What is a DED Commercial License?
A commercial license is a permit that allows a business to legally trade goods and commodities. The Department of Economic Development (DED) issues it for mainland companies, while free zone authorities handle it for businesses operating within their zones. With a commercial license, you can conduct the following activities:
- Import/export
- General trading
- E-commerce
- Wholesale
- Retail
The license also covers a broad range of commodity types, from electronics and foodstuffs to textiles, medical equipment, and building materials.
Benefits of Having a Commercial License in Sharjah
Sharjah sits at the crossroads of major trade routes connecting the Arabian Gulf to global markets, which makes it one of the most strategic locations in the UAE for trading businesses. A commercial license in Sharjah offers the following advantages:
- Full foreign ownership: Sharjah’s free zone company formation options allow 100% foreign ownership, so international entrepreneurs do not need a local partner or sponsor to establish their business.
- No customs duties: Free zone businesses with a commercial license in Sharjah do not pay duties on imports and exports.
- Lower operating costs: Compared to Dubai, Sharjah offers more affordable commercial real estate, licensing fees, and operational overheads.
- Low business tax: The UAE levies no personal income tax. There is only a 9% Corporate Tax. Businesses only need to register for VAT once taxable revenue exceeds AED 375,000 annually.
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How to Get a Commercial License in Sharjah?
To get a commercial license in Sharjah, you will need to choose a business activity, decide between free zones and the mainland, reserve a trade name, get initial approval, and then apply for the trade license.Â
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- Choose your business activities: Select which trading activities your company will carry out. The DED and Sharjah’s free zone authorities both have a database of permitted business activities.
- Select your jurisdiction: Decide whether to set up on the mainland or in a free zone. Mainland commercial licenses in Sharjah allow you to trade freely across the UAE and take on government contracts. Free zone licenses are more affordable and are processed quicker.
- Reserve a trade name: Submit three name options to the relevant regulatory authority. The names should be in English and literally translated into Arabic.
- Apply for initial approval: Initial approval confirms that the authority has no objection to your business activity and legal structure. You will need to submit your business plan to receive the certificate.
- Get a trade license: Once you receive initial approval, apply for a commercial license in Sharjah. Instant licenses can be received within a few hours while normal licenses can take up to 14 working days.Â
After your trade license in UAE has been issued, you can process your visa and open a bank account for your business.Â
What is the Sharjah Commercial License Cost?
It costs between AED 5,000 to AED 20,000 to get a commercial license in Sharjah. The total price depends on where you set up your business as free zone licenses are generally cheaper than mainland licenses. Factors like the number of business activities and your office space requirements also affect the price.Â
Get a Commercial License in Sharjah With SRTIP Accelerator
SRTIP Accelerator manages the entire licensing process for entrepreneurs in Sharjah. Our consultants can recommend the best jurisdiction for your business, prepare your paperwork for the application, liaise with government officials, and provide business support through our PRO services, trademark registration, and tax and accounting services.
Frequently Asked Questions
A trade license is the umbrella category that covers all business permits in the UAE, including commercial, professional, and industrial licenses. A commercial license is one specific type within that category. It authorises you to trade goods and commodities. A professional license covers you if you run a service-based business such as consulting or healthcare, while an industrial license applies if you manufacture or produce goods.
The cheapest business license in Sharjah is SRTIP’s zero-visa license which starts at AED 5,500. SRTIP offers licenses for e-commerce, general trading, technology, research, and innovation companies.
A commercial license covers a broad range of trading activities, including online selling, physical retail, wholesale, and import/export, all under one permit. An e-commerce license covers online selling only. If your entire business model operates through a website or app, an e-commerce license covers your needs and may come at a lower cost.
Your commercial license in Sharjah is valid for one year from the date of issue. Start your renewal at least one month before the expiry date to avoid late fees. Before you submit your renewal application, confirm that your tenancy contract is valid and registered, because an expired tenancy contract will stall the process.Â
