Company Formation in Sharjah Mainland

In the UAE, the term "mainland" refers to the area within the country governed directly by the federal and local authorities, allowing businesses to operate without specific geographic limitations. Firms on the mainland can participate in many business endeavors and operate without restrictions in local and global markets. Mainland businesses in the UAE are governed by the country's overall commercial laws, in contrast to free zones that offer industry-specific regulations and advantages.

Setting up a company in Sharjah Mainland allows entrepreneurs to establish a business within a dynamic economic environment.  Companies registered on the mainland are subject to federal and local laws, which will enable them to operate freely across the UAE market. A local sponsor or partner is often necessary for specific business activities.

Business Entity Types in Sharjah Mainland

In Sharjah Mainland, businesses need to register under specific legal structures. These structures help ensure compliance with local laws and regulations, so selecting the right type is crucial for a business in Sharjah.

• Limited Liability Company (LLC)
• Sole Proprietorship
• Branch of a Foreign Company
• Branch of a UAE Company
• Public / Private Shareholding Company
• Partnership Company

Limited Liability Company (LLC)

A Limited Liability Company (LLC) is one of the most popular business structures in Sharjah Mainland. It offers limited liability protection to a corporation while combining the flexibility of a partnership. LLCs can be formed with a minimum of two and a maximum of 50 shareholders, and each shareholder’s liability is limited to their investment in the company. Since June 2021, the UAE government has permitted 100% foreign ownership of LLCs, removing the previous requirement for a local sponsor to hold a majority stake.

Sole Proprietorship

An LSA Company in Sharjah is a sole proprietorship, enabling foreign business owners to set up a company within a straightforward legal structure. While this structure requires a UAE national to act as an LSA, the agent has no ownership rights or claims over the business. Sole proprietorships are perfect for small businesses and freelancers. There is a potential for unlimited liability, which indicates that the owner is accountable for all debts generated by the companies

Branch Companies

Current companies, regardless of their origin from the UAE, abroad, or the GCC region, can establish branch offices in Sharjah Mainland. A branch office expands the main company, enabling it to carry out business activities in Sharjah following local laws and regulations. This configuration allows businesses to broaden their scope without a local sponsor, making it easier to enter the Sharjah market.

Public / Private Shareholding Company

A shareholding company in Sharjah divides its capital into shares, offering limited liability to partners. Founding members who sign the memorandum and articles of association. This structure is best for businesses aiming to raise capital through public or private share sales while adhering to Public Joint Stock Company regulations.

Partnership Company

A partnership company in Sharjah is formed by two or more UAE national shareholders who share ownership and management responsibilities. There are two main types of partnerships: general partnerships, where all partners equally share profits and losses, and limited partnerships, which include at least one general partner with unlimited limited liability as well as one or more limited liability partners. This structure enables UAE nationals to collaborate in a business venture while clearly defining the responsibilities and liabilities among partners.

Documents Needed to Set Up a Business in Sharjah Mainland

The essential documents required for setting up a business in Sharjah mainland are as follows:

• Copies of Passports
• Certificate of Trade Name Reservation
• Emirates ID Copies
• Government No Objection Certificate (NOC)
• Company Memorandum of Association (MOA)
• Detailed Business Plan
• Lease Agreement

Types of Licenses Granted in Sharjah Mainland

• Commercial License: This license is essential for businesses engaged in trading activities, covering the retail and wholesale sectors. Companies must specify the goods they will trade and comply with local commercial regulations.
• Professional License: This license is essential for individuals and businesses providing professional services, including sectors like consultancy, healthcare, and IT. To ensure high service standards, applicants are required to prove the qualifications of their partners or employees.
• Industrial License: Required for manufacturing businesses, this license permits production activities within designated industrial areas. Applicants must provide details about their manufacturing processes and comply with health and safety regulations.

Each license serves a specific purpose and is essential for legal compliance when establishing a business in Sharjah Mainland.

Process of Setting Up a Business in Sharjah Mainland

• Choose a Business Name: Select a unique name that reflects your business activities and complies with local naming regulations.
• Pick Your Business’s Legal Structure: Choosing the right legal structure is crucial as it affects your liability and business operations. 
• Obtain the Memorandum of Association: Prepare and notarize this document, outlining your business objectives and guidelines for operation.
• Submit Your Application: Complete and file your registration application with the necessary documents to the relevant Sharjah authorities.
• Pay Fees and Obtain a License: After approval, pay the required fees to receive your business license for legal operations.
• Open a Corporate Bank Account: Set up a corporate account to manage your business finances and ensure clear transaction records.

Advantages of Forming a company in Sharjah mainland

• Entrepreneurs can own 100% of their business, giving them total control over decisions and operations.
•  Sharjah's location is perfect for reaching the Middle East, Africa, and Asia markets.
• The region presents a broad selection of business choices spanning multiple industries, suitable for a variety of interests and skills
• Accessing UAE markets through operations in Sharjah offers entry to a strong economy and a favorable business environment, boosting growth opportunities.
• No taxes for corporations and individuals, this policy allows businesses to maximize profits by avoiding corporate and personal taxes.
• Certain sectors benefit from the low corporate tax rate, which helps create favorable financial conditions.
• There are no restrictions on sending profits and capital back to the company's home country, which improves financial adaptability.
• The business-friendly regulatory environment makes it easier to set up and manage operations.
•  Creating a business account at a bank is easy and helps with effective financial organization.
• Business owners can easily sponsor residence visas for their family members to make the relocation smoother.

Company Formation in Sharjah Mainland with Reyson Badger

With Reyson Badger, setting up your business in Sharjah Mainland is smooth and efficient. We provide professional assistance throughout the entire process of forming your company, assisting you in efficiently managing legal obligations and paperwork. Experience advantages such as full ownership, no corporate taxes, and various business opportunities. Our familiarity with the area and close connections with officials guarantee a smooth setup process, enabling you to concentrate on expanding your business. Select Reyson Badger to bring your entrepreneurial dream to life with assurance and simplicity.