Opening a grocery store in Sharjah offers an incredible opportunity to tap into a dynamic market within a culturally rich emirate. As the third-largest population hub in the UAE, Sharjah is known for its strong heritage and world-class infrastructure.
With access to multiple Gulf ports and a strategic trading location, the Emirates presents a cost-effective alternative to Dubai and Abu Dhabi for new businesses.
Investors benefit from lower setup costs while enjoying the same advantages, such as the ability to source exotic groceries from Asia and Africa. Understanding the grocery license cost in Sharjah is a key step to ensure a smooth business start.
In this guide, we’ll take you through how to open a grocery store in Sharjah, from planning to securing the necessary licenses.
Start a grocery store in Sharjah: Benefits
Starting a grocery store in Sharjah comes with several key benefits, making it an attractive option for entrepreneurs:
1. Growing Population
With the third-largest population in the UAE. Sharjah provides a large and diverse customer base, ensuring a steady grocery demand.
2. Lower Setup Costs
Compared to Dubai and Abu Dhabi, Sharjah offers similar business benefits at a fraction of the cost. It makes launching and maintaining a grocery store more affordable.
3. Strategic Location
Sharjah’s proximity to multiple Gulf ports and trading routes gives easy access to imported goods. It includes exotic groceries from Asia and Africa, adding value to the grocery business.
4. Stable Economy and Political Environment
The emirate’s political stability and robust infrastructure foster a safe environment for long-term business growth.
5. Supportive Business Environment
Sharjah provides a business-friendly setup process with access to governmental support and a straightforward licensing system. It helps to ease the process for new entrepreneurs.
These benefits make opening a grocery store in Sharjah a lucrative opportunity for long-term business success.
Types of Business Licenses in Sharjah
A business license is essential for setting up a business in Sharjah mainland, as operating without one is illegal. The license type depends on your business activities as defined by the Sharjah Economic Development Department (SEDD). The main types of licenses include:
Commercial License
This license allows activities like trading, warehousing, and import/export of specific goods. For broader product lines, a general trading license is needed. Certain activities under this license offer 100% foreign ownership.
Service License
Also known as a professional license covers services like consultancy, accounting, and other skilled professions, requiring relevant qualifications and approvals.
Industrial License
Required for manufacturing, mining, and energy-related activities. It involves approvals from various ministries.
Obtaining a grocery license in Sharjah under the commercial license category is essential for setting up a grocery store. It allows you to operate legally and take advantage of Sharjah’s business-friendly environment.
Types of Companies in Sharjah
To successfully set up a business in Sharjah, investors must choose an appropriate legal structure based on the number of shareholders. The key types of companies include:
Limited Liability Company (LLC)
An LLC can be formed with 2 to 50 shareholders, and each shareholder’s liability is limited to their share in the capital. 100% foreign ownership has been allowed. It eliminates the need for a UAE national sponsor.
Partnership Company
Formed by two or more UAE nationals. Partnership companies do not allow foreign ownership. Shareholders are jointly liable based on their shareholdings.
Local Service Agent (LSA) Company / Sole Proprietorship
A sole proprietorship requires only one owner. Foreign investors must engage a UAE national as a Local Service Agent (LSA) to comply with regulations. The LSA assists with administrative tasks but does not hold any ownership or shares in the company.
Public/Private Shareholding Company
Shareholding companies divide capital into tradable shares. Partners’ liabilities are limited to their shares. The rules for public joint stock companies apply to private shareholding firms.
Branch Companies
UAE-based, foreign, and GCC companies can open branches in Sharjah. Business setup consultants Like Shuraa can assist with the process.
How to open a grocery store in Sharjah
To open a grocery store in Sharjah, follow these key steps to ensure a smooth business setup process. Using the best business set-up services can also help streamline the process. Here’s how to get your grocery license in Sharjah:
Step 1: Choose a Business Activity
Clearly define the scope of your grocery store’s activities, including the types of products you’ll offer. This will guide you in obtaining the proper grocery store license in Sharjah.
Step 2: Choose a Legal Structure
Depending on ownership and liability preferences, choose a legal structure, such as a Limited Liability Company (LLC) or sole proprietorship.
Step 3: Choose a Trade Name
Select and reserve a unique trade name for your grocery store. The name must comply with UAE business regulations.
Step 4: Register with SEDD for Initial Approval
Submit your business plan and get initial approval from the Sharjah Economic Development Department (SEDD).
Step 5: Apply for the Grocery License in Sharjah
Submit the necessary documents to apply for your grocery store license Sharjah. This license allows you to operate your grocery store legally.
Step 6: Sign a Lease Agreement
Secure a location for your grocery store and sign a lease agreement. The space must comply with the regulations for retail businesses in Sharjah.
Step 7: Pay the License Fee
Pay the required fees for your grocery store license.
Step 8: Receive Your Trade License
Once all the steps are completed, you will receive your trade license. It officially allows you to open your grocery store in Sharjah.
By following these steps, you’ll successfully get through the process of opening a grocery store in Sharjah and start your business smoothly.
Documents Required to start a grocery store in Sharjah
The following documents are essential to start a grocery store in Sharjah:
- Copy of the business plan
- Business registration application
- Attested and notarised Memorandum of Agreement (MoA) and Articles of Association (AoA)
- Power of Attorney
- Passport copies of all partners and managers
- Bank reference letters
- Lease agreement for the store location
- Board Resolution
New Rules for Grocery Stores in Sharjah
Recent regulations from the Sharjah Economic Development Department (SEDD) make compliance more straightforward and affordable. Key standards include:
- No cluttered shelves; separate metal shelves for baked goods
- Smooth, white-painted walls
- Minimum store size of 30m²
- 5-gallon water bottles secured with metal barriers
- Refrigerated displays for fruits and vegetables
- Glass storefronts
- Insect traps required
- Adequate CCTV cameras
- Staff uniforms with name tags
- Consistent signboard style
- Ceramic tile flooring
Grocery License Cost in Sharjah
The cost to start a business in Sharjah begins at AED 10,000*, though the grocery license cost in Sharjah may vary based on your specific requirements and amenities. The final price depends on factors such as the size and location of your grocery store.
If you’re planning to open a grocery store in Dubai or Abu Dhabi, make sure to check out these helpful guides:
Open Your Grocery Store in Sharjah with Shuraa’s Expertise
Starting a grocery store in Sharjah is a strategic and rewarding opportunity, thanks to the emirate’s dynamic market and cost-effective business environment. Shuraa Business Setup can streamline the process by providing expert guidance on securing the necessary licenses, regulatory requirements, and choosing the best legal structure for your business.
From understanding the groccery license cost in Sharjah to managing documentation and compliance, Shuraa’s comprehensive services ensure a smooth and efficient setup.
You can contact at:
Phone: +971 4408 1900
WhatsApp: +971 50 777 5554
Email: [email protected]
For fast and reliable assistance, let Shuraa guide you through your Sharjah company formation with confidence and ease. We’re here to help!
