• Activity identification is the first step in the process of issuing a license. Through the activity, the parties associated with it and the legal forms of such activity are identified. There are more than 3000 economic activities in the Emirate of Sharjah. Such activities are divided into different groups which are: business, industrial professional and tourist activities. It should be noted that some activities meet site-specific conditions and specifications such as location and area of the facility.
• The type of license is related to activity type. So, if the type of activity is professional, then the license’s type would be the same. Also, if one license had more than one type of license, the license type would be determine according to the dominant activity. It should be stated that the industrial activity is the largest in the Emirate followed by the commercial them the professional one. In addition, it is possible to combine industrial, commercial and professional activities if they are homogeneous or if a permit is obtained to add these activities together. For example, if commercial and professional activities are combined in a single license, the type of license is determined according to the dominant activity (this does not apply to tourism activities).
• Although SEDD is the sole entity to license for economic establishments in Sharjah, it should be noted that some activities are subject to other local and federal authorities. These activities are regulated to certain conditions determined by these authorities’ respective laws and regulations. Therefore, some activities require obtaining the approval form these regulators.

• Obtaining approvals from official authorities depending on business nature. 

• SEDD branches.

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• When determining the legal status of an economic entity, the type of the company, its activities, number of nationalities an partners as well as their shares that should be taken into account.
• The legal status of the economic establishment is directly related to the selected activities and the customer should verify them and their compatibility with the legal status.
• It should be taken in confederation that the legal status include the following:

• Individual Establishment (LLC)

An individual limited liability company is one with limited liability, that is owned by one person, or 2 partners and no more than 50 ones. The owner of the company is not asked for its commitments but only by the extent of the incoming Capital after establishing it and should subject to the company's provisions and rules.

• Service Agent (or Business Partnership License)

Establishments that are owned by only one person with the purpose of practicing any economic activity (commercial or professional). The establishment’s financial liability extends to the establishment owner, as he/she bears all financial obligations of the establishment. If the owner of the establishment is not a UAE or GCC citizen, the license must be regulated through a local Service Agent who shall be a UAE citizen and must be a real person.

• Local Company Branch

Application submitted by the concerned parties for a license to establish a branch of a company in other Emirates.

• Foreign Company Branch

Application submitted by the concerned parties for a license to establish a branch of a company outside UAE.

• Professional Company

A professional company is established due to a contract made by two or more people whom agree to certain obligations and conditions that are granted to others for remuneration. This remuneration is granted whether work is distributed equally or differentially with the condition of business union or its accomplices as well as partners must agree to remain in the work that they agreed to work upon.

• General Partnership Company

General Partnership Companies are ones that are formed by two or more partners who are jointly liable to the extent of all their shares for the company’s liabilities. All partners must be UAE citizens.

• Public Joint Stock Company

Public Joint Stock Company is a company at which the number of founders is not less than five ones where the company’s share capital is not less than thirty million dirhams. The Capital is divided into equal negotiable shares Also, the founders should subscribe portion of these shares while the rest of the stock would be placed for the public in a general subscription and the shareholder is only liable to the extent of his/her Capital share.

• Private Joint Stock Company

Private Joint Stock Company is a company at which the number of founders is not less than two founders and no more than 200 ones where the company’s share capital is not less than five million dirhams. The Capital is divided into equal negotiable shares that are paid as whole without placing them in general subscription by signing on the memorandum of association and the shareholder is only asked about his/her own shares.

• Sole Proprietorship

Establishments that are owned by only one person with the purpose of practicing any economic activity (commercial, professional, or industrial). The establishment’s financial liability extends to the establishment owner, as he/she bears all financial obligations of the establishment.

• SEDD branches.

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• What is Trade Name?
• It is the name that distinguishes a license from the other so that customers won’t fall under suspicion. Also, the Trade Name should be related to the type or indication of the license.

• How to register Trade Name?
• Investors, or their representatives, should apply for a license using the license application form and fill it with all required data (such as the type of license, the legal form of the trade name, the required activities and partners) with trade names provided in order of preference and such names should be in Arabic.
• New investors must register first through the Department’s website www.sedd.ae or through one of Tasheel service centers.
• Investor should submit the application form to the employee handling entry of trade name data with all the required documents, or submit the application electronically through SEDD website or at one of Tasheel service centers.
• The employee handles entering the trade name data of the investor and the selection of trade names from a list submitted by the investor according to the mentioned priorities. Also, he/she should make sure to select a trade name that is not booked by another investor and does not violate the conditions and instructions.
• Activities should be added to the name. There is no limit to the number of added activities but they must be homogeneous unless an exception is granted from the concerned Department.
• In case all names were reserved, investor can select other names and so on, until a trade name is booked for the company or the investor may leave selection of the trade name to the employee.
• The payment voucher should be issued with the determined fees to be collected as well as the issuance of the invoice and trade name certificate.

Trade Name Terms and Conditions:

• The trade name must not be previously registered or currently used for the same activity or for a similar type of activity.
• The trade name must be consistent with activity and legal form required.
• The trade name should not include name of Allah, sectarian names, and names of governing authorities, or emblems of local, Arab and international organizations.

• License form.
• Investor license report, if any.
• Investor electronic registration form
• Copy of investor's valid passport, as well as national ID and residence for foreigner.
• Certified No Objection Letter for non-investors.
• Permission for minors (under 21) to carry out business from the Legal Court.
• Approvals from official authorities if necessary depending on business nature.

• SEDD branches.
• SEDD website.
• Service centers.
• SEDD application.

• Trade Name Issuance: ......................................... AED 250
• Translated Trade Name Issuance: ............ AED 1250
• (for local and foreign companies branches)
• Foreign Trade Name Issuance: ................... AED 2250
• (for local and foreign companies branches)

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• Depending on company legal status, it may be necessary to draft and sign a memorandum of association. Also, it may be necessary to have a local service agent agreement or a company agent in some cases.

The memorandum of association should conclude if the company status is one of the following:

• Limited Liability Company.
• Sole Proprietorship.
• Private Joint Stock Company.
• Public Joint Stock Company.
• Limited Partnership Company.
• General Partnership Company
• The customers must document all legal agreements and contracts in any UAE court or notary public.

When a branch of an existing company is registered, the original company’s memorandum of association should be provided. However, if the company is an individual one or carries a license, such memorandum is not required.
In addition to the memorandum of association, customer should conduct local service agent agreement (natural or juridical) n the event that at least one citizen partner is not present in the license. Also, it is necessary to appoint local service agent/ company agent according to legal form of the company and the type of activity.

• UAE courts or notary public.

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• Evaluating the locations on which the licenses will be established in order to ensure that they meet the specifications set by SEDD.

• Customer can submit a technical evaluation request through multiple channels: SEDD headquarter, website, and application.
• Location data should recorded to be licensed.
• Inspectors should visit the site and evaluate it.
• All data should be recorded in license form and establishment should be built on the approved site.

• Trade name request.
• Site map
• Title deed

• SEDD branches.
• SEDD website.
• Service centers.
• SEDD application.

• AED 150

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•  Some activities require special approvals for licensing by the government entities (local and federal) that organize such activities.

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• After obtaining the approval of the concerned parties, if any, the investor should visit SEDD, fulfill all legal requirements, and pay required fees for issuing and obtaining the license.
•  When applying for a license, please make sure to attach the required documents to each of the above steps.

Kindly be noted that:

• License’s issuance date shall be counted form the date of issuance of payment voucher.
• License’s fees should be paid within 15 days from the date of the payment voucher issuance.
• If license fees is not paid within 6 months from the date of payment voucher issuance, transaction will be cancelled automatically.
• Congratulations! You can now start conducting your business in Sharjah.

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