the required permits and licenses of the business to be a law-abiding company in Sharjah. Fees may change depending on the type of business activity and the specific area within the Emirate.

Registration Fees: Firms in Sharjah will be required to pay the registration fees to competent bodies like the Department of Economic Development (DED) for the mainland companies or the free zone authority for the companies incorporated in the corresponding free zones.

Office Rent: As residents of Sharjah, businesses may require office space to rent to meet the expenses of rental. The rental price can differ in accordance with the zip code, area, and range of amenities offered.

Visa Fees: If a company is planning to recruit people as staff, it should reckon the cost of visas for employees and shareholders. These fees will include application for residence permits or work visas.

Legal and Professional Fees: Involving a lawyer and a professional firm for company formation, documentation, and advice may be an added expense.

Miscellaneous Expenses: The other miscellaneous expenses might be notarization fees, translation services, government charges, and additional services, which could be required during the process.

The timeline for the company development process in Sharjah can vary based on many factors, the type of entity chosen, the business location (mainland, free zone or offshore), the complexity of the business process, and meeting the regulatory and statutory requirements. Generally, the process would normally shape around a week at the initial, it may take longer up to months.

• Preparation Phase: Compiling all the necessary documents and completing the prerequisite formalities like approvals and permissions is bound to take 1 to 2 weeks.
• Company Name Reservation: These usually take several days, as this process includes choosing suitable names for the company and thereby requesting the approval for these names.
• Submission of Application: The next step is to go through the company name reservation process, which takes a few more days to be approved by the relevant authority.
• Document Processing: After submitting an application, there may be a waiting period of up to 2 weeks when the authorities will carry out the checks and processing of your submitted documents.
• License Issuance and Registration: After the consent of the authorities, the business license will be issued to the company and the company will be registered officially, which may take approximately 1-2 weeks.
• Additional Approvals and Permits: This duration will depend on the nature of the business activities and in the event where special permits or approvals is required, it may add some few days or even weeks to the process, depending.
• Office Setup and Visa Processing: Getting office up and running and establishing visas for the staff and shareholders of the corporation only need a week to a week and a half.

The business climate in Sharjah is strong, with companies enjoying taxation policies designed to boost investment and business growth.

• Corporate Income Tax: Sharjah does not subject companies, except for a limited number of companies operating in its jurisdiction, to the corporate income tax. In practice, multinational corporations would not be taxed on their local and overseas profit.
• Personal Income Tax: The authority levies no employees’ salaries or wages personal income tax either in Sharjah, creating a favorable financial environment for both businesses and employees.
• Value Added Tax (VAT): The introduction of the VAT by UAE and Sharjah came up in 2018. The VAT rate set at 5% applies to the majority of goods and services, including the supplies provided by the entities operating in Sharjah.
• Customs Duties: Sharjah does not levy customs duties on goods that are locally produced but might impose custom duties on imported goods depending on their classification and place of production. However, some free zones have tariff or import reductions for goods intended for re-exportation.
• Withholding Tax: The taxes that can be withheld on the dividends, interest or royalties from companies within the Sharjah city by non-resident entities or individuals are not that substantial.
• Double Taxation Treaties: The UAE has already established bilateral tax agreements with some countries to prevent double taxation and stimulate foreign trade and investment. Such treaties reduce the burden to individuals and businesses which have to comply with technical tax regulations in multiple jurisdictions.

In Sharjah, a company has different requirements for the registration of the office which could include other type of visas based on the selected option (mainland, free zone, or offshore).

Office space:

1. Mainland Companies: Mainland companies operating in Sharjah are most likely to set up office based on physical location as a prerequisite. Office space should follow the technical compliance specifications set by DED, such as a minimum floor area and an array of fundamental facilities.
2. Free Zone Companies: The Free zone companies would typically enable the entities to rent out the office space within the chosen free zone. The various office space requirements may differ based on the particular authority governing the zone and the business activity. As some freezones cater for business entities with minimum space requirements, they offer flexi-desk or virtual office services.

Visas:

1. Employee Visas: Companies in Sharjah can give visas to foreigners that would permit them to work in the emirate. The number of visas that a company is able to sponsor could rely upon issues such as the size of the business premises and the degree of business activity. Regulations pertaining the visa requirements and procedures belong to the general portfolio of The General Directorate of Residency and Foreigners Affairs (GDRFA).
2. Investor Visas: Sharjah companies’ shareholders and investors may also be among those who can apply for investor visas, which will let them to reside in the UAE and conduct business. The details about investor visa’s requirements can be different in accordance with business structure and the investment amount.

Indeed, you can carry on your business with a company registered in Sharjah even outside this emirate. Companies choose to be in Sharjah for a variety of reasons, including tax benefits, access to markets, strategic location, remotely operating or having other additional business contacts. Generally, UAE corporations having their registration in Sharjah free zones or offshore jurisdictions apply this tax treatment.

The source of the legal jurisdiction, the nature of your business, and the geographical location of the other party should all be considered, and tax implications, reporting requirements, licensing, and local compliance handled properly. Seeking legal advice or guidance from business experts may be very helpful for you to understand these factors and running your business properly and legally both in Sharjah and at any other place where you do business.