The UAE continues to lead the region in creating a business-friendly environment, and Sharjah is taking a bold step with its Instant License program.
Launched in June 2025 by the Sharjah Economic Development Department (SEDD) with the approval of the Sharjah Executive Council, the initiative enables entrepreneurs to start an office-based business in just one working day.
This innovative approach reduces traditional bureaucratic hurdles, providing a fast-track entry point for startups, freelancers, and small investors looking to operate legally in Sharjah.
– Why Sharjah Introduced the Instant License?
The Instant License aligns with Sharjah’s broader economic goals, aimed at attracting investment, fostering innovation, and simplifying regulatory processes. The program reflects the emirate’s vision of building a supportive and competitive regulatory environment.
By cutting down on paperwork, the initiative encourages entrepreneurship, curbs unlicensed activity, and strengthens Sharjah’s position as a regional hub for trade and professional services.
– Key Features of the Instant License
- Fast Approval: The commercial license is issued within one working day, giving entrepreneurs immediate legal status to operate.
- Reduced Documentation: There is no need to submit a Memorandum of Association (MoA) or lease contract in the first year.
- Eligible Activities: The license covers office-based activities such as consultancy services, IT and digital marketing, e-commerce operations, and advisory services.
- Staff Limit: Each license allows the employment of up to three workers.
- Online Process: Applications are completed entirely through the SEDD portal, making it easy and convenient.
– Who Can Apply?
The Instant License is accessible to:
- UAE nationals and residents
- GCC nationals
- Certain foreign investors, depending on the business activity and sponsorship requirements
Eligible businesses include:
- Consultancy firms
- IT and digital marketing companies
- E-commerce businesses with an office presence
- Freelancers and shared workspace operations
Businesses such as retail shops, restaurants, and activities requiring external government approvals are excluded from this program.
– How to Apply for the Instant License?
The process is designed to be simple and efficient:
- Apply online via the SEDD portal or through authorized business setup consultants.
- Select an activity that falls within the approved list of office-based activities.
- Submit the required documents, excluding the MoA and lease for the first year.
- Receive the license within one working day and commence operations.
After the first year, entrepreneurs must submit standard documentation, including a MoA and lease agreement, to renew the license and continue operating legally.
– Compliance and Penalties
Although the Instant License simplifies setup, businesses are still required to comply with regulatory obligations. Key compliance points include:
- Timely renewal of the license after one year
- Operating strictly within approved activities
- Employing no more than the permitted three workers
Failure to comply can result in fines of AED 5,000 per violation, blacklisting, or suspension of the license. Companies that do not transition to a standard license within the first year risk termination of operations and future restrictions on new license applications.
– Comparison With Other GCC Instant License Models
Sharjah’s Instant License is part of a broader trend in the UAE and GCC aimed at streamlining business approvals:
- Sharjah: One day, office-based activities, MoA/lease not required initially, fines of AED 5,000 or more.
- Dubai: A few hours for setup, no lease required in the first year, similar renewal obligations.
- Abu Dhabi: One to two days, lease required upfront, standard renewals, comparable fines.
- Saudi Arabia: No direct instant license; setup takes 2-4 weeks, requires approvals and capital checks, with heavy penalties for non-compliance.
– Benefits for Entrepreneurs and the Economy
The Instant License is a significant opportunity for entrepreneurs seeking fast, legal market entry. It provides several advantages:
- Lowers barriers for business setup in the UAE
- Encourages investment in knowledge-based sectors such as IT, consultancy, and digital marketing
- Reduces the risk of operating without legal compliance
- Supports Sharjah’s economic diversification and innovation agenda
– Strategic Implications
For investors and business owners, the program allows for rapid experimentation and market entry with minimal upfront investment. By removing traditional roadblocks, Sharjah enhances its competitiveness within the UAE and the broader GCC.
Entrepreneurs can launch, test, and grow businesses more efficiently while preparing for long-term compliance and standard licensing in the second year.
To Sum It Up
Sharjah’s Instant License represents a forward-thinking approach to business setup in the UAE, particularly for SMEs, startups, and freelancers. By offering a one-day approval process, simplified documentation requirements, and clear compliance guidelines, the initiative empowers entrepreneurs to start operations quickly while ensuring legal and regulatory oversight.
For those considering UAE company formation, Sharjah’s Instant License is a game-changer, reducing time and cost while encouraging innovation and investment.
Whether you are planning to launch a consultancy, IT firm, e-commerce platform, or advisory service, this instant licensing scheme makes Sharjah a compelling choice for regional market expansion.