Sharjah Company Registration Type Selection Guide

When starting a company in Sharjah, UAE, the first and most central strategic decision is to choose the right type of company incorporation. This choice not only determines the company's legal identity, shareholder liability, tax obligations and scope of operations, but also has a far-reaching impact on the company's financing capacity, growth path and long-term competitiveness.

1. according to foreign ownership ratio: free trade zone VS non-free trade zone

1.100 percent foreign ownership: the core advantage of FTZ enterprises

the Sharjah Free Trade Zone allows 100 per cent foreign ownership without the need for a local partner, eliminating equity allocation disputes.

Key conditions:

office space needs to be leased in the free trade zone (for example, 50 ㎡ office corresponds to 5 employee visas);

there is no mandatory requirement for registered capital, but operating capital must be injected according to the scale of the business (e. g. from 50000 dirhams);

the scope of business needs to be clarified (e. g. e-commerce needs to apply for a "transaction license").

2. Localization Requirements: Trade-offs for Non-FTZ LLCs

if the company plans to go deep into the local UAE market (e. g. retail, construction, medical), it needs to be registered as a limited liability company (LLC) and meet the 51% local shareholder shareholding requirement. For example, a Chinese building materials company established an LLC with a local partner in Sharjah to quickly obtain construction project qualifications using local shareholder resources, while protecting the interests of foreign investors through a contractual dividend ratio.

Key conditions:

the minimum registered capital is 150000 dirhams, which must be paid in to the local bank;

local shareholder passport, UAE identity card and proof of no criminal record are required;

annual audits and tax reports are required.

2. by business size: FZE, FZCO and joint stock company differentiation positioning

1. Start-ups and individual entrepreneurs: FZE (wholly-owned enterprise in the free trade zone)

FZE allows only one shareholder (individual or business) and is suitable for start-ups with asset-light operations.

Core advantages:

high decision-making efficiency, without the resolution of the shareholders' meeting;

low registration costs (about AED 15000, including license fees);

suitable for testing the Middle East market reaction.

2, small and medium-sized resource integration: FZCO (free trade zone joint venture)

FZCO allows 2-7 shareholders and is suitable for projects that require multi-resource collaboration.

Core advantages:

risk sharing, strong ability of resource integration;

can apply for "commercial license" covering trade, warehousing and other fields;

shareholder liability is limited to the amount of capital contribution.

3. Large Enterprises and Capital Operation: Joint Stock Company (PJSC/PVT)

if the company plans to go public or attract institutional investment, it needs to be registered as a public joint stock company (PJSC) or a private joint stock company (PVT).

Key conditions:

PJSC requires at least 10 shareholders with a minimum registered capital of 10 million dirhams;

PVT requires at least 3 shareholders with a minimum registered capital of 2 million dirhams;

A detailed business plan and environmental assessment report are required.

3. by industry characteristics: special free trade zone directional support

technology and Innovation: The Ecological Advantage of SAIF Zone

as a multi-industry free trade zone, SAIF Zone provides customized support for technology companies:

infrastructure: provide high-speed Internet, data center and R & D laboratory;

policy incentives: 50% reduction of license fees for cutting-edge technology enterprises such as AI and blockchain;

network resources: The Middle East Tech Summit is held regularly to connect investors with start-up teams.

2. Publishing and Media: Professional Clusters in the SPC Free Trade Zone

SPC Free Trade Zone focuses on publishing, film and television production and other fields, providing:

copyright protection: one-stop intellectual property registration service;

supply chain support: establish cooperation network with local printing factory and logistics enterprise;

market Access: Assisting companies in applying for the UAE Media Content License ".

Zhuoxin Enterprise provides agency services such as domestic and foreign company registration, bank account opening, annual tax return, agency bookkeeping, trademark registration, ODI Overseas Investment Filing, etc. If you have any business needs in this area, please feel free to consult our online customer service!