Residence and investment in Sharjah

Sharjah is considered one of the best distinguished places in Dubai in which one can invest, but investing in Dubai requires residence there. We are now clarifying the relationship between investment and residence in Sharjah for migrant workers who have excellent investment ideas and have developed an investment plan, so they want to reside in Dubai and its relationship to investment.

We will respond to them, pointing out the impact of residency on investment in Sharjah, how to reside there, the conditions for residency in Dubai in general, what is the authority responsible for residency in Dubai and the authority responsible for investment, and their relationship to each other, and what are the best places in which they can invest their money and the best locations, and does the Emirati government have a role in Whether or not to invest and activate it in Dubai, we answer all these questions in this topic.

Residence and investment in Dubai have a close relationship with each other, and the multiplicity of commercial activities in Sharjah and the revitalization of the trade and investment market movement made it one of the first cities in which skilled immigrant workers and capital owners can establish investment companies in it in order to invest their money in it, and this is in addition to what the Emirati government provides. Of services to facilitate the investment process in Dubai, it also works to provide the special needs of new projects in all ways and in the fastest time, and facilitates all the facilities and services necessary to start any type of these investments, and also works to provide housing in it by reducing the rate of real estate rents or purchases, which makes buying any property in… Dubai is a real investor there and you have the right to own it and invest in it whatever its value.

Real estate residency in Sharjah is considered what leads to real estate investment, and real estate investment in the Emirates consists of purchasing any building, any residential facility, any company, or purchasing a plot of land to establish an investment company in Sharjah, but with the availability of several conditions that are available and not restricted at all.

Establishing a company in Sharjah

It is necessary to obtain a business visa in the Sharjah region in order to invest in the Sharjah region, invest in Jebel Ali, or invest in the free zone, in the event of a desire to obtain residency in the Emirates to invest in the business of self-employed professionals, and this matter requires a special commercial license. By work, the price of the visa ranges from two thousand five hundred dirhams to sixteen thousand UAE dirhams, depending on the nature of the free zone in which investment and work take place.

As companies wishing to establish their businesses in the free zone enjoy greater flexibility in choosing multiple commercial or service activities that suit the nature of their work, in addition to the tax exemption that distinguishes these areas, which is one of the biggest factors that attract many new entrepreneurs, which contributes to revitalizing the experience. Investors when contracting or establishing companies in the free zone, establishing companies in Jebel Ali, or establishing a company in Sharjah and conducting its business.

Steps to establish a company in Sharjah

Establishing a company in Sharjah requires following several steps. Here are basic steps to establish a company in Sharjah:

1. Develop a basic plan: Before starting anything, you should create a business plan that defines the company\\\’s goals and the steps to achieve them, including the right type of company and business activity.
2. Choosing a company type: You can choose between several types of companies, such as a sole proprietorship, a joint-stock company, or a limited liability company, according to your needs and business goals.
3. Determine the trade name: You must choose a trade name for your company and make sure that it is not similar to any other company in the market.
4. Obtaining licenses and permits: You must obtain the necessary licenses and permits to start your business in Sharjah. Requirements may vary depending on the type of company and business activity.
5. Submitting the application and registration: The application and registration must be submitted to the relevant government agencies, such as the Department of Economic Development in Sharjah, and the documents and information must be kept updated regularly.
6. Opening a bank account: Once licenses and permits are obtained, a bank account must be opened for the company to manage financial and commercial transactions.
7. Insurance and additional licenses: Your company may need the necessary insurances and additional licenses depending on the type of business you are in.
8. Getting started: Once all procedures and collections are completed, you can start working and implement your business plan effectively.

Reasons for establishing a company in Sharjah

Establishing companies in Sharjah is due to many reasons, including the strong and supportive economic environment, legislative and legal facilities, and diverse investment opportunities in various economic sectors. Sharjah provides an environment conducive to entrepreneurship and promotes economic development and innovation, making it an ideal destination for startups, medium and large companies alike. Establishing a company in Sharjah can be a strategic decision of great importance, due to several reasons:

• Encouraging investment environment: Sharjah has an open and encouraging investment environment, providing broad opportunities for investors to establish and expand their businesses.
• Diversity of the economy: Sharjah\\\’s economy is characterized by its diversity, as there are investment opportunities in various sectors such as real estate, tourism, industry, education, and services.
• Facilitated tax policy: The emirate is characterized by a facilitating tax policy, as it does not impose income taxes on companies in many sectors.
• Modern infrastructure: Sharjah provides a modern and advanced infrastructure, which facilitates business management and contributes to accelerating growth processes.
• Strategic Destination: Sharjah is strategically located between Europe, Asia and Africa, making it an attractive destination for businessmen who want to expand on a global level.
• Legal Regulation: There is an effective legal system in Sharjah that protects the rights of investors and provides transparent and effective procedures for managing companies.
• Cultural and Social Presence: Sharjah’s population is culturally and socially diverse, providing an inspiring and diverse environment to work and live.
• Availability of skilled workers: Companies in Sharjah can benefit from the availability of skilled and specialized workers in various sectors.

Costs of establishing a company in Sharjah

The costs of establishing a company in the Sharjah Free Zone vary according to the type of company, the size of capital and the services required. Here are some of the basic expenses you may incur when setting up a company in Sharjah:

1. Registration fees: Includes fees for registering the company and establishing it with the relevant authorities, such as the Department of Economic Development in Sharjah. These fees vary depending on the type of company and the size of capital.
2. License fees: You may need to obtain professional or business licenses. The costs of these licenses vary depending on the type of activity and the requirements of the concerned authorities.
3. Legal and accounting consulting costs: You may need to consult a lawyer or business consultant to help you prepare legal documents and handle legal and accounting procedures. These services are expensive and their costs vary depending on the advisor and the services provided.
4. Required capital: You may be required to provide capital to establish the company, and the required amounts vary according to the type of company and the requirements of the concerned authorities.
5. Costs of contracts and legal documents: You may need to prepare and notarize contracts and other legal documents, which involves additional costs.
6. Infrastructure and office costs: You may need to rent an office or work space and furnish it and equip it with the necessary furniture and fixtures. Rental and furnishing costs vary depending on the size of the space and location.
7. Visa and accommodation costs: If you intend to employ foreign employees in the company, you may need to bear the costs of visas, accommodation and health insurance for them.

What are the promising investment sectors in Sharjah?

Sharjah is considered a diverse and thriving investment destination in the United Arab Emirates, and is characterized by many promising investment sectors. Here are some sectors that are considered promising in Sharjah:

1. Marine Industries: Marine industries play an important role in Sharjah\\\’s economy, with ship manufacturing, maintenance and repair facilities and advanced navigation infrastructure available. This sector is supported by the Khalid Bay Container Park, Sharjah Khalid Bay Port and Khor Fakkan Port.
2. Tourism and Hospitality: Sharjah is a diverse and cultural tourist destination, with many museums, historical sites and beautiful beaches. The focus is on developing luxury hotels and resorts and providing unique tourism experiences.
3. Education and Scientific Research: Sharjah pays great attention to developing educational infrastructure and promoting scientific research. Sharjah is home to many prestigious international universities and schools, making it a favorite destination for international students.
4. Creative Industries and Technology: Sharjah is witnessing rapid growth in creative and technology industries, including game development, multimedia, design and technological innovation.
5. Food industries: There is a growing interest in developing the food industries in Sharjah, with a focus on organic and sustainable agriculture and the processing and manufacturing of food products.
6. Renewable energy: Sharjah seeks to enhance environmental sustainability and develop renewable energy, and invests in solar, wind, and clean energy projects.

 Tax benefits of establishing a company in Sharjah

Establishing a company in Sharjah can provide a range of important tax benefits. Sharjah is part of the United Arab Emirates, which has a flexible tax policy that attracts investors from all over the world. One of the most important tax benefits is the lack of corporate income tax in Sharjah, which means that profits made within the emirate are not subject to any income taxes. This helps stimulate economic growth and increase competitiveness for companies operating in Sharjah. In addition, Sharjah provides a developed investment environment, with facilities and other benefits that include access to regional and international markets, facilities in import and export, and strong legal protection. These factors make establishing a company in Sharjah an attractive option for investors seeking to take advantage of tax benefits and a flexible investment environment. Sharjah provides a favorable business environment with a number of tax benefits for companies. Here are some important tax benefits of establishing a company in Sharjah:

• No income tax is imposed on companies: In Sharjah, income tax is not imposed on companies, regardless of the type of company. This means that companies do not need to pay income tax on the business profits they make.
• No sales tax: Sales tax (VAT) is not charged on goods and services in Sharjah. Therefore, businesses are not required to collect sales tax from their customers and submit it to the tax authorities.
• No capital gains tax: In Sharjah, no tax is imposed on capital gains made by companies when selling assets.
• Tax Protection Treaty: The UAE and many countries have signed tax protection treaties, meaning that companies based in Sharjah can benefit from double taxation avoidance agreements to reduce their taxes.
• No tax on cross-border supplies: Sharjah is considered a free zone, and therefore, no tax is imposed on cross-border supplies between the UAE and other countries.

What types of business licenses are available in Sharjah?

Sharjah is considered one of the leading UAE emirates in the field of business and investment, as it provides a diverse and encouraging business environment for investors and businessmen. One of the most important aspects to take into consideration when thinking about establishing a company in Sharjah is choosing the appropriate business license, as the emirate offers multiple options to suit the needs of different companies. In Sharjah, there are several types of business licenses available for establishing companies. These are some common types:

• Limited Liability Company (LLC): The LLC is one of the most common types of companies in Sharjah. This company has a legal personality independent of the shareholders, and the shareholders’ liability is limited to the size of their contributions to the capital.
• Joint Stock Company: Joint Stock Company is another form of company available in Sharjah. Shareholders participate in the capital and have unlimited financial liability.
• Subsidiary Company: National and foreign companies can establish branches in Sharjah. The parent company is responsible for the branch and bears monetary liability.
• Partnership: A partnership can be established in Sharjah where the owners share in profits and losses and bear unlimited financial responsibility.
• A subsidiary of a craftsman: This license allows a craftsman to work independently and open and manage his own shop.
• Self-employed company: This license allows professionals to establish a company affiliated with their self-employed profession.

In conclusion, establishing a company in Sharjah represents an important strategic step towards building a successful and sustainable business in one of the most vibrant cities in the UAE. In cooperation with Itqan Company, investors can benefit from experience and specialization to facilitate the company establishment process and ensure compliance with all legal and regulatory requirements.

Itqan Company provides support and guidance during all stages of establishing companies in Sharjah , from developing the basic plan and choosing the type of company through to submitting applications and final registration. The company also provides the necessary financial, legal and administrative consultations to ensure the success of the company’s work in the future.

Frequently asked questions about establishing a company in Sharjah