SHARJAH COMPANY INCORPORATION
Sharjah company incorporation offers a suitable and optimal option for foreign investors, not only because it is tax efficient, but is also a cost efficient option to Dubai company formation.
As an emirate of UAE, Sharjah companies are not subjected to tax. Also, free zone companies do not have to pay corporate tax, an advantage that results in minimal withholding tax on remittance to other countries. Hence, there is no need to pay custom duties on import / export goods from the free zone.
Though an Emirati national must be appointed as 51% local partner (with the trading license allotted by the Department of Economic Development), the investor can still define the profit and loss distribution.
Sharjah serves as a prominent industrial core, helping in producing 48% of UAE’s industrial yield. It is also included in the top 10 preferred cities to do business in the Gulf area and serves as an ideal location for setting a manufacturing company in the UAE.
Sharjah is advantageously positioned near the African and European continents, and thus serves as a perfect option for trading company formation.
The government provides vast subsidies to the energy and utilities sector which also serves as a big advantage in favor of Sharjah company incorporation. 70% of the electricity and utilities cost is covered by the government, hence the economy provided can be extremely beneficial for Sharjah company formation.
Another advantage for Sharjah company incorporation is the 66 double tax treaties agreed upon between UAE and overseas countries, including Chine, India, Japan and Singapore. This was accorded for the purpose of lessening withholding taxes on overseas payments. The absence of exchange controls in the UAE also poses as an advantage for investors to send back profits to their home countries.
Other advantages offered by a free zone company include the following: