Business Setup in Sharjah: Mainland or Free Zone?
You can set up a company in Sharjah on the mainland through the Sharjah Economic Development Department (SEDD) or in one of its free zones. The two routes give you different licences, different markets and very different costs. This guide explains how they compare, what each Sharjah free zone is built for and how to choose.
Key takeaways
- Foreign investors can own 100% of most commercial and industrial activities on the Sharjah mainland, apart from seven excluded sectors listed by SEDD.
- A mainland licence lets you trade across the UAE. A free zone licence lets you trade inside the zone and abroad, and a free zone company needs a distributor or a mainland branch to sell locally.
- Sharjah’s best-known free zones are SHAMS, SPC, SAIF Zone and Hamriyah, and each is built for a different kind of business.
- Our starting prices are AED 5,750 for SPC and AED 6,885 for SHAMS.
- Free zone companies are still subject to UAE Corporate Tax, and the 0% rate applies only to qualifying income.
Mainland or Free Zone in Sharjah
Sharjah has two licensing systems. SEDD licenses mainland companies, and each free zone authority licenses its own companies. The authority that issues your licence decides where you can trade, what you pay and how you renew.
The simplest test is where your customers are. Customers in the UAE point to the mainland, while customers abroad or a zone-based operation point to a free zone.
| Mainland (SEDD) | Free zone | |
|---|---|---|
| Licence authority | Sharjah Economic Development Department | The free zone authority |
| Foreign ownership | 100% for most commercial and industrial activities | 100% |
| Where you can trade | Across the UAE | Inside the zone and abroad; local sales need a route |
| Premises | A leased commercial premises | Zone premises, a flexi desk or, in some zones, a virtual licence |
| Best for | Local customers, retail and government work | Export, online, media and consulting businesses |
Setting Up a Mainland Company in Sharjah
SEDD has applied full foreign ownership since 2021, following the 2020 amendments to the Commercial Companies Law. Foreign individuals and companies can own 100% of commercial and industrial activities in the emirate, except for seven sectors.
As reported by Gulf News in 2023, SEDD excludes security, defence and military activities, fisheries-related services, banks, exchange houses, finance and insurance companies, banknote printing, telecommunications and broadcasting, Hajj and Umrah services, and Holy Quran centres. That article cites more than 1,200 permitted activities, so treat the exact number as indicative and check your own activity.
Checking your activity first
The UAE government’s Basher platform (basher.gov.ae) lets you search the activities open to foreign investors in a given emirate. You choose the emirate, your nationality and the legal form, and it lists what you can license. Run this check before you pay for anything.
Typical steps
- Choose the legal form and activity. Most investors choose a limited liability company (LLC) or a sole establishment.
- Reserve the trade name. SEDD registers the name, and it must follow the UAE trade name rules.
- Get initial approval. UAE government guidance says foreign investors need the approval of the residency and foreigners’ affairs authority first.
- Prepare the documents. Expect to provide the attested memorandum of association, any approvals your activity needs and a lease contract.
- Pay the fees and collect the licence. The licence is generally valid for one year and renews annually.
Regulated activities such as healthcare, education and real estate need approval from the sector authority before the licence is issued. A local service agent is generally needed only for some professional licences, so ask SEDD whether your activity is one of them.
Sharjah Free Zones
Every free zone offers 100% foreign ownership and full repatriation of capital and profits. The difference is in what each zone is built for.
SHAMS: media, creative and digital
Sharjah Media City (SHAMS) is the lowest-cost entry for media, creative, consulting and e-commerce businesses. Our starting price is AED 6,885. SHAMS says licences can be issued fully online in under 60 minutes, with no NOC needed, and that shareholders do not need to be in the UAE to incorporate.
SHAMS asks for 100% upfront payment, though banks may convert it to instalments. Read our SHAMS licence cost guide and our SHAMS free zone page for the packages.
SPC: publishing, trading and multi-activity licences
Sharjah Publishing City (SPC) began with publishing and printing, and it now licenses trading, consultancy, e-commerce and freelance activities as well. Our starting price is AED 5,750. The publishing roots still matter if you run a printing, design or content business.
See SPC free zone licensing and our SPC free zone page for the details.
SAIF Zone: airport, logistics and light industry
The Sharjah Airport International Free Zone sits beside the airport. It offers trade, service and industrial licences, and it says licences and permits are delivered within one hour through a single-window approach. A trade licence is limited to three similar product lines.
SAIF Zone lists visa quotas by facility: eight visas with a SAIF Suite, five with an executive office and three with a dedicated desk. It also offers pre-built warehouses from 125 to 600 square metres and land plots from 2,500 square metres. A company can be an FZE with one owner, an FZC with several shareholders or a branch.
Hamriyah Free Zone: heavy industry and port access
The Hamriyah Free Zone Authority licenses commercial, service and industrial companies beside Hamriyah Port. It lists a basic licence at AED 11,000. It says no local partner is required, and a licence can be issued within one hour once the documents are in.
Industrial projects add approvals, such as an environmental approval, a Civil Defence certificate and a Sharjah Municipality NOC. Facilities can be leased but not bought.
Sharjah has other specialist zones, for example for research and for healthcare. Compare the main options on our Sharjah free zone business setup page.
Selling Locally From a Sharjah Free Zone
A free zone company can sell inside its zone and abroad. UAE government guidance says it must work through a licensed mainland distributor, or set up a mainland branch or company, to sell locally.
That is why export, online and consulting businesses fit a free zone well. A shop, a restaurant or a contractor that serves local customers usually fits the mainland.
Corporate Tax in Sharjah
The emirate you choose does not change the tax rules. Every UAE company is a taxable person, and Corporate Tax applies at 9% on taxable income above the threshold. A free zone company can pay 0% on qualifying income only if it meets the conditions of a qualifying free zone person.
Those conditions include adequate substance in the zone, audited financial statements and keeping non-qualifying revenue within the de minimis limit. Our guide to free zone tax and QFZP status explains them. A mainland company pays the standard rate on all taxable income, and both types of company must register and file a return.
The sister site companyformationinuae.com explains the costs and steps for a mainland company in more detail, and its home page lists its other guides.
How Sharjah Compares
Sharjah’s free zones are among the cheapest in the UAE, and its mainland sits next to Dubai’s market. Compare it with other emirates in our guide to business setup in the UAE by emirate, with the cheapest free zones in the UAE and with our Abu Dhabi business setup guide.
What a Sharjah Company Really Costs
The licence fee is only the first line of the budget. Compare quotes on the same basis, because a cheap licence with no visa can cost more than a package that includes one.
- Licence and registration: the annual fee set by SEDD or the free zone authority.
- Premises: a leased office or shop on the mainland, or a flexi desk, virtual licence, office, warehouse or plot in a zone.
- Establishment card and visas: each residence visa adds an entry permit, a medical test, Emirates ID and stamping fees.
- Approvals: sector approvals for regulated or industrial activities, and a lease authentication on the mainland.
- Renewal: the licence renews every year, and renewal prices can differ from the first-year price.
SAIF Zone ties its visa quota to the facility you rent, so a bigger office gives you more visas. Hamriyah leases its facilities but does not sell them. Ask each authority how the quota works before you pick a package.
Documents You Will Need
The list depends on the route, but most applications start with the same core documents. Free zones publish their own checklists, and SEDD asks for the documents that match your legal form.
- Passport copies of every shareholder and manager.
- A completed application form and a short summary of the business activity.
- The memorandum of association or articles, attested where the shareholder is a company.
- For a branch of a foreign company, a board resolution and the parent company’s certificate of incorporation, notarised and attested.
- For some activities, an approval from the sector regulator, an environmental approval or a municipality NOC.
Your visa and banking steps follow the licence. A bank will ask about your business model, your customers and your source of funds, whichever route you choose.
Common Mistakes
- Choosing a free zone, then selling locally. A free zone company needs a distributor or a mainland branch for local sales.
- Skipping the activity check. Use Basher and the zone’s activity list before you pay.
- Comparing licence prices only. Visas, facilities and renewals change the real cost.
- Forgetting approvals. Healthcare, education, real estate and industrial projects need sector or environmental approvals.
- Ignoring Corporate Tax. Every company must register, and a free zone company that fails the conditions loses the 0% rate.
Next Steps
Tell us what you sell, where your customers are and how many people you plan to hire. We will recommend a route, give you a written quote that shows the licence, visas and premises and manage the application with the authority. Fees and rules change, so confirm every figure with the authority before you pay.
Frequently Asked Questions
Yes for most commercial and industrial activities on the mainland, apart from seven sectors SEDD excludes, such as security, banking and telecommunications. Sharjah free zones also allow 100% foreign ownership.
On our price list, SPC starts at AED 5,750 and SHAMS at AED 6,885. Compare the full quote, including visas and renewal, because the licence fee is only one part of the cost.
Not directly. It must work through a licensed mainland distributor or set up a mainland branch or company, according to UAE government guidance.
Use the Basher platform at basher.gov.ae. Select Sharjah, enter your nationality and the legal form, and it lists the activities you can license. Confirm the result with SEDD.
SHAMS says its shareholders do not need to be in the UAE to incorporate. Bank accounts and residence visas may still need a visit, and other zones have their own rules.
Hamriyah Free Zone and SAIF Zone offer industrial licences, warehouses and land. Hamriyah sits beside its port and SAIF Zone beside the airport, so choose by the route your goods take.
Yes. They pay 0% only on qualifying income and only if they are a qualifying free zone person. Other income is taxed at 9%, and they must register and file a return.
SHAMS says licences can be issued online in under 60 minutes, and SAIF Zone and Hamriyah both say one hour once documents are complete. Mainland timing depends on approvals, and bank accounts and visas add time.
