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How to Obtain a Trade License in Sharjah: 2023 Guide

If you want to start a business in this emirate, you will need a Sharjah trade license which will allow operations in the country. However, you must know the types of licenses depending on the commercial activity you want to carry out. Thus, you can choose the one that best suits you according to your criteria and type of company.

In this article, we will help you know the Sharjah trade license cost, the process, and how to obtain it. Moreover, we include all the details that you will need to know so that everything goes correctly.

Eligibility Criteria for Obtaining a Trade License

sharjah trade license

In Sharjah, the body that regulates and supervises licensing is the Sharjah Economic Development Department or DED. Likewise, the DED issues business licenses and permits for businesses operating in the emirate. Additionally, it includes mainland Sharjah and ranges from retail businesses to large industries.

However, there are eligibility criteria for a trade license Sharjah which you can find out below:

  • Citizens over 18 years of age
  • Must not have a criminal record
  • Start a business permitted by law

Essential Documents for Your Trade License

The general trading license in Sharjah requires certain documentation for issuance. However, for each specific type of business license, you will need additional documentation. Below, we show you the general documentation that you will require for said license:

  • Certified land ownership map
  • License form
  • Sharjah Ministry of Economy Consent
  • Name certification of your business
  • Service agent contract accepted by the legal affairs section
  • Copies with signatures of the national identity document of the holders of Emirates nationality, family book, and passports.
  • A letter certifying the brand
  • Consent from government entities to negotiate
  • Technical evaluation with an official report
  • Copies of the place of residence, visa for foreigners, or passport
  • Certified letter of no objection
  • Partnership contract certified by a notary public

Who Qualifies for a Sharjah Trade License

A business license is an authorization issued by DED to start commercial business operations in Sharjah. Therefore, several types of business licenses cover a specific type of business activity. Thus, we will show you below which are the different licenses that you can obtain for your business:

Commercial license

It is the Sharjah trade license that will allow you to import, distribute, export, and store your products in the country. In addition, it is the most suitable license if your industry will be dedicated to commercial activity. Below are the specific requirements for this license:

  • Formal request
  • A business plan
  • Passport copies
  • Proof of address

Additionally, to obtain the license you will have to have a physical space for the company’s offices.

Service license

If your business is to offer some type of professional service or consulting, this will be the license you will need. Likewise, with it, you can cover accounting, consulting marketing, and IT services. Additionally, along with the trade license Sharjah, it requires the above requirements and office spaces.

However, with the services license, you will not be able to participate in any activity outside of those permitted.

Industrial license

The industrial license is indicated if your business is manufacturing, producing, or processing products in the country. Likewise, with the license, you will be able to find manufacturing industries, assembly lines, and other facilities necessary for this activity. Additionally, the requirements for this license are as follows:

  • Industrial premises suitable for the operation of the company
  • Formal application
  • Business plan
  • Passport copies
  • Proof of address

In the same way, it must comply with safety and environmental regulations, and with specific guidelines, production standards, and industrial activities.

Media license

This license is for companies dedicated to creative media such as publications, advertising, and other related activities. Additionally, the license will only allow you to work with the business activities covered by this license.

Freelance permit

The freelance permit is a Sharjah trade license to work independently in the country. The activities covered by this license are photographers, designers, and writers, among others, and its requirements are the general ones for commercial licenses.

E-commerce license

The e-commerce license is a license that you will need if your business will take place online. For example, sales of services via a platform or sale of goods through this means.

Proven Tips for a Successful Application

To be successful with your business license application, you will need to have your regulatory documents in order. Additionally, you can seek the help of professionals specialized in this and other types of licenses in Sharjah. Likewise, it must take into account the updates to the procedures established by the authorities both on the continent and in the fringe areas of this emirate.

Staying Informed: 2023 Updates

You must be up to date with the procedures for a Sharjah business license, as it is the legal document you need. Furthermore, it is the first thing you must do officially if you want to market in the said Emirate. Likewise, it is prohibited by law to carry out any industrial activity without possessing the corresponding licenses.

Also, after purchasing it, you will have to pay attention to its renewal so that your company can continue working in Sharjah. Hence, it is the DED that will monitor your licenses and process the renewal when you request it. However, there are economic activities for which you will need the license and approval of other government agencies.

Below you can see who will require the latter in particular:

  • For pharmaceutical and health companies, they must request authorization from the Ministry of Health.
  • Financial institutions will need approval from the UAE Central Bank.
  • In the case of commercial operations of industries, the Ministry of Finance and Industry must approve them.
  • For businesses that offer insurance and related services, they must receive authorization from the Ministry of Economy and Commerce.

Step-by-Step Guide to Apply for a Sharjah Trade License

Below, we will show you the step by step to apply for a Sharjah trade license:

1. Identify a business category

To apply for the license, you will need to determine what business activity you want to carry out in Sharjah. Additionally, this activity must be within the following categories considered legal:

  • Industrial
  • Commercial
  • Professional

2. Identify commercial activities

In this step, you must relate the commercial activity you will carry out with one of the available licenses. Therefore, you can choose between a maximum of 10 activities per license from the list of commercial activities allowed in the country.

3. Select a business name

In Sharjah, there are some rules regarding the names you can choose for your business. Thus, when you choose the name, it is important to educate yourself about it.

4. Get initial approval

To obtain approval to start the business, you will need to apply to the Sharjah Economic Department or SEDD.

5. Register the business name

After choosing the name, the next step is to register it, but you will only be able to do this when you obtain approval from the SEDD.

6. Office space rental

Search and select the right space for your business activities in the emirate. You will also need to obtain approval from Sharjah Municipality to rent the site you have chosen to start your business. Likewise, the rental may be in one of the so-called free zones and its activities or on the continent of the emirate Sharjah.

7. Prepare documentation

Put on hand all the documentation that we mentioned above to obtain approval from the authorities responsible for licenses and permits.

8. Sending documents and application

When you have collected all the documents, you will need to send them to the government department to apply for the Sharjah trade license.

9. Pay fees

Make payment for the Sharjah license cost and obtain proof of payment.

10. Get license approval

Now, head to the DED to complete the initial approval process as well as business name registration. In addition, the licensing authority may approve the information related to the license and, if necessary, may edit it.

11. Payment of Sharjah trade license Fees

Once your Sharjah trade license is approved, the DED will issue the payment certificate audit. Additionally, upon paying the cost of the business license, you will receive a business registration along with the business license.

Furthermore, you can try to register the trademark of your business when you have completed the process to acquire the license. Likewise, you will have the possibility of expanding the company to Dubai and other Emirates. Thus, for this, we recommend that you contact professionals who are experts in company registration in the Emirates.

Understanding Application Fees

The trade license Sharjah cost ranges from AED 5,000 to AED 30,000 or a little more. Hence, the fee will depend on some factors such as visa fees, rental of the premises, and other expenses involved with starting the business. However, the most accessible option for you is the e-commerce license which costs AED 6,000.

Sharjah Trade License Renewal

The DED, or Department of Economic Development, will need you to submit a series of documents to renew your business license. Next, we show you the documents you must have to request renewal:

  • Form for renewal of Commercial License.
  • The No Objection Certificate or NOC issued by the relevant authorities.
  • Copies of UAE national ID cards and your passport.
  • The copy of the signature authentication verification by a notary public.
  • The certified rental contract.

Finally, the DED will review the application, and if you approve it, they will give you the renewed license. Additionally, we recommend that you follow up on the renewal process and make sure that you are not missing any documents. Otherwise, by not renewing it on time, you may receive sanctions and fines that will cause you to lose time and money.

In this case, you may renew the license after one year of official validity. Likewise, in Sharjah, the authorities consider it illegal to manage a company without renewing the respective business license. Additionally, when you renew it, you can make changes if you wish, regarding the commercial address or sponsor.

Penalties for not renewing the business license

As for sanctions and fines for non-renewal, you may be considered on the blacklist. As a result, your business will be disrupted; you may experience visa cancellations, and possibly expulsion of the business owner.

Therefore, do not forget to renew the expired business license, because otherwise, you will waste time, money, and effort. Also, check the fine status of the Sharjah trade license online on the dedicated website.

Sharjah trade license Cancellation

sharjah trade license

If you need to close your corporate cycle with your company, you can cancel the Sharjah trade license. However, by requesting the closure of the business license, you will not be able to apply again immediately. On the other hand, to close the license you must now request approval from state and federal institutions, sending the documents to cancel the visa.

Additionally, the documents you will need to present will depend directly on the type of business license you acquired. Now, in Sharjah, there are three ways to cancel the business license:

  • Upon expiration of the license. It is when the license expires and you do not want to renew it but if you do not, you will have to pay trade license fees in Sharjah for fines.
  • Commit a serious violation of the law. In this case, cancellation will apply due to any violation of the law by the company. That is, the company with the Sharjah trade license will be liquidated. Also, they may cancel the license by committing fraud proven by the country’s authorities.

Moreover, you will receive a cancellation notice so you must close immediately.

  • The income is not good. Another factor that may cause you to cancel your business license is excessive expenses or low income. That is when there is no stable income to maintain the company.

As you have seen, starting a business is a good option as long as you apply for your Sharjah trade license. Likewise, it is important to have all the documentation for each license to carry out the process.

However, it does not hurt to have the advice of professional staff who can contribute to the process. In this case, you can contact us and we will help you complete the license application process.

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