In the ever-evolving tapestry of the United Arab Emirates (UAE), where bustling metropolises like Abu Dhabi and Dubai often take centre stage, there exists a hidden gem, an emirate that is quietly but steadily carving its niches amidst the glittering skyscrapers and thriving urban landscapes. This lesser-known emirate, Sharjah, often affectionately dubbed the “Cultural Capital” of the UAE, boasts an allure all its own.
Nestled along the tranquil shores of the Arabian Gulf, Sharjah has earned its reputation as a city of culture and heritage. It is a place where history, art, and family-friendly charm blend seamlessly with the modern world. making it a veritable showcase of timeless values in a fast-paced age.
Positioned as the third-largest emirate in the UAE, it has emerged as a powerful player in the region’s economic landscape. Its global connectivity through international airports and ports makes it an inviting prospect for aspiring entrepreneurs and investors alike. making it a beacon for the future.
If you’re ready to explore the possibilities and learn how to set up your company in Sharjah with affordable investments and the promise of high returns, read on. This blog is your roadmap to entrepreneurial success in one of the most dynamic and promising destinations in the Middle East.
EXPLORING SHARJAH’S BUSINESS LANDSCAPE
Sharjah’s rise as a vibrant business hub is a testament to its strategic advantages, visionary leadership, and unwavering commitment to economic diversification. Here’s a closer look at why Sharjah stands tall on the global business stage:
Strategic Location
Sharjah’s geographical location is nothing short of a global advantage. Situated along the serene shores of the Arabian Gulf, it occupies a pivotal position, serving as a gateway between Europe and East Asia. This places it at the crossroads of international trade routes, offering seamless access to major international ports and airports in both the Arabian Gulf and the Indian Ocean.
Economic Diversity
Sharjah’s economy has blossomed far beyond its oil-driven origins. The emirate’s leadership recognised the need for diversification early on, fostering the growth of various industries, including manufacturing, logistics, tourism, technology, and more. This diversified economic landscape is a testament to Sharjah’s adaptability and resilience.
Investment-Friendly Policies
Sharjah welcomes investors with open arms, offering a business-friendly environment that encourages foreign direct investment (FDI). The government has implemented policies and incentives that make it easier for entrepreneurs and investors to set up and operate businesses.
Free Zones
The emirate boasts a collection of specialised free zones, each catering to different industries, including the Sharjah Publishing City Free Zone (SPC Free Zone) and Sharjah Media City (Shams). These zones provide a haven for businesses with benefits like 100 per cent foreign ownership, tax exemptions, and streamlined administrative processes. They have played a pivotal role in attracting international enterprises.
Education and Innovation
Sharjah’s commitment to education and research is unwavering. It is home to world-class universities and research institutions, nurturing a talented workforce and fostering innovation. The investment in education ensures a skilled labour pool ready to drive various industries forward.
Cultural Riches
Sharjah is a melting pot of heritage, art, and tradition. Its thriving cultural scene, encompassing heritage sites, museums, and festivals, not only adds to its charm but also fuels the tourism sector’s growth.
INDUSTRIES AND SECTORS WITH GROWTH POTENTIAL IN SHARJAH
Sharjah’s economic diversification has created opportunities across various industries, with several sectors showing significant growth potential. Here are some key sectors to watch:
- Mobility and Logistics
With its strategic location and well-developed infrastructure, Sharjah is a key player in the logistics and transportation sector. The expansion of ports and logistics facilities continues to drive growth.
- Agri-Food Technology
The agriculture and food technology sector is experiencing innovation and growth, supported by initiatives to ensure food security and sustainable agriculture practices.
- Greentech
Sharjah is committed to sustainability and green initiatives. Investments in renewable energy, sustainable desalination technologies, and emission reduction projects are on the rise.
- Human Capital and Innovation
The emirate is nurturing talent through specialised vocational academies and innovation labs. It offers opportunities in education, training, and technology-driven innovation.
- Advanced Technology
Sharjah is home to over 35 per cent of the UAE’s manufacturing industries. It excels in manufacturing spare parts, industrial automation, and emerging technologies like IoT, robotics, and drones.
These sectors represent just a glimpse of the opportunities available in Sharjah. The emirate’s commitment to economic diversification, coupled with its investor-friendly policies and strategic location, positions it as a promising destination for businesses looking to establish a foothold in the Middle East and beyond.
THE ECONOMICS OF LOW-COST INVESTMENT
Starting a business doesn’t always require deep pockets, especially in an emirate like Sharjah, where low-cost investment options are readily available. Let’s explore some budget-friendly business setup options in Sharjah and how they can work.
- Last-Mile Delivery
Business Idea: Start a last-mile delivery service focused on efficient, eco-friendly transportation.
Example: Invest in a fleet of bicycles or small vehicles to provide last-mile delivery solutions to local businesses. Partner with local shops, restaurants, or e-commerce platforms like Noon for delivery services.
Ideal Free Zone: Shams offers a wider range of business activities and is not limited to specific sectors. Starting a logistics and delivery service is a versatile business idea that aligns with Shams’ diverse business activities, making it a better fit.
2. Catering Services
Business Idea: Start a catering service that offers a wide range of cuisine options for various events, businesses, and individuals.
Example: Provide catering for weddings, corporate meetings, and special occasions, offering diverse menus to suit different preferences. Your catering business can emphasise high-quality ingredients, culinary expertise, and excellent customer service to attract clients looking for memorable dining experiences.
Ideal Free Zone: SPC Free Zone allows business activities related to accommodation and food services, making it a practical choice for setting up a catering service.
3. Co-Working Space for Tech Startups
Business Idea: Create a co-working space tailored to tech startups and innovators.
Example: Design an affordable co-working environment with modern facilities and tech infrastructure. Offer flexible rental plans to accommodate the budgets of budding tech entrepreneurs. By providing a collaborative ecosystem, mentorship programs, and access to resources, your co-working space fosters innovation and human capital development, making it an attractive hub for tech startups.
Ideal Free Zone: Shams would be a flexible option due to its diverse business activities. Tech startups and innovation-focused businesses often require a variety of business activities and services that align with Shams’ offerings.
4. Construction Project Management
Business Idea: Offer construction project management services, specialising in overseeing and coordinating construction projects from inception to completion.
Example: Partner with construction companies and real estate developers to provide expert project management. With a focus on efficiency and successful project delivery, you can help clients streamline their construction projects.
Ideal Free Zone: Since SPC Free Zone permits construction and project management services, it is a suitable option for this business idea.
5. Virtual Tour Guiding
Business Idea: Offer virtual tour guiding services, bringing the rich cultural heritage of Sharjah to a global audience.
Example: Become a virtual tour guide for tourists interested in exploring Sharjah’s historical sites and museums. Utilise video conferencing platforms to provide immersive tours, charging a fee per tour. Minimal setup costs include a computer, camera, and internet connection, making it a cost-effective venture.
Ideal Free Zone: Shams is known for its flexibility in allowing various media and content-related businesses. Offering virtual tour guiding services falls under the broader umbrella of media and content creation, which aligns with Shams’ business activities.
BUDGET-FRIENDLY INVESTMENT STRATEGIES
- Start Small and Scale Up
Begin with a modest initial investment and gradually scale up your business or investment portfolio as you gain experience and generate returns. Starting small allows you to test the waters and minimise risk.
- Diversify Your Investments
Avoid putting all your capital into a single investment. Diversify your portfolio by investing in different asset classes or industries. This spreads risk and increases your chances of earning a return.
- Invest in Mutual Funds or Exchange-Traded Funds (ETFs)
Mutual funds and ETFs are often a cost-effective way to access different markets and sectors. They offer diversification by pooling money from multiple investors to invest in a variety of assets.
- Invest in Education and Skills
Consider investing in education and skills development to enhance your earning potential. Courses, certifications, and training programs can be budget-friendly investments that lead to higher income in the long term.
- Seek Professional Advice
Consult with a reputable business setup consultancy like SetHub, which specialises in providing entrepreneurs with superior and dynamic support. SetHub is committed to enabling entrepreneurs worldwide to efficiently and cost-effectively bring their ideas to life and establish their businesses. - Research and Due Diligence
Before making any investment, conduct thorough research and due diligence. Understand the investment’s risks and potential returns to make informed decisions.
STRATEGIES FOR HIGH RETURNS
To achieve high returns on investment in Sharjah, it’s essential to employ strategic approaches that capitalise on the emirate’s unique economic strengths.
One such strategy is to explore the various investment opportunities in sectors that are witnessing rapid growth, such as technology, advanced manufacturing, and greentech. These sectors are not only aligned with global trends but also receive significant support from the government, offering promising prospects for investors. Moreover, entrepreneurs can benefit from the UAE’s overall tax advantages, including the absence of personal income tax and capital gains tax, along with a competitive corporate tax rate of 9%. This 9% corporate tax, while seemingly a cost, becomes advantageous when considering the broader international tax landscape.
Furthermore, forming strategic partnerships with local businesses and leveraging Sharjah’s position as a global trade and logistics hub can unlock new revenue streams. By diversifying your investment portfolio across these high-growth sectors, optimising your tax structure, and leveraging Sharjah’s economic advantages, you can position yourself for potentially substantial returns on your investments.
NAVIGATING THE BUSINESS SETUP PROCESS
Here’s a step-by-step guide to establishing your company in Sharjah, along with legal and regulatory considerations
Step 1: Decide on Your Business Activity and Structure
Begin by identifying the type of business activity you want to undertake and the legal structure that suits your needs. Common legal structures in the UAE include Limited Liability Company (LLC), Free Zone Company, and Branch Office.
Step 2: Choose Your Ideal Free Zone
When setting up your business in Sharjah, selecting the right free zone is crucial. Two prominent options are:
- SPC Free Zone (Sharjah Publishing City Free Zone)
This subsidiary of Sharjah Book Authority offers a smarter, simpler, and faster way to launch your venture in the UAE. With over 1,500 available business activities and modern facilities, it provides the ideal platform for entrepreneurs and investors. - Sharjah Media City (Shams)
As a digitally born free zone authority, Shams offers a 2 million m2 multi-use media city that aims to be a regional leader in media and creativity. Shams provides cost-effective solutions for businesses of all sizes, freelancers, and entrepreneurs.
Step 3: Select a Business Name
Choose a unique and suitable name for your company that adheres to the naming conventions and regulations of the UAE. Verify name availability with the relevant authorities.
Step 4: Register Your Business
If you’re establishing your business in a free zone, submit your application and business plan to the chosen free zone authority.
Step 5: Obtain Necessary Approvals and Licenses
Depending on your business activity, you may need specific approvals and licenses from government departments or regulatory bodies. Ensure you comply with all requirements.
Step 7: Apply for Visas
If you plan to hire employees or require a visa for yourself or partners, initiate the visa application process. This typically involves health checks and biometric data collection.
Step 8: Open a Corporate Bank Account
Choose a local bank that aligns with your needs and open a corporate bank account for your business. Be prepared to provide the necessary documents and meet the bank’s requirements.
Step 10: Finalise Legal Documents
Sign all required legal documents, including your Memorandum of Association (MOA) or Articles of Association (AOA), lease agreements, and any partnership agreements provided by the freezone.
Step 11: Obtain Your Trade License
Once all approvals, licenses, and legal documents are in place, you can obtain your trade license, allowing you to legally operate your business in Sharjah.
Note that SPC offers the advantage of instant business license issuance in just 45 minutes, while Shams provides rapid issuance of all company documents and a quick and straightforward online registration process for added efficiency.
Step 12: Commence Business Operations
With your trade license in hand, you’re ready to start your business operations. Ensure you comply with all regulatory and legal requirements as you operate your company.
In Conclusion,
Sharjah presents a compelling opportunity for entrepreneurs and investors seeking to establish their companies with low-cost investments and the potential for high returns. With strategic free zones like SPC and Shams offering innovative solutions, a favorable tax environment, and diverse business activities, the emirate fosters an environment where business dreams can thrive.
Whether you’re a startup looking for streamlined processes or an established business aiming to expand, Sharjah’s business landscape holds the promise of a successful and rewarding journey. Speak to us today and unlock the doors to your business success in Sharjah.
