A trade license is the legal foundation for operating any business in Sharjah. Whether you are planning a commercial shop, an online business, an industrial operation, or a professional consultancy, obtaining the correct trade license is mandatory. Sharjah offers a business-friendly environment, competitive fees, and strategic access to the UAE and GCC markets, making it one of the most attractive emirates for entrepreneurs.
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Dewey and LeBoeuf supports investors, startups, and international companies in completing every step of the Sharjah trade license process. This guide explains how to register, renew, modify, and comply a trade license in Sharjah simply and practically.
Types of Trade Licenses in Sharjah
Sharjah issues several categories of trade licenses depending on business activity. Choosing the correct one is extremely important for compliance, banking, and future expansion.
Commercial License
For activities such as trading, retail, general trading, import export, e commerce, and selling goods or services.
Industrial License
For manufacturing, packaging, industrial production, or activities that involve machinery and production facilities.
Professional License
For service providers such as consultants, IT specialists, marketing firms, accountants, legal practitioners, designers, teachers, trainers, and similar occupations that rely on professional skill.
Tourism License
For travel agencies, tourist operators, tour guides, and hospitality related services.
E Commerce License
Issused for online selling, digital solutions, and internet based commercial services.
Step-by-Step Process to Register a Trade License in Sharjah
Registering a trade license involves multiple stages, each requiring the right documents and approvals. Below is the complete process.
1. Choose Your Business Structure
The first step is selecting the legal form of your business. Some common structures include:
- Sole establishment
- Civil company
- Limited liability company
- Branch of a GCC or foreign company
- Free zone company under Sharjah free zones such as Shams Free Zone
Your structure affects ownership rules, office requirements, and liability. Dewey and LeBoeuf helps you select the structure that fits your business model and long term goals.
2. Select the Business Activity
Sharjah Economic Development Department also known as SEDD, provides an approved list of business activities. Your activity must match what you actually intend to do.
Choosing the wrong activity can cause delays in licensing, banking, and immigration. Our team reviews your business model and identifies the exact activity code you need to avoid compliance issues.
3. Reserve the Trade Name
You must register a trade name that follows SEDD rules. The name should:
- Reflect your business nature
- Not contain religious wording
- Not match an existing registered name
- Be appropriate and non offensive
Trade name reservation typically takes one working day.
4. Obtain Initial Approval from SEDD
Initial approval is an official permission to proceed with the licensing process. At this stage, your documentation usually includes:
- Passport copy
- Residence visa copy if applicable
- Emirates ID copy if applicable
- Business activity details
- Trade name confirmation
Initial approval does not allow you to conduct business yet but is mandatory to continue.
5. Prepare the Memorandum of Association
For LLCs and partnerships, the Memorandum of Association also known as MOA must be signed and notarized. This document outlines:
- Shareholding percentages
- Responsibilities
- Capital investment
- Profit and loss distribution
Our legal team prepares and drafts the MOA following Sharjah regulations to prevent future disputes.
6. Secure a Business Location and Ejari Contract
You must have a physical office or shop as required by SEDD. A valid tenancy contract and Ejari registration are mandatory for all license types except certain free zone activities.
7. Submit Final Documents and Pay Fees
After preparing all documents, final submission is made to SEDD along with government fees. Processing time usually ranges between one to four days depending on activity type.
Once approved, you receive your official Trade License in Sharjah and can begin operating legally.
Costs of Trade License in Sharjah
The cost varies based on activity, office size, structure, and additional approvals. General cost components include:
- Trade name reservation fee
- Initial approval fee
- License issuance fee
- Market fee or municipality charges
- Office rent or business center fee
- Immigration card fee if applicable
- MOA notarization charges
Dewey and LeBoeuf provide a detailed cost sheet so you know your full expenses before beginning the process to register a trade license in Sharjah.
How to Renew a Trade License in Sharjah
Trade licenses must be renewed yearly to avoid penalties and license cancellation.
Steps for Renewal
1. Ensure Tenancy Contract and Ejari are Valid
Your tenancy contract must be active for at least one month before renewal. Many renewals fail simply because the Ejari is expired.
2. Prepare Documents
You generally need:
- Trade license copy
- Tenancy contract and Ejari
- Passport and visa copies of owners
- Emirates ID copies
- Any updated agreements
3. Submit Renewal Application to SEDD
You can renew in person or through approved service channels.
4. Pay Renewal Fees
Once renewal fees are paid, your new trade license is issued immediately or within a few hours.
Penalties for Late Renewal
Late renewal results in fines and possible freezing of the business record. Continuous non renewal can result in license cancellation and immigration restrictions.
How to Modify or Amend a Trade License
Businesses may need to update information such as:
- Adding or removing partners
- Changing office address
- Updating business activity
- Changing the trade name
- Modifying share capital
Each amendment requires supporting documents and SEDD approval. It is important to handle amendments legally because mistakes can cause banking restrictions or immigration rejections.
Dewey and LeBoeuf manages all amendment procedures on your behalf ensuring full compliance to modify a trade license in Sharjah.
Mandatory Compliance Requirements in Sharjah
After obtaining a trade license in Sharjah, businesses must follow certain compliance rules.
1. Maintain a Valid Office Lease
SEDD requires an active tenancy contract for the entire license period.
2. File Economic Substance Notifications if Applicable
Certain business activities fall under the UAE Economic Substance Regulations.
3. Register for Corporate Tax if Required
Companies meeting the UAE corporate tax threshold must register and file returns.
4. Maintain Proper Accounting Records
All companies must maintain accounting books for at least five years.
5. Comply with Anti-Money Laundering Regulations
High-risk activities require AML registration and reporting.
6. Renew a Trade License on Time
Non-renewal leads to penalties or closure.
Our legal team helps you remain fully compliant to avoid fines and operational issues.
FAQs on Sharjah Trade License
What is a trade license in Sharjah?
A trade license is the official permission from Sharjah Economic Development Department allowing a business to legally operate within the emirate.
Can a foreign investor own 100 percent of a business in Sharjah?
Yes. Many activities allow full foreign ownership. Certain activities may require local partners depending on the business model and legal structure.
Do I need an office for a trade license in Sharjah?
Yes. A valid tenancy contract and Ejari registration are required for most license types, unless you register in a free zone that allows flexi desks.
What happens if I do not renew the trade license in Sharjah on time?
You may face fines, restrictions, or freezing of the business. Continuous non renewal can lead to license cancellation.
Is professional legal support required?
While not mandatory, legal support helps avoid delays, rejected applications, and compliance mistakes. Dewey and LeBoeuf ensures your trade license is correctly structured and fully compliant.
Why Work with Dewey and LeBoeuf
Dewey and LeBoeuf is a global law firm assisting investors and entrepreneurs with company formation, licensing, regulatory compliance, and ongoing legal support across the UAE. For trade licenses in Sharjah, we offer:
- Complete licensing and renewal services
- Drafting and notarizing the MOA and legal documents
- Activity selection and legal structuring
- Compliance and tax advisory
- Tenancy verification and office setup support
- Fast processing with end-to-end case management
Our goal is to make your Sharjah licensing process smooth, compliant, and free of legal risks. Contact us today to register, renew, or modify a trade license in Sharjah.
E-mail: info@deweyleboeuf.com
Phone: +971 58 690 9684
Address: 26B Street, Mirdif, Dubai, UAE