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Mainland company formation · Sharjah

Sharjah mainland company formation

Sharjah's licensing authority publishes its fee rules, its service times and an approximate first year cost. This page sets out who can own a Sharjah company, how the fee is calculated, what the Instant License allows and what happens at renewal.

The short answer

A Sharjah mainland company is licensed by the Sharjah Economic Development Department (SEDD). Its standard license is commercial, professional or industrial and requires physical premises. SEDD states that since 2021 foreigners have been able to own 100% of most businesses. SEDD's FAQ gives an approximate first year licensing cost of AED 15,000 to AED 30,000.

Who issues business licenses in Sharjah?

The Sharjah Economic Development Department, known as SEDD, issues mainland business licenses in Sharjah.

SEDD groups its licenses in five ways. Two of them are open only to UAE nationals.

  • Standard license: commercial, professional or industrial, for a physical premises
  • Instant License
  • Electronic Trading License, which has no physical premises
  • Eitimad license, home based and for UAE nationals only
  • Birq license, for young UAE nationals

Can a foreigner own 100% of a Sharjah mainland company?

SEDD's FAQ answers the question 'Do I need a local partner?' with 'not necessarily': since 2021 foreigners have been able to own 100% of most businesses.

The legal form matters. SEDD describes three structures, and a commercial or industrial sole proprietorship is open to UAE and GCC nationals only. SEDD's digital services also list the general partnership and the limited partnership.

The three structures SEDD describes
StructureWho can own itGood to know
Sole proprietorshipA UAE national or GCC national, 100%A commercial or industrial sole proprietorship may be owned by UAE or GCC nationals only
Limited liability company (LLC)2 to 50 partnersThe partners have limited liability
Sole proprietorship (service agent)A foreign national, with a UAE citizen as agentListed by SEDD as a separate legal form

Good to knowOfficial sources conflict on branches of foreign companies. SEDD's FAQ lists an approved agency contract among the documents for a foreign branch, while the Ministry of Economy and Tourism states that foreign companies opening a branch are not required to appoint a UAE national agent. We confirm the position for your activity with SEDD before you apply.

How are Sharjah license fees calculated?

SEDD's FAQ states that license issue and renewal fees are 8% of the lease or site area value, depending on the activity, for UAE national partners, and 13% for partners of other nationalities.

SEDD also gives an approximate first year licensing cost of AED 15,000 to AED 30,000. It is the only total cost range we found published by a UAE licensing authority, and SEDD presents it as approximate.

Fees published in the SEDD FAQ
FeeAmount
License issue or renewal, UAE national partners8% of the lease or site area value
License issue or renewal, partners of other nationalities13% of the lease or site area value
Trade name, ArabicAED 250
Trade name, translatedAED 1,250
Trade name, foreignAED 2,250
Technical evaluation of the siteAED 150
Adding an activityAED 300 per activity
Adding or removing a partnerAED 500 per partner

Good to knowThe FAQ wording on the 8% and 13% rule is brief and says the basis depends on the activity. We confirm the position for your activity with SEDD, and tell you the cost in writing before you commit.

What is the Sharjah Instant License?

The Sharjah Instant License is for office activities that need no approvals from other authorities. Sharjah24, the Sharjah government's media outlet, reported that SEDD launched it on 29 June 2025 and that it is issued in one working day.

The conditions below come from that report. We could not read SEDD's own terms page for the Instant License, so we confirm the conditions with SEDD before you apply.

  • Issued in one working day
  • No Memorandum of Association and no signed lease needed in the first year
  • A maximum of three employees
  • For office activities that need no approvals from other authorities
  • Standard requirements apply from the second year

Good to knowOne working day is the reported time for issuing the license. It is not the time the whole setup takes.

Do you need a physical office in Sharjah?

SEDD states that a standard license requires a physical location and cannot be run from home.

SEDD's FAQ states that the lease must be notarised by Sharjah City Municipality and be valid for at least three months. It says site approval typically takes 3 to 5 business days after a complete application, and that the required space depends on the activity and the regulator.

The Electronic Trading License is the SEDD license that has no physical premises. The home based Eitimad license is only for UAE nationals.

How long does it take to get a Sharjah trade license?

SEDD states that an instant license is issued within one day and a regular license in 5 to 7 business days.

Those are the times for issuing the license. Site approval is a separate step, which typically takes 3 to 5 business days after a complete application. No authority publishes an end to end timeline for the whole setup.

SEDD states that people who are not UAE residents can obtain a license, and that an investor residency permit will be required after issuance.

What happens after the license is issued, and at renewal?

After licensing, SEDD lists four next steps: an establishment card from the Ministry of Human Resources and Emiratisation, a bank account, a signboard permit and tax registration. A company incorporated on or after 1 March 2024 must apply for corporate tax registration within three months of incorporation.

SEDD also publishes its renewal and closing rules.

  • A license can be renewed up to 3 months before it expires.
  • Late renewal fines start from AED 200 per month.
  • SEDD cancels a license administratively once it has been expired for more than 5 years.
  • To cancel an LLC license, a 45 day press notice is required, compared with 7 days for an individual license. The declaration fee is AED 350.

Good to knowOpening a bank account is the bank's decision. Banks run their own checks.

Common questions

Sharjah mainland: common questions.

Answered from the official sources listed below. If yours is not here, ask us directly.

Who issues business licenses in Sharjah?

The Sharjah Economic Development Department (SEDD) issues mainland business licenses in Sharjah. Its standard license can be commercial, professional or industrial, and it also offers an Instant License and an Electronic Trading License.

Can a foreigner own 100% of a Sharjah mainland company?

The Sharjah Economic Development Department states in its FAQ that a local partner is not necessarily needed, because since 2021 foreigners have been able to own 100% of most businesses. It also states that a commercial or industrial sole proprietorship may be owned by UAE nationals or GCC nationals only.

Can I be a sole owner in Sharjah as a foreigner, or do I need a service agent?

The Sharjah Economic Development Department states that a commercial or industrial sole proprietorship may be owned by UAE nationals or GCC nationals only. For a foreign national it describes a service agent structure, with a UAE citizen as agent, and the limited liability company, which it describes as having 2 to 50 partners.

What is the Sharjah Instant License and who qualifies?

According to the launch report on Sharjah24, the Sharjah Instant License was launched on 29 June 2025 and is issued in one working day for office activities that need no approvals from other authorities. No Memorandum of Association or signed lease is needed in the first year, and the maximum is three employees. Standard requirements apply from the second year.

Do I need a physical office in Sharjah, and who has to approve the lease?

A standard Sharjah license requires a physical location and cannot be run from home. The lease must be notarised by Sharjah City Municipality and be valid for at least three months. Site approval typically takes 3 to 5 business days after a complete application.

How long does it take to get a Sharjah trade license?

The Sharjah Economic Development Department states that an instant license is issued within one day and a regular license in 5 to 7 business days. These are the times for issuing the license, not for the whole setup. Site approval is a separate step, which typically takes 3 to 5 business days after a complete application.

Can I apply for a Sharjah license while I am still living abroad?

The Sharjah Economic Development Department states that people who are not UAE residents can obtain a license, and that an investor residency permit will be required after the license is issued.

What happens if I renew my Sharjah license late?

The Sharjah Economic Development Department states that late renewal fines start from AED 200 per month. A license can be renewed up to 3 months before it expires, and a license that has been expired for more than 5 years is administratively cancelled.

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