SHARJAH TRADE LICENSE

If you want to start a business in the United Arab Emirates, one of the most important steps is to obtain a Sharjah trade license. In the same vein, the government body in charge of regulating and controlling all procedures of any entity in the region is the Department of Economic Development (DED).

In addition, the economic department receives institutional support from the Chamber of Commerce and Industry. There are some business activities in which you require additional approval from other governmental authorities and ministries.

For instance, financial institutions and banks must obtain permission from the central bank of the UAE; industrial companies from the Ministry of Finance and Industry; insurance companies and associated companies from the Ministry of Commerce and Economy; and pharmaceutical and medical industries from the Ministry of Health.

Before obtaining the Sharjah Trade License and knowing its cost, it is crucial you follow the steps we will mention below in order to meet the requirements of the involved authorities. You will ensure maximum commercial advantages for all shareholders. Let us observe:

• You must select the business category you will conduct such as industrial, professional, or commercial.
• Decide the business activities that come under the specific business category (maximum 10)
• Determine the legal status of your business in the UAE.
• Choose a name for your business (follow the local regulations).
• Apply on the Department of Economic Development Sharjah for the initial approval.
• After that, register a trading name (if you do not have a trading name reserved already).
• Lease the office space or business premises and obtain permission from the government.
• Prepare all the documentation, such as MoA (Memorandum of association) and approvals from other government entities.
• Submit the application to the Department of Economic Development to obtain the license.
• Pay the due fees.

Price is a crucial factor for many investors and entrepreneurs wishing to set up in the UAE. Therefore, if you are looking for the best Sharjah trade license cost, applying at a free zone is a good option; however, at Connect Zone, we are here to assist you.

Some free zones, such as Sharjah Media City (Shams), is offering general trading licenses for approximately 9,200 including extra fees. Further, Shams has the cheapest Sharjah trade license cost in the city. This is an affordable option but it comes with some additional costs.

On the other hand, you do not need to provide upfront shared capital or take on office space. That is to say, all you need is an internet connection, a laptop, and knowledge about the market you are working in.

For example, there are some other benefits to setting up a company in a Sharjah free zone such as 0% personal and corporate tax; free zone businesses also benefit from full exemption from customs tax.

Apart from the Sharjah trade license cost and renewal, another benefit of UAE free zones is that businesses have the freedom to repatriate all invested capital and profits. In addition, there are no currency restrictions as well as foreign exchange controls.  

Further, the cost of a general trading license ranges approximately from AED 28,000 to 42,000. However, there are other factors that influence the cost of the trade license such as visa quota, business activity, and license validity which varies from investor to investor.

Some Mainland trade licenses from the DED provide you to have local trading directly with your clients; however, a Sharjah Trade License allows you to trade directly with the international and B2B markets.

You can complete the trade name registration in Sharjah by filling up the application with the Department of Economic Development. Similarly, you must submit the documentation along with the trade name reservation and application. You must also pay the right fees.

On the other hand, you can register your trade name online in the UAE. In addition, if you want us to take care of this with the Economic Department; we can easily obtain it on your behalf, making the process of a company formation in Sharjah straightforward.

A Sharjah trade license is required for every registered company in the UAE. You can obtain it via email or look it up on the website of the DED. In the same vein, a trade license is not a confidential document; it must be posted publicly at any store or office space.

Keep in mind that most questionable businesses will provide you with the wrong registration number. However, its verification process is simple and will prevent you from falling into an unprofitable and difficult business arrangement.

When you present the agreement to the DED, the firm has the right to leverage the trading name for another company that obtained it.

Obtaining the Sharjah trade license is a hassle-free process for us. Note that your trade name is valid for six months; therefore, if your trade name registration expires, you must re-reserve it and make all the payments again. If the trade name proprietor has not issued the trade license before the reserve period, the name is withdrawn.  

Then, if your trade name is similar to an already existing; the Department of Economic Development can amend or cancel it.

4.1. Trade name registration

The estimated cost for a company formation in Sharjah tends to differ; however, the trade name registration ranges from AED 250 to 2500. This process can take up to 1 working day. Likewise, at Connect Zone, we can assist you with any processes you may require help with, as well as work on the Sharjah trade license renewal on your behalf.

You will also need AED 100 for trademark approval, AED 100 for the smart card, and AED 50 to 2300 when it comes to the trade name. However, if you already have a registered trade name or trademark, you can skip this step; making the process quicker.

Nonetheless, if you are a new investor or entrepreneur, you would need to register through the online portal.

      4.2. Commercial lease approval

The estimated cost of the Sharjah trade license renewal varies depending on what type of business are you conducting. However, the estimated approval cost is AED 0 unless you have unpaid inspection fines; further, it will take only some hours by the Commercial Protection and Sharjah Department of Economic Development.

      4.3. Special permits

It takes only a few hours and the cost depends upon the firm you take assistance from. Therefore, we will work hard to make the Sharjah Trade License obtention procedure streamlined and cost-effective. 

      4.4. License application

The trade license application costs approximately 11% of the tenancy contract as well as AED 850 for extra administrative solutions.

      4.5. Signboard approval

This step ranges from AED 100 to 500 and it may take 1 working day. This process usually takes several days to complete. At Connect Zone, we will ensure everything goes as expected.

      4.6. Labor card application

When it comes to the labor card application, you will need AED 2000 for applying for it. In addition, it may take 2 working days for the Ministry of Labor.

In conclusion, if you follow all the steps correctly while working with us; you will have a compliant, hassle-free, and cost-effective company formation in Sharjah.

One of the ways to set up a business is through a Sharjah trade license and a Limited Liability Company (LLC). For instance, Limited Liability Companies are some of the most common business structures and it is formed by 2 to 50 shareholders; whose liability is limited to their shares or part of the capital of the organization.

Similarly, most businesses with foreign partners choose an LLC since it is an option that gives them maximum legal ownership of 49% to ex-pats for local businesses. That is to say, the Sharjah trade license allows companies to have UAE national partners in the LLC with 51% of ownership. Moreover, investors can choose the UAE sponsor as a business partner.

Let us observe the steps to form an LLC:

      5.1. Choose a trading name

Choose a unique and relatable name that follows the naming conventions of the UAE government. 

      5.2. Decide a location

Determine a suitable location for your business that goes according to your type of business. For instance, business operations can be carried out through a physical or virtual office or warehouse.

      5.3. Get a local sponsor

Make an agreement with a local partner or sponsor who will own 51% of shares in your LLC organization as the remaining is owned by you. At Connect Zone, apart from assisting you with the Sharjah trade license; we can act as your local sponsor, ensuring you stay compliant at all times and helping you from the beginning to the end of the process.

      5.4. Obtain the required documents

Collect all the documentation and submit it to the Department of Economic Development (DED) with a successfully completed application.

      5.5. Receive the license and pay the fees

Obtain the Sharjah trade license, share certificates, Memorandum of Association, tenancy agreement, labor cards, certificate of incorporation, visas, and other types of legal documents from the government bodies in charge.

Here is a list of the documents you need to submit to the DED and other authorities regarding the type of LLC you want to start:

• A copy of your local sponsor’s passport.
• Successfully completed registration application form.
• Copies of all the managers’ and shareholders’ passports of your company.
• NOC from your sponsor (if your partner or manager is a holder of a residence visa).
• Memorandum of Association (attested from a public notary).
• Initial approval from the DED and trade name registration.
• Bank reference for each shareholder.
• Tenancy contract and location plan attested by Sharjah’s municipality.

You must notarize and attest all the documents as well as the Sharjah trade license from your home country and UAE consulate if you are an expat. The notarization takes enough time and it is done after you decide to start your business in Sharjah.

The e-commerce license in the UAE is one of the most popular business license categories with a promising future. This license has emerged as a way to ease your company formation in Sharjah. However, have in mind that it is different from the Sharjah trade license.

The UAE’s superior logistical network, expanding consumer demand, and technological infrastructure are some of the reasons why online commerce is growing massively. Similarly, top-quality internet access along with the increasing use of cellphones has helped in the expansion of the online commerce business.

Online shopping for furniture, clothing, and other products is very popular nowadays. Certainly, company formation in Sharjah as a standard structure or as e-commerce is driving more and more businesses to the region. E-commerce is making life simpler for UAE citizens since it only requires a few minutes to complete.

On the other hand, many new business persons are not aware of how they can save money on the Sharjah trade license cost; At Connect Zone we work hard to ensure that you have the best tools and knowledge to guarantee the highest savings.

Companies across the UAE are choosing the UAE eCommerce license to enter the online business environment and launch their business to a new level. Likewise, due to the internet penetration and ever changing customer behavior; the online sector has massive potential for investors to create a profitable platform.  

However, you must have in mind that a Sharjah trade license is the first option to start a business in Sharjah or the UAE. Above all, online shopping has become an important part of our lives. Moreover, with the rise of companies that are capitalizing and profiting on the increasing number of online buyers; this reality is clear.

      6.1 What are the advantages of getting the e-Commerce License in Sharjah?

• No import duties with the e-commerce license.
• Viability to repatriate all income and capital.
• You obtain a resident visa for 3 years.
• Full foreign ownership in the free zones.
• Low operating costs
• 0% corporate and personal tax
• No currency restrictions.

In conclusion, the e-commerce license has become a necessity for people connected globally through the internet. In Sharjah, for many years, the online retail business has seen a progressive rise. That is why the Sharjah trade license cost goes well if you are on a budget.

It is expected that, in the following years, the online sector will add even more revenue to the economy.  Hence, if you are ready to start your company formation in Sharjah to set up your small business, e-commerce is an ideal option for you.  

According to research, there has been an ongoing demand in the UAE for e-commerce licenses. That is to say, the United Arab Emirates has the most advanced and developed e-commerce environment in the MENA region. In addition, in 2019 it reached AED 59 billion in eCommerce transactions. This also led to an increase in popularity of the Sharjah trade license and lowered its cost for investors.

There are diverse reasons for this, the rise of start-ups and tech-savvy individuals in the country has contributed to the UAE’s worldwide online business positioning. Further, the UAE government is also playing a crucial role in the transactions between consumers and businesses by developing different payment options for different government services and purchases.

At Connect Zone, we provide you with outstanding services so you can obtain the Sharjah Trade License easily.

With the e-trader license, you can sell and promote your services and product through your social media accounts such as Facebook, Instagram, Twitter, and more. Or you can also advertise them and sell them through your personal website.

In the same vein, with this home business license in Sharjah, individuals and single-owned companies can legally work and reach their target audience in conferences and exhibitions. However, you must have in mind that this license is different from the Sharjah Trade license renewal is a different process.

In addition, it will also protect your intellectual property and your trade name. That is to say, the DED also has workshops and training camps for e-trader license holders. Above all, the e-trader license is strictly and only for single-owner home-based businesses in Sharjah or freelancers. Individuals with this type of visa cannot issue visas or open a physical shop.

Note that there are certain things you must consider when it comes to the e-trader license:

• GCC and UAE nationals holders of this type of license can conduct professional activities such as promoting professional services and conducting commercial activities such as selling physical goods and products on their social media accounts.
• The scope for this type of license depends on nationality. However, non-GCC ex-pacts are able to sell their services through social media but not physical goods. For instance, this includes repair, event management, maintenance, photography services, and others.
• Foods are most often not allowed under the e-trader license. However, it is better to check since licenses are issued on a case-by-case basis.

As we mentioned, the e-trader license is for home entrepreneurs and investors conducting business over social media. In addition, it will make it simpler and easier for single-owned companies and individuals to sell their products and services on social media.

Therefore, it will also improve customers’ confidence while there are shopping online. Further, the e-trade license announcement by the DED comes as part of the efforts to suppress fake products and counterfeits being sold on social media platforms like Instagram. That is to say, it aims to regulate the sale of services and products conducted online in Sharjah.

If you are promoting or selling products through social media, you will need an e-trader license in Sharjah which has a different fee than the Sharjah trade license. This home business license is ideal for stay-at-home mothers promoting services such as photography or handcrafted products.

• Home entrepreneurs who do not require or have a physical office space can apply for this type of license in the UAE; it does not mandate registering with Ejari.
• It is ideal for a home-based business managed by a single owner which does not require a local partner and freelancers.
• GCC and UAE nationals, as well as ex-pats of other nationalities can apply for the license in Sharjah; however, this comes with the condition that the individual is over the age of 21 years and is currently living in Sharjah.

On the other hand, e-businesses mean making money online either by selling goods or your services.  

It does not matter if you are a multinational corporation or a freelancer; you must have an online presence and with us, the e-commerce setup, Sharjah trade license issuance, and Sharjah trade license renewal is easier than ever.

A Sharjah trade license is the most important requirement for officially conducting your business in this emirate. In addition, all businesses must obtain a trade license to start conducting business in the city. However, this license is valid for one year, after that, you must carry out a renewal.

When it comes to Sharjah trade license renewal, there is a lot of documentation involved. This process can become overwhelming and grueling if you are not familiar with it. Delaying in the trade license renewal imposes a penalty or a ban on the trade license itself; resulting in freezing all commercial activities.  

The local government has implemented policies to ease the Sharjah trade license renewal as well as the company formation process, but occasionally, managing these procedures in a timely city can prove clumsy for businesspersons involved. If you have any inquiries regarding getting or renewing the trade license or any incorporation area; you can talk to us any time you want.

      9.1. Apply for license renewal

The applications for the Sharjah trade license renewal take place at any of the Departments of the Sharjah Economic Development Departments. The documents required for this application are the following:

• The license itself.
• Copy of your partners’ ID and passport.
• Certified contract lease copy.
• Approvals from government entities depending on your commercial activity.

      9.2. Reviewing the transactions

The specific service channel where the Sharjah Trade License renewal form is submitted performs the required audits regarding your business. After that, it issues the payment voucher.

      9.3. Pay fees

After you have received the voucher, you can pay the due fees. As a result, you will receive your new trade license from the channel involved.

At Connect Zone, we can complete these steps in a matter of days. Above all, you must remember that failing to comply with the Sharjah trade  license renewal will lead to costly fines and penalties.