- December 14, 2021
- Posted by: DBS
- Category: Dubai Business Services
Cost of Company Formation in Sharjah
If you are looking to start your own business, you may have heard about the cost of company formation in Sharjah. But what does it cost? If you are considering starting a new company or expanding an existing one, this information is very important. This blog post will talk about the cost of company formation in Sharjah and how much money it can cost for different forms of businesses.
Company Formation in Sharjah
The Sharjah government has made it easy for businesses to register and establish themselves in the emirate. The process is straightforward, with minimal paperwork required. There are a number of registered agents who can help you through the process, making it as easy as possible.
There are several types of company formation available in Sharjah, so you can find the right option for your business. The most common types are limited liability companies (LLCs) and Free Zone Companies. LLCs offer protection to their owners’ personal assets, while Free Zone Companies have certain benefits that make them attractive to foreign investors.
There are a number of benefits to doing business in Sharjah, including:
- Low cost of living and operating costs
- Proximity to Dubai and other major cities in the region
- Well-developed infrastructure and transport links
- Tax advantages for companies doing business in Free Zones
If you are looking to establish a business in the UAE, Sharjah is a great place to do it. The process is straightforward, and there are a number of benefits to doing business here. For more information on company formation in Sharjah, please contact one of our registered agents.
Taxes and Duties
Taxes and duties in Sharjah depend on the type of business. There are different types of licenses that need to be applied for, which will determine how much you’ll pay each year – such as a trade license or service license. However, there is also VAT (Value Added Tax), Service Charge & Corporation Tax. Each has an individual rate, and all businesses must register for VAT if their total annual income exceeds AED 375,000.
There are also other restrictions and requirements that need to be considered when setting up a company in Sharjah.
Company Name Registration
Company name registration is a mandatory step for company formation in Sharjah. The name of the company must be approved by the Department of Economic Development prior to registration.
The company’s name is an important part of its identity and should be carefully selected. It is advisable to choose a name that is easy to remember, relevant to your business, and not too similar to other businesses in the same industry.
Once you have selected a name, you will need to submit an application to the Department of Economic Development for approval. The application must include the company’s full name, trade name (if different), address, and contact details.
If the department approves your company’s name, you can proceed with company registration. If the name is rejected, you will need to choose another name and submit a new application.
Commercial Register Application Form
– The commercial register application form can be downloaded from the website of the Department of Economic Development (DED) in Sharjah.
– A copy of the commercial register application form should be submitted to the DED with copies of all required documents, including the company’s memorandum and articles of association.
– You can visit the website of DED or contact them for more details on costs and procedures. Cost depends on company type and number of founders, etc.
Certificate of Incorporation
The Certificate of Incorporation is the official document that grants a company its legal status as an independent entity. This certificate, issued by the Ministry of Commerce and Investment in Sharjah, will allow your new Company to begin operations without any further governmental approvals. It also entitles you to apply for Commercial Registration for trade transactions between UAE companies with the Sharjah Chamber of Commerce and Industry.
In order to obtain your Certificate of Incorporation, you will need to provide the following documentation:
– A Memorandum of Association (MOA) fully executed by all shareholders
– The company’s name and trademark, if applicable
– Proof of share capital payment (e.g., bank receipt or cheque)
– The company’s public notary stamp affixed on the Memorandum of Association and an original Certificate of Incorporation
– A copy of the passport for each shareholder/director, as well as a copy of UAE Commercial Registration for all shareholders holding more than 25% share in your new Company. All shareholders must be natural persons.
– A copy of the commercial registration for each shareholder holding less than 25% share in your new Company, as well as a letter from all shareholders owning more than 25% declaring their consent to allow you to act on their behalf pursuant to Article 18 of Federal Law No. 08/2010 regarding Commercial Companies (the “Companies Law”).
– A letter from the shareholder/director with more than 25% share in your new Company declaring that, to his knowledge and belief, no other company has been incorporated which uses the same trademark as your proposed company.
The certificate is issued after submitting all required documentation and paying a fee of Dh. 100 per page (Dh. 100 for the first page and Dh. 50 per additional page).
Business License Application Form
This application form will require you to provide information about your business. You should also attach the required documents with the application form. The following are some of the requirements that you can find on the Business License Application Form for Company Formation in Sharjah:
- Certificate of Good Standing (company must be registered)
- Memorandum and Articles of Association
- Certificate of Incorporation (if the company is a foreign one)
- O Box address in UAE
- Number of employees/staffs
The above requirements may be subject to change depending on each country or region. You need to check with your local government about any possible changes that might affect your application.
The cost of company formation in Sharjah is a small price to pay when you consider the benefits. In addition, there are many other costs that come with starting up your own business, which can be avoided by using an LLC or Incorporation Services Company. These include hiring employees and renting property for office space, among others. Make sure to contact us today if you have any questions about setting up your new business in Sharjah!
Contact DBS Business Setup today if you’re interested in getting one of these licenses, and we can assist with preparing all the necessary documents so you can get started as soon as possible!
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