Are you planning to commence a business in Sharjah? If yes then one of the main steps in company formation is to obtain a Sharjah trade license. Without a license, you won’t be able to continue your business operation. So, today we are going to unlock a comprehensive guide on how to get a business license in Sharjah. 

This guide also helps you understand the cost of setting up a business in Sharjah and answers all the questions you have regarding the Sharjah trade license. So, let’s get started without any further ado.

Also learn about A detailed guide about different types of Trade Licenses in UAE

How to get Sharjah trade license?

Here are some steps you need to follow to obtain your Sharjah trade license.

Step 1: Identify your business activities:

You need to define your business activities. For example, you may plan to run a trading business and your activities involve import and export. Normally, you get your license from Sharjah’s Economic Development Department SEDD. This regulatory authority ensures that you establish your new business by following relevant laws and regulations. Your business license and permits will be issued by SEDD regardless of the size and scale of your business. 

This department works closely with other government entities so that a company setup is done as per rules and regulations. This department helps new companies in the company formation process and also offers guidance and assistance in picking the most suitable location for business.

Learn about Difference between Commercial license and Professional license in Dubai

Although you need approval mainly from SEDD yet if your business activities are of a financial and healthcare nature, you may need to seek additional approval and licenses from other government bodies. 

For example:

• Ministry of Health clearance is essential for healthcare and pharmaceutical companies.
• If you are planning to set up a financial institute or bank, you need approval from the UAE Central Bank.
• Business operation of industries requires approval from the Ministry of Finance and Industry.
• Approval from The Ministry of Economy and Commerce is required for insurance companies.

Step 2: Select the type of trade license:

Once you identify and choose your business activities, the next step is to choose a type of trade license based on your business. Every type of trade license has specific rules and regulations, so picking the right kind of trade license is a must.

Step 3: Trade name registration:

You need to pick a unique trade name for your business and then register it with the Department of Economic Development (DED) in Sharjah.

Step 4:Select legal structure:

It’s time to define the legal structure of your business. It means deciding whether you want to set up a company as a sole Proprietorship, LLC, partnership firm, or limited liability corporation LLC.

Step 5: Submit your application:

Now you need to apply by submitting all essential details of your business alongside the license application fee and required documents.

Step 6: Obtain government approvals:

Once you send your application, the next important step is to secure approval from relevant government agencies such as the Ministry of Finance, Health, Commerce, etc. This government approval is only required when you are doing specific economic activities for which additional approvals are mandatory. 

How much does it cost to get a trade license in Sharjah?

When it comes to calculating the cost of getting a trade license in Sharjah then it comprises several cost factors such as:

• Application fee– it’s the amount you will receive during the license application.
• Trade Name Registration fee– it’s the amount of money that you will pay while reserving a trade name for your business.
• License issuance fee- it’s the amount of money you will pay when a license is issued to you. This fee will vary from one business type to another. It’s also based on license duration.
• Rental cost– when you are setting up a business in Sharjah, you need to secure a physical location for the business. So, the rental cost is another cost to add to your overall trade license. The cost of commercial premises varies by location and size.
• Other costs- Other fees include visa fees, municipality approval fees, cost of getting health and safety certifications. 

If you are unsure what will be the total cost of getting a trade license in Sharjah, it’s advisable to always consult with Prospr. Our experts are here to offer you a complete breakdown of the overall cost while helping you in starting a business business in Sharjah every step of the day. 

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Sharjah trade license renewal:

If you have obtained a trade license in the Sharjah Free Zone and now want to renew your license, then you need to submit the following documents to DED:

• License renewal form,
• NOC/No objection certificate from relevant authorities, 
• Copies of your national ID card and UAE passport, 
• certified lease contract,
• and copy of Notary Public’s signature authentication verification.

Once you submit all the paperwork and renewal fees, you need to wait. If everything is in order, DED will approve the renewal of your Sharjah trade license. 

Read about How to renew trade license in Dubai?

Grace Period:

You have a 2-month grace period of renewal. Make sure you renew your license within this timeframe. If your license has expired and you fail to renew it on time then you will pay penalties. The fine you pay after the grace period is 200 AED/month. You may have to pay additional immigration fire for your expired establishment cards as well.

Learn about Penalties on expired trade license in Dubai

Wrap up:

Finally, you have a complete understanding of how to get a Sharjah trade license. Setting up a company in Sharjah is a daunting process and there are so many requirements you need to follow from getting a trade license to registering your trade name. At Prospr, we want to make the process of business formation in Sharjah simple and easy for you. With years of experience in this industry, our experts can assist you better than others. So, whether you want to get a trade license or need business setup consultancy services in Sharjah, you can contact us.