Guide to Trade Licence in Sharjah
After Dubai and Abu Dhabi, Sharjah is considered to be the city in the United Arab Emirates that is flourishing and growing at a rapid pace. It is also one of the most populous Emirates in the United Arab Emirates. In the Arabian Gulf, Sharjah is considered more traditional than Dubai. Launching a trading firm is a fantastic location because it is globally connected with ports and airports.
The Emirate of Sharjah is also becoming a centre for investments thanks to the abundance of business opportunities it has provided for both investors and entrepreneurs. It is committed to assisting foreign investors in discovering Sharjah's wonderful opportunities and potential. It is committed to the transformation and economic diversification of the Emirate.
What is a Trade Licence?
A trade licence is a legal instrument that authorizes people or organizations to carry out particular economic activities. It is evidence that the holder has satisfied certain requirements and laws necessary for conducting company operations and is a legal requirement in many jurisdictions.
A trade licence application and any necessary paperwork and costs must be submitted to the appropriate governmental agency or licensing body. Depending on the nature of the firm and local laws, the specific criteria may change. A trade licence's main function is to ensure that companies follow safety regulations, obey the law, and safeguard customers from dishonest or unethical business practices. Additionally, it aids in regulating competition by promoting commercial ethics.
Who Will Grant You a Trade Licence in Sharjah?
Sharjah’s Economic Development Department, i.e., the SEDD, is the authority that is responsible for regulating the establishment and supervision of new businesses in Sharjah, including the Sharjah Mainland. This includes everything, from small retail businesses to huge industrial organizations. The SEDD also works closely with other governmental organizations to ensure businesses follow relevant rules and regulations.
Different Types of Trade Licences
Obtaining a trade licence as a business owner is the first official step in setting up an operation in Sharjah. It is prohibited to operate a business without a licence. The licence must also be renewed as necessary in order to continue commercial operations.
Sharjah trade licences come in three primary categories:
1. Commercial Licence
Businesses engaged in commerce, which includes the import and export of goods, are required to get a commercial licence. This specific licence gives companies the ability to import goods, giving them the freedom to store them within the boundaries of the free zone, and consequently easing their exports to foreign markets. Additionally, companies holding a commercial licence are qualified to use tax exemptions for both corporate and individual income taxes inside the free zone.
2. Professional Licence
Enterprises engaged in the provision of consulting, engineering, and design services are required to obtain a professional licence. This essential licence grants businesses the prerogative to import the necessary tools and equipment to facilitate the seamless delivery of their services. In addition, such enterprises are entitled to benefit from tax exemptions encompassing both corporate and individual income taxes.
3. Industrial Licence
An industrial licence must be obtained by any business engaged in manufacturing, assembling, packing, or similar industrial activities. Such businesses are now able to expedite both the export of finished goods and the import of machinery and raw materials, thanks to this specific authorization. Additionally, businesses that have an industrial licence are qualified to use the free zone's corporation and individual income tax exemptions.
The Entrepreneurial Business licence and the Business Operation Permit are two unique licences the government occasionally provides to specific firms. Each licence has unique criteria and advantages that come along with it.
Requirements to be Fulfilled to Get a Trade Licence
A company must fulfill the following requirements before it can begin operations to receive a Sharjah trade licence:
1. Choose a business category, such as industrial, commercial, or professional, and assign it.
2. Specify the particular business activities relevant to your selected business category, with the flexibility to enumerate up to 10 activities under a single licence.
3. Choose a trading name for your company.
4. Send the application in for first approval to SEDD.
5. Register a trade name (if it hasn't already) after approval is granted.
6. To run your business, rent a space, and apply for Sharjah Municipality clearance.
7. Prepare the necessary documentation, including identification documents of directors, shareholders, and company secretary; A Memorandum of Association and Articles of Association, and registered office address.
8. To get a licence to launch the firm, submit a final application to the department.
9. Payment of the fee.
Different Kinds of Companies and the Documents Required Accordingly
Understanding that the paperwork and processes needed can change depending on the type of business you wish to operate is crucial when beginning a business. Whether you want to start a partnership, limited liability company, or something else, there are specific legal and operational requirements that must be followed.
You can ensure that you comply with rules, safeguard your interests, and build a strong foundation for success by being aware of the particular paperwork and procedures required for the type of business you have selected.
A general list of documents required is as follows:
1. Licences Form
2. Trade Name Certificate
3. Photocopies of the passport, Family Book, and National ID for Emirati citizens Official No Objection letter, along with photocopies of passport, visa, or residency for non-citizens
4. Official Technical Evaluation Report
5. Approvals from Government Entities, if deemed necessary
6. Service Agent Contract endorsed by the Legal Affairs Section
7. Authenticated copy of the Tenancy Contract
8. A photocopy of the Map of the Land or Certificate of Ownership
9. A partnership agreement approved by a notary public.
Costing of Getting a Trade Licence in Sharjah
Depending on the kind of licence needed and the nature of your business, the price to obtain this licence can change. To ensure effective budgeting and adherence to legal standards, it is crucial to understand the various components that go into the overall pricing.
The price of getting a trade licence normally consists of a number of expenses, including application fees, processing fees, renewal fees, and any extra costs associated with certain licences or endorsements.
Additionally, factors including geography, firm size, industry laws, and the length of the licence's validity period may have an impact on the precise sum. To ascertain the precise charges related to your business kind, it is advisable to speak with the appropriate authorities or obtain professional assistance. Visit the official website of the Sharjah Economic Development Department to receive an expense estimate.
Renewal of Trade Licence
To ensure the seamless renewal of a trading licence within the Sharjah Free Zone, The SEDD mandates the submission of a comprehensive set of documents. It is imperative to compile and provide the following information and documentation to successfully renew your trade licence:
1. Licence Renewal Form
A duly filled and completed form specifically designed for licence renewal purposes.
2. No Objection Certificate (NOC) from Relevant Authorities
A document affirming that there are no objections from the relevant authorities regarding the licence renewal.
3. Copies of UAE Passports and National ID Cards
Photocopies of the valid UAE passports and national identification cards of the concerned individuals associated with the business.
4. Notary Public's Signature Authentication Verification
A photocopy of the verification validating the authenticity of the Notary Public's signature.
5. Certified Lease Contracts
Officially certified copies of the lease agreements demonstrating the legal occupancy of the business premises.
It is essential to send the required paperwork and renewal costs to the SEDD as soon as you have gathered all the necessary documentation. Following submission, the SEDD will review your application and the supplied documentation. If everything is in order, the SEDD will proceed to issue you a trading licence that is renewable.
It is crucial to carefully monitor the renewal process and ensure all required paperwork is available. You risk incurring unwelcome penalties and fines if you don't renew your trade licence by the deadline. Proactively adherence to the renewal procedure is urged to ensure uninterrupted business operations and take advantage of opportunities within the Sharjah Free Zone.
In conclusion, having a trade licence is crucial for people and companies wishing to operate in Sharjah, United Arab Emirates. This legal obligation guarantees adherence to local laws and establishes confidence and dependability in the eyes of potential partners and clients. Businesses can operate legally, take advantage of several government perks and incentives, and contribute to Sharjah's general economic growth by getting a trade licence. To develop a successful business venture in this thriving emirate, entrepreneurs must know the precise requirements and procedures for getting a trade licence.
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