Planning to start a business in Sharjah? If so, obtaining a trade license is one of the primary procedures in the foundation of a company. You will need a license to continue your business operations. We will, therefore, reveal a thorough tutorial on how to get a trade license in Sharjah today.
This article answers all your concerns about the Sharjah trade license and explains the cost of setting up a business there. So, without further ado, let's get started.
How do I get a Sharjah trade license?
To obtain your trade license in Sharjah, follow the following steps.
First step: Determine the activities that your business engages in.
Your business activities need to be defined. For instance, if you intend to operate a trade business, import and export may be among your daily activities. Typically, you get your license from the Economic Development Department (DED) of Sharjah. By following all applicable laws and regulations, this regulatory body ensures you launch your new business. Regardless of the size and scope of your business, SEDD will issue your license and permits.
This department closely collaborates with other governmental organizations to ensure that laws and regulations set up a company. This division assists in company formation procedure and provides direction and support in picking the best site for the business.
- If your business activities include finance or healthcare, you may need to apply for extra licenses and approvals from other government agencies, even if SEDD is the primary authority for approval.
- For instance, Ministry of Health authorization is necessary for pharmaceutical and healthcare businesses.
- If you plan to open a bank or other financial institution, you need approval from the UAE Central Bank.
- The Ministry of Finance and Industry must give its approval before an industry can operate.
- Insurance firms are required to obtain approval from the Ministry of Economy and Commerce.
Second step: Choose the type of trade license
After you've identified your business activities, choose a trade license type based on those activities. Picking the appropriate trade license is essential because each type has its own set of guidelines.
Third step: Registering a trade name
You need to choose a distinctive trade name to register your business with the Sharjah Department of Economic Development (DED).
Fourth step: Decide on a legal framework
It's time to define your business's legal structure. This entails selecting whether to establish a company as a Sole Proprietor, LLC, Partnership Firm, or Limited Liability Corporation.
Fifth step: Send your application in
You now need to apply by providing all pertinent business information, the license application fee, and the required paperwork.
Sixth step: Obtain government approvals
After submitting your application, it is crucial to secure approval from pertinent government authorities, such as the Ministry of Finance, Health, Commerce, etc. This type of official approval is only necessary if you are engaging economic activities that require other required permits.
What does it cost in Sharjah to get a trade license?
The cost of receiving a trade license in Sharjah is determined by considering several expenses, including:
- You will be charged the application fee when applying for a license.
- The trade name registration fee is the amount of money you must pay to reserve a trade name for your business.
- The license issuance fee is the amount of money you must pay to get a license issued. Depending on the type of business, this cost will change. The length of the license is another factor.
- Rental cost: When setting up a business in Sharjah, you must choose a physical space for the company. Thus, you will need to add the leasing fee to the total cost of your trade license. The location and size of a commercial property affect its price.
- Additional cost: The cost of getting health and safety certificates and visa and municipality approval fees are additional fees.
Always contact Prospr if you have any questions about the total cost of obtaining a trade license in Sharjah. Our experts will assist you every step of the way as you set up your business in Sharjah and provide you with a detailed breakdown of the total cost.
Sharjah trade license renewal:
If you have already obtained a trade license in the Sharjah Free Zone and want to renew it, you need to submit the following paperwork to DED:
- License renewal form
- NOC/no objection certificate from relevant authorities
- Copies of your national ID card UAE passport
- Certified lease contract and Copy of Notary Public's Signature Authentication.
You will need to wait until you submit all the necessary documentation and renewal costs. If everything is in order, DED will approve your trade license renewal in Sharjah.
Grace Duration: There is a grace period of two months for renewals. Ensure that you renew your license in this window of time. If you fail to renew your license promptly after it expires, you must pay a fine. After the grace period, you must pay a fine of 200 AED every month. In addition, you can be required to pay extra immigration fire for your expired establishment cards.
Wrap Up:
You now know precisely how to get a trade license in Sharjah. You need to follow numerous processes, from obtaining a trade license to registering your trade name when starting a business in Sharjah. For you, we at Prospr wish to make the Sharjah business formation process straightforward. Our experts can help you more effectively than others because they have years of experience in this field. You can thus contact us if you need assistance setting up a business in Sharjah or want to obtain a trade license.
