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Legal and Organizational Frame Work of Investment in Sharjah


Investment in Sharjah is based on legal and organizational principles within the following frameworks:

First:
Local, through the application of laws and local orders issued by the Ruler of Sharjah.
Second:
Federal, through the application of federal laws issued by the President in line with constitutional provisions.
Third:
Sharjah enables investors to have restriction-free commercial and financial transactions, including the transfer of all their profits and capital or conducting other exterior financial dealings.

 The Legal and Organizational Framework in the Light of Local Orders in Sharjah

First: Professional and occupational business by non-UAE national in accordance with local order no (1) of 1991:

The local order no (1) of 1991 was issued by the Chairman of Sharjah Municipality on May 21, 1991. It is practiced through two legal ways:

Individual establishments provided that the users of an establishment are not more than five persons.

Companies whose business is governed by the federal civil transaction laws no (5) of 1985, in articles 683 and 690.

Law no (1) of 2002 was issued to streamline the tasks of the Department of Economic Development. With this law, the responsibility of issuing trade licenses has been transferred to the department. Thus, responsibilities of the municipality as described in local orders have become those of the department.

The company concerned is defined as that in which agreement is reached between two persons to deliver work to third parties for a fee, whether or not the two in agreement are working equally or separately, as works have to be delivered in harmony.

One condition is that an individual establishment or company has to have a service agent who is a UAE national, to enable expatriates to handle their business in Sharjah, without being responsible financially.

Local order no (1) of 1991, article no (9), states that the municipality will observe the implementation of federal laws when licensing some categories of professional and occupational businesses.

Accordingly, conditions will apply to some professions as explained in local laws or ministerial orders before granting licenses to these categories that include professions like the legal and medical professions and others.

Second: Economic Activities by Non-UAE Nationals in Sharjah, in Accordance with Local Order No (1) Of 1992:

Local order no (1) of 1992 was issued by the Chairman of the Sharjah Municipality on January 20, 1992 to organize:

Trade Activities
Industrial Activities
Agricultural Activities






Trade Activities:

Non-UAE nationals are allowed to practice trade activities through individual establishment with a local service agent who enables the expatriate to complete procedures required by local departments, without being financially responsible.

Industrial Activities:

The local order allows non-UAE nationals to practice industrial activities through an individual establishment with a local service agent, and with the following conditions:

The industrial project is not listed under provisions of the federal industrial law no (1) of 1979
The project should be of high technology or serve the industrial development objectives of the emirate

The licensing commission also stipulates the inclusion of a feasibility study on the project concerned.

Agricultural Activities:

Local order no (1) of 1992 allows non-UAE nationals to work in agricultural activities. However, the following conditions apply:

The project should contribute to land cultivation or the use of water resources
It should increase agricultural and cattle production

In all cases, individual establishments set up in accordance with the local order should have local service agents.
 
 
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