How to Register a Private Limited Company in Sharjah 2025 – Avoid These Costly Mistakes

Sharjah, one of the United Arab Emirates’ most strategic emirates, has become a popular hub for investors, entrepreneurs, and international businesses. Its proximity to Dubai, business-friendly policies, and growing infrastructure make it ideal for setting up a private limited company (LLC).

This guide provides a detailed roadmap for registering a private limited company in Sharjah. It covers legal requirements, documentation, timelines, costs, and practical tips. Our legal services can help ensure smooth incorporation and compliance with local laws.

Why Choose Sharjah to Register a Private Limited Company

Sharjah offers a strategic advantage for businesses targeting both local UAE markets and international trade. Some key benefits include:

• Cost-effective registration compared to Dubai and Abu Dhabi.
• Access to a growing pool of skilled labor and logistics networks.
• 100% foreign ownership in certain sectors with proper licensing.
• Supportive regulatory framework for SMEs and startups.
• Various free zone options offering tax and customs benefits.

Whether you plan to operate onshore or in a free zone, Sharjah provides a stable and cost-effective environment for starting your company.

What is a Private Limited Company in Sharjah

A private limited company in Sharjah is a corporate entity with limited liability for shareholders. The key characteristics are:

• Minimum of 2 and a maximum of 50 shareholders.
• Shareholders’ liability is limited to their shareholding in the company.
• The company can conduct business onshore in the UAE outside free zones.
• The company must have a registered office in Sharjah.

Private limited companies are the most common business structure for SMEs and medium-sized enterprises because of flexibility, credibility, and access to UAE bank accounts.

Eligibility Criteria for Foreign Investors

Foreign investors from Bangladesh or other countries can establish a private limited company in Sharjah, subject to local regulations:

• 51% of shares are generally held by a UAE national or a government-approved sponsor (certain sectors allow 100% foreign ownership with special approvals).
• A minimum of two shareholders is required.
• At least one manager or director must be appointed, who can be a foreign national with a valid UAE residence visa.
• The company must have a registered physical office in Sharjah.

Documents Required for Registration

To register a private limited company in Sharjah, prepare the following:

• Passport copies of all shareholders and managers.
• Proof of residential address (utility bill or bank statement).
• Shareholding structure and Memorandum of Association (MOA).
• Proposed company name reservation approval.
• No Objection Certificate (NOC) if existing UAE residence visas are used.
• Bank reference letter (sometimes required by banks for account opening).
• Lease agreement or proof of office space in Sharjah.

Our legal team ensures that all documents are properly drafted, notarized, and attested to meet Sharjah authorities’ requirements.

Step-by-Step Process to Register a Private Limited Company in Sharjah

1. Decide on Business Activity

Select the business activity carefully, as it determines the type of license you need (commercial, industrial, or professional). Your chosen activity will also influence office space requirements and local sponsorship rules.

2. Reserve a Company Name

The proposed company name must be approved by the Sharjah Department of Economic Development (DED). Avoid names with religious, political, or offensive terms. Name reservation fees are typically AED 200–500, depending on the activity and authority.

3. Obtain Initial Approvals

Submit shareholder details, business activity, and proposed company structure for initial approval. This step confirms that your business activity is permitted and that foreign ownership limits are respected.

Our legal team can handle all communications with Sharjah DED to prevent delays.

4. Draft and Notarize the Memorandum of Association

The MOA outlines the company’s shareholding, capital distribution, management structure, and responsibilities. All shareholders must sign the MOA, and it must be notarized in Sharjah.

5. Lease Office Space

A valid physical office is mandatory for a private limited company in Sharjah. Free zones may have flexi-desk options, while onshore companies must secure a commercial lease.

6. Pay Fees and Obtain License

After approval and notarization, pay the registration and licensing fees. The Sharjah DED issues the commercial license once all requirements are met.

Typical costs include:

• Registration fee: AED 10,000–15,000 (depending on capital and activity).
• Notary and MOA attestation: AED 1,000–2,000.
• Lease rent: variable depending on location and office size.

7. Register with the Ministry of Economy and Municipality

Depending on business activity, you may need additional approvals or registrations with the Sharjah Municipality or UAE Ministry of Economy. This step ensures compliance with labor, environmental, or professional standards.

8. Open a Corporate Bank Account

With a commercial license and notarized MOA, you can open a corporate bank account in the UAE. Banks may require a personal visit, certified documents, and a business plan. Our legal team coordinates with banks to simplify account opening.

9. Obtain Visas for Shareholders and Employees

Once the company is registered, you can apply for UAE residence visas for shareholders, managers, and employees. Our services include handling immigration applications and visa processing to meet UAE compliance requirements.

10. Ongoing Compliance

After incorporation, a private limited company in Sharjah must:

• Renew licenses annually with Sharjah DED.
• Maintain proper accounting records.
• Comply with UAE labor laws if hiring employees.
• Submit annual filings if required by authorities.

We provide full compliance services, ensuring your company remains fully legal and operational without interruptions.

Costs and Timeline Overview

Step	Approximate Cost (AED)	Timeline
Name reservation	200–500	1–2 days
Initial approvals	500–1,000	3–5 days
MOA notarization	1,000–2,000	2–3 days
License issuance	10,000–15,000	5–10 days
Office lease	Variable	1–2 weeks
Bank account opening	Variable	1–3 weeks

The total registration process usually takes 2–4 weeks with proper legal support.

Practical Tips for Bangladeshi Entrepreneurs

1. Hire a licensed legal service provider to manage approvals, MOA drafting, and compliance.
2. Choose the right business activity to avoid restrictions on foreign ownership.
3. Plan for office space early to meet DED requirements.
4. Prepare certified documents in advance for faster approvals.
5. Use professional sponsorship and nominee services if needed for 51% UAE ownership compliance.

Common Pitfalls to Avoid

• Not securing proper local sponsorship or approvals.
• Submitting incomplete or unverified documents.
• Choosing the wrong business activity, causing delays or restrictions.
• Skipping annual license renewals, risking fines or company suspension.

Our legal team ensures all documents and approvals are accurate, avoiding common pitfalls and saving valuable time.

Frequently Asked Questions

Why Choose Dewey & LeBoeuf for Your Company Registration in Sharjah

Registering a private limited company in Sharjah involves multiple legal and administrative steps. At Dewey & LeBoeuf, our Dubai legal team provides:

• Full-service company incorporation from document preparation to license issuance.
• Expert handling of local sponsorship and shareholder agreements.
• Coordination with banks for smooth corporate account opening.
• Visa and immigration support for shareholders and employees.
• Ongoing compliance management to ensure your company remains fully legal.

Contact our team today to receive a tailored registration plan, fixed-fee packages, and step-by-step support to register a private limited company in Sharjah without any legal risk.