5 Main Difference between Company Setup in Dubai and Sharjah

The UAE is a highly diverse economic zone that offers some of the best opportunities for starting your own business. UAE is located in the centre of the world and acts as a gateway between the Eastern and the Western parts of the world. And, Dubai and Sharjah are the two most prominent names that emerge in the minds of a majority of people for setting their own business. Further, both these places offer an exciting business landscape with more and more people and expats investing here. Business setup in Sharjah and Dubai are the most preferred among others.

Dubai is an excellent choice and even better than Sharjah at the first sight. However, there is much more to explore and understand before opening a business in Dubai. While both places offer exciting business opportunities and have Free Zones and Mainland Zones, there are many vital differences when it comes to opening your business.

We share a detailed discussion of the differences between company setup in Dubai and Sharjah. If you are also planning to start your business in either one of them, we recommend you read it carefully. We also suggest consulting some reputed firms that offer business setup services UAE. These companies offer all types of consulting, documentation and even legal services, such as business license in Dubai.

This way, you can start your business as an informed businessman and have the best understanding of the market scenario as well.

Also Read: 11 Similarities and Differences Between Dubai and London

Now, read on!

Sharjah for setting your business in UAE: Why?

Sharjah is one of the most developed Emirates in the Middle East and is a hub of trading activities in the UAE. It accounts for more than 45% of the entire country’s GDP, which is certainly a huge number and makes it a highly active place for all kinds of economic activities.

  • Another crucial fact is that it is the only city in UAE that has access to the ports in
  • Arabian Gulf (Eastern and Western coasts)
  • Access to the Indian Ocean
  • Direct pathway to North Africa

This makes Sharjah a place with a highly strategic location and makes it a centre for foreign investments as well. Foreign investors can set up many types of companies, such as limited liability companies (LLCs), joint-stock companies, branch offices or subsidiaries as well. Another important fact is that foreign investors can also enjoy sole proprietorships as well.

Also Read: Company Formation in Dubai: A Step by Step Complete Guide to Start a Business in Dubai

Setting up your business in Dubai – General Perspective

When we think about Dubai, we imagine a highly active market scenario with opportunities for all types of investors and entrepreneurs and a favourable atmosphere for all types of businesses. We think that we can open businesses in Free Zones and enjoy tax-free business with sole proprietorships.

However, what we don’t realize are the following:

  • Cost of running an office
  • A highly competitive and overcrowded market space
  • High sponsorship costs
  • High costs of living
  • The ability to choose any name for your business
  • Third-party approvals

Also Read: How Document Attestation Impacts new Business setup in the UAE

Differences between Company Setup in Dubai and Sharjah

In this section, we present a clear list of differences between company setup in Dubai and Sharjah.

1. Cost of running your office

If you have a strict budget, then it is important that you take a look at the office rent at both places.

Sharjah has a number of locations where you can open your offices at highly affordable costs. The rent in the prime locations of Sharjah is more but is still lesser than that in Dubai. As the office rent is paid monthly and you also have to deposit a security amount, if you are a start-up, it is important that you choose the business location carefully.

2. Cost of business license

The cost of a business license in Sharjah is 13% of the office rent and other operational costs. The cost of a business license in Dubai depends on various factors and is a little more than in Sharjah. However, Dubai offers more customization options to the business people and allows them to enjoy a better and more diverse investment portfolio. So, all in all, the major differentiator is the rent. This is why people still opt for Dubai.

3. Setting your company

The process for company setup varies across the entire UAE and had many differences based on the type of business, nature of the business, nature of the investment, the nationality of the businessman, sponsorship and operational requirements of the business etc. In Sharjah, third party approvals are there which are not mandatory in Dubai. This also might vary from one business to another.

4. Naming your business

Sharjah has a regulation as per which you can only have Arabic names for your business setups. However, in Dubai, there is no such restriction and you can choose any type of business name.

5. Professional assistance

Dubai is more developed than Sharjah and has a highly diverse pool of investors. This means that you can find almost all types of professional assistance here as compared to Sharjah, where the availability of complex business consulting and advising might not be at par with Dubai.

Also Read: How to Get Business Trade License in Dubai: Everything You Need to Know

This completes our discussion on the major differences between company setup in Dubai and Sharjah. We hope all our readers find this discussion helpful. For more expert information, you can reach out to us in the comments section.