The Sharjah Economic Department (SEDD), also known as the Economic Development Department Sharjah, is a key governmental entity committed to driving the economic momentum in Sharjah. Sharjah Economic Department primary objective is to cultivate a business-friendly atmosphere, encouraging growth and investment. In its capacity as the Sharjah Economic Development Department, it manages and governs diverse economic facets within the emirate.
Sharjah Economic Department operates as a guide, overseer, and advocate of economic advancement. Its scope of work covers a broad range of functions, each tailored to enhance Sharjah’s economic structure. As the Sharjah Economic Development Department it takes an active stance in shaping the business ecosystem of the emirate, promoting transparency and accountability. With its endeavors and services, it strives to simplify administrative tasks, minimize red tape, and ensure that businesses function within established legal boundaries.
All Sharjah businesses (not located in a free zone) have to be licensed by the Sharjah Economic Development Department and adhere to the UAE Commercial Companies Law (CCL). This is especially important for the formation of a Sharjah Economic Department company in mainland Dubai. Once registered under the Sharjah Economic Department, these companies can operate across the UAE, including in free zones and Gulf Cooperation Council (GCC) countries. The most frequently issued license type by the Sharjah Economic Department is for a Limited Liability Company (LLC). This allows businesses to lease or purchase commercial space anywhere in Sharjah. LLCs have a broad business scope, with exceptions in the banking, insurance, and investment sectors. Additionally, SEDD-registered businesses are exempt from the typical 5% customs duty on imported goods and are eligible for a Tax Residence Certificate from the UAE Ministry of Economy.
A license from the SEDD allows businesses to operate legally within the Emirate of Sharjah. Operating without a license can lead to penalties and legal issues.
With the license, businesses can freely market and sell their products or services within the Emirate and can participate in exhibitions and trade shows.
Possessing a proper license enhances a business's credibility and reputation in the eyes of clients, partners, and stakeholders.
Having a proper license can facilitate opening a corporate bank account, securing loans, and other financial operations.
Licensed businesses can benefit from utilities, rental spaces, and other resources offered at government-regulated rates.
The license offers a legal umbrella for the business, ensuring it adheres to the Emirate's regulations and standards. This protection helps companies to avoid potential pitfalls and disputes.
Being a licensed entity often means better access to B2B networking events, trade fairs, and other platforms to collaborate and partner with other businesses in the region.
A SEDD license facilitates obtaining additional permits, attracting investors, and expanding business operations.
Many government projects and contracts require a valid license to participate. Thus, having an SEDD license can provide access to these lucrative opportunities.
The Sharjah Economic Department offers a comprehensive array of
services tailored to meet the diverse needs of businesses.
SEDD issues a variety of commercial and economic permits that include, but aren’t limited to:
SEDD issues a variety of commercial and economic permits that include, but aren’t limited to:
There are more than 3,000 economic activities in the Emirate of Sharjah. These activities span several domains: business, industrial, professional, and tourism. Notably, some of these activities come with specific conditions, especially concerning the location and size of the operating facility.
The licensing system in Sharjah is straight forward: the license type is based on the activity category. A professional activity would naturally require a professional license. In instances where one license covers various activities, it’s the dominant activity that defines the license’s nature. It’s necessary to note that among all activities, industrial ones lead in popularity, followed closely by commercial and then professional sectors. Flexibility exists in merging sectors like industrial, commercial, and professional, provided they align or if one secures the necessary permissions. For instance, when a license integrates both commercial and professional sectors, the predominant sector determines the license type. This particular stipulation, however, doesn’t extend to tourism activities. SetHub’s team of experts will guide you on the formation of a SEDD company in mainland Dubai and the licensing system in Sharjah.
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