A general trading license in Sharjah is one of the most popular licenses for entrepreneurs who want flexibility in dealing with multiple products under one trade license. Issued by the Sharjah Economic Development Department (SEDD), this license allows businesses to import, export, store, and sell a wide variety of goods both within Sharjah and across the UAE.
This article explains the step-by-step process of obtaining a general trading license in Sharjah, the costs involved, legal structures, benefits, and tips for saving money. We’ll also compare mainland and free zone options and answer frequently asked questions.
Why Choose a General Trading License in Sharjah?
Sharjah provides a balanced environment for new and established entrepreneurs. Lower operational expenses, a strategic location, and access to both local and international markets make it attractive. Businesses benefit from supportive regulations, faster approval times, and a growing commercial landscape that encourages long-term stability and expansion.
Growing Business Opportunities in Sharjah
Sharjah has become a rising hub for trade, logistics, and manufacturing. Its central location in the UAE, lower costs compared to Dubai, and investor-friendly environment make it highly attractive.
Flexibility of Activities
With a general trading license, you can combine multiple product categories under one license instead of applying for separate ones. This is perfect for businesses handling diverse goods.
Affordable Licensing and Setup Costs
Compared to Dubai, Sharjah offers competitive pricing on office spaces, license fees, and renewals. This makes it ideal for startups and small-to-medium businesses.
Eligibility and Legal Structure
Applicants must meet requirements set by the authorities, including legal structure selection. Options usually involve forming a limited liability company, a sole establishment, or a branch. Each comes with distinct ownership rules and documentation needs. Choosing the right structure is essential to match business goals and compliance obligations.
Who Can Apply?
Both UAE nationals and foreign investors can apply for a general trading license in Sharjah. Expatriates may require a local partner holding 51% ownership for mainland setups.
Legal Structures Available
- LLC (Limited Liability Company): Most popular for trading.
- Sole Establishment: Best for single-owner setups but requires a UAE national as service agent.
- Branch of Foreign Company: Ideal for expanding international businesses.
Approved Business Activities
The license allows import, export, wholesale, retail, and warehousing. Restricted items (like food, medicine, or chemicals) need external approvals from specific authorities.
Step-by-Step Process to Get a General Trading License in Sharjah
The application involves several stages: securing initial approvals, reserving a name, preparing documents, leasing premises, and submitting the application. Approvals from other authorities may be required depending on activity type. Once fees are paid, the license is issued, followed by post-setup tasks like banking and tax registration.
Step 1: Select Your Activities and Legal Form
Choose the product categories you plan to trade in and decide on the company structure (LLC, sole establishment, or branch).
Step 2: Reserve Trade Name
Submit your preferred company name to SEDD. Reservation usually costs around AED 500.
Step 3: Secure Office Space and Ejari Registration
Leasing commercial premises is mandatory. Costs vary by location, starting from AED 14,000 annually. Ejari registration is required to legalize tenancy.
Step 4: Submit Documents
Prepare passport copies, tenancy contract, business plan, approvals for restricted goods, and NOC if on an existing visa.
Step 5: Obtain Approvals
External approvals may be required from authorities like Sharjah Municipality or Ministry of Health for specific goods.
Step 6: Pay Fees and Collect License
Final step is to pay government fees (AED 10,000–15,000) and receive your general trading license in Sharjah.
Cost Breakdown of General Trading License in Sharjah
Expenses include government fees, office rent, and additional administrative charges. The total investment varies depending on location, office size, and activity type. Some costs are fixed while others depend on business choices. Careful financial planning ensures smoother operations and helps avoid unexpected charges during the application process.
Government Fees
- License issuance: AED 10,000–15,000
- Trade name reservation: AED 500
- Initial approvals: AED 345–1,000
Premises and Office Rent
- Commercial rent: AED 14,000–25,000 annually
- Ejari registration: 1% of rental value
Additional Costs
- Computer card: AED 200
- Visa and Emirates ID: AED 3,000–6,000 per person
- Insurance & admin: AED 2,000–4,000
Average Investment
Expect a total of AED 25,000–40,000 for mainland, or AED 8,000–15,000 in Sharjah Free Zones.
Mainland vs. Free Zone General Trading License in Sharjah
Both jurisdictions offer unique advantages. Mainland setups allow wider access across the country, while free zones offer easier ownership structures and reduced fees. The choice depends on business needs, customer base, and long-term goals. Evaluating both options carefully helps in selecting the most sustainable path forward.
Sharjah Mainland
- Full access to UAE market
- Requires local partner (LLC)
- Higher cost but broader opportunities
Sharjah Free Zones (SHAMS, SAIF, Hamriyah)
- 100% foreign ownership
- Lower license costs starting from AED 8,500
- Restricted to free zone jurisdiction unless using distributors
Which to Choose?
Mainland is best for businesses targeting local UAE retail or government contracts. Free zones are ideal for exporters and cost-conscious startups.
Tips to Reduce Business Setup Costs in Sharjah
Entrepreneurs can reduce expenses by selecting smaller offices, using shared facilities, or beginning with fewer staff. Exploring free zone packages, managing approvals efficiently, and seeking expert advice can also lower costs. Smart planning ensures resources are allocated effectively, leaving room for growth and future opportunities.
Opt for Free Zone Packages
Choose Free Zones like SHAMS or Hamriyah to save on licensing and office space.
Use Flexi-Desk Options
Shared office spaces or co-working desks can reduce annual rent significantly.
Apply for Fewer Visas Initially
Start with one visa and expand later to reduce upfront costs.
Work with Business Setup Consultants
Experts help you avoid mistakes, minimize fees, and handle complex approvals smoothly.
Conclusion
A general trading license in Sharjah offers flexibility, affordability, and access to one of the fastest-growing markets in the UAE. Whether through mainland or free zones, this license is a perfect gateway for entrepreneurs who want to manage multiple trading activities under one umbrella. For hassle-free setup, consult trusted business setup consultants in Sharjah to guide you through the process.
FAQs
How to get a general trading license in Sharjah?
You must apply through SEDD, reserve a trade name, secure an office lease, submit documents, get external approvals if required, and pay government fees. The process usually takes 5–7 working days.
Which is the cheapest general trading license in UAE?
Free Zones like SHAMS and Hamriyah offer the cheapest general trading license UAE, with packages starting from AED 8,500.
How much does it cost to get a license in Sharjah?
The cost varies between AED 25,000–40,000 for mainland setups and AED 8,000–15,000 in Sharjah Free Zones, depending on office space and activities.
What activities are allowed under a general trading license?
It covers import, export, wholesale, retail, and storage of goods. Some items like food, medical products, or chemicals require external approvals.
How long does it take to obtain the license?
If all documents are in place, a general trading license in Sharjah can be issued within 5–7 business days.
Can foreigners apply for a Sharjah general trading license?
Yes, foreign investors can apply. In mainland, they may need a UAE national partner. In Free Zones, they can enjoy 100% ownership.
