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Sharjah Company Formation

Mainland licences from the Sharjah Economic Development Department or a Sharjah free zone: PROXPAT prepares the trade name, licence, premises approval and visas for your Sharjah company.

Page last updated: . Requirements, government fees and processing times are set by the relevant UAE authority and can change.

PROXPAT is an independent private consultancy and is not affiliated with or endorsed by any UAE government authority. All approvals, government fees and processing times are determined by the relevant UAE authority and are subject to change. For official requirements and fees, see the Sharjah Economic Development Department.

Company formation in Sharjah with PROXPAT

Company Formation in Sharjah

Sharjah sits directly beside Dubai and is often chosen by businesses that want a UAE company close to Dubai's market with a different cost and premises profile. Licensing on the Sharjah mainland is handled by the Sharjah Economic Development Department (SEDD); each Sharjah free zone licenses its own companies.

According to SEDD, foreigners have been able to own 100% of most businesses in Sharjah without a local partner since 2021, although some activities remain reserved for UAE citizens. Instant licences can be issued within a day for activities that need no external approval.

PROXPAT compares Sharjah against Dubai mainland and free zone options for your activity, then handles the application, premises evaluation and visas. See our business setup services for the full UAE picture.

Sharjah Mainland Licence Types

SEDD issues five main licence categories. The category follows from the activity, so the activity decision comes first.

LicenceCoversWho it suits
CommercialBuying, selling, importing and exportingTraders, distributors, retail
ProfessionalSpecialised services and consultingConsultancies, technical and professional services
IndustrialManufacturing and productionFactories, workshops, production units
E-CommerceOnline salesBusinesses selling through websites and apps. See our e-commerce licence guide
EitimadHome-based business run by citizensUAE citizens only

Legal Forms Available in Sharjah

Legal formKey point
Limited Liability Company (LLC)The most common form for foreign investors. SEDD's guidance describes LLCs with 2 to 50 partners; single-owner structures are also available under UAE company law, and we confirm which applies to your activity
Sole ProprietorshipAvailable to UAE and GCC nationals
Professional licence with a service agentA foreign professional working with a UAE citizen service agent, for eligible professional activities
General PartnershipPartners share unlimited liability
Limited PartnershipCombines general partners with limited-liability partners

Trade Name Fees

Every Sharjah licence starts with a trade name. SEDD prices the name by language, which is worth knowing before you settle on a brand.

Trade name typeSEDD fee
Arabic nameAED 250
Translated nameAED 1,250
Foreign-only nameAED 2,250

Availability can be checked through SEDD's online trade name service. We check the name and the wording against naming rules before paying, because a rejected name delays everything that follows.

How Long a Sharjah Licence Takes

StageTypical timeline per SEDD
Instant licence (no external approvals)Within one day
Regular licence5 to 7 business days
Technical evaluation of premises3 to 5 business days, AED 150 fee

Activities that need approval from another authority, such as health, education or civil defence-sensitive activities, run on that authority's timeline. See government approvals.

What the First Year Costs

SEDD indicates first-year fees of roughly AED 15,000 to AED 30,000, covering licensing, registration, printing and technical evaluation. That range does not include rent, visas, medical tests, Emirates ID or insurance, which usually make up a large share of the real first-year budget.

ItemAmount per SEDD
Renewal windowUp to 3 months before expiry
Late renewal penaltyFrom AED 200 per month
Main signboard permitAED 200

Please note: SEDD fees and rules are revised periodically. We confirm current figures for your activity before quoting.

Sharjah Free Zones

Sharjah's free zones license companies separately from SEDD and suit different kinds of business. The main options include:

Free zoneKnown forTypically suits
Sharjah Airport International Free Zone (SAIF Zone)Established in 1995 at Sharjah International AirportImport, re-export, logistics and light industry
Hamriyah Free ZoneEstablished in 1995, with port and industrial infrastructureIndustrial, energy, maritime and large-footprint operations
Sharjah Publishing City Free Zone (SPC)A free zone originally built around publishingMedia, publishing and a wide range of service activities
Sharjah Media City (Shams)Media and creative licensing; listed by the UAE Government among authorities issuing online business licencesCreative, media and digital businesses

Like all free zone companies, these entities operate within their zone and internationally. Selling directly to mainland customers usually needs a distributor or additional approvals.

Sharjah or Dubai? How to Decide

QuestionPoints towards SharjahPoints towards Dubai
Where will you operate from?Premises, staff or a warehouse located in SharjahAn office or clients concentrated in Dubai
What does the business need physically?Industrial or larger premisesPrime commercial office space
How important is the address to clients?Less importantA Dubai address is part of the pitch
Which authority approves your activity?SEDD or a Sharjah free zoneDET or a Dubai free zone such as DMCC or Meydan

A Sharjah mainland licence authorises activity from Sharjah. Opening premises or a branch in Dubai requires registration with Dubai's licensing authority, so if both emirates matter, plan the structure at the start.

Documents Required

Trade name certificate

Passport and Emirates ID copies of partners

Personal photographs

Approval from the General Directorate of Residency and Foreigners Affairs where required for foreign investors

No-objection letter for investors employed by a government entity in Sharjah

Notarised lease contract

Technical evaluation approval of the premises

Memorandum of Association for companies

Step-by-Step Sharjah Company Setup

Step 1: Confirm activity and licence type

Step 2: Choose the legal form

Step 3: Reserve the trade name

Step 4: Obtain initial and external approvals

Step 5: Sign and notarise the lease

Step 6: Pass the premises technical evaluation

Step 7: Sign the Memorandum of Association and pay fees

Step 8: Receive the licence, then establishment card and visas

After the Licence: What a Sharjah Company Must Keep Up

  • Renew the licence every year, starting up to three months before expiry to avoid monthly penalties.
  • Keep a valid lease contract, since the licence depends on registered premises.
  • Operate only within the licensed activities, and amend the licence before adding new ones.
  • Update SEDD when partners, managers, address or other licence details change.
  • Obtain an establishment card and keep it valid to sponsor employees. See PRO services, PRO services in Sharjah for SEDD renewal fees and timing, and work permits.

Frequently Asked Questions

Yes, for most activities. SEDD states that since 2021 foreigners have been able to own 100% of most businesses without a local partner, although some activities remain reserved for UAE citizens.

SEDD indicates that instant licences for activities without external approvals can be issued within one day, and regular licences take 5 to 7 business days.

SEDD indicates first-year fees of roughly AED 15,000 to AED 30,000 covering licensing, registration, printing and technical evaluation. Rent, visas and insurance are extra.

AED 250 for an Arabic name, AED 1,250 for a translated name and AED 2,250 for a foreign-only name, according to SEDD.

Renewal is possible up to three months before expiry. Late renewal penalties start from AED 200 per month.

No. The Eitimad home-business licence is for UAE citizens. Expatriates can use a commercial, professional or e-commerce licence instead.

Serving Dubai clients is common. Opening premises or a branch in Dubai requires registration with Dubai's licensing authority, so we plan that at the outset if you need a physical presence in both emirates.
After the Licence

The licence is the start of the government work, not the end of it

Once the trade licence is issued, the sequence that actually lets you operate begins: the establishment card, the MOHRE and immigration files, your employee quota, then employee visas and work permits. After that it repeats every year — renewals, cancellations when people leave, and licence renewal and amendments.

Companies that would rather not build that function in-house put it on a monthly PRO retainer from AED 700, or use it per transaction. Government fees stay separate and itemised either way.

The first six months after incorporation

  • Establishment card issued through immigration
  • MOHRE file opened and e-signature completed
  • Employee quota checked before hiring
  • Offer letters, work permits and entry permits
  • Medical, Emirates ID and visa stamping
  • Corporate tax and VAT registration where they apply
See corporate PRO services

Set Up Your Company in Sharjah

Trade name, SEDD or free zone licence, premises evaluation, establishment card and visas: PROXPAT manages the full Sharjah setup.