Sharjah is one of the UAE’s fastest-growing business hubs, known for its affordability, strategic location, and supportive government policies. Whether you are launching a small shop, opening a consultancy, starting an online business, or setting up an industrial operation, obtaining a trade license is the first step in operating legally in the emirate.
Sharjah offers smooth procedures, transparent regulations, and flexible licensing structures for entrepreneurs. Investors prefer Sharjah because its costs are lower than Dubai and Abu Dhabi, but the business benefits remain strong. This guide explains the entire process of getting a trade license in Sharjah including types of licenses, documents, costs, renewal steps, and expert tips.
It is written for entrepreneurs who want a clear, friendly, and helpful breakdown of the licensing process, especially those planning setting up a business in the United Arab Emirates with Sharjah as their preferred location.
The Role of Sharjah’s Economic Development Department (SEDD)
The Sharjah Economic Development Department (SEDD) is the official government authority responsible for regulating business activities and issuing trade licenses in the emirate. Every mainland business in Sharjah must register with SEDD to begin operations.
SEDD oversees:
- License approvals
- Business name reservations
- Activity classification
- Company amendments
- License renewals and cancellations
- Compliance with local regulations
- Approvals for external regulated activities
The process is designed to support entrepreneurs with a simple, transparent, and efficient workflow. Most services are now digital, and many steps can be completed through the SEDD official website.
Why SEDD Exists
SEDD ensures that all commercial, industrial, and professional businesses follow Sharjah’s legal and safety standards. Their role includes:
- Protecting investors
- Regulating business activity
- Maintaining fair competition
- Supporting economic development
- Issuing and renewing licenses
If you plan to operate a business in Sharjah mainland, SEDD is the authority that manages your application from start to finish.
Types of Trade Licenses in Sharjah Free Zone
Sharjah is unique because it offers both mainland and free zone business setup. Free zones are especially popular with international investors because they provide 100% ownership and streamlined processes.
Entrepreneurs planning business setup in the Sharjah Free Zone usually choose between several license categories based on activity.
Below are the main types of trade licenses offered in Sharjah’s various free zones:
Commercial License
A commercial license covers trading activities. It allows companies to buy and sell goods within the UAE and internationally.
Activities under the Commercial License:
- General trading
- Import and export
- Retail and wholesale trade
- Vehicle and auto parts trading
- Textile trading
- Electronics trade
- Building materials trading
Sharjah free zones such as SAIF Zone and Hamriyah Free Zone offer excellent trading facilities with access to ports and logistics hubs.
Professional License
A professional license is issued for individuals or companies providing specialized services. Foreign investors often prefer this type because it offers full ownership options and low setup costs.
Activities under the Professional License:
- IT services
- Legal, accounting, and auditing
- Consultancy services
- Creative and media services
- Engineering and technical services
- Medical and healthcare services
- Training and coaching
A professional license is perfect for entrepreneurs who rely on skills and expertise rather than trading goods.
Industrial License
Industrial licenses are for companies engaged in manufacturing or industrial activities inside Sharjah’s free zones.
Activities under the Industrial License:
- Food manufacturing
- Packaging and processing
- Metal fabrication
- Textile and garment production
- Plastics manufacturing
- Chemical products
- Building material production
These businesses often require warehouses, industrial units, and production spaces—all of which are readily available in Hamriyah Free Zone and SAIF Zone.
E-commerce License
E-commerce activities have surged across the UAE. Sharjah free zones allow investors to register online businesses with simplified rules.
E-commerce license includes:
- Online retail stores
- Marketplace operators
- Social media commerce
- Dropshipping
- Digital product sellers
This license is ideal for entrepreneurs wanting to build modern online businesses.
Service License
Service licenses apply to businesses that offer non-professional services. Examples include:
- Maintenance services
- Cleaning services
- Repair services
- Logistics and supply chain services
Process of Obtaining a Trade License in Sharjah
The process of getting a trade license in Sharjah is straightforward when you understand the steps. Whether you set up in a free zone or mainland, the process includes approvals, documentation, tenancy, and verification.
Below is a clear, step-by-step explanation.
Step 1: Choose Your Business Activity
Every license begins with choosing the correct activity. Sharjah lists hundreds of approved activities across commercial, professional, and industrial categories.
Selecting the wrong activity can lead to rejection or penalties, so the decision must be accurate.
Step 2: Select the Legal Structure
Legal structures in Sharjah include:
- Sole establishment
- LLC
- Partnership
- Branch office
- Free zone company
The activity determines which structure fits best.
Step 3: Reserve a Trade Name
You must select a business name that follows UAE naming rules. The name cannot include:
- Religious references
- Political words
- Offensive language
Once approved, the name remains reserved for a period.
Step 4: Apply for Initial Approval
Initial approval confirms that the government has no objection to your business activity. This stage typically requires:
- Passport copies
- Visa pages
- Activity selection
- NOC (if required)
Some regulated business activities require additional approvals.
Step 5: Determine Office Space Requirements
A physical office is required for most business activities in Sharjah mainland. You must Get the tenancy contract, and depending on the activity, approval may also be needed through the Sharjah Municipality eServices portal.
Step 6: Prepare and Sign the MOA / LSA Agreement
Companies with multiple owners must prepare their Memorandum of Association (MOA).
Some professional licenses require an LSA (local service agent) agreement.
Step 7: Submit Final Documents
You must now upload or submit all required documents, including:
- Passport copies
- Trade name certificate
- Initial approval
- Tenancy contract
- MOA
- Emirates ID copy for local partners (if applicable)
Step 8: Pay the License Fees
Fees vary depending on activity, office space, and approvals. Payment is made online or at approved service centers.
Step 9: Receive the Trade License
Once processed, your trade license is issued.
Your business can now operate legally in Sharjah.
Cost of Getting a Trade License in Sharjah
The cost of obtaining a trade license in Sharjah depends on several factors, including the chosen license type, office location, legal structure, and additional approvals required for regulated activities. Sharjah is considered one of the most cost-efficient emirates in the UAE, making it attractive for startups and SMEs.
Below is a breakdown of the key cost components involved in obtaining a trade license:
Initial Approval Fees
SEDD charges a fee for granting initial approval, which allows you to proceed with the licensing process. This fee varies depending on the business activity.
Trade Name Reservation
Reserving a trade name requires an additional fee. The cost changes depending on whether the name is Arabic, English, or premium.
Licensing Fees
This includes charges for issuing the final trade license. The amount depends on:
- Business activity type
- Commercial vs. professional vs. industrial license
- Sharjah mainland vs. free zone
Industrial licenses tend to be more expensive due to the nature of operations and safety regulations.
Office Rent and Tenancy Registration
Every Sharjah business requires a physical office.
Costs include:
- Annual rent
- Ejari or municipality tenancy registration
Your tenancy must be registered through the municipality system before the license is issued.
MOA or LSA Agreement Costs
If your business requires a Memorandum of Association (MOA) or a local service agent agreement, notary and drafting fees apply.
External Approvals (If Required)
Some activities need approvals from authorities such as:
- Municipality
- Health authorities
- Police
- Environment and waste management
- Education and training regulators
- Financial or insurance regulators
These approvals may add to the total cost.
Establishment Card & Visa Costs
If you plan to hire employees or sponsor yourself, you need:
- Establishment card
- Visas
- Immigration file opening
Each step has a separate fee.
Average Estimated Cost
Depending on your activity and office space, the total cost of obtaining a trade license in Sharjah mainland typically ranges from:
AED 8,500 to AED 25,000+
Free zone licenses vary and can start at:
AED 6,000 to AED 18,000+
Costs may increase for industrial or specialized activities.
Trade License Renewal in Sharjah
Renewing your trade license is mandatory for keeping your business legally active. Sharjah requires annual renewal, similar to other emirates in the UAE.
Operating with an expired license can result in fines, penalties, and potential business closure.
Below is the complete renewal process.
Step 1: Renew Your Office Lease
The first step is renewing your tenancy contract. The new contract must be registered with the municipality or the free zone authority.
A trade license cannot be renewed without a valid tenancy.
Step 2: Prepare Required Documents
Renewal typically requires:
- Existing trade license copy
- Passport copies
- Tenancy contract
- MOA (for LLC companies)
- Updated Emirates ID copies
- Activity-related approvals if applicable
Step 3: Submit Renewal Request
Mainland renewals are done through:
- SEDD service centers
- Tasheel centers
- Sharjah Municipality eServices portal
- Smart kiosks
- Online platforms
Free zone renewals are submitted through the respective free zone portals.
Step 4: Pay Renewal Fees
Once documents are approved, you receive a renewal voucher. After payment, your trade license is renewed instantly.
Step 5: Check for Fines or Penalties
If your tenancy contract expired or you missed your renewal date, fines may apply. You can check fines online through SEDD systems.
How Incorpyfy Can Help to Get Your Trade License!
Obtaining a trade license is simple when you understand the process — but many entrepreneurs prefer expert assistance to avoid delays, rejections, or compliance issues. From the moment you decide to start a business, a professional business setup consultant can save you significant time and prevent costly mistakes.
At Incorpyfy, we guide you through:
- Choosing the right business activity
- Understanding Sharjah’s licensing categories
- Preparing required documentation
- Finding cost-effective office spaces
- Submitting your application
- Handling tenancy registration
- Preparing MOA/LSA agreements
- Completing approvals
- Collecting your trade license
- Applying for investor and employee visas
We also help entrepreneurs setting up Mainland, Free Zone, or Branch setups across the UAE.
Our role is simple: to make your licensing journey smooth, fast, and stress-free.
Conclusion
Sharjah continues to be one of the UAE’s most attractive destinations for entrepreneurs looking for affordable, strategic, and business-friendly setup options. Its licensing system is clear, supportive, and designed to help both small and large businesses grow without unnecessary complexity.
Whether you are setting up in the mainland or exploring free zone opportunities, Sharjah offers strong infrastructure, low costs, and a streamlined process for obtaining your trade license. From selecting the right activity to preparing your documents, registering your tenancy, and receiving your final license, every step follows a structured and transparent process.
FAQs
What are the main types of trade licenses available in Sharjah?
Sharjah offers several types of trade licenses, mainly:
- Commercial License – for trading activities (retail, wholesale, import/export).
- Professional License – for service providers such as consultants, IT experts, designers, and freelancers.
- Industrial License – for manufacturing, processing, production, and industrial operations.
- E-Commerce License – for online stores, digital product sellers, and social media commerce.
- Service License – for businesses involved in repairs, maintenance, and operational services.
- Tourism License – for travel agencies, tour operators, and tourism-related businesses (free zones only).
These categories cover almost all business sectors operating in the emirate.
How to Check the Trade License Fine in Sharjah?
You can check any fines or penalties associated with your trade license through:
- SEDD service centers
- SEDD smart kiosks
- The official SEDD mobile app
- The SEDD online portal
Enter your license number or trade name to view outstanding violations instantly.
How can I renew my trade license in Sharjah?
To renew your trade license in Sharjah:
- Renew your tenancy contract.
- Register the tenancy with the municipality or free zone.
- Gather required documents (license copy, passports, tenancy, MOA if required).
- Submit the renewal request through SEDD or your free zone portal.
- Pay the renewal fee and receive your updated license.
Make sure the tenancy contract is valid, as renewal cannot proceed without it.
How can I cancel my trade license in Sharjah?
To cancel your trade license:
- Apply for license cancellation through SEDD.
- Clear all outstanding payments and fines.
- Cancel visas under the company.
- Submit required documents, including passport, MOA, and license copy.
- Receive the cancellation certificate.
All business activities must halt once a license cancellation request is submitted.
Can I operate multiple business activities under one trade license?
Yes, Sharjah allows multiple activities under a single license, but they must fall under the same category (commercial, professional, or industrial). If the activities belong to different categories, additional approvals may be required.
Can I operate my business from a virtual office in Sharjah?
Some free zones in Sharjah allow virtual office packages, but Sharjah mainland requires a physical office with a registered tenancy contract. Always confirm with SEDD or your free zone authority.
How long does it take to process a trade license application in Sharjah?
The processing time depends on your activity, structure, and approvals needed. Generally:
- Simple activities: 2–5 working days
- Activities requiring external approvals: 7–14 days
- Industrial setups: up to 3–6 weeks
With correct documentation, the process is usually very fast.
