The UAE has become one of the most business and investor-friendly countries across the globe. It boasts several free zones spread across the country, dedicated to promoting economic diversification in non-oil sectors. With this, the government is also actively bringing unique policies to help businesses enter the market and sustain while repatriating their profits. Similarly, the government has also introduced ease in obtaining businesses in the UAE for entrepreneurs looking to venture into the market.
Emerging as one of the most sought-after free zones in the country, Sharjah, a designated economic zone in the UAE provides a nurturing environment to conduct activities centred around commerce, investment and entrepreneurship. It offers the unique advantages of a centralized location, developed infrastructure, and a wide variety of industries for businesses to flourish in the market.
Let’s understand the essentials of obtaining a business license in UAE Free Zones, and understand different license types for a hassle-free company setup in UAE free zones.
Types of business license in UAE
Sharjah free zone offers different types of licences, obligatory for businesses to comply with UAE’s regulatory requirements and laws.
● Trading licence: Companies engaged in the import, export, or trade of goods are mandated to obtain a trading license.
● Industrial licence: Businesses engaged in production, processing, and manufacturing operations within the Sharjah Free Zone are required to obtain an industrial licence.
● Service license: This type of license is intended for companies that provide consulting or professional services such as legal, accounting, marketing, consulting, and IT services.
● Ecommerce licence: Companies that are engaged in online selling of products or Ecommerce business are required to obtain this business license.
Step-by-step guide to obtain a free zone license
Obtaining a Free Zone business license in UAE involves a clear, step-by-step process. It is a simplified and streamlined process that makes it easier for entrepreneurs to start their business journey:
● Identify the type of license: Choose the type of business license that best fits your business activity.
● Determine legal structure: Your company structure decides several factors that will influence business operations, investments, profitability, etc.
● Reserve a trade name: Your business name has to be legally compliant and thus, it is significant to decide a legal name before you apply for further formalities.
● Submit initial application: Fill up your application form and submit it to the relevant authorities.
● Documentation: Since the UAE is stringent about its laws and regulations, you need to prepare for the submission of mandatory documents to get through the process.
● Apply for Visa: After obtaining your business license, you can finally apply for UAE visas for all shareholders, employees, and your family.
Key documents required
As part of the business licensing process in the Sharjah free zone, you need to prepare for essential documentation and formalities:
● An application form.
● Passport copies of shareholders, directors, and managers
● Business plan.
● Memorandum and Articles of Association (MOA/AOA)
● Relevant educational and professional qualifications (for certain license types)
Cost involved
Although a Sharjah-free zone licence starts at a very effective cost, there are other expenses and fees that need to be taken into account. In order to obtain a licence, one must pay both an initial setup fee and an annual renewal price to keep your business up and running.
Conclusion
Establishing a business in a free zone has several advantages such as quick and simple business setup, developed infrastructure, 100 percent foreign ownership, strategic location and services for business support. You need to choose the best licence category for your company setup in UAE Free Zones.
To assist you throughout the process, we at SRTIP Accelerator, are here to guide you with our expertise and deep market understanding. Connect with us today:
