Cheapest option to start business in the UAE free zone

SHAMS - Sharjah Media City Free Zone Company Formation

verified by : Elena Ovchinnikova

05 Jan 2024

Overview of Sharjah Media City Free Zone Authority  

Sharjah Media City or simply SHAMS free zone is located in Sharjah the nearest Emirate to Dubai.

SHAMS company setup is a relatively new way of business setup in UAE.

Emirabiz team, being business setup consultants in Dubai has been awarded by SHAMS certificate of appreciation.

Offices in SHAMS

SHAMS company formation entails getting a facility in this free zone.Flexi-desk does not come as a part of the setup package by default.It is recommended to have it for the sake of getting through compliance of the banks.

Overall, SHAMS facilities are the following:

  1. Shares desk (flexi-desk)
  2. Dedicated desk
  3. Shared office
  4. Dedicated office

Company activities

It is known as the Media Free Zone, but the business activities are not related only to media sector.

In fact, activity list is very broad and includes:

  • Trading
  • Professional services
  • Holding and other types
  • Social media influencer

There are more than 120 activities in total. You can combine multiple activities in your license. SHAMS free zone company setup can satisfy the companies with any business activities.

SHAMS free zone license costs

SHAMS Sharjah Media City is an affordable free zone. The fees start from 5,750 AED for a zero visa package. If you need to get a visa in your company, you must rent a flexi-desk at lease and pay for visa allocation 1600 AED.

Cheapest company setup costs (AED) in SHAMS free zone Sharjah:

Type of licence Cost, AED
Trading or service license with zero visas quota 11,500
Trading or service license with 1 visa quota 13,420

The fees increase according to the number of visas your company is eligible for.

SHAMS company formation

Company registration can be done fully remotely no matter if you are in UAE or abroad, your company can be registered in a week’s time.

The documents you need to provide:

  • Passport copy
  • Phone number
  • Email

Sharjah Media City free zone allows the youngest age of the company shareholders you can own a business starting from the age of 19. This is a great benefit not available in any other Free Zones. Company employees can be as young as 18 years old, which is also quite unusual in comparison to other Free Zones.

All the documents of the companies are electronic you can print them out anywhere and may not worry about losing the originals. The documents can be always verified through SHAMS web-site to make sure they are authentic.

Sharjah Media City residency visas cost

SHAMS has one of the most flexible system of visa allocation you can have a company eligible from zero up to 6 visas.

Another way to get multiple visa slots in Sharjah would be Hamriyah free zone visa.

On top of that, you can upgrade your package at any time.

SHAMS visa costs (AED):

  SHAMS fee, AED Medical checkup, AED Emirates ID, AED
Investor/partner 3,500 637 370
Employee 3,080 637 370

All visas are valid for 3 years.

When you apply for a resident visa under SHAMS free zone license, you need to get a health insurance or sign an undertaking letter that you are intending to do it within the next 10 months.

Company renewal

Company renewal just like the setup can be done remotely. Audit reports are not required by the authority.

Renewal fees are the same as setup fees. Audits reports are not required.

If you do not renew the company on time, monthly penalties will start accumulating. The fine after the first month is 1,100 AED. The following months will cost 100 AED each.

Amendments

Sharjah Media City is quite straightforward with any amendments. The costs for the majority of them is 2,000 AED and personal presence is not required.

Amendments of the license will be free during the renewal.

Sharjah Media City company liquidation

Liquidation of a company in Sharjah Media City Free Zone authority takes about 3 weeks.

The price of the liquidation is 2,000 AED.

Business setup experts opinion

SHAMS is a great option for start-ups and developing businesses you most probably will be able to find a business activity, suitable to your needs.

Costs and visa slots are a good bargain as well.

Alternative option business setup within the Dubai Emirate would be a DTEC formation of a company in this media related free zone.

Benefits of SHAMS free zone company

  • Flexible visa packages - from 0 to 6 visas
  • Rare business activities not available in other Free Zones
  • Low cost of the business registration and maintenance
  • General trading and E-commerce activities under zero visa package - low cost
  • Minimum age of shareholder - 19 years old, employee - 18 years old
  • Business activities are designed as per the United Nations standard ISIC 4 (used in customs all over the world)
  • No annual audit

Start your business in SHAMS today

Media and e-commerce license costs in SHAMS free zone

MEDIA AND E-COMMERCE LICENCE

LICENSE TYPE VISAS INCLUDED TOTAL COST
Media package no visas AED 5,750 $1,600 download breakdown

Freelance license costs in SHAMS free zone

Freelance licence

LICENSE TYPE VISAS INCLUDED TOTAL COST
Freelance package no visas AED 7,325 $2,050 download breakdown
Freelance package 1 visa AED 18,507 $5,100 download breakdown

Trading or service license costs in SHAMS free zone

Up to 6 visas company

LICENSE TYPE VISAS INCLUDED TOTAL COST
Trading / Service license no visas AED 8,050 $2,250 download breakdown
Trading / Service license 1 visa AED 22,505 $6,200 download breakdown
Trading / Service license 2 visas AED 29,846 $8,200 download breakdown
Trading / Service license 3 visas AED 37,187 $10,200 download breakdown
Trading / Service license 4 visas AED 44,528 $12,200 download breakdown
Trading / Service license 5 visas AED 51,869 $14,250 download breakdown
Trading / Service license 6 visas AED 59,210 $16,250 download breakdown

Documents for SHAMS free zone company setup

DOCUMENTS

PROCEDURE

INDIVIDUAL SHAREHOLDER

  • Passport
  • Latest utility bill as address proof
  • Passport size photo
  • UAE entry stamp copy
  • Description of business
  • 1 day- Company name and activity
  • 3-5 days- Company establishing
  • 1-3 weeks- Establishment card
  • 1 week- Entry permit
  • 1 day- Medical Check-Up and Emirates ID
  • 4 days- Visa stamping

Top 10 questions about SHAMS free zone company

  • Can I open a bank account remotely?

    No, a personal visit to the UAE is required as per the regulations of the UAE Central Bank. Local banks require this visit to verify the client's identity.

  • Do banks give debit and credit cards or loans?

    In most cases, you can obtain a debit card for your newly opened company, especially if there is only one shareholder. However, a credit card is usually issued against a fixed deposit. As for loans, banks may consider your eligibility based on your company's operations and profits. It is recommended to apply for a loan after at least one year of company operations.

  • Can a free zone company have offices outside the free zone?

    Officially, the office of a free zone company should be located within the free zone where it is registered. However, if you need an office in Dubai, you have the option to rent space in a Business Center and use it on a flexible basis. It is important to note that the minimum required space (flexi desk) in the free zone cannot be canceled.

  • Why do I need a flexi desk or office?

    A flexi desk is a mandatory requirement for any company eligible for resident visas. It serves as the minimum physical office space that a company with individuals under its visa must have. Additionally, a flexi desk can facilitate bank account opening as banks require evidence of a company having some form of office or physical presence.

  • Do free zone companies need to pay VAT?

    VAT obligations depend not only on the place of registration but also on where the business activities take place. VAT becomes applicable when the taxable turnover reaches AED 375,000. If a free zone company's trading activities take place abroad, the turnover is not considered taxable as long as the transactions occur outside the UAE. However, if goods are imported to the UAE, VAT at a rate of 5% must be added to invoices and paid.

  • Are there any other taxes to be paid?

    The UAE is free from income tax. However, there is a 5% import tax on goods brought into the country and a 5% VAT on trading or service transactions that occur within the UAE.

    On June 1, 2023, the UAE introduced 9% corporate tax, however, companies registered in UAE free zones are exempt from this tax if they do not make profits from activities on the UAE mainland or this profit is less than AED 375,000 per year. Branches of companies registered in free zones and carrying out activities on the mainland will be taxed at the mainland rate.

  • Why would a free zone company be better for me than an offshore or mainland entity?

    The suitability of a free zone company versus an offshore or mainland entity depends on your business model and requirements. However, a free zone setup offers advantages such as 100% foreign ownership, eligibility for resident visas, the ability to conduct business both within and outside the UAE, and greater favorability with banks compared to offshore companies. Additionally, free zones often offer flexi desk spaces instead of executive offices, making it a cost-effective way to start a business without unnecessary obligations.

  • Can you guarantee the opening of a bank account?

    While we strive to make the account opening process as smooth as possible, we cannot guarantee the approval as it ultimately depends on the bank. Each case goes through several bank departments for approval, and the bank may contact you directly for clarifications. Providing a clear picture of your business to the bank increases the chances of successful account opening. We do our best to prepare you and your company for a smooth and fast account opening process.

  • When and how should I renew my company? How much does it cost?

    Your company should be renewed annually, and the cost is typically lower than the initial setup cost. The renewal fees depend on your company package, and you can obtain the price by downloading the Estimate from our website. Company renewal does not require the personal presence of the owner and can be done by your agent. After renewal, the new license must be presented to the bank to extend the bank account, which is included in our renewal service.

  • How can I pay the fees?

    You have multiple options for fee payment. You can make payments via bank transfer, cash, or online using a card.

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