Limited Liability Company Formation in Sharjah
Being positioned as the third largest among the seven emirates in the UAE, Sharjah is particularly getting sighted by investors across the globe. Along with its strategic location, affordable property prices, and excellent infrastructure, the government of Sharjah has come with mind-blowing business opportunities that enable entrepreneurs and investors to bloom exponentially in their business ventures.
The journey from a desert that was sustained only in the oil industry to a major commercial hub contributing more than 48 percent of the UAE’s Gross Industrial Output, Sharjah became a matured market that provides good business and steady returns to investors. With its unique access to the ports on the Persian Gulf and the seaports that enable it to connect with markets in different countries that include India and South Africa, Sharjah became the most attractive destination for international investment.
Limited Liability Company (LLC) formation in Sharjah
Limited Liability Company (LLC) is the popular company formation in Sharjah which requires a minimum of 2 shareholders and a maximum of 50 shareholders. This is the easiest way for expatriate residents and foreign entrepreneurs to set up their new companies in Sharjah. A UAE national as a shareholder requires at least a minimum equity of 51%. A foreign investor needs a local sponsor to conduct the business and also cannot hold more than 49%. The requirement of the local sponsor can be eliminated if you set up your company in the mainland of Sharjah. The liability of each shareholder is restricted to their shares in the company’s capital. The shares of a Limited Liability Company are not publicly owned. As per the Commercial Company Act, the commercial activities that Limited Liability Companies can do are numerous except banking, insurance, and third-party money investment.
Benefits of Limited Liability Company formation in Sharjah
The benefits of LLC company formation are as follows:
- No restrictions to doing your business in any part of the UAE.
- No corporate tax
- Affordable property prices
- No mandatory minimum capital requirements
- The managers of LLC can be foreigners, national, or third parties.
- No limitations in getting employment visas.
- Complete tax exemption from import, export, and all other commercial levies
- Multiple entry visa option for entrepreneurs
- No mandatory audits
- Cost-effective company formation provisions
- Different types of office spaces
- Warehousing facilities that allow storage of goods for 2 months for free.
- Availability of international banks
- Advanced communication system in the region
Documents required for LLC formation
- License form
- Brand certificate
- No objection letter certified by the applicant.
- ID proof of nationality
- Copy of Passport, visa, or residence
- Report on the Technical assessment study
- Legal approvals if needed.
- Trade name certificate as proof of the reservation of trade name
- The partnership contract certified by the public notary.
- Approval from the Ministry of Economy
- If your business activities include activities that require additional approval, obtain it.
- Certified copy of lease contract
- Property certificate
How to start a Limited Liability Company in Sharjah?
- Decide on the type of business activity that you are going to do.
- Choose your trade name.
- Obtain the Registration & Licensing Application Form and fill out all the necessary details.
- Obtain the signatures of all partners involved in your business and submit it to the DED to obtain initial approval.
- Complete the payment.
- Obtain approval and collect your license and registration certificates.
HLB HAMT to Assist
Setting up your business in Sharjah is always advantageous for entrepreneurs as it is a treasure trove of competitive business opportunities and a wide range of choices for conducting different business activities. Even though the Limited Liability Company Formation in Sharjah is not that cumbersome, you must be well-informed about the laws and regulations and must be updated about the amendments that authorities have brought into law to successfully conduct your business.
HLB HAMT is the best business setup consultant you can rely upon for this. We have decades of experience in assisting LLC formation for various small- and large-scale businesses in Sharjah and other emirates. We have given an overview of the LLC formation in Sharjah. If you want to know more about the Sharjah Limited Liability company setup, we are here for you. Get in touch with our expert consultant team to know about the dos and don’ts of company formation in Sharjah. We are always delighted to help you.
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