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Forming a new business in Sharjah, United Arab Emirates (UAE) involves both federal and local laws. These encompass several aspects, from choosing the business entity type you wish to form, securing the necessary registrations and licenses, and complying with local, state, and federal taxation rules. Be aware that there are exclusive free zones offering additional benefits and opportunities to foreign investors. However, the process could be complex depending on the nature of the business, which makes it advisable to get legal advice.
Starting a business requires thorough planning and understanding of various legalities. A lawyer can navigate through these complexities ensuring that your interests are protected. They can help in selecting the most suitable type of business entity, draft partnership agreements, secure necessary permits and licenses, and ensure compliance with tax laws. In cases involving foreign ownership and investment, the legal hurdles might be even higher, where experienced legal counsel becomes essential.
The Emirates of Sharjah is governed by UAE Federal Law as well as its own local legal regulations. It is requisite that a UAE national be a partner holding at least 51% of the shares, except in Free Zones and some sectors where 100% ownership for expats is permissible. Additional permits may be required based on the nature of the business such as health, environment, and product-specific regulations. It is also important to comply with labor regulations in terms of hiring, compensations, and working conditions.
Establishing a business requires obtaining a trade license, registering with the Chamber of Commerce and Industry, and possibly additional permits based on the type of business, besides other requirements based on the chosen business entity.
Several types of business entities can be formed in Sharjah, including Sole Proprietorship, Civil Company, Limited Liability Company, Public & Private Joint Stock Company, and partnerships. Free zone companies and branches or representative offices of foreign companies are also possible.
In general, foreign ownership is limited to 49%, requiring a local partner to own at least 51%. However, in free zones and sectors identified by the UAE government, 100% foreign ownership is allowed.
Free zones are areas with special tax, customs, and imports regime. These are primarily designed for foreign investors offering 100% ownership, zero corporate and personal tax for a number of years, and other benefits.
Yes, it is compulsory to have physical office space in Sharjah, except for some cases allowed in the free zones.
Sharjah Chamber of Commerce and Industry and Sharjah Economic Development Department are key resources for understanding business formation requirements. Sharjah and UAE's federal government websites also provide ample information. Specific Free Zone Authorities can detail out the benefits and procedures for setting up businesses in respective zones.
If you require legal assistance in New Business Formation, it's recommended to consult with a lawyer who is experienced in UAE business law. They can guide you through the process, addressing all legal necessities including documents, business structure, license applications, and regulatory compliance, ensuring your journey into the business world is smooth and legally secure.
