By Adil Ahmad, Business Setup Consultant at Gulf Corporate Services
Summary
To register a company in SHAMS Free Zone (Sharjah Media City), pick up to five business activities, choose a package with the visas you need and apply online with your passport copy. A SHAMS licence starts from about AED 5,750 with a flexi desk, and approval often takes only a few working days. This guide covers SHAMS company formation cost, licences, visas, steps, banking and tax.
What Is SHAMS Free Zone?
SHAMS, short for Sharjah Media City, is a free zone in Sharjah set up in 2017. It started as a media focused zone and has grown into one of the most popular low cost free zones in the UAE, with a wide list of media, digital, consulting, trading and service activities.
Its offices are in Al Messaned, Sharjah, about 10 minutes from Sharjah International Airport and around 20 to 30 minutes from Dubai. Most of the process runs online through the SHAMS portal, which is why so many founders choose it for a fast, remote company setup in SHAMS.
Why Choose SHAMS for Business Setup?
From the many SHAMS companies I have helped register, these benefits come up again and again:
- Low entry cost: One of the cheapest licences in the UAE
- Up to five activities on one licence, which can be mixed across categories in standard packages
- 100% foreign ownership and full repatriation of profits
- Flexi desk included, so you do not need a physical office to start
- Visas not tied to office size in many packages, unlike most free zones
- Fast, digital process with remote onboarding
It is a strong choice for freelancers, consultants, influencers, e-commerce sellers, agencies and small trading businesses. It is less suited to companies that need large warehouses or a Dubai address for clients.
SHAMS Licence Types and Activities
| Licence type | Best for |
|---|---|
| Media licence | Content creation, publishing, advertising and digital media |
| Service licence | Consulting, marketing, IT and professional services |
| Trading licence | Buying and selling goods, including general trading |
| E-commerce activities | Online stores and digital sales |
| Freelance permit | Solo professionals who do not need a full company |
Most founders register a SHAMS company (LLC) with one or more shareholders. Foreign and UAE companies can also open a branch. If you work alone and want the simplest route, compare the company option with the Sharjah freelance visa.
Content creators should also read our guide on the influencer license in UAE, and online sellers can check the e-commerce license.
SHAMS Company Formation Cost and Packages
SHAMS prices its licences as packages that include a flexi desk. The table below shows typical package prices. These are approximate figures, and SHAMS updates its offers often.
| Visa allocation | Media package (AED/year) | Standard package (AED/year) |
|---|---|---|
| 0 visas | About 5,750 | About 6,875 |
| 1 visa | About 7,350 | About 8,475 |
| 2 visas | About 8,950 | About 10,075 |
| 3 visas | About 10,550 | About 11,675 |
| 6 visas | About 15,350 | About 16,475 |
Other costs to budget for:
- Establishment card and e-channel registration: About AED 2,900 one time
- Investor or employment visa: About AED 2,200 to 3,700 per person in government fees
- Medical test and Emirates ID: About AED 700 per person
- Change of status, if you are already in the UAE: About AED 700
- Health insurance: Required for each visa holder
Typical first year budget: A solo founder with one visa usually spends about AED 14,000 to 16,000 in total. Multi year licences can bring small discounts.
For a wider comparison, see our free zone company setup guide.
Want an exact SHAMS quote? Speak to our business setup consultants for a breakdown based on your activities and visa needs.
SHAMS Visa Options
A SHAMS company can sponsor visas for the owner, staff and family. A few practical points:
- The package visa allocation is the number of visas you can apply for, not visas already issued
- Each visa still has its own government fees, medical test and Emirates ID
- Owners usually get an investor or partner visa
- Family members can be sponsored once the main visa is issued
- Residence visas are generally valid for two years
- Visa files are processed through Sharjah immigration and the Federal Authority for Identity, Citizenship, Customs and Port Security (ICP)
Read more about the UAE residence visa process. Investors and senior professionals may also qualify for the UAE Golden Visa.
SHAMS Freelance Permit vs SHAMS Company
| Factor | Freelance permit | SHAMS company |
|---|---|---|
| Legal entity | No, you work in your own name | Yes, a separate company |
| Shareholders | Just you | One or more |
| Staff visas | Usually none | Based on your package |
| Best for | Solo creators and consultants | Growing businesses and teams |
If you plan to hire, invoice large clients or open a corporate bank account, a company is usually the better choice.
How to Register a Company in SHAMS Free Zone: Step by Step
- Choose your business activities. Pick up to five from the SHAMS list.
- Select your package and visa allocation.
- Choose a company name. SHAMS checks it for approval.
- Submit your application online with passport copies and a photo.
- Receive pre-approval, usually within three to five working days.
- Sign your documents and pay the licence fees.
- Receive your trade licence, share register, certificate of incorporation and articles of association.
- Apply for the establishment card and e-channel registration.
- Apply for visas, including entry permit, medical test, Emirates ID and stamping.
- Open a corporate bank account.
Most licences are issued within about a week. Visas usually take another two to three weeks. For licence details, see our guide on the trade license in Sharjah Media City.
Documents Required for SHAMS Company Registration
- Passport copy of each shareholder and manager
- Passport size photo
- UAE visa copy and Emirates ID, if you live in the UAE
- Contact details and residential address
- For corporate shareholders: certificate of incorporation, memorandum of association and board resolution
- Business plan, for some regulated activities
In most cases, SHAMS does not ask for a no objection letter from your current employer for the licence itself. Check visa rules if you are already employed in the UAE.
Office Options in SHAMS
- Flexi desk: Included in most packages and enough for the registered address
- Shared or dedicated desk: For founders who want a place to work in Sharjah
- Private office: For teams that need a fixed workspace
Because SHAMS visas are often not linked to office size, many companies grow their team without moving to a bigger office.
Bank Account Opening for SHAMS Companies
Banks decide independently, and no free zone can guarantee an account. Expect:
- One to three months for approval
- Questions about your activity, clients and source of funds
- Minimum balance requirements that vary widely by bank
Digital banks are often faster for small SHAMS companies. Our bank account opening team prepares files that banks approve.
Corporate Tax and VAT for SHAMS Companies
- Corporate tax: SHAMS is a free zone, but 0% applies only to qualifying income if you meet the Qualifying Free Zone Person conditions. Other income is taxed at 9% above AED 375,000
- VAT: Registration is mandatory once taxable supplies exceed AED 375,000 a year, at 5%. Voluntary registration is possible from AED 187,500
- Registration: Every company must register for corporate tax, even if it pays no tax
- Check details with the Federal Tax Authority
Our corporate tax and VAT consultancy teams can help you stay compliant.
Licence Renewal
SHAMS licences are renewed every year, or every few years if you pay for a multi year licence. Renewal is online. Late renewal leads to monthly penalties, so set a reminder at least a month before expiry. Visa renewals are separate and follow each visa’s two year cycle.
SHAMS vs Other Sharjah and Northern Emirates Free Zones
| Factor | SHAMS | SPC Free Zone | IFZA | Ajman Free Zone |
|---|---|---|---|---|
| Starting cost | About AED 5,750 | Low | Low to medium | Low |
| Activities per licence | Up to five | Several | Several | Several |
| Best for | Media, freelancers, consultants, e-commerce | Publishing, media, general services | Startups wanting a Dubai link | Trading and small businesses |
Compare in detail with our guides on SPC Free Zone, IFZA company formation, Ajman Free Zone and SAIF Zone.
Can a SHAMS Company Work on the Mainland?
A SHAMS licence lets you work with clients across the UAE and abroad for many service activities, especially online. Selling goods directly in the UAE market or working from a mainland shop usually needs a mainland licence or a local distributor. Read our guide on transferring a free zone company to the mainland.
Common Mistakes to Avoid
- Choosing activities that do not match your actual work
- Picking a zero visa package when you need a visa soon
- Assuming all free zone income is taxed at 0%
- Forgetting to budget for the establishment card and visa fees
- Missing licence renewal dates
Expert Tip from Adil Ahmad
Use all five activity slots wisely from day one. I often see founders pick one activity and then pay to amend the licence a few months later. Think about where your business will be in a year, and add the related activities now.
Expanding beyond the UAE? We also support business setup in Saudi Arabia. For every UAE option, start with our guide to business setup in Dubai, our SHAMS free zone service page and the UAE government business portal.
Frequently Asked Questions
How much does SHAMS company formation cost?
Licence packages start from about AED 5,750 with no visa. With one visa, most founders spend about AED 14,000 to 16,000 in the first year.
How long does it take to register a company in SHAMS?
The licence is often issued within about a week. Visas take another two to three weeks.
How many activities can I add to a SHAMS licence?
Up to five activities on one licence.
Can I set up a SHAMS company without visiting the UAE?
Yes. Most of the process is online. You may need to visit for your visa medical and Emirates ID.
Do I need an office in SHAMS?
No. A flexi desk is included in most packages.
Can foreigners own 100% of a SHAMS company?
Yes. SHAMS companies can be fully foreign owned.
Does a SHAMS company pay corporate tax?
Qualifying income may be taxed at 0%. Other income is taxed at 9% above AED 375,000.
Can I open a bank account with a SHAMS licence?
Yes, but banks decide independently. Allow one to three months.
Register Your SHAMS Company with Gulf Corporate Services
From activity selection and licence packages to visas, banking and tax, we offer a one-stop solution for company registration in SHAMS Free Zone. Book a free consultation with our business setup consultants today.
