Top 7 Reasons Why You Should Set Up a Business in Sharjah in 2023

A location with support from the government, having world class infrastructure and citizens thriving to grow the business world. Yes, this is Sharjah; one of the fastest growing cities in the world. And, it is estimated to have grown by over 5% in 2022, taking its GDP to AED 136.9 billion.

The economic diversification is paying off well to those who are already in the market. And a new entry is best suited right now. This article presents to you the top seven reasons why you should have a business setup in Sharjah mainland.

1. Favorable business environment

Sharjah has a stable and business-friendly environment, with low taxes and regulations. The corporate tax rate in Sharjah is 9%, which is one of the lowest in the world. The emirate also has a simple and transparent tax system, with no personal income tax or capital gains tax. In addition, the government of Sharjah offers a number of incentives and support programs for businesses, such as tax breaks, free land, and training grants.

Here are the complete details of taxation:

• Corporate tax of 9% applicable only to corporations earning more than AED 375,000 a year. Until then, it is 0%.
• Foreign companies who have businesses in the oil and gas sector pays 55% corporate tax.
• Branches of foreign banks in Sharjah pay 20%.
• VAT is only 5%
• Free Zones are exempted

2. Competitive costs

The cost of doing business in Sharjah is lower than in many other countries, including other emirates in the UAE. For example, the average rent for office space in Sharjah is 30% lower than in Dubai. Labor costs are also lower in Sharjah, with the average monthly salary for a skilled worker being around AED 3,000.

Infact, the lack of skilled labor has led to a rise in salaries in most parts of UAE, starting from 2022. But, it is still one of the lowest and you get your company setup in Sharjah, running with low capital input.

3. Strategic location

Sharjah is located in a strategic location, making it an ideal hub for businesses that want to access markets in the Middle East, Africa, and Asia. The emirate is only 20 kilometers from Dubai, which is a major international business and financial center. Sharjah is also well-connected to the rest of the world, with excellent air, sea, and road connections.

Not only the location for business, its location harbors a great climate, creating the perfect setting for your next business adventure.

4. Diverse economy

Sharjah has a diverse economy, with a strong focus on manufacturing, trade, and tourism. This means that there are opportunities for businesses in a wide range of sectors. For example, Sharjah is home to the Sharjah International Airport, the Sharjah Port, and the Sharjah Expo Centre. The emirate is also a popular tourist destination, with a number of historical and cultural attractions.

Diverse economy takes the burden off new business owners, as they have a wide range of options to choose from. The locals are always collaborative and the government support in diverse sectors of the economy boosts the overall effectiveness of doing business in Sharjah.

5. Investment-friendly policies

The government of Sharjah has a number of investment-friendly policies in place, such as the free zones and the Sharjah Economic Development Corporation (SEDC). These policies make it easy for businesses to set up and operate in Sharjah. For example, the Sharjah Airport International Free Zone offers a 100% tax exemption on profits, dividends, and capital gains.

According to Wam, a leading news agency in Sharjah, 7 key sectors in particular, namely, Health and Well-being, Mobility and Logistics, Culture and Tourism, Agri-Food Technology, GreenTech, Human Capital and Innovation, and Advanced Manufacturing, have witnessed further growth and integration.

They are powering Sharjah’s sustainable growth by attracting top regional and global investors who are benefitting from the emirate’s offerings as one of the region’s leading incubators for long-term strategic investments.

6. High-quality infrastructure

Sharjah has a high-quality infrastructure, including a modern airport, a deep-water port, and an extensive road network. This makes it easy for businesses to import and export goods and services. For example, the Sharjah Port is one of the largest ports in the Middle East, and it handles over 100 million tons of cargo each year.

With sustainability at its core, UAE is pushing high quality infrastructure for further development of mainland business setup in sharjah. This is evident from the fact that the UAE ranks first in the MENA region for quality infrastructure for sustainable development.

7. Abundant skilled labor

Sharjah has a large and skilled workforce, with a high literacy rate. The emirate is home to a number of universities and colleges, which produce graduates in a wide range of disciplines. For example, the University of Sharjah is one of the largest universities in the UAE, and it offers over 100 undergraduate and graduate programs.

Set up Now and reap Benefits as Sharjah Grows More

Sharjah is a great place to start a business. With its favorable business environment, competitive costs, strategic location, diverse economy, investment-friendly policies, high-quality infrastructure, and abundant skilled labor, Sharjah offers a number of advantages that can help your business succeed.

If you are considering investing in a business in the UAE, we encourage you to consider Sharjah. The emirate has a lot to offer businesses of all sizes. To learn more about setting up a business in Sharjah, we recommend contacting Sharjah business setup consultants A&A Associate. We are a reputable business setup consultant with a wealth of experience in helping businesses get started in Sharjah.

Contact A&A Associate today and let us help you take your business to the next level.