All you need to know about the Sharjah trade licence
The Government of Sharjah has taken numerous steps to encourage investment and promote economic diversification given the emirate’s status as the regional industrial hub. Both local and international businesses are facilitated in this regard. However, to maintain excellent performance standards across the sector, all companies must acquire Sharjah trade licences.
ALL ABOUT SHARJAH TRADE LICENCES
Sharjah trade licences help the government keep track of businesses operating in the city and to protect consumers’ rights. Sharjah Economic Development Department (SEDD) looks after matters pertaining to licence issuance, renewal, etc.
As a business owner, a trade licence is the first formal step towards starting a business in Sharjah. Running a business without a licence is not permitted. Similarly, when required, the licence has to be renewed in order to continue business operations.
If you want to operate a company in the emirate, here’s all that you need to know about the Sharjah trade licence:
FAQS
WHAT ARE THE DIFFERENT TYPES OF SHARJAH TRADE LICENCES?
There are three main types of Sharjah trade licences:
- Commercial licences for all trading activities.
- Professional licences for artisans, services and craftsmen.
- Industrial licences for manufacturing or industrial activity.
In some cases the authorities issue special licences to particular businesses, these licences include the Entrepreneurial Business Licence and the Business Operation Permit.
WHAT REQUIREMENTS DO BUSINESSES HAVE TO FULFILL TO GET A SHARJAH TRADE LICENCE?
Before a business can start its operations, it must meet the following criteria regarding Sharjah trade licence issuance:
- Identify and assign a business category, i.e., industrial, commercial or professional.
- Identify and assign a maximum of ’10 per licence’ business activities.
- Decide on a trading name for the business.
- Submit the application to SEDD for initial approval.
- After approval is granted, register a trade name (if it hasn’t been registered earlier).
- Lease a place to run your business and seek approval from the Sharjah Municipality.
- Prepare the required documents, including a memorandum of association and approval from all relevant governmental authorities.
- Make a final submission to the Department to obtain a licence to start the business.
- Pay the fee.
Amidst the licence process, you can also try and trademark registration UAE. Many companies who are successful in Sharjah, try to expand in Dubai and other emirates as well. In such cases, you can consider the different business licences in Dubai, including the E-trader licence in Dubai. In the capital and looking to strike out on your own? Here’s our guide to the freelance licence in Abu Dhabi.
HOW MUCH IS THE SHARJAH TRADE LICENCE FEE?
The Sharjah trade licence fee depends on the company ownership model, type of licence, rental contract value and other factors. To get an estimate of the fee, you can visit the Sharjah Economic Development Department’s official website.
Another factor that should be considered is registering the business for VAT in the UAE.
WHAT PROCEDURES AND DOCUMENTATION SHOULD BE FOLLOWED AND SUBMITTED TO OPEN A COMPANY IN SHARJAH?
The documentation and relevant procedures required depend on the type of business you want to operate.
LIMITED LIABILITY COMPANY (LLC)
The process that needs to be followed to procure a licence for a Limited Liability Company is as follows:
- The applicant submits the documents after completing obligations like selecting trade names, inspection and other legal transactions.
- A SEDD employee reviews the application. It can then either be endorsed, or the applicant could be asked to make amendments in the existing application or add things as per requirement.
- Make payment for auditing and permission.
- Finally, issuance of licence as well as registration certificates.
Whereas the list of required documents includes the following:
- Trade licence form.
- Brand certificate.
- Single copies of Passport and National ID.
- Certified no-objection letter from the applicant along with a photocopy of residence visa, passport or identity card.
- Official technical assessment report.
- Official approval as per the requirement of specific business.
- A Notary Public certified partnership contract.
- Official approvals, if any.
- Approval from the Ministry of Economy.
- Approval related to legal affairs.
- Lease contract certified.
- Photocopy of property certificate or map image.
PARTNERSHIP COMPANY
Here’s the process one needs to follow when opening a Partnership Company:
- The candidate submits the application after completing obligations like selecting trade names, inspection and other legal transactions.
- An employee reviews the application. It can then either be endorsed, or the applicant could be asked to make amendments in the existing application or add things as per requirement.
- Make payment for auditing and permission.
- Finally, issuance of a licence as well as registration certificates.
Documents that must be submitted with the trade licence application include:
- Trade licence form.
- Brand certificate.
- Single copies of passport, civil register applicant, National ID, visa or resident ID card of the expat.
- Official technical assessment report.
- Official approval as per the requirement of specific business.
- A Notary Public certified partnership contract.
- Official approvals, if any.
- Approval from the Ministry of Economy.
- Approval related to legal affairs.
- Lease contract certified.
- Photocopy of property certificate or map image.
LOCAL SERVICES AGENT LICENCE OR BUSINESS PARTNERSHIP LICENCE
The process of opening a Local Services Agent Licence or Business Partnership Licence is as follows:
- Presence of licence parties for licence approval at the trade names section.
- Signature of licence parties (or legal representatives) on the business partnership contract or local service agent agreement.
- The investor gets in touch with licences section after completion of preliminary requirements like trade names, inspection and other legal affairs.
- The application is reviewed by an employee. It can either be then endorsed or the applicant could be asked to make amendments in the existing application or add things as per requirement.
- Make payment for auditing and permission.
- Finally, issuance of licence as well as registration certificates.
The list of required documents includes:
- Licence form.
- Certificate of Commercial Name.
- Civil register abstract (family book), photocopy of passport and ID of UAE National.
- Certified no-objection letter from the applicant along with a photocopy of residence visa, passport or identity card.
- Official technical assessment report.
- Governmental approvals as per the type of business activity (if applicable).
- Legal affairs section issued local service agent agreement.
- Certified lease contract.
- Billboard design.
- Photocopy of property certificate or map image.
FOREIGN COMPANY BRANCH
To open a foreign company branch, you have to follow these steps:
- Apply for licence via the Department of Economic Development.
- Approval from Company’s BOD (Board of Directors) or meeting minutes to open a new branch (including legal translation and statement issued by a company representative).
- Submit authenticated documents from the United Arab Emirates Ministry of Foreign Affairs and UAE Embassy in a foreign country with translation if required.
- Power of attorney issued in the name of the foreign company’s representative to go ahead with the project.
- Submit the complete application along with required paperwork to head of trade name section for branch registration.
- Verify with the Trade Name Section.
- Contact the Ministry of Economy for approval to open the branch.
Furthermore, the following documents are required to seek a Sharjah Trade Licence to open a foreign company branch in the emirate.
- Licence form.
- Certified registration certificate and commercial licence from the parent company.
- Translated and certified parent company’s Memorandum of Association (MOA) along with its amendments (if applicable).
- A certified photocopy of parent company’s Statute along with legal translation (Only for public & private shareholder companies).
- Resolution from parent Company’s board of directors or minutes of the meeting authorizing opening of the branch.
- Certified Photocopy of agency signed contract between the local agent and foreign company.
LOCAL COMPANY BRANCH
To apply for a licence for opening a local company branch, you have to follow these steps:
- Complete the application form designed by the Department of Economic Development.
- Complete the said requirements as per the form and visit the head of trade name section for approval.
- Take update from the trade name section for name adoption for the business.
To complete the process, you have to submit the following documents:
- Certified copy of registration certificate and commercial licence of the parent company.
- An authenticated photocopy of the parent company’s Memorandum of Association and any amendments.
- Parent company’s Statute authenticated photocopy (only for private and public shareholder companies).
- Company’s board of director’s minutes of the meetings giving their consent for opening the branch.
GCC COMPANY BRANCH
To apply for a licence for opening of GCC company branch, you have to follow these steps:
- Complete the application form designed by the Department of Economic Development.
- Company’s board of director’s minutes of the meetings giving their consent for opening the branch.
- Company’s board of director’s providing the power of authorisation or attorney to the selected representative of the company.
Documents that must be submitted with the application are as follows:
- Certified copy of registration certificate and commercial licence of the parent company.
- An authenticated photocopy of the parent company’s Memorandum of Association and any amendments.
- Parent company’s Statute authenticated photocopy (only for private and public shareholder companies).
- Company’s board of director’s minutes of the meetings giving their consent for opening the branch.
- All the documents required for submission must be certified from the Ministry of Foreign Affairs in the UAE and the UAE Embassy in the Gulf State.
PUBLIC AND PRIVATE SHAREHOLDING COMPANIES
To acquire a licence to operate public and private shareholding companies, you have to follow these steps:
- Submit a completed application to the Ministry of Economy and the Department of Economic Development. This application has to meet the conditions stated in the Commercial Registry Act as well as its regulations. This happens within the 15-day period from the Ministry’s decision to announce the establishment of the said company.
- Submit an application regarding the establishment of the company to the Department of Economic Development.
- A committee is formed by the Ministry of Economy. It includes a representative from the ministry as well as the Department of Economic Development. This committee recommends whether the company should be formed or not. The recommendation is made to the head of the department (HOD).
- The head of the department (HOD) finalises the decision regarding the establishment of the company.
- The decision along with the required document is forwarded to the Ministry of Economy, which then makes the final decision.
- In case the decision is to establish the company, it is mandatory that the trading name of the public shareholding company be accompanied by the term “public company.” Similarly, for a private shareholding company, the trade name must be accompanied by the term “private joint-stock company.”
- The company can only start its operations after registration in the trade registry by the relevant authority. Much like a company cannot operate without a valid Sharjah trade licence.
The following documents are required:
- Two certified photocopies of the company’s Memorandum of Association and Articles.
- Two photocopies of the board member’s nationality along with their place of birth.
- Feasibility study.
- Photocopy of certified statute.
HOW DO I REQUEST AN INSPECTION FOR MY BUSINESS?
Inspection requests are made via the Sharjah Economic Development Department website.
WHAT ARE THE TRADE LICENCE IN SHARJAH RENEWAL REQUIREMENTS?
Trade licences in Sharjah are issued for a certain time period and businesses have to apply for renewal when validity is close to expiring. The following documents are required for Sharjah trade licence renewal:
- Licence renewal form.
- Passport photocopies or UAE National ID of the ownership.
- Family book photocopies of UAE citizens.
- Attested lease agreement.
- NOC letter from the competent authority.
- A Notary Public authenticated photocopy of signature verification.
In case the licence has expired for a period of over three months, you would have to get in touch with the Inspection Division in the Department of Economic Development. Moreover, if the licence is for a foreign company branch, your application is submitted to the Ministry of Economy rather than the Sharjah Economic Development Department.
WHAT ARE THE PENALITIES IF ONE FAILS TO RENEW SHARJAH TRADE LICENCE?
Failing to renew the Sharjah trade licence can lead to financial penalties and eventually blacklisting of a company. This would mean that all business activities would come to a close, visas issues by the business would be cancelled, and the owner might have to leave the UAE.
That wraps up our blog on how to get a Sharjah trade licence. For further clarity, you can visit the Sharjah Economic Development Department website. Most licence services are listed on their website. The Sharjah government has improved their e-services to ensure that business owners don’t have to fret too much about the process. Once all the conditions and the documents are ready, things generally go through smoothly.
Businesses in Sharjah might not be operating at the scale of the larger emirates just yet, but impressive progress is being made. The introduction of new companies in the emirate and the events held at the Sharjah Expo Centre are a testament to the progress that has been made in the emirate. That being the case, it provides an excellent opportunity for businessmen in the region. If you’re an expat and considering a long term stay in the UAE for business, it’s worth familiarising yourself with the UAE’s Business Gold Visa
Visit MyBayut to learn about business operations in the Sharjah.
