By Adil Ahmad, Business Setup Consultant at Gulf Corporate Services
Summary
SHAMS, the Sharjah Media City Free Zone, is one of the most affordable places to set up a company in the UAE. Official packages start at AED 5,750 a year for a zero-visa media licence, with visa packages from about AED 11,743. You get 100% foreign ownership, up to three activities in most packages, and a mostly online setup. This guide covers costs, licences, visas, steps, and tax.
SHAMS Free Zone at a Glance
| Item | Details |
|---|---|
| Full name | Sharjah Media City Free Zone (SHAMS) |
| Location | Al Messaned, Sharjah |
| Ownership | 100% foreign ownership |
| Cheapest package | Media Package from AED 5,750 a year, zero visa (SHAMS) |
| Visa packages | Standard Package from about AED 11,743 with 1 visa, up to 6 visas |
| Activities | Usually up to 3 per package |
| Legal entities | FZE, FZC, and branch |
| Setup method | Mostly online, often within days once documents are ready |
| Corporate tax | 0% on qualifying income if conditions are met, otherwise 9% above AED 375,000 |
What Is SHAMS Free Zone?
SHAMS was launched in 2017 by the Government of Sharjah to support media, creative, and digital businesses. It has since grown into a general purpose free zone that also licenses trading, e-commerce, consulting, and service companies. Many founders choose it because they can register a company online, pay low annual fees, and still get UAE residence visas.
Typical SHAMS clients include:
- Content creators, influencers, and digital marketers
- E-commerce sellers and general traders
- Consultants, IT service providers, and agencies
- Freelancers who want a licence and a residence visa
- Startups testing the UAE market on a small budget
From what we see in client files, the businesses that do best in SHAMS run online or service models: social media agencies, video production studios, online stores selling through Amazon and Noon, and consultants serving clients across the GCC. Companies that need a warehouse, a showroom, or heavy industrial space usually fit better elsewhere.
You can review the authority’s services on the official SHAMS website.
Benefits of SHAMS Company Formation
- Low cost: some of the lowest licence fees in the UAE, with multi-year discounts
- 100% foreign ownership and full repatriation of profits
- No paid-up capital deposit required for most packages
- Mixed activities: combine media, trading, e-commerce, and services under one licence
- Visa flexibility: packages from zero visas up to 6 visas
- Remote setup: most steps can be completed online
- Long-term options: 2, 3, 5, and 10 year licences at reduced yearly cost
SHAMS Licence Types and Business Activities
| Licence | Suits | Example activities |
|---|---|---|
| Media licence | Creators, publishers, agencies | Content production, social media, advertising, publishing |
| Trading licence | Traders and online sellers | General trading, specific trading, e-commerce |
| Service and consultancy licence | Professionals and agencies | Management consulting, IT services, marketing |
| Freelancer package | Independent professionals | Mixed services with one media activity |
| Industrial and holding | Light industry, group structures | Light manufacturing, holding shares |
Broadcasting and some regulated media activities may need extra approval from the relevant authority. If you only want to work as an individual, compare our guide to the Sharjah freelance visa.
SHAMS Free Zone Packages and Cost
The official SHAMS packages page lists these 1-year prices:
| Package | Visas | 1-year price (AED) | What it includes |
|---|---|---|---|
| Media Package | 0 | 5,750 | 3 media and e-commerce activities, lease agreement |
| Shams Trader Package | 0 | 6,500 | General trading and e-commerce, lease agreement |
| Freelancer Package | 0 | 7,745 | 3 mixed activities, including one media activity |
| Freelancer Package | 1 | 15,415 | Adds an investor or employee visa, immigration card, e-channel |
| Standard Package | 0 | 8,050 | 3 activities from trading, services, or consultancy |
| Standard Package | 1 | 11,743 | 1 visa allocation |
| Standard Package | 6 | 17,343 | 6 visa allocations |
Multi-year licences cut the yearly cost. For example, the Media Package is listed at AED 34,500 for 10 years.
Extra costs to budget for:
- Immigration (establishment) card: about AED 1,575 for 3 years
- E-channel registration: about AED 2,735, plus a refundable deposit of about AED 4,854
- Investor or employee visa: about AED 3,360 for 2 years
- Emirates ID and medical test
- Change of status if the person is already in the UAE: about AED 1,000
SHAMS updates prices and offers often, and the same page shows some different summary figures, so always ask for an itemised quote. Learn more about the establishment card in the UAE, or estimate your budget with our business setup cost calculator.
SHAMS Visa Options
- Zero-visa packages: ideal if you already hold a UAE residence visa or live abroad
- Freelancer with 1 visa: for solo founders who need their own residence visa
- Standard Package: from 1 to 6 visa allocations for small teams
- Dependants: once you hold an investor visa, you can usually sponsor your family, subject to salary and housing rules
Most visas are valid for 2 years. After the licence is issued, you apply for the establishment card first, then the entry permit or change of status, medical test, and Emirates ID.
How to Set Up a Company in SHAMS: Step-by-Step
- Choose your activities and the right package.
- Pick your legal entity: FZE for one shareholder, FZC for several, or a branch of an existing company.
- Reserve your trade name and submit the online application.
- Upload documents and sign the incorporation papers.
- Pay the package fees.
- Receive your licence, certificate of incorporation, and lease agreement.
- Apply for the establishment card and visas if your package includes them.
- Open a corporate bank account and register for tax.
Clean files are often licensed within a few working days, while visas take longer. Our PRO services team handles visa steps for you.
Documents Required for SHAMS Company Formation
Individual shareholders:
- Passport copy and a passport-style photo
- UAE visa or entry stamp, if applicable
- Emirates ID, if you are a UAE resident
- Proof of residential address
Corporate shareholders:
- Certificate of incorporation, memorandum and articles of association
- Board resolution approving the SHAMS company
- Certificate of good standing
- Documents legalised and attested where required
Office Options in SHAMS
Entry packages include a lease agreement linked to the free zone, so most small companies do not need a physical office at the start. As you grow, you can move to a coworking space, a dedicated office, or a studio. Larger visa quotas usually require a bigger office allocation.
Corporate Tax, VAT and Banking for SHAMS Companies
SHAMS companies are not automatically tax free. Under UAE rules:
- Corporate tax: 0% can apply to qualifying income of a Qualifying Free Zone Person, while other taxable income is taxed at 9% above AED 375,000
- Registration: every SHAMS company must register with the Federal Tax Authority and file returns, even with low profits
- VAT: 5% registration is mandatory above AED 375,000 in taxable supplies
- Bank account: banks review your activity, ownership, and expected transactions, so prepare a short business profile
Our corporate tax, accounting, and corporate bank account teams handle these steps after setup.
SHAMS Licence Renewal and Ongoing Compliance
- Renew on time: SHAMS charges late renewal penalties of about AED 1,100 for the licence and AED 1,155 for the immigration card, plus more for each extra period
- Keep the lease valid: the lease agreement must stay linked to your licence
- Update the UBO register whenever shareholders change
- Keep books and records, and prepare financial statements for corporate tax
- Renew visas before expiry and cancel them properly when staff leave
The UAE government’s free zones overview explains the general rules that apply to all free zone companies.
Can a SHAMS Company Trade on the UAE Mainland?
A free zone company can sell online and to customers outside the UAE freely. Direct trading on the mainland usually needs a mainland distributor, a branch, or a separate mainland licence. If most of your clients are in Dubai, compare our guide to mainland company formation before choosing.
Note that SHAMS is a free zone, not an offshore jurisdiction. If you need a non-trading holding vehicle, read about offshore company formation in Dubai.
SHAMS vs Other Free Zones
| Free zone | Best for | Cost level |
|---|---|---|
| SHAMS | Media, e-commerce, freelancers, budget startups | Low |
| Sharjah Publishing City (SPC) | Publishing, media, general trading | Low |
| SAIF Zone | Logistics and trading near Sharjah Airport | Medium |
| Dubai Media City | Established media brands wanting a Dubai address | High |
| Fujairah Creative City | Creative and media freelancers | Low |
Compare in detail with SPC Free Zone, SAIF Zone, Dubai Media City, and Fujairah Creative City, or browse all options in our free zone company setup guide.
Common Mistakes to Avoid
- Choosing the cheapest zero-visa package when you need a residence visa
- Picking activities that do not match how you will actually earn money
- Forgetting the e-channel deposit and visa costs in your budget
- Assuming free zone means no corporate tax registration
- Letting the licence lapse and paying late renewal penalties
Expert tip from Adil Ahmad: if you plan to hire within a year, start with the Standard Package and the visa count you will need. Upgrading later costs more time than paying for one or two extra allocations upfront.
FAQs on SHAMS Company Formation
How much does it cost to set up a company in SHAMS?
From AED 5,750 a year for the zero-visa Media Package, and about AED 11,743 for the Standard Package with one visa, plus visa and card fees.
Can I get a residence visa with a SHAMS licence?
Yes. Freelancer and Standard packages include visa allocations, up to 6 visas.
How long does SHAMS company setup take?
The licence is often issued within a few working days once documents are complete. Visas take a few more weeks.
Is SHAMS free zone tax free?
Not automatically. Qualifying income can be taxed at 0%, but you must register for corporate tax and file returns.
Can I set up a SHAMS company remotely?
Yes, most steps are online. You only need to visit the UAE for visa medical and Emirates ID steps.
How many activities can I add to a SHAMS licence?
Most packages include up to 3 activities.
Is SHAMS an offshore company?
No. SHAMS is a free zone that issues trade licences and visas.
Where is SHAMS located?
In Al Messaned, Sharjah, UAE.
Start Your SHAMS Company With Expert Help
Our team compares packages, registers your SHAMS company, and handles visas, banking, and tax. We also offer full business setup in Dubai and business setup in Saudi Arabia if you plan to expand across the Gulf. Speak with our business setup consultants for a free quote.
