A Trade License in Sharjah is essential for entrepreneurs and businesses looking to operate legally in the emirate. Sharjah, known for its strategic location, growing economy, and investor-friendly policies, offers a seamless business setup process. Whether you’re planning to start a small enterprise, an industrial company, or a commercial venture, obtaining the right trade license is a crucial first step.
This guide provides a step-by-step process for obtaining a trade license in Sharjah, covering costs, required documents, and legal requirements. By the end of this article, you’ll have a clear roadmap for launching your business successfully in Sharjah.
Why Start a Business in Sharjah?
Sharjah is one of the fastest-growing business hubs in the UAE, offering a competitive economic environment, tax incentives, and world-class infrastructure. Some key benefits include:
- Strategic Location – Close proximity to Dubai and easy access to international markets.
- Affordable Business Setup – Lower operational costs compared to Dubai and Abu Dhabi.
- Diverse Business Opportunities – Thriving industries in trade, manufacturing, logistics, and services.
- Investor-Friendly Regulations – Business-friendly policies, 100% foreign ownership in free zones, and tax benefits.
- Well-Developed Infrastructure – Modern industrial zones, free zones, and logistics hubs.
If you’re looking to expand or start a business in the UAE, Sharjah is an excellent destination for trade and investment.
Types of Trade Licenses in Sharjah
Sharjah offers different types of trade licenses based on the nature of the business activity. Here are the main categories:
Commercial License
- Required for businesses engaged in trading, general trading, and retail activities.
- Suitable for import/export companies, general trading businesses, and online stores.
Professional License
- Issued to professionals providing specialized services.
- Suitable for consultants, freelancers, IT firms, and legal services.
Industrial License
- Required for businesses involved in manufacturing, production, or industrial activities.
- Suitable for factories, assembly plants, and heavy industry operations.
Tourism License
- Required for businesses in the travel, tourism, and hospitality sector.
- Suitable for travel agencies, tour operators, and hotels.
Selecting the right Trade License in Sharjah is essential to ensure compliance with business regulations and legal requirements.
Step-by-Step Process to Get a Trade License in Sharjah
To obtain a Trade License in Sharjah, businesses must follow a structured process to ensure compliance with the Sharjah Economic Development Department (SEDD). The process includes selecting a business activity, choosing a legal structure, reserving a trade name, obtaining initial approvals, leasing office space, submitting required documents, paying the license fee, and receiving the final trade license. Depending on the business type, additional approvals from relevant authorities may be necessary. A properly registered Trade License in Sharjah allows businesses to operate legally while benefiting from the emirate’s investor-friendly policies and tax advantages.
Step 1: Choose a Business Activity
Before applying for a Trade License in Sharjah, determine the nature of your business. The Sharjah Economic Development Department (SEDD) provides a list of permitted business activities.
Step 2: Select a Business Location
Businesses in Sharjah can be set up in:
- Mainland – Operate within Sharjah and across the UAE.
- Free Zones – Benefit from 100% foreign ownership, tax exemptions, and customs advantages.
Step 3: Choose a Business Structure
- Sole Proprietorship – Owned by a single individual.
- Limited Liability Company (LLC) – A separate legal entity owned by multiple shareholders.
- Branch Office – A subsidiary of a foreign or UAE-based company.
Step 4: Reserve a Trade Name
Select and register a unique trade name that complies with SEDD regulations. The name should not include any offensive or religious terms.
Step 5: Obtain Initial Approval from SEDD
Submit the required documents for initial approval, including:
- Business plan.
- Passport copies of shareholders.
- No Objection Certificate (NOC) if applicable.
Step 6: Lease an Office Space
A valid office address is mandatory for obtaining a Trade License in Sharjah. Businesses must lease commercial space based on their operational needs.
Step 7: Submit Required Documents
Prepare and submit the following:
- Completed trade license application form.
- Memorandum of Association (for LLCs).
- Tenancy contract (Ejari) for office space.
- Shareholder agreements (if applicable).
- Payment receipts for registration fees.
Step 8: Pay the Trade License Fees
The cost of a Trade License in Sharjah depends on the business type and jurisdiction.
Step 9: Receive Your Trade License
Once approved, you will receive your official Trade License in Sharjah, allowing you to start operations.
Cost of a Trade License in Sharjah
The cost of obtaining a Trade License in Sharjah varies based on business type, location, and industry. Here is an estimated breakdown:
| Expense | Estimated Cost (AED) |
| Trade License Fees | 8,000 – 15,000 |
| Office Rent | 10,000 – 50,000 |
| Visa Fees | 3,000 – 5,000 per visa |
| Local Sponsor Fees (if required) | 5,000 – 10,000 |
| Additional Approvals (if applicable) | 1,000 – 5,000 |
Note: Costs vary depending on business type and chosen location (mainland or free zone).
Documents Required for a Trade License in Sharjah
To successfully apply for a Trade License in Sharjah, the following documents are required:
- Completed trade license application form.
- Passport copies of business owners and shareholders.
- UAE residence visa and Emirates ID (if applicable).
- NOC from the current sponsor (if applicable).
- Office tenancy contract (Ejari).
- Business plan and activity details.
- Memorandum of Association (MOA) (for LLCs).
Missing any document may cause delays in the approval process.
Renewal of a Trade License in Sharjah
A Trade License in Sharjah is valid for one year and must be renewed annually. Steps to renew include:
- Submit renewal application to SEDD.
- Provide updated tenancy contract and lease agreement.
- Pay the renewal fee before the expiration date.
- Receive your renewed trade license.
Failure to renew on time can result in penalties or business suspension.
Advantages of Setting Up a Business in Sharjah
Sharjah is one of the most business-friendly emirates in the UAE, offering numerous benefits for entrepreneurs and investors looking to establish their presence in the region. With its strategic location, cost-effective business setup, and supportive regulatory framework, Sharjah provides an ideal environment for businesses of all sizes. Obtaining a Trade License in Sharjah allows companies to tap into a growing economy with access to international markets, robust infrastructure, and investor-friendly policies.
Strategic Location and Market Access
Sharjah’s location makes it a gateway between the Middle East, Asia, and Africa, providing businesses with direct access to regional and global markets. With well-connected ports, international airports, and modern road networks, companies can efficiently manage trade and logistics operations. Businesses in manufacturing, trading, and logistics particularly benefit from Sharjah’s proximity to major shipping routes and its extensive industrial zones.
Cost-Effective Business Setup
Compared to other emirates like Dubai and Abu Dhabi, setting up a business in Sharjah is more affordable. The cost of obtaining a Trade License in Sharjah, leasing office space, and meeting operational expenses is lower, making it an attractive choice for startups and SMEs. Additionally, Sharjah’s free zones offer 100% foreign ownership, zero corporate tax, and duty-free import/export facilities, reducing financial burdens on businesses.
Wide Range of Business Activities
Sharjah offers a diverse economy, allowing businesses in various sectors, including manufacturing, trading, tourism, education, and professional services, to thrive. Investors can choose from several business activities while applying for a Trade License in Sharjah, ensuring flexibility in operations. Additionally, free zones like Sharjah Airport International Free Zone (SAIF Zone) and Hamriyah Free Zone provide specialized infrastructure for different industries.
Business-Friendly Regulations and Supportive Government Policies
The Sharjah Economic Development Department (SEDD) has streamlined the process of obtaining business licenses, making it easier for entrepreneurs to establish their companies. The government actively supports business growth through policies that encourage foreign investment, innovation, and sustainable development. Additionally, Sharjah offers simplified visa processes, making it easier for businesses to hire and retain skilled professionals.
Access to Skilled Workforce
Sharjah is home to some of the UAE’s top universities and educational institutions, providing businesses with a highly skilled and diverse workforce. Companies setting up in Sharjah benefit from an educated talent pool in fields such as engineering, technology, healthcare, and business management. The emirate’s competitive salary expectations and lower cost of living compared to Dubai make it an attractive location for employees and employers alike.
Thriving Industrial and Commercial Sectors
Sharjah is a hub for industrial and manufacturing activities, with well-established zones dedicated to industrial development. Investors applying for a Trade License in Sharjah can take advantage of the emirate’s strong supply chain networks, efficient logistics support, and government incentives for industrial businesses. The commercial sector is also thriving, with opportunities in retail, e-commerce, and professional services.
Free Zones and Mainland Business Setup Options
Entrepreneurs can choose between setting up their businesses in the Sharjah mainland or one of its specialized free zones. Free zones like SAIF Zone and Hamriyah Free Zone offer 100% foreign ownership, full repatriation of profits, and customs duty exemptions. On the other hand, mainland businesses benefit from access to the local UAE market without restrictions, making it easier to expand and secure government contracts.
High Quality of Life and Affordable Living Costs
Sharjah offers a high standard of living at a lower cost compared to Dubai and Abu Dhabi. With excellent healthcare, education, and transportation infrastructure, professionals and entrepreneurs find Sharjah an attractive place to live and work. Additionally, businesses benefit from a more affordable operational environment, reducing overhead costs and increasing profitability.
Conclusion
Obtaining a Trade License in Sharjah is a straightforward process when you follow the required steps and documentation. By choosing the right business structure, selecting a strategic location, and complying with regulations, entrepreneurs can successfully set up their businesses in Sharjah.
If you’re planning to start a business in Sharjah, consulting with a business setup expert in Dubai can simplify the process and ensure compliance with local regulations. Whether you’re launching a commercial, industrial, or professional business, Sharjah offers a thriving economic environment for growth and success.
FAQs about Trade License in Sharjah
How long does it take to get a Trade License in Sharjah?
The process usually takes 7-10 working days, depending on approvals and documentation.
Can I get 100% ownership in Sharjah Mainland?
No, for mainland businesses, a local service agent or UAE national partner is required. Free zones allow 100% foreign ownership.
What happens if I don’t renew my trade license?
Failure to renew on time results in penalties, fines, or business closure.
Can a trade license be canceled?
Yes, businesses can apply for license cancellation by submitting the required documents and settling outstanding dues.
