Sharjah, one of the emirates in the United Arab Emirates (UAE), has become an attractive destination for businesses seeking to establish their presence in the region. With its strategic location, excellent infrastructure, and investor-friendly policies, Sharjah offers a conducive environment for company formation. This article provides a step-by-step guide to help entrepreneurs navigate Sharjah free zone company formation.
Step 1: Choose a business activity:
The first step in the company formation process is determining the business activity you wish to undertake. Sharjah Free Zone offers licenses for various activities, including trading, consultancy, industrial, and service-related businesses. Identifying the specific activity that aligns with your business goals and objectives is crucial.
Step 2: Select a legal entity type:
Next, you need to choose the legal entity type for your company. Sharjah Free Zone allows entrepreneurs to establish different legal entities, including a Free Zone Limited Liability Company (FZ-LLC) and a Foreign or UAE Company branch. Each entity type has its requirements and benefits, so it is important to understand the implications of each option before making a decision.
Step 3: Determine shareholder and capital structure:
In this step, you need to determine the shareholding structure of your company. Sharjah Free Zone permits 100% foreign ownership, a significant advantage for international investors. It would help if you also decided on the company’s share capital, considering the minimum capital requirements set by the free zone authority.
Step 4: Choose a company name:
Selecting a unique and meaningful company name is essential. The chosen name should comply with the guidelines provided by Sharjah Free Zone and not infringe on any existing trademarks or copyrights. Conducting a name availability search before finalizing the name to ensure its availability is advisable.
Step 5: Submit the application and required documents:
Once you have completed the above steps, you can submit your application to Sharjah Free Zone. The application form and the required documents, such as passport copies, business plans, and relevant licenses or certificates, must be submitted to the free zone authority.
Step 6: Obtain initial approval and lease agreement:
After applying, the free zone authority will review the documents and conduct the necessary checks. If everything is in order, you will receive an initial approval letter. You can sign the lease agreement for the office or warehouse space required for your business operations.