Sharjah is a thriving hub for entrepreneurs looking to engage in general trading activities. The emirate’s strategic location, investor-friendly policies, and robust economy make it an ideal destination for establishing a business. A general trading license allows companies to deal in a variety of products across industries, offering flexibility and growth potential. This guide will walk you through the process of obtaining a general trading license in Sharjah, ensuring you have all the information needed to start your business.
1. Understanding a General Trading License in Sharjah
A general trading license allows businesses to trade in various goods, including import, export, and re-export of products. It covers a wide range of items, including electronics, furniture, clothing, and more. This license is particularly beneficial for businesses that want to deal in multiple product categories.
2. Benefits of a General Trading License in Sharjah
- Flexibility:Trade in a variety of goods under one license.
- Strategic Location:Sharjah’s proximity to key markets in the UAE and the Middle East.
- Tax Advantages:100% repatriation of profits and capital, zero corporate taxes, and personal income tax.
- Access to Free Zones and Mainland:Businesses can operate within Sharjah’s free zones or mainland, depending on their needs.
3. Requirements for Obtaining a General Trading License
To get a general trading license in Sharjah, you’ll need to meet specific criteria:
- Business Activity Selection:Decide the types of goods you want to trade.
- Shareholders:Minimum of 1 shareholder, which can be a local or foreign entity.
- Office Space:You must have a physical office or warehouse in Sharjah.
- Capital Requirement:There’s no minimum capital requirement for a general trading license.
Business Consultancy:
Business setup consultancy is essential for entrepreneurs looking to obtain a general trading license in Sharjah. Expert consultants streamline the process, from choosing a business location to handling paperwork, ensuring a hassle-free experience. Rely on professional guidance for success.
4. Steps to Get a General Trading License in Sharjah
Step 1: Choose the Location
You can choose to establish your business either in a Sharjah free zone or on the mainland. Both options offer different advantages, such as easier import/export processes in free zones or direct access to the UAE market on the mainland.
Step 2: Reserve the Trade Name
Select a unique trade name for your business that aligns with your brand and follows Sharjah’s naming guidelines. The trade name must be registered and approved by the Sharjah Economic Development Department (SEDD).
Step 3: Submit Initial Approval
Submit the initial approval application to the SEDD. This includes basic information about your business activities, shareholder details, and trade name reservation.
Step 4: Draft the Memorandum of Association (MOA)
Create the MOA outlining the roles, responsibilities, and share distribution among the business partners. If you are setting up in the mainland, this document needs to be notarized.
Step 5: Rent an Office or Warehouse
You will need to lease a commercial space in Sharjah to proceed with your business license application. Free zone setups often come with pre-built office solutions, while mainland setups require renting space on your own.
Step 6: Apply for the General Trading License
Once the initial steps are complete, submit your application for the general trading license to the SEDD or the relevant free zone authority. You will need to provide:
- Trade name approval
- MOA
- Lease agreement
- Passport copies of shareholders
- Additional documents based on the business type
Step 7: Pay the Fees
Pay the license issuance fees, which vary based on whether you are setting up in a free zone or mainland. These fees may include the cost of the license, registration, and other administrative charges.
Step 8: Obtain Your General Trading License
Once your application is processed and the fees are paid, you will receive your general trading license. This license allows you to start your trading operations immediately.
5. Costs Involved in Getting a General Trading License
The cost of a general trading license in Sharjah varies depending on whether you are setting up in a free zone or the mainland. On average, the license can range from AED 15,000 to AED 50,000. Additional costs include visa fees, office rent, and registration charges.
6. Visa Eligibility
With a general trading license, you are eligible to sponsor employee visas, and for mainland setups, you may also sponsor family visas. Free zones typically have set visa quotas, depending on the office space you lease.
7. Post-License Requirements
After obtaining your license, you will need to open a corporate bank account and may need to register with VAT authorities if your business exceeds the VAT registration threshold.
Conclusion
Obtaining a general trading license in Sharjah is a straightforward process, especially when you follow the necessary steps and ensure compliance with local regulations. With Sharjah’s strategic benefits, a general trading license can open the door to unlimited business opportunities across various industries.
