Considering opening your company in the UAE? The Sharjah Mainland is fast becoming a business destination of choice by providing its business-friendly laws, cheap yet strategic infrastructure, and business-friendly policies to businessmen. It provides a suitable competitor to Dubai, particularly to startups and SMEs.

But the most frequent question that people are asking, whether they are business owners or not that is: "What is the cost to start a company in Sharjah Mainland"? It is not a particularly simple question because there are some aspects that will eventually dictate the final price. This guide will explain all the cost elements you should be aware of and give you the most reasonable estimations so that you can plan your Sharjah mainland business setup with confidence.

Understanding Sharjah Mainland Company Setup

What is Sharjah Mainland?

Sharjah Mainland is a business registered at the Sharjah Economic Development Department (SEDD) and permitted to conduct operations across the UAE without any restrictions. Mainland firms also enjoy a broader range of trade in the sense that they are free to conduct business in their zones or in other countries, compared to those of the free zone firms, who have to be limited to these two spheres.

Key Advantages of Mainland Setup

• Freedom to trade anywhere in the UAE.
• Eligibility for government contracts.
• No restriction on the number of visas (subject to office space).
• Ability to diversify and expand business activities.

Key Regulatory Bodies

• Sharjah Economic Development Department (SEDD): This department is the main authority in relation to the granting of licenses and registration.
• Department of Land and Property: Oversees office tenancy requirements. Other authorities such as the Ministry of Health or Civil Defense may be involved depending on the business activity.

Core Cost Components

A. License Fees

• Trade License Fee: This is the primary cost and varies by license type (Commercial, Professional, Industrial). Expect AED 5,000 – AED 10,000+.
• Initial Approval Fee: Around AED 100 – AED 500.
• Name Reservation Fee: Typically AED 600 – AED 1,000, depending on the name and activity.

B. Office Space / Ejari

A registered office is a requirement of all Sharjah mainland companies:

• Physical Office Space: Ranges from AED 7,999– AED 24,999+ annually, based on size and location.
• Business Centers/Co-Working Spaces: Cost-effective for startups, starting from AED 4,999.
• Virtual Offices: Usually not allowed for full mainland licensing unless under specific conditions.

C. Government Fees & Approvals

• SEDD Registration: Fees and Activity Charges vary per business type.
• Ministry of Economy Fees: They may be applicable in certain activities.
• Other Approvals: Civil Defense, Municipality, or Ministry of Health could incur additional costs for specialized businesses.

D. Visa Costs

• Investor/Partner Visa: Around AED 4,000 – AED 7,000 per person.
• Employee Visa: Depends on the job role and procedure and ranges between AED 4,000 - AED 6,000.
• Includes: Entry permit, medical fitness test, Emirates ID, visa stamping.
• Dependent Visas: Additional cost for family sponsorship.

E. PRO Services / Agent Fees

Consultation of documents clearing services, or business consultants is cost-effective and saves time and money. The task of a PRO is to deal with government applications, MOA drafting, approvals, and so forth. The services are usually charged between AED 2,999 - AED 9,999, depending on complexity.

Additional & Variable Costs

• Share Capital Requirements: Most Sharjah mainland setups don’t have a minimum capital requirement, but certain regulated activities might.
• Bank Account Opening: No setup fee, but expect minimum balance requirements (AED 10,000 – AED 50,000).
• Legal & Consultancy Fees: Drafting MOA, notarization, etc. can cost AED 2,000 – AED 5,000.
• Translation Services: For documents not in Arabic – prices vary based on word count.
• Office Furnishing & Equipment: Optional but necessary for physical office setups.
• Marketing & Operational Costs: Website development, branding, initial staff salaries, etc.

Estimated Cost Range (With Disclaimers)

Factors Influencing Cost:

• Type of business activity.
• Number of visas required.
• Office size and location.
• PRO or consultancy involvement.

Disclaimer: These are average estimates. To get a better estimate, talk to a business setup professional who can tell you about the mainland business setup complexity of Sharjah.

Tips for Cost Optimization

• Choose the Right Activity: Avoid over-complicating your license structure.
• Start Small: Opt for smaller offices or business centers initially.
• Apply for Essential Visas Only: Reduce upfront visa costs.
• Compare Document Clearing Services: Not all PROs offer the same value.
• Plan for Renewals: Understand ongoing fees to avoid surprises later.

Step-by-Step Setup Process (Overview)

1. Choose a business activity & reserve a trade name.
2. Get initial approval from SEDD.
3. Lease office space & obtain Ejari.
4. Draft and notarize the MOA (if applicable).
5. Submit final documents & receive trade license.
6. Apply for visas (investor/partner/employee).

Conclusion

The benefits of establishing a business in Sharjah Mainland are immense, with a lot of flexibility compared to other emirates at a comparatively low cost. Entrepreneurs can now be sure of getting the licensing, visa, and office requirements, and thus go through the process easily. It is a strategic and cost-effective location to set up a consultancy, trading company, an industrial unit, or any other kind of business within the mainland of Sharjah.

Require some help regarding the process or the calculation of your specific expenses? Hire professional advice or hire companies offering document-clearing services, and get tailored instructions and an easier process of getting set up.