A trading license is a critical element in establishing a solid foundation on UAE soil. It not only legitimizes your business but also unlocks the door to a world of opportunities in one of the most thriving markets, Sharjah. Obtaining a general trading license in Sharjah can help businesses tap into local and international markets considering its geographic location and business-friendly environment. However, to grasp the elements involved in this process, one needs to understand the regulatory framework, the cost implications, and the procedural nuances of acquiring this license.
As we delve deeper into this guide, we will explore various aspects associated with a general trading license in Sharjah, including a comprehensive overview, types of licenses available, and the legal requirements.
General trading license in Sharjah: Briefly Explained
A general trading license is a legal permit that allows businesses to engage in a wide range of trading activities and products without the need for multiple licenses. It is ideal for companies engaged in the import, export, and re-export of goods and services as they can capitalize on the strategic position and global status of Sharjah.
Types of General Trading License in Sharjah
Entrepreneurs aiming to establish a business in Sharjah are required to secure a business license from the Sharjah Economic Development Department (SEDD). The type of license they can obtain would depend on the nature of the business activities they engage in. The primary types of general trading licenses in Sharjah include the following:-
- Commercial license – A commercial license is specifically designed for businesses that are engaged in buying and selling goods or services. This includes import and export, wholesale and retail sales, and general trading. Companies with a commercial license can trade in a wide range of products under a single license. Moreover, they can leverage the strategic location of the Emirate for extensive trading across regions.
- Professional license – Entities providing expert services such as consultancy, legal advice, accounting, and engineering must secure a professional license in Sharjah. Holders of this license typically focus on offering specialized knowledge-based services, including importing necessary tools and equipment related to those services. Hence, with this license, professionals can establish a credible presence in the Sharjah market.
- Industrial license – Manufacturing, production, or all forms of industrial activity is the key focus of this license. An industrial license in Sharjah allows businesses to import machinery and raw materials and export finished products. Hence, companies engaged in assembling, packaging, and other related industrial operations can secure this license. This facilitates the smooth functioning of manufacturing processes and encourages industrial growth strategies of the Emirate through tax exemptions and other business incentives.
Thus, each type of general trading license in Sharjah caters to specific business activities and offers different advantages. Therefore, business owners must ensure to choose the right type of license based on their operational requirements and long-term objectives. The business experts of Shuraa can help you with that.
Steps to obtain a general trading license in Sharjah
The steps involved in the process of obtaining a trading license in Sharjah will depend on the jurisdiction you choose for business registration. However, the general requirements include the following:-
Choose business activities
The first and most critical step in the general trading license acquisition process is selecting the business activities. The SEDD allows business owners to choose up to ten activities from its comprehensive list of permissible activities. However, they must also ensure that their chosen activities align with their business objectives and are approved by the authorities. Certain activities like pharmaceutical and healthcare, financial institutions and banks, insurance and related services, etc. might require special approval from external authorities.
Pick a location
When establishing a business in the UAE, one of the most critical challenges entrepreneurs face is choosing between a mainland or a free zone. While free zones offer enticing benefits such as 100% foreign ownership, tax exemptions, and full profit repatriation, the Mainland provides the flexibility to engage in an array of activities and access the local market. Hence, to make the right decision and choose the right setup that aligns with their strategic objectives, entrepreneurs must weigh factors like business nature, target market, and long-term goals.
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Select a business structure
The next step is to determine the business structure that you want to establish in your chosen location. Sole proprietorship, partnership, and Limited Liability Company (LLC) are among the most preferred structures for business setup in Sharjah. However, the business owner must consider certain factors like management, liability, and taxation while choosing a legal structure.
Register the trade name
Registering a trade name for the company is crucial. Hence, business owners must select a unique name that adheres to the UAE’s regulations. For example, it should not have been previously registered by another entity, it should align with the nature of the business, and most importantly, it should be available for registration with the Department of Economic Development (DED). This will ensure that no other company registers or operates with the same name in the region.
Secure preliminary approvals
Once the business activities, structure, and trade name are finalized, the next step is to obtain initial approval from the Sharjah authorities. This preliminary approval will serve as permission from the government to proceed with the business establishment process.
Hence, by following all the above steps meticulously, you can streamline the process of acquiring a general trading license in Sharjah, further enabling you to tap into the vast opportunities within the emirate.
Find an office space
After receiving the green light from the authorities, you need to find an office space for your business operations. However, make sure that the selected space aligns with your specific requirements as well as the regulations of the jurisdiction. In free zones, businesses can opt for modern office spaces and warehouses tailored to various corporate needs, while in the Mainland, business owners can choose the size and type of office based on their business activities and number of employees. Once finalized, prepare a lease agreement clearly outlining the lease terms, payment methods, and rent review clauses. This agreement will help avoid potential legal and financial issues in the future.
Cost analysis of general trading license in Sharjah
The general trading license cost in Sharjah will depend on numerous variables of your business, such as the type of business activity, the duration of the license, the chosen business structure, authority approvals, etc. The additional cost may include external approvals, foreign trade name registration, etc.
Hence, it is imperative to be aware of these factors and plan your budget accordingly to ensure all necessary costs are covered. To avoid any further surprises, consult with a business consultant at Shuraa.
Shuraa Business Setup: Your trusted partner for all your corporate needs
If you are looking for a seamless business setup in Sharjah, UAE, then Shuraa is your go-to solution. It specializes in comprehensive corporate services and provides a streamlined establishment of business, from start to end. The experts of Shuraa are well-versed in local regulations and market dynamics, which can help businesses navigate the complexities of business setup in this thriving region.
Let Shuraa handle the intricacies of company formation while you focus on your core business activities.
