Sharjah corporate advisory services in 2023
Although Sharjah business start up can be complex, Healy Consultants’ expertise in this field is highly valued by our Clients, who appreciate our logical and transparent approach. The following is an overview of the key challenges of Sharjah business setup:
- Despite its challenges, a Sharjah company is attractive for foreign investors seeking a viable, lower-cost alternative to its neighbor, Dubai;
- Forming a business in Sharjah is legitimate way to book tax-exempt international profits. In addition, there are no capital gains or personal income taxes in the city;
- Investors intending to incorporate a company in Sharjah may do so through one of the two free zones in the city. For more information, please visit our Sharjah company formation page. Additionally, you may choose to visit our Hamriyah free zone page;
- Investors forming a business in Sharjah through a branch entity can avoid an annual audit;
- Despite the complexity of company incorporation procedures, Healy Consultants ensures the entire process completed efficiently, using the following as a chronological guide:
- Our Clients settles our fees and signs Healy Consultants engagement letter;
- Healy Consultants provides a detailed engagement plan related to forming a business in Sharjah;
- Healy Consultants reserves the name and incorporates the company using the corporate structure provided by the Client;
- Healy Consultants opens a local or international multi-currency corporate bank account for the new company;
- After the setup process is complete, Healy Consultants emails an engagement feedback survey to our Client.
- Healy Consultants offers a wide range of services to support the new company, including:
- Healy Consultants prepares business plans, conducts market research, and draws up feasibility studies for Clients;
- Our Accounting Team handles statutory accounting formalities on behalf of the company;
- Healy Consultants assists Clients locate suitable office premises in Sharjah or elsewhere in the UAE, and/or provides virtual office services to enable them to avoid the costs of renting an office in Sharjah;
- Healy Consultants also assists our Client obtain corporate finance, trade finance, and open merchant accounts.
Sharjah tax planning
Sharjah, despite being a part of the UAE, has their own tax decree. It is important that our Clients are aware of the nuances of the Sharjah tax decree. Please find below a certain important points which will assist our Clients with tax planning in Sharjah.
- As per the Sharjah Income Tax Decree 1968, tax shall be imposed on every chargeable person;
- A “chargeable person” is a corporate body, regardless of whether it is a Sharjah-resident corporation, unless under agreement with the ruler to exemption from taxation;
- Although these are the current taxation laws, they are not practiced. The UAE imposes none of the following taxes:
- Personal income tax
- Capital gains tax
- Value added tax
- Withholding tax
- Corporate tax
- There is, however, legislation in place for the three largest Emirates: Abu Dhabi, Dubai, and Sharjah that stipulates oil, gas, and petrochemical companies and foreign banks have to pay taxes;
- While there is no personal income tax or corporate tax in effect, there are some other small surcharges in place;
- Customs duty is levied on to most goods imported into Sharjah at a rate of 5% on the item CIF (cost, insurance, and freight) value;
- Individuals are also subject to municipality service charge, it is basically a service tax when patronising restaurants (between 5-10%) or hotels (15%). This is in place to nurture the growing tourism industry in the UAE.