Business setup in Sharjah

Sharjah sits next to Dubai and is a common choice for founders who want a UAE licence with lower overheads. The emirate has its own mainland authority, the Sharjah Economic Development Department (SEDD), and several free zones, each with a clear specialism: media, airport trade, publishing and research.

What sets Sharjah apart is how the mainland licence fee is calculated, how quickly an instant licence can be issued, and how many specialised zones there are for a small emirate. This page sets out those points so you can compare them with the other emirates.

How does a SEDD trade licence in Sharjah work?

SEDD applications are made online after registering with UAE Pass. Before applying you issue a trade name and complete a technical evaluation, which SEDD lists at AED 150, and for rented premises you pay the electricity deposit and lease attestation fees through SEWA. SEDD says instant licences are issued within one day for activities that need no outside approval, and regular licences take 5 to 7 business days.

SEDD offers commercial, professional and industrial licences, an e-commerce licence for citizens and residents, and an Eitimad licence for UAE nationals running home-based businesses. Commercial licences need a location in a licensed area, and the lease must be notarised by Sharjah City Municipality.

How much does a trade license in Sharjah cost?

SEDD's licence issuance page bases the fee on the lease: 8 percent of the lease contract value for citizens, minimum AED 800, and 13 percent for other nationalities, minimum AED 1,300. Extras listed include a signboard permit (AED 200), printing (AED 300) and e-services (AED 100). SEDD's renewal page shows a different schedule, so ask for the current tariff for your own lease before budgeting.

Because the fee follows the lease, the size and rent of your premises change the licence cost, which is not the case with a fixed free zone package.

Can foreigners own 100 percent of a Sharjah company?

SEDD's FAQ says that since 2021 foreigners can own 100 percent of most businesses without a local partner, with certain activities reserved for citizens and some still needing a local partner or a service agent. Another section of the same site says a sole proprietorship may be owned by UAE or GCC nationals only, so confirm the structure for your activity with SEDD.

Which free zones are there for company formation in Sharjah?

Sharjah's zones are specialised, so match the zone to the activity.

• Shams (Sharjah Media City) was created in 2017 by Amiri decree for media, content creators and freelancers, with a campus in Al Masand. Starting price AED 5,750.
• SAIF Zone sits next to Sharjah International Airport with offices, purpose-built warehouses, land plots from 2,500 sqm and a jewellery manufacturing park. Starting price AED 11,000.
• Sharjah Publishing City (SPC) Free Zone offers an instant licence with up to three activities from over 1,500, and has a dual licence arrangement with SEDD, according to Gulf News.
• SRTIP, the Sharjah Research, Technology and Innovation Park, targets environmental technology, digitalisation, water management and renewable energy, and is about 4 km from Sharjah International Airport.

How to pick your Sharjah route

1. 1

   Start with the activity

   Media points to Shams, airport trade to SAIF Zone, publishing to SPC and research to SRTIP.

2. 2

   Decide if you need mainland customers

   A SEDD mainland licence trades across the UAE, while free zone licences are limited unless you add a dual licence or use a distributor.

3. 3

   Compare the lease

   On the mainland the lease sets the licence fee, so price the premises first.

4. 4

   Ask for year-one and year-two costs

   Request every fee itemised in writing before you pay.

Things to weigh up

• A Sharjah base can mean a longer daily commute for founders who live in Dubai.
• Mainland licence fees follow the lease value, so a larger or pricier premises raises the fee.
• Shams leans towards media and creative work, so check your activity is on its list.
• SAIF Zone is built for physical trade and warehousing rather than small consultancies.