Obtaining a trade license in Sharjah can be a complex process, but with the right guidance, it can be streamlined and efficient. DBS Business Setup, a trusted business setup and support services consultancy in Dubai, offers comprehensive assistance for business registration in mainland, free zones, and offshore areas in Dubai and the UAE. They also provide support in obtaining necessary approvals from government departments and authorities, opening corporate bank accounts, VAT registration and filing, and corporate tax registration and filing. With their expertise and knowledge, DBS Business Setup can help you navigate the requirements and procedures for obtaining a trade license in Sharjah, ensuring a smooth and successful setup for your business.

Documents Required for Trade License in Sharjah

In order to obtain a trade license in Sharjah, there are certain documents that are required to be submitted to the relevant authorities. These documents are essential for the registration and licensing process, and failure to provide them may result in delays or rejection of the application.

The specific documentation required may vary depending on the type of business activity and legal form chosen. However, there are some common documents that are generally required for obtaining a trade license in Sharjah. These documents include:

• Valid passport copies of the business owner(s) or partners
• Emirates ID copies of the business owner(s) or partners
• Visa copies of the business owner(s) or partners
• Proposed trade name reservation certificate
• Premises lease agreement or ownership documents
• No-Objection Certificate (NOC) from the relevant authorities
• Memorandum of Association (MOA) or Partnership Agreement
• Financial statements of the previous year (if applicable)
• Lease agreement or ownership documents for office or warehouse space
• Copies of personal and company bank statements
• Power of Attorney (if applicable)
• Visa application for employees

It is important to ensure that all the required documents are complete and accurate before submitting the application for a trade license in Sharjah. Any missing or incorrect information may lead to delays in the processing of the application or even rejection.

Steps to Obtain a Trade License in Sharjah

Obtaining a trade license in Sharjah involves several steps that need to be followed in order to successfully register a business and obtain the necessary license. These steps are designed to ensure that the business complies with all the legal requirements and regulations set by the Sharjah Economic Development Department (SEDD). Here is a step-by-step guide on how to obtain a trade license in Sharjah:

Step 1: Determine the Business Activity

The first step in obtaining a trade license in Sharjah is to determine the primary business activity of the company. The SEDD has categorized business activities into various sectors, such as commercial, industrial, and professional. It is important to accurately identify the main business activity as it will determine the type of trade license required.

Step 2: Choose a Legal Form

After determining the business activity, the next step is to choose a legal form for the company. This could be either a sole proprietorship, partnership, or a limited liability company (LLC). The choice of legal form will depend on factors such as ownership structure, liability, and investment requirements.

Step 3: Reserve a Trade Name

Once the legal form is chosen, the next step is to reserve a trade name for the company. The trade name should be unique and should not violate any trademarks or copyrights. The SEDD provides an online platform for trade name reservation, and a reservation certificate will be issued upon successful reservation.

Step 4: Submit the Application

After reserving the trade name, the next step is to submit the trade license application to the SEDD. The application form should be completed accurately and all required documents should be attached. The application should include details such as the trade name, business activity, legal form, and ownership structure.

Step 5: Pay the Fees

Upon submission of the application, the required fees should be paid to the SEDD. The fees may vary depending on the type of business activity and legal form chosen. It is important to pay the fees promptly to avoid any delays in the processing of the application.

Step 6: Obtain Approvals and Signatories

After the payment of fees, the application will be reviewed by the SEDD. If all the documents and information provided are in order, the SEDD will issue various approvals and signatories. These approvals may include the approval of the Ministry of Economy, Ministry of Labor, and other relevant authorities.

Step 7: Collect the Trade License

Once all the necessary approvals and signatories are obtained, the final step is to collect the trade license. The trade license will be issued by the SEDD and will include details such as the trade name, business activity, legal form, and validity period. This license is essential for conducting business activities in Sharjah.

By following these steps and ensuring that all the required documents are provided, individuals and businesses can successfully obtain a trade license in Sharjah and legally operate their business activities.

Types of Trade Licenses in Sharjah

In Sharjah, there are three main types of trade licenses that businesses can obtain depending on the nature of their activities. These licenses are issued by the Sharjah Economic Development Department (SEDD) and have different requirements and restrictions. The three types of trade licenses in Sharjah are:

1. Commercial License

A commercial license is required for businesses engaged in trading activities, such as buying and selling goods. This license allows businesses to import, export, distribute, and sell goods within the Emirate of Sharjah. It is suitable for businesses involved in retail, wholesale, general trading, and other similar activities.

2. Industrial License

An industrial license is required for businesses engaged in manufacturing or industrial activities. This license allows businesses to set up factories, manufacturing plants, or other industrial facilities in Sharjah. It is suitable for businesses involved in the production of goods, assembly, packaging, or other industrial processes.

3. Professional License

A professional license is required for businesses engaged in professional services, such as consulting, accounting, legal services, engineering, and medical services. This license allows professionals to offer their expertise and services to clients in Sharjah. It is suitable for individuals and firms providing specialized services in various sectors.

Each type of trade license has specific requirements, restrictions, and fees associated with it. It is important for businesses to determine the most appropriate type of trade license based on their activities and ensure compliance with the relevant regulations and guidelines.

Trade License Activities in Sharjah

The trade license activities in Sharjah are diverse and cover a wide range of sectors. The Sharjah Economic Development Department (SEDD) has categorized the activities into different sectors to regulate and monitor the business activities within the emirate. Some of the common trade license activities in Sharjah include:

General Trading License

A general trading license allows businesses to engage in a variety of trading activities, such as importing, exporting, distributing, and selling goods. It is suitable for businesses involved in retail, wholesale, and general trading.

Professional Consultancy License

A professional consultancy license allows individuals and firms to provide specialized services in various sectors, such as management consulting, legal consulting, engineering consulting, accounting, and auditing services. It is suitable for professionals and consulting firms.

Restaurant License

A restaurant license allows businesses to operate restaurants, cafes, or other food and beverage establishments in Sharjah. It is suitable for individuals and businesses in the hospitality industry.

Media License

A media license allows businesses to engage in media-related activities, such as publishing, printing, advertising, broadcasting, and content creation. It is suitable for media companies, advertising agencies, printing presses, and other related businesses.

Real Estate License

A real estate license allows businesses to engage in real estate activities, such as property brokerage, property management, real estate development, and property investment. It is suitable for real estate companies, property developers, and property management firms.

Construction License

A construction license allows businesses to engage in construction activities, such as building construction, civil engineering, infrastructure development, and contracting services. It is suitable for construction companies, contractors, and engineering firms.

These are just a few examples of the trade license activities available in Sharjah. The SEDD has categorized the activities into different sectors to ensure proper regulation and supervision of businesses in Sharjah.

Trade License Fees in Sharjah

The trade license fees in Sharjah depend on various factors, such as the type of trade license, the legal form of the company, and the business activities involved. The fees are determined by the Sharjah Economic Development Department (SEDD) and may be subject to change.

Generally, the trade license fees in Sharjah include:

• Trade name reservation fee
• Initial approval fee
• License issuance fee
• Annual license renewal fee
• Additional fees for specific activities or services

The specific fees for each type of trade license and activity can be obtained from the SEDD website or through consultation with business setup consultants. It is important for businesses to budget for the trade license fees and ensure timely payment to avoid any penalties or delays.

Trade License Renewal in Sharjah

Once a trade license is obtained, it is important for businesses to renew the license before its expiration date. The renewal process is essential to ensure the continuous legality and operation of the business in Sharjah. Here are the steps and documents required for trade license renewal in Sharjah:

Documents Required

• Trade license renewal application form
• Valid passport copy of the business owner(s) or partners
• Emirates ID copy of the business owner(s) or partners
• Valid residence visa copy of the business owner(s) or partners
• Valid lease agreement or ownership documents for office or warehouse space
• Copy of the previous trade license

Steps to Renew a Trade License

1. Obtain the trade license renewal application form from the Sharjah Economic Development Department (SEDD) or their online portal.
2. Complete the application form accurately and attach the required documents.
3. Pay the trade license renewal fees to the SEDD.
4. Submit the application form and fees to the SEDD.
5. Await the approval and issuance of the renewed trade license.
6. Collect the renewed trade license from the SEDD.

It is important to note that trade license renewal should be done before the expiration date to avoid any penalties or fines. Failure to renew the trade license may result in the suspension or cancellation of the license and potential legal consequences.

Trade License Cancellation in Sharjah

In certain circumstances, businesses may need to cancel their trade license in Sharjah. This could be due to various reasons, such as business closure, change in ownership, or relocation. The trade license cancellation process should be properly followed to ensure that the business is legally closed and all obligations are fulfilled. Here are the steps and documents required for trade license cancellation in Sharjah:

Documents Required

• Trade license cancellation application form
• Valid passport copy of the business owner(s) or partners
• Emirates ID copy of the business owner(s) or partners
• Valid residence visa copy of the business owner(s) or partners
• Copy of the previous trade license

Steps to Cancel a Trade License

1. Obtain the trade license cancellation application form from the Sharjah Economic Development Department (SEDD) or their online portal.
2. Complete the application form accurately and attach the required documents.
3. Pay any outstanding fines or fees to the SEDD.
4. Submit the application form, documents, and proof of payment to the SEDD.
5. Await the approval and confirmation of the trade license cancellation.
6. Obtain clearance certificates from relevant authorities, such as the Ministry of Economy and Ministry of Labor.
7. Cancel any sponsorship or visa-related obligations.
8. Close the business bank accounts and settle any financial obligations.
9. Notify business partners, suppliers, and customers about the trade license cancellation.
10. Surrender the original trade license to the SEDD.

Properly following the trade license cancellation process ensures that the business is closed legally and all obligations are fulfilled. Failure to cancel the trade license may result in legal consequences and may affect the ability to conduct future business activities in Sharjah.

In conclusion, obtaining a trade license in Sharjah involves a series of steps and requirements that need to be followed. The specific documents required may vary depending on the type of business activity and legal form chosen. It is important to accurately complete the application form, pay the necessary fees, and comply with all the regulations and guidelines set by the Sharjah Economic Development Department (SEDD). By following the proper procedures for trade license renewal and cancellation, businesses can ensure the continuous legality and operation of their activities in Sharjah.