How to get General Trading License in Sharjah?

Sharjah, one of the seven emirates in the UAE, is known for its business-friendly environment and diverse economy. If you are planning to set up a business in Sharjah, obtaining a general trading license is one of the essential steps. A general trading license allows businesses to trade in various goods, including electronics, textiles, furniture, and more. In this guide, we will walk you through the steps to get a general trading license in Sharjah and highlight the benefits and requirements of the process.

What is a General Trading License?

A general trading license in Sharjah allows businesses to engage in the import, export, and trading of different goods. Unlike a specific trade license, which restricts businesses to trading a particular category of items, a general trading license offers flexibility. With this license, you can trade multiple types of products under one umbrella, making it ideal for businesses that deal in a variety of items.

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Why Choose Sharjah for Business?

Sharjah has become a hub for international trade due to its strategic location, strong infrastructure, and business-friendly policies. Entrepreneurs from around the world choose Sharjah for several reasons:

• Affordable Setup Costs: Compared to Dubai, Sharjah offers lower costs for setting up a business, making it an attractive option for startups and small businesses.
• Tax Benefits: Like other emirates, Sharjah offers several tax advantages. There is no personal income tax or corporate tax, which allows businesses to maximize their profits.
• Access to Global Markets: Sharjah’s ports and proximity to Dubai make it a strategic gateway for accessing global markets.
• Diverse Economy: Sharjah’s economy is not solely dependent on oil, which provides opportunities in various industries such as trade, logistics, manufacturing, and services.

Types of General Trading Licenses in Sharjah

When applying for a general trading license in Sharjah, you can choose between two main options:

• Mainland General Trading License: This license allows businesses to operate anywhere in the UAE, including Sharjah’s local market. With a mainland license, you can also bid for government contracts and trade freely within the UAE.
• Free Zone General Trading License: This license allows businesses to operate within Sharjah’s free zones, such as Sharjah Airport International Free Zone (SAIF Zone) and Hamriyah Free Zone. While businesses in free zones enjoy 100% foreign ownership, they are restricted from trading directly within the UAE’s local market without involving a local distributor.

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Steps to Obtain a General Trading License in Sharjah

Here is a step-by-step guide on how to obtain a general trading license in Sharjah:

Choose Your Business Activity

Before you can apply for a general trading license, you need to determine the nature of your business activities. With a general trading license, you can deal in multiple categories of goods, but it’s essential to clearly define what products you intend to trade.

Select the Right Location

In Sharjah, you have two options when it comes to choosing a business location: the mainland or one of the free zones. If you want to trade directly with the local market, a mainland license would be ideal. However, if you are more focused on international trade and want 100% foreign ownership, opting for a free zone license would be more suitable.

Choose a Business Name

Choosing a unique business name is a critical step in the licensing process. Ensure that the name adheres to the UAE’s naming conventions, which prohibit offensive language and references to religious or political entities. Additionally, the name should not duplicate an existing business name. After selecting the name, you can reserve it through the Sharjah Economic Development Department (SEDD).

Submit the Initial Approval Application

Once your business name is approved, you need to apply for initial approval from the SEDD. Documents such as these must be submitted for this phase.

• A filled application form
• Passport copies of the shareholders
• A copy of your proposed business name reservation

Initial approval signifies that the authorities do not have any objections to your business operating in Sharjah. After receiving this approval, you can proceed to the next step.

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Prepare the Necessary Documents

After receiving the initial approval, you need to prepare a set of documents to complete the process. These documents typically include:

• Memorandum of Association (MOA): This document outlines the partnership terms between shareholders and must be notarized.
• Lease Agreement: If you are setting up in the mainland, you need to have a physical office space. A tenancy contract must be submitted as part of the license application.
• Passport Copies: Copies of the passports of all shareholders and managers must be included.

If you are applying for a free zone license, the process might slightly differ, and you may not need to submit a lease agreement immediately, as free zones offer flexible office options.

Get Approvals from Relevant Authorities

Depending on the nature of your business, you may need to get additional approvals from relevant authorities. For example, if your business deals with specific products like food items or pharmaceuticals, you may need approvals from health or customs authorities.

Make the Required Payments

Once your application is complete and all documents are in order, you will need to make the required payments for the license. The cost of obtaining a general trading license in Sharjah depends on various factors, including your business activities, office location, and whether you are setting up in the mainland or a free zone.

Receive Your General Trading License

After you have submitted all documents and paid the required fees, the authorities will review your application. Once approved, you will receive your general trading license, allowing you to legally operate your business in Sharjah.

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Benefits of a General Trading License in Sharjah

Obtaining a general trading license in Sharjah offers several benefits, including:

• Flexibility: You can trade multiple types of products under one license.
• Access to Global Markets: With Sharjah’s ports and proximity to Dubai, businesses have easy access to international markets.
• Cost-Effective Setup: Compared to other emirates, Sharjah offers affordable business setup costs.
• No Corporate Tax: Businesses benefit from the UAE’s zero corporate tax policy, allowing them to keep more of their profits.

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Requirements to Maintain a General Trading License

Once you have obtained your general trading license, it is essential to adhere to certain requirements to maintain it. These include:

• Renewing Your License Annually: The general trading license must be renewed every year to ensure that your business remains compliant with the local regulations.
• Filing Taxes: Although there is no corporate tax, businesses need to comply with UAE’s VAT regulations if their revenue exceeds a specific threshold.
• Maintaining a Physical Office: For mainland businesses, it is mandatory to maintain a physical office space.

Call +971 56 658 2477 for Obtaining a General Trading license in Sharjah

Obtaining a general trading license in Sharjah is a straightforward process, but it requires careful planning and adherence to local regulations. By following the steps outlined in this guide, you can establish your business in Sharjah and take advantage of its thriving business environment. Whether you choose the mainland or a free zone, a general trading license offers the flexibility and opportunities needed to grow your business.

By working with business setup consultants, you can ensure that the licensing process is smooth and that all legal requirements are met. With the right approach, your business can thrive in Sharjah’s competitive market and enjoy the benefits of the UAE’s favorable business policies.