Planning to start a business in Sharjah? If so, obtaining a trade license is one of the primary procedures in the foundation of a company. You will need a license to carry on with your business operations Thus, we are going to reveal a thorough tutorial today on obtaining a trade license in Sharjah. 

In addition to answering all your concerns about the Sharjah trade license, this book also explains the cost of setting up a business in Sharjah. So, without further ado, let's get going.

How can one obtain a trade license in Sharjah?

The following are the steps you must take to get your Sharjah trade license.

Step#1 - Determine your business activities

Your business activities must be clearly defined. For instance, if you intend to operate a trade business, import and export may be among your daily activities. Typically, the Economic Development Department (SED) of Sharjah is where you obtain your license. By following all applicable laws and regulations, this regulatory body makes sure that you launch your new business. Whatever the size and scope of your business, SEDD will issue your license and permits.

To ensure that a company is established in accordance with laws and regulations, this department closely collaborates with other governmental organizations. This division provides advice and support to new businesses in choosing the best site for their operations, in addition to aiding them with the company registration procedure.

You may need to apply for extra licenses and approvals from other government agencies if your business activities involve finance or healthcare, even if SEDD is the primary authority for approval.

• For instance, Ministry of Health authorization is necessary for pharmaceutical and healthcare businesses.
• The UAE Central Bank must get permission if you are planning to open a bank or financial institution.
• The Ministry of Finance and Industry must give its clearance before an industry can operate.
• Insurance firms need the approval of the Ministry of Economy and Commerce.

Step#2 - Decide which kind of trade license to get

The next step is to select a type of trade license depending on your business activities once you identify and choose your business activities. Selecting the proper trade license is essential because each sort of license has its own set of guidelines.

Step#3 - Registering a trade name

To register your business with the Department of Economic Development (DED) in Sharjah, you must first choose a distinctive trade name.

Step#4 - Decide on a legal framework

It's time to define your business's legal structure. Selecting a company structure involves determining if you want to create an LLC, partnership, sole proprietorship, or limited liability corporation.

Step#5 - Send your application in

You must now apply by sending in the necessary paperwork, the license application fee, and all pertinent business facts.

Step#6 - Get permission from the authorities

Securing approval from pertinent government authorities, such as the Ministry of Finance, Health, Commerce, etc., is a crucial step after submitting your application. Only when engaging economic activities that call for extra authorization is this government approval necessary. 

How much does it cost in Sharjah to obtain a trade license?

The cost of obtaining a trade license in Sharjah is determined by considering a number of expenses, including:

• The amount you will be charged when applying for a license is known as the application fee.
• The amount of money you must pay to reserve a trade name for your business is known as the trade name registration fee.
• The amount of money you must pay to get a license issued to you is known as the license issuance fee. Depending on the sort of business, this cost will change. The length of the license is another factor.
• Rental cost: Securing a physical space for your business is essential when setting it up in Sharjah. Thus, you will need to add the leasing fee to the total cost of your trade license. The location and size of a commercial property affect its price.
• Additional costs: The cost of obtaining health and safety certifications, municipal permission fees, and visa fees are additional costs.

Always get in touch with Prosper if you have any questions about how much obtaining a trade license in Sharjah will cost in total. Our experts will assist you every step of the way as you set up your business in Sharjah and will provide you with a detailed breakdown of the total cost.

Renewal of Sharjah's trade license

If you have obtained a trade license in the Sharjah Free Zone and now want to renew your license, then you need to submit the following documents to DED:

• License renewal form,
• NOC/No objection certificate from relevant authorities, 
• Copies of your national ID card and UAE passport, 
• certified lease contract,
• and copy of Notary Public’s signature authentication verification.

Once you submit all the paperwork and renewal fees, you need to wait. If everything is in order, DED will approve the renewal of your trade license in Sharjah.

Grace Duration

There is a grace period of two months for renewals. Ensure that you renew your license in this window of time. If you don't renew your license in a timely manner once it has expired, you'll have to pay fines. After the grace period, you must pay a fine of 200 AED every month. In addition, you can be required to pay extra immigration fire for your expired establishment cards.

Conclude

At last, you are fully aware of the steps involved in obtaining a trade license in Sharjah. There are numerous processes to follow, including obtaining a trade license and registering your trade name when starting a company in Sharjah. For you, we at Prospr wish to make the Sharjah business formation process straightforward. Our experts can help you more effectively than others because they have years of experience in this field. You can thus get in touch with us if you need assistance setting up a business in Sharjah or if you wish to obtain a trade license.