Steps to establish a company in the Sharjah Free Zone: It is considered one of the goals that investors seek to start their business with, thanks to the facilities provided by the UAE, especially since the Sharjah Free Zone is characterized by a strategic location, strong infrastructure, and easy procedures necessary for investment and establishing a company in the Sharjah Free Zone. If you are thinking about establishing a company in the Sharjah Free Zone, it is a great opportunity, but you must first learn through this article some important points, such as the advantages of establishing a company in the Sharjah Free Zone and the necessary documents and licenses.
Advantages of establishing a company in the Sharjah Free Zone
Establishing a company in the Sharjah Free Zone is a golden opportunity and provides many advantages to investors such as:
- Complete independence: Sharjah free zones provide a business environment with complete independence for companies, allowing investors to control their businesses without much external interference.
- Logistics facilities: These areas are characterized by advanced infrastructure and excellent logistical facilities, which facilitate the import, export and distribution of goods.
- Tax breaks: Sharjah Free Zones offer significant tax benefits, including no personal or corporate income taxes for a certain period, making them attractive to international investors.
- Flexible policies: These regions are characterized by flexible investment policies and simplified commercial laws, which facilitate the procedures for establishing, operating and expanding companies.
- Access to regional markets: Thanks to its strategic location, Sharjah Free Zones provide easy access to regional and global markets, enhancing growth and expansion opportunities for companies.
- Fast Licensing: Sharjah Free Zones facilitate the procedures for obtaining the necessary licenses and permits to start a business, which speeds up the process of launching new companies.
- Economic Diversity: Sharjah Free Zones offer investment opportunities in various economic sectors, including manufacturing, logistics, and technology, allowing investors to choose the activity that suits their goals and needs.
In general, Sharjah Free Zones are an ideal environment for establishing and operating companies, as they combine advanced infrastructure, flexible legislation, and tax facilities, making it a preferred destination for investors from all over the world.
Documents and papers to establish a company in the free zone
To set up a company in a Sharjah free zone, the basic documents you need usually include the following:
- Application Form: You must fill out a company incorporation application form, which specifies the type of company and other basic details.
- Copy of passport: for shareholders and main directors of the company.
- Business plan: A detailed business plan must be prepared that explains the company’s goals and future plans.
- Articles of Association: The company’s Articles of Association must be prepared and signed by all shareholders.
- Bank Deposit Certificate: The required capital for the company must be deposited in a specified bank account.
- Necessary licenses: You may need licenses specific to the company’s activity, such as a manufacturing or general trade license, depending on the type of activity.
- Lease Agreement: If the company is headquartered within the free zone, you will have a lease for the office or industrial space.
- Board of Directors decision: If there is a need for it, such as appointing directors or delegating administrative matters.
- Government Permits: The company may require special permits or approvals from local or state authorities.
- Qualifications: Confirm the necessary qualifications of managers or key employees as needed.
The exact requirements vary slightly depending on the type of company and the free zone chosen, so it is always important to check the exact requirements of the company to be incorporated before starting the incorporation process.
Necessary procedures for establishing a company in the Sharjah Free Zone
There are a set of basic procedures for establishing a company in the Dubai Free Zone for foreigners:
- Choosing the appropriate free zone: There are many free zones in Dubai such as Jebel Ali, Jumeirah Island, and even the Internet free zone. The most appropriate area for the company’s activity must be chosen.
- Obtaining free zone approval: You must submit a request to the selected free zone administration to obtain approval to establish the company. The application will be reviewed and approval will be provided based on the requirements of the free zone.
- Determine the ownership structure: In free zones, foreigners can own 100% of the company’s shares without the need for an Emirati partner. The founders/shareholders and ownership shares must also be identified.
- Obtaining a commercial license: After obtaining the free zone’s approval, you must apply for a commercial license. The license will be issued by the Department of Economic Development in the selected free zone.
- Opening a bank account: A local bank account must be opened in Dubai for the new company. The bank will request the company’s legal and financial documents.
- Company Registration: After obtaining the trade license, the company must be officially registered with the relevant authorities in the free zone.
These are the basic steps to establish a company in Dubai Free Zone for foreigners. Consultants can provide the necessary assistance in this process.
Types of commercial license in Sharjah Free Zone
The Sharjah Free Zone allows many services provided that companies practice activities registered with their own licenses only. To establish a company in the free zone, there are many types of licenses that can be obtained in the Sharjah free zones. Here is a table showing the most prominent of these licenses:
| Type of license | the description |
|---|---|
| Commercial license | It is granted to companies engaged in commercial activities such as export, import, distribution and retail. |
| Industrial license | It is awarded to companies engaged in industrial activities such as manufacturing, assembly and processing. |
| Service license | It is granted to companies operating in the field of services such as contracting, consulting, and professional activities. |
| Professional license | It is awarded to companies working in liberal professions such as engineering, medicine and law. |
| Investment license | It is awarded to companies that focus on investments and financial activities such as financing and brokerage. |
| Office license | It is granted to representative and branch offices of foreign companies. |
| Electronic license | It is awarded to companies working in the electronic and technological field. |
The foreign company must choose the appropriate license for its activity before starting the establishment procedures in the Sharjah Free Zone. If you are planning to establish a company in the Sharjah Free Zone, you can seek help from our team of business consultants and experts to facilitate all procedures and understand the rules, laws and regulations for establishing the company.
The cost of establishing a company in a free zone in Sharjah
The costs of establishing a company in the Sharjah Free Zone vary based on several factors, including the type of company, the size of capital, and the services required. Costs usually include:
- Registration fees and licenses: This includes the basic registration fees for the company and the necessary licenses for the chosen activity.
- Required Capital: The required capital must be deposited based on the type of company and the requirements of local law.
- Legal and Administrative Consulting Fees: If legal or administrative advice is needed to assist you in the incorporation process.
- Rental and practical space costs: If the company needs space or an office within the free zone.
- Advisory and brokerage services fees: If you rely on a consulting firm or broker to assist with the incorporation process.
- Work and residence permit fees: For managers or employees who may require work or residence permits.
- Financial transaction costs: such as opening a bank account and other necessary financial transactions.
You must check these costs with the relevant authority in the free zone, which vary based on the specific conditions of the zone and the type of company you wish to establish.
At the conclusion of the article about establishing a company in a free zone in Sharjah, it can be said that these areas provide an ideal investment environment for those wishing to start their businesses in the United Arab Emirates. By providing complete corporate autonomy, advanced logistical facilities, and attractive tax exemptions, Sharjah Free Zones attract investors from around the world. In addition, these regions offer flexible investment policies and simplified incorporation procedures, facilitating the start-up and operation process for new companies. In short, Sharjah Free Zones are an excellent choice for investors seeking growth and prosperity in the UAE market and beyond.
Frequently asked questions about establishing a company in the Sharjah Free Zone
What types of companies can be established in the Sharjah Free Zone?
Various types of companies can be established, such as limited liability companies, sole proprietorships, joint stock companies, limited liability companies with one share, and private companies for foreigners.
What are the basic steps to establish a company in the free zone?
The basic steps include choosing the company type, submitting the required documents, depositing the required capital, obtaining the necessary licenses, and registering the company.
What are the legal and administrative requirements for establishing a company?
Legal requirements include submitting personal documents for shareholders and directors, adhering to minimum capital requirements, and obtaining the necessary business permits.
What are the expected costs of establishing and operating a company in the free zone?
Costs vary based on the type of company and its requirements, and include registration fees, required capital, licenses, and legal and advisory services if necessary.
