What is Sharjah’s Instant License to Start a Business in 1 Day?

Sharjah’s Instant License allows entrepreneurs to start a business in just 1 day. Learn about eligibility, benefits, process, and penalties for this fast-track license introduced by SEDD.

Starting a business in Sharjah has become faster and easier with the launch of the Instant License by the Sharjah Economic Development Department (SEDD). This service allows entrepreneurs to obtain a commercial license in just one working day. It removes the bureaucratic hurdles of preparing a Memorandum of Association (MoA) or securing a lease contract during the first year.

Sharjah’s Instant Lincense overview

The Instant License was introduced in June 2025 with the approval of the Sharjah Executive Council. Its main objective is to attract investors, simplify business processes, and strengthen the emirate’s reputation as a destination for trade and innovation.

The license is intended for office-based businesses that do not require external approvals. It provides entrepreneurs with a legal and efficient way to begin operations by  making the process faster.

Some important features of the instant license:

• Commercial license is issued within 1 working day;
• There is no requirement for MoA or lease contract in the first year;
• It covers office-based activities like consultancies, technology firms, and e-commerce services;
• It allows businesses to employ up to 3 workers under each license;
• But standard licensing requirements must be fulfilled after the first year; and
• Application is fully online through the SEDD portal.

Who can apply?

The Instant License is open to United Arab Emirates (UAE) nationals, residents, and Gulf Cooperation Council (GCC) nationals. Foreign investors may also be eligible depending on the activity, though residency or sponsorship could be required.

Eligible businesses are:

• Consultancy firms;
• Online and e-commerce services with office presence;
• Information Technology (IT), digital marketing, and advisory firms; and
• Freelance and shared workspaces.

Retail shops, restaurants, or businesses that require approvals from other government entities are not covered under this scheme.

Application process

The process is designed to be simple and efficient:

• Apply online through the SEDD portal or through authorized business setup consultants;
• Select an activity that falls within the approved office-based list;
• Submit required documents (without MoA or lease contract for the first year); and
• Receive the license within 1 working day.

After the first year, businesses must complete the standard documentation process, like submission of MoA and lease agreements, to renew and continue operations legally.

Compliance and penalties

The instant license makes starting a business fast, but it does not exempt companies from following the rules. Businesses that do not renew their license on time face fines of AED 5,000 (US$1,361.4) for each violation, and repeated delays can even lead to blacklisting and suspension.

If a company operates outside its approved activity or hires more than the permitted three employees, the license may be cancelled, and future applications could be blocked. SEDD also requires that all instant licenses be converted into standard licenses within one year. Companies that fail to complete this step risk having their operations terminated.

Comparison with other GCC instant license models

Sharjah’s program is part of larger reforms happening in the GCC, especially within the UAE. Other emirates are also simplifying their business approval process with distinct models:

Why this matters for entrepreneurs and Sharjah’s economy

Hamad Ali Abdalla Al Mahmoud, Chairman of SEDD, explained that the license reflects Sharjah’s vision of building a supportive regulatory environment. He emphasized that it is part of the Emirate’s commitment to make doing business easier and to position Sharjah as a competitive hub both regionally and globally.

As reported in Emirates News Agency-WAM, it is expected to:

• Encourage startups by lowering entry barriers;
• Curb unlicensed activity by providing a legal, fast-track option;
• Boost competitiveness in technology, consultancy, and digital services; and
• Attract investment for Sharjah’s economic diversification goals.

In summary

Sharjah’s instant license offers a fast-track entry point for entrepreneurs by cutting the usual setup timeline to just one working day. Although it reduces early paperwork and costs, it also places responsibility on businesses to stay compliant and convert to a standard license within a year.

For startups, freelancers, and small investors, the program is a good news as it lowers barriers to market entry.

(US$1 = AED 3.67)

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