Business Setup in Sharjah: Mainland and Free Zone Options
Al Qalam Typing Center guides entrepreneurs and investors through the complete business setup process in Sharjah — from initial approval and trade name reservation to trade license issuance and company formation. Our team handles all government paperwork across SEDD (Sharjah Economic Development Department), free zone authorities, and supporting ministries, so your business is operational with minimal friction.
Why Set Up a Business in Sharjah?
- Lower setup costs than Dubai — office rents, license fees, and visa costs are significantly more affordable
- 100% foreign ownership available for mainland companies since the 2021 Commercial Companies Law amendment
- Strategic location — Sharjah borders Dubai and has access to three coastlines and major logistics corridors
- Multiple free zones — SHAMS (media), SRTI Park (tech), Hamriyah Free Zone, Sharjah Airport Free Zone, and more
- No income tax on individuals and most business activities
- Strong manufacturing base — Sharjah Industrial Area is one of the largest industrial hubs in the UAE
Mainland vs Free Zone Business Setup in Sharjah
Mainland Company (SEDD Licensed)
A mainland company in Sharjah is licensed by the Sharjah Economic Development Department (SEDD). This structure allows you to:
- Trade freely across all UAE emirates with no restrictions
- Bid for government contracts
- Operate from any commercial location in Sharjah
- Sponsor unlimited employees (subject to visa quota)
- Open a branch in Dubai or other emirates
Free Zone Company (SHAMS, Hamriyah, SAIF Zone, etc.)
Free zone companies in Sharjah are licensed by the respective free zone authority. Benefits include:
- 100% foreign ownership (guaranteed, pre-dates the mainland amendment)
- Zero import/export duties within the free zone
- Simpler setup process for some activity types
- Flexi-desk and virtual office options available
Limitation: Free zone companies cannot directly trade on the UAE mainland without a local distributor or service agent. If you plan to sell directly to UAE customers, a mainland license is the better option.
Documents Required for Business Setup in Sharjah
For Individual Shareholders
- Passport copies of all shareholders and managers
- UAE residence visa copies (or visit visa if applying before residency)
- Emirates ID copies (for UAE residents)
- No Objection Certificate (NOC) from current employer (if applicable)
- Passport-size photos
For the Company
- Proposed trade name (3 options recommended in case of availability issues)
- Business activity description (specific — SEDD requires defined activity codes)
- Office address / tenancy contract (Ejari-registered for mainland)
- Memorandum of Association (MOA) — drafted and typed by Al Qalam
- Initial approval certificate from SEDD
Step-by-Step Business Setup Process in Sharjah
- Initial consultation — We advise on the right business structure, activity codes, and license type for your goals.
- Trade name reservation — We submit the trade name reservation application to SEDD and confirm availability.
- Initial approval — SEDD reviews the proposed activity and grants initial approval in principle.
- Office lease — A signed Ejari-registered tenancy contract is required before license issuance for mainland companies.
- MOA drafting and typing — Al Qalam drafts and types the Memorandum of Association detailing ownership structure and share distribution.
- License issuance — SEDD issues the commercial trade license after all documents are approved.
- Establishment card and labour quota — Required before employee visas can be sponsored.
- Bank account opening — We can assist with bank introduction letters.
Business Setup Costs in Sharjah (2026)
Business setup costs vary significantly based on business activity, company structure, number of shareholders, and office space. Typical cost components include:
- Trade name reservation: AED 620–1,000
- Initial approval: AED 100–300
- Trade license fee: AED 5,500–15,000 depending on activity
- MOA notarisation: AED 1,500–3,000
- Office Ejari (minimum viable): AED 5,000–15,000 per year in Sharjah Industrial Area
- Al Qalam service fee: Charged separately for processing and coordination
Contact us for a personalised cost estimate based on your specific activity and structure. We will itemise every government fee upfront — no surprises.
Processing Time for Business Setup
- Trade name reservation: 1–2 working days
- Initial approval: 2–5 working days
- License issuance (after all docs submitted): 3–7 working days
- Total typical timeline: 2–4 weeks end to end (dependent on office availability and approvals)
How Al Qalam Helps with Business Setup
- We handle all government submissions — you do not need to visit SEDD or other departments
- MOA drafted and typed correctly the first time — no rejections from formatting errors
- We know the SEDD activity code list — we advise which code fits your business correctly
- After license: we continue with PRO services for visa quota, establishment card, and employee visas
- After license: we handle trade license renewal annually
- Open 7 days, 9 AM–11 PM — availability when you need it
Frequently Asked Questions
Can a foreigner own 100% of a Sharjah mainland company?
Yes. Since the 2021 amendment to the UAE Commercial Companies Law, most business activities allow 100% foreign ownership on the mainland without a UAE national partner. Certain strategic activities still require a local partner — our team will advise if your activity falls into this category.
Do I need a physical office to set up a mainland company in Sharjah?
Yes. A mainland Sharjah trade license requires a physical office with a valid Ejari-registered tenancy contract. The minimum acceptable size is defined by SEDD and depends on the activity. Al Qalam can connect you with affordable office options in Sharjah Industrial Area.
What is the difference between a commercial, professional, and industrial license?
A commercial license covers trading and buying/selling activities. A professional license covers services (consulting, IT, design, etc.) provided by an individual. An industrial license covers manufacturing and production. The correct license type affects fees and office requirements. We advise on the right category during your initial consultation.
Related Services
- Trade License Sharjah — Annual renewal and amendments
- PRO Services Sharjah — Government liaison for ongoing company operations
- Document Attestation UAE — MOA and company document attestation
- Legal Translation Sharjah — Certified translation of company documents
Start your business setup consultation: Call 06 520 0939 or WhatsApp 055 608 8726. Walk-ins welcome 7 days a week, 9 AM – 11 PM.