Myths About Business Setup in Sharjah

10 Common Misconceptions About Business Setup in Sharjah

Setting up a business in Sharjah, one of the seven emirates of the United Arab Emirates (UAE), offers a plethora of opportunities for entrepreneurs and investors. However, like any other location, several misconceptions surround the process of company formation in Sharjah. In this article, we will debunk ten common misconceptions about business setup in Sharjah, shedding light on the reality of this vibrant and dynamic business hub.

10 Misconceptions About Sharjah Business World

Misconceptions can lead to misunderstandings and mistakes when it comes to business setup in any location. Here are 10 common misconceptions about setting up a business in Sharjah, UAE:

1. Business Setup in Sharjah is Complicated and Time-consuming

While the process of establishing a business in any location requires adherence to legal procedures, Sharjah has streamlined its processes and established investor-friendly regulations. The government has implemented various initiatives to simplify and expedite the business setup process, making it more efficient and less time-consuming.

2. Foreign Investors Have Limited Ownership Rights

Sharjah allows 100% foreign ownership in most sectors, offering a favorable environment for international investors. The government has actively encouraged foreign investments and has revised regulations to facilitate foreign ownership and get their desired trade license in UAE across various industries.

3. Only Large Businesses Can Thrive in Sharjah

Sharjah provides opportunities for businesses of all sizes. It has a diverse and dynamic market, supporting both small and medium enterprises (SMEs) and larger corporations. The government has implemented policies and initiatives to foster entrepreneurship and support the growth of SMEs in the emirate.

4. Language Barriers Hinder Business Operations in Sharjah

English is widely spoken and understood in Sharjah, making it convenient for international investors and businesses to communicate and operate smoothly. Moreover, the government has taken initiatives to provide translation services and facilitate communication for non-Arabic speakers.

5. The Cost of Setting Up a Business in Sharjah is Prohibitively Expensive

While there are costs involved in starting a business in Sharjah, the overall cost is competitive compared to other global business hubs. For company formation in UAE, the government offers various incentives, such as tax exemptions, reduced fees, and affordable office spaces, to attract investors. Additionally, the emirate provides access to a robust infrastructure and a skilled workforce, making it a cost-effective location for business setup.

6. Only Specific Industries Can Thrive in Sharjah

Sharjah offers a diverse range of industries and sectors where businesses can thrive. From manufacturing and logistics to tourism and hospitality, Sharjah provides ample opportunities for entrepreneurs in various sectors. The government has actively supported the development of these industries through investments in infrastructure, research, and innovation.

7. Intellectual Property Rights Are Not Adequately Protected in Sharjah

Sharjah, like the rest of the emirates in the UAE, has robust laws and regulations to protect intellectual property rights. The government has established specialized agencies and legal frameworks to enforce and safeguard intellectual property. Investors can register their trademarks, copyrights, and patents to ensure the protection of their intellectual property assets.

8. It is Challenging to Find Skilled Professionals in Sharjah

Sharjah has a highly educated and skilled workforce, with numerous universities and vocational institutions producing talented graduates. The government has focused on enhancing educational opportunities and providing training programs to develop a skilled labor force for mainland business setup in Sharjah. Additionally, the emirate attracts professionals from around the world, further enriching the talent pool.

9. Local Sponsorship is a Major Hurdle for Foreign Investors

While businesses in the UAE generally require a local sponsor, Sharjah has introduced various initiatives to mitigate the challenges associated with sponsorship. The government has implemented options such as the Sharjah Media City Free Zone and the Sharjah Research, Technology, and Innovation Park, where 100% foreign ownership is allowed without the need for a local sponsor. These free zones provide a favorable environment for businesses to operate with full ownership rights.

10. Business Setup in Sharjah Lacks Government Support and Incentives

The government of Sharjah actively supports and promotes business setup in the emirate. It has introduced several initiatives and incentives to attract investment, including tax exemptions, grants, and access to funding. Additionally, government entities such as the Sharjah Investment and Development Authority (Shurooq) provide support services and guidance to facilitate the establishment and growth of businesses.

Businesses Are Growing, Step on the Right One Now

Setting up a business in Sharjah presents a wealth of opportunities for entrepreneurs and investors. By debunking these common misconceptions, we reveal the reality of business setup in Sharjah – a streamlined process, favorable ownership rights, diverse industries, and robust government support.

With a strategic location, vibrant economy, and investor-friendly regulations, Sharjah continues to attract businesses from around the world. It is essential for prospective investors to conduct thorough research and seek professional guidance from Sharjah business setup consultants to fully understand the requirements and benefits of establishing a business in Sharjah. Embracing the reality of business setup in Sharjah can lead to success and growth in this thriving business hub.

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