Establishing a company in the Sharjah Free Zone is a strategic step for many aspiring entrepreneurs and investors. Sharjah, one of the seven emirates in the United Arab Emirates, is considered a vital economic and commercial center that combines its strategic location between East and West, a flexible business environment and encouraging legal and regulatory facilities. Sharjah Free Zone offers a variety of benefits including full foreign ownership, tax exemptions, and customs facilities, making it an ideal destination for startups and small and medium-sized companies wishing to expand into regional and international markets. In this article, we will review the steps and procedures necessary to establish a company in the free zone , in addition to the benefits and opportunities it offers to investors.

Establishing a company in the Sharjah Free Zone
Establishing a company in the Sharjah Free Zone
Establishing a company in the Sharjah Free Zone requires following a set of basic steps to ensure compliance with all legal and administrative requirements. The following are the basic steps for establishing a company in the Sharjah Free Zone:
1. Choose the type of business activity: Determine the type of business activity you wish to practice, whether it is commercial, industrial, service, or consulting. The activity must be consistent with the activities permitted in the free zone.
2. Choose the appropriate license type: Based on the business activity, choose the required license type (commercial, industrial, service, etc.).
3. Preparing the required documents: Collect and prepare all required documents, such as copies of passports, personal photos, business plan, proof of address, certificates of incorporation and articles of association, and others as mentioned previously.
4. Submit a registration application: Submit the registration application with the required documents to the Sharjah Free Zone Authority. The application can be submitted online or in person at the Authority’s offices.
5. Obtaining initial approval: After reviewing the application, you will obtain initial approval from the Free Zone Authority. This stage includes checking the company’s activity and the papers submitted.
6. Choosing a company location: Choose a suitable location for the company office or facility within the free zone. This can be a small office or a large industrial space depending on the needs of the activity.
7. Signing the lease contract: After choosing the location, sign the lease contract for the office or facility with the Free Zone Authority. The contract includes the rental terms, area, and costs.
8. Payment of fees: Pay all prescribed fees for registration, rent and licensing. Fees vary based on the type of activity and size of the facility.
9. Receiving the license and registration certificate: After completing all procedures and paying the fees, you will receive the commercial license and the official registration certificate for the company.
10. Opening a bank account: Open a bank account in the name of the company in one of the recognized banks in the UAE. This requires submitting documents related to the company and owners.
11. Obtaining residence and work permits: Apply to obtain residence and work permits for employees in the company. This is done through the authority responsible for issuing permits in the free zone.
12. Starting a business: After obtaining all licenses and permits, you can start an official business in the Sharjah Free Zone.
By following these steps, you can successfully establish a company in the Sharjah Free Zone and start taking advantage of the economic and business opportunities available.
Documents required to establish a company in the Sharjah Free Zone
To establish a company in Sharjah Free Zone , you need to submit a set of basic documents. These documents usually include:
- Passport copies: Clear and colored copies of the passports of all partners or shareholders.
- Personal photos: Passport size photos of all partners or shareholders.
- Initial business plan: A detailed description of the company’s proposed activity, objectives, and organizational structure.
- Establishment application form: Fill out the establishment application form available from the Sharjah Free Zone Authority.
- Proof of Address: A document proving the current residential address of all partners or shareholders (such as a utility bill or lease).
- Certificate of incorporation of the parent company: In the event of establishing a branch of a foreign company, a certified certificate of incorporation of the parent company must be presented.
- Articles of Association and Articles of Association: The Articles of Association and Articles of Association of the new company (or of the parent company in the case of a branch).
- Board of Directors Decision: A decision from the board of directors of the parent company (in the case of a branch) approving the establishment of the branch in the Sharjah Free Zone and appointing a manager for it.
- Legal authorization: Legal authorization for the legal representative who will carry out the establishment procedures on behalf of the company.
- Proof of financial resources: Proof of the existence of sufficient financial resources to operate the company, such as bank account statements.
- Special Licenses: If the activity requires special licenses or approvals, copies of these licenses must be submitted.
After submitting all required documents, it is reviewed by the Free Zone Authority. If approved, the commercial license and the rest of the documents necessary to operate the company will be issued.
The cost of establishing a company in the Sharjah Free Zone
Establishing a company in the Sharjah Free Zone includes several cost elements that vary based on the type of business activity, the size of the company, and the services required. Below is an overview of the main cost items without specific prices:
- Fees for submitting a registration application with the Free Zone Authority.
- The cost of obtaining a commercial license that is appropriate to the type of business activity (commercial, industrial, service, etc.).
- The costs of renting an office or facility within the free zone, which may include annual rent and facility-related service fees.
- Fees for administrative services provided by the Free Zone Authority, such as preparing documents and providing logistical support.
- Various insurances, such as office or facility insurance and employee health insurance.
- The cost of obtaining residence and work permits for employees.
- Costs of opening a company bank account in a local bank.
- Electricity, water and communications costs.
- The cost of preparing and drafting legal documents such as the company’s articles of association and articles of association.
- Fees for legal and financial advisory services (if using consultants).
Cost management tips
- Good financial planning: Prepare a detailed budget that covers all possible costs.
- Advance inquiry: Contact the Free Zone Authority to obtain precise details about fees and costs.
- Take advantage of the offers: Search for offers and promotional packages offered by the free zone to startups.
By analyzing these elements, you can get a comprehensive idea of the total cost of setting up a company in the Sharjah Free Zone, which helps you plan financially and make appropriate decisions to achieve business success.

Establishing a company in the Sharjah Free Zone
Can I employ foreign workers in my company in the Sharjah Free Zone?
Yes, foreign workers can be employed in your company in the Sharjah Free Zone. In fact, one of the main advantages of working in free zones in the UAE is the great flexibility in hiring foreign workers. Here are the basic steps and information for hiring foreign workers:
- Work and Residence Permits: All foreign workers must obtain work and residence permits to work at your company. These permits are issued by the competent authority in the free zone.
Steps to obtain work and residence permits
- Submitting a work permit application: After establishing the company and obtaining the commercial license, an application can be submitted for a work permit for foreign employees.
- Submitting the required documents: Required documents include employee passports, personal photos, education and experience certificates, and employment contracts.
- Medical Examination: Foreign employees must undergo a medical examination at one of the approved centers.
Obtaining a residence permit: After receiving the result of the medical examination, an application is submitted for a residence permit.
Terms and procedures
- Contracting with employees: Clear, fixed-term employment contracts must be signed between the company and employees.
- Sponsorship: Your company is the legal sponsor of foreign employees and is responsible for providing residence and work permits.
- Permit Renewal: Work and residence permits must be renewed periodically in accordance with free zone regulations
Rights and duties of employees
- The company must comply with local labor laws, including working hours, wages, leave, and working conditions.
- Health insurance for foreign employees must be provided in accordance with local government requirements.
- You may benefit from the services of recruitment companies or legal consultations specialized in recruiting foreign workers, to facilitate the process and ensure full compliance with the laws.
Additional costs
- Employing foreign workers may include some additional costs such as fees for issuing and renewing work and residence permits, and the costs of medical examination and health insurance.
- By hiring foreign workers, you can benefit from the diverse experiences and skills that the international workforce brings, which contributes to the success and development of your company in the Sharjah Free Zone.
Establishing a company in the Sharjah Free Zone represents a fruitful investment opportunity that allows entrepreneurs and investors access to a thriving and diverse market in the heart of the Arabian Gulf. Thanks to government facilities and numerous competitive advantages such as full foreign ownership, tax exemptions, and advanced infrastructure, companies can achieve sustainable growth and expand their business internationally. By following the basic steps of establishing a company and hiring the right workforce, investors can benefit from the flexible and supportive business environment in the free zone. Sharjah, thanks to its strategic location and investment-encouraging policies, remains an ideal destination for achieving business ambitions and successfully developing future projects.
Frequently asked questions about establishing a company in the Sharjah Free Zone
What types of companies can be established in the Sharjah Free Zone?
Multiple types of companies can be established in the Sharjah Free Zone, such as limited liability companies (LLC), sole proprietorships, branches of foreign companies, free enterprises (FZE) and free limited liability companies (FZC).
What is the cost of establishing a company in the Sharjah Free Zone?
The cost varies based on the type of license, company size, and facilities required. This includes registration fees, office or storage space rental, and other administrative fees. It is recommended to contact the free zone to obtain an accurate estimate of costs.
Can I employ foreign workers in my company in the Sharjah Free Zone?
Yes, foreign workers can be employed. Work and residence permits for workers in companies registered in the free zone are issued relatively easily, in line with UAE labor and immigration laws.
What are the restrictions on commercial activities in the Sharjah Free Zone?
Although there is great flexibility in the permitted business activities, there are some restrictions regarding activities that require special approvals or that conflict with the laws of the UAE. It is necessary to review the list of activities permitted in the free zone and ensure that the planned business activity is compatible.