A Limited Liability Company (LLC) is a business structure that is popular among entrepreneurs and investors worldwide. It offers several advantages over other business structures, such as limited liability for its owners and flexibility in terms of management and ownership.
LLC company in Sharjah is the popular choice for entrepreneurs and businesses looking to establish a presence in Sharjah. Sharjah is the third-largest emirate in the United Arab Emirates (UAE) and is known for its strong economy and business-friendly environment.
The emirate offers a number of incentives to foreign investors, including 100% foreign ownership in certain sectors.
Therefore, if you are considering forming an LLC in Sharjah, there are a number of things you need to do. We are here to help you guide you through the entire process and providing you with essential insights so you can make an informed decision in incorporating your company in Sharjah.
What is LLC Company?
A Limited Liability Company (LLC) in the UAE is a business structure that offers limited liability to its owners. This means that the owners’ personal assets are protected in the event that the company goes bankrupt or incurs debts.
LLCs are the most popular type of business structure in the UAE, and they can be formed by a minimum of two and a maximum of 50 shareholders.
Benefits of Establishing Limited Liability Company
- Members of an LLC are only liable for their investment in the company, up to the amount of their capital contributions. This means that their personal assets are protected in the event of the company’s bankruptcy or other financial difficulties.
- LLCs have a flexible management structure, allowing members to choose the management structure that best suits their needs.
- LLCs enjoy amazing tax benefits in the UAE. However, taxes are subject to be applied after a certain limit as set by the government. (For now, a corporate tax of 9% is applied on net profit after it crosses the minimum threshold limit of AED 375, 000.
Why Form an LLC in Sharjah, UAE?
LLC company formation in Sharjah, UAE, offers so many advantages that make it an attractive choice for entrepreneurs and investors.
Some of the are:
1. Competitive taxes
Sharjah is known for favorable tax policies, making it one of the most tax-competitive jurisdictions in the world.
2. Easy Company Formation
The LLC formation process in Sharjah is relatively straightforward and can be completed within a few weeks.
3. Strategic location
Sharjah is strategically located near major transportation hubs, including Dubai International Airport and the Jebel Ali Free Zone. This makes it easy for LLC owners to import and export goods, and to access a large pool of potential customers and suppliers.
4. Supportive government
The Sharjah government is supportive of businesses and offers a number of programs and incentives to help businesses grow and succeed.
5. Affordable costs
Sharjah is a relatively affordable emirate in which to do business. The cost of office space, labor, and other expenses is lower in Sharjah than in other emirates, such as Dubai.
6. 100% business ownership
Foreign investors are allowed to own 100% of commercial and industrial companies in Sharjah. This is a significant advantage for foreign investors, as it gives them full control over their businesses.
How to Start an LLC Company in Sharjah?
Starting an LLC in Sharjah, UAE, involves a step-by-step process that ensures compliance with local regulations. Here is a simplified guide to help you through the process:
Step 1: Choose a business name
Your business name must be unique and not already registered in the UAE. You can check the availability of your business name on the Department of Economic Development (Development)
Step 2: Choose a business location
You will need to choose whether to set up your LLC on the mainland or in a free zone.
- Mainland: Mainland companies can operate anywhere in Sharjah and the UAE. They offer more flexibility in terms of business activities, but they are also more complex and a bit expensive to set up.
- Free zone: Though free zone allows certain services anywhere in Sharjah and UAE but maybe restricted to operating within the boundaries of their free zone. However, they offer several advantages, including tax exemptions, 100% foreign ownership, and streamlined business setup procedures.
Step 3: Register Your Business and Obtain Trade License
Submit your legal documents to the Department of Econmoic Development (DED) for review and approval. The DED or relevant freezone authority will provide you with a license for your LLC once your documents are in order.
In some cases, you may require obtaining additional license or approval depending on the nature of your business, from the concerned authorities.
Step 4: Open a Corporate Bank Account
You will need to open a corporate bank account in the UAE to receive payments and make payments on behalf of your LLC.
Step 5: Office Space and Premises
You may need to have a physical office space for your LLC. Ensure your office complies with any specific requirements for your chosen business activity.
Step 6: Visa and Employee Registration:
Once your LLC is registered, you can apply for visas for your employees. Make sure to follow the UAE’s labour laws and regulations when hiring and sponsoring employees.
Documents Required for LLC Formation in Sharjah
Although the number of required documents may vary depending on the nature of the business and other factors, however, here are the general documents needed to incorporate your company in Sharjah:
- Copy of your passport and visa
- Passport copies of all shareholders
- Bank statement of the company’s bank account
- Legal approvals, if needed.
- Certified Lease Contract copy
- License form
- Trade name certificate
It is always better to consult with a UAE business setup expert to ensure all the legal compliance and complexities of company formation in UAE. This is where Shuraa Business Setup comes in! With over 22 years of experience, we are here to assist you every step of the way.
Cost of setting up an LLC company in Sharjah
The LLC license cost in Sharjah varies depending on several factors, including the type of business activity, the size of the company, and the business location (mainland or free zone).
As a general rule of thumb, the cost of obtaining a business trade license generally starts from AED 14,900*. Besides, there are other costs involved, such as –
- Business name reservation fee
- Bank account opening fee
- Legal fees
- Other expenses (e.g., office space rental, visa fees, etc.)
To know more about LLC license cost in Sharjah, get in touch with a legal and business setup consultant.
Sharjah LLC Formation with Shuraa Business Setup
Limited Liability Company Formation in Sharjah is an exciting and significant step for entrepreneurs and investors. The benefits of asset protection and favourable tax policies make it a decision worth considering for anyone looking to set up a business.
To ensure a smooth and hassle-free LLC formation process, it’s highly advisable to partner with experienced professionals who understand the complexities of the UAE’s business regulations.
Shuraa Business Setup, with over 22 years of experience, is a leading business setup company in the UAE that has already assisted more than 50,000 entrepreneurs in realizing their business dreams. Our expertise and extensive knowledge of local regulations can be a valuable asset on your journey to business success in Sharjah.