Shams Free Zone Company Setup 2026

The minimum amount for building a free zone company is AED 50,000 per company and AED 10,000 per stakeholder. For a corporation to be granted a general trading license, this must have a minimum of AED 1 million share capital.

In order to start a business in Shams, follow some essential steps that are –
• Selecting your company name
• Selecting your business type and activities
• Submit application and needed documents
• Make payment for the license
• Start trading

To start a free zone business in UAE, here also some steps that you have to follow are –
• Determine the type of legal unit
• Choose a business name
• Apply for a business license
• Choose an office space
• Get pre-approvals,
• Register your business
• Get your business license

The cheapest free zone license you can get from the cheapest free zone in the UAE. That free zones are –
• Sharjah Research Technology and Innovation
• Ajman Media City
• Sharjah Media City Free Zone
• Ras Al Khaimah Free zone
• International Free Zone Authority

Shams Free Zone (officially Sharjah Media City) is a major, affordable Free Zone established by an Amiri Decree in 2017 to boost media, creative, and digital companies in the UAE. It is strategically situated in the Emirate of Sharjah, which delivers smooth access to both Sharjah International Airport (about 10-15 minutes away) and Dubai International Airport (about 30 minutes away).

You have to select Shams Free Zone because it delivers one of the most cost-effective formation packages in the United Arab Emirates, with initial expenses starting from a very minimum. It is extremely enticing for startups, freelancers, and small businesses because of its completely digitized registration procedure, low overheads, and adaptable visa packages, making business formation fast and effective.

The primary advantages are 100% foreign ownership, complete repatriation of capital and earnings, 0% corporate tax on qualifying income, free from import/export duties, the capability to register numerous business activities on a single business license, and a quick, remote registration procedure.

Shams distinguishes itself by paying particular attention to the media, creative, and digital sectors with customized business licenses. Its main differences are its very low initial formation cost, a simple licensing framework that permits up to 5 business activities on one business license, and the choice for companies to utilize an LLC suffix without the FZ designation, providing them with a more mainland-like appearance.

In the Shams Free Zone, foreigners are permitted to own all of a company. This is a common feature of all UAE Free Zones, which means that you can own any shares in your business without a local sponsor or partner.

Shams supports a broad and vast range of business activities, encompassing more than 120 categories. While it is renowned for media, creative, and digital activities (publishing, e-commerce, IT, production), it also gives business licenses for trading, consultancy, and services.

The procedure is very fast and effective. Company formation in Shams Free Zone can usually be done in 3 to 7 working days once all required papers are presented and sanctioned, with initial business license issuance usually taking as little as a few days.

There is no compulsory minimum share capital needed to be deposited in the bank for the most standard Shams Free Zone company setup (LLC structure). This remarkably decreases the financial burdens for businesspeople and startups.

Yes, Shams is extremely suitable for freelancers, startups, and SMEs. It delivers affordable freelance permits and adaptable zero-visa packages or single-visa packages, making it an excellent option for individual entrepreneurs and small groups with limited capital.

The paperwork package is minimal, usually needing only the passport copies of all stakeholders and managers, a completed application form, and occasionally a No Objection Certificate (NOC) if a shareholder is presently working in the UAE (though this is usually not required).

Shams delivers adaptable office solutions to fit different budgets. Options include Flexi-desks or shared co-working spaces (which fulfill the legal need for an office address at a lower cost) and committed serviced or furnished private offices for more extensive teams or those requiring exclusive space.

You can make an application for a business license mainly through the Shams online portal or through a registered business formation consultant. The procedure includes choosing your business activity and legal framework, reserving your business name, presenting the necessary documents, and paying the licensing charges.

After getting your business license and business documents, you have to connect with a UAE bank of your choice. You will have to present the company documents, passport copies, and generally attend an in-person meeting with the bank’s obedience team to finalize the account opening.

Shams Free Zone firms can utilize any of the main UAE banks. Top banks selected by Free Zone businesses include Emirates NBD, Mashreq Bank, RAK Bank, and Commercial Bank of Dubai (CBD), as they are familiar with Free Zone adherence and paperwork.

Your company is subject to the following –

• Corporate Tax – Shams Free Zone firms benefit from a 0% Corporate Tax rate on “Qualifying Income”. However, companies have to register with the Federal Tax Authority (FTA) and file an annual tax return. Income from non-qualifying activities may be subject to the 9% tax rate if it surpasses typical thresholds.

VAT – If your company’s yearly turnover surpasses the required registration threshold of AED 375,000, you will be subject to 5% VAT. VAT registration is optional if your income is less than this.

Annual renewal demands presenting a legal lease contract for your selected office facility and making payment of the annual license costs. Adherence includes keeping precise accounting statements, complying with VAT rules, and adhering to Economic Substance Regulations (ESR) and Ultimate Beneficial Owner (UBO) essentials.

You can effortlessly upgrade or grow your business activities by making an application for a modification with the Shams Free Zone Authority. Since the business license permits up to 5 business activities, you can usually add new business activities for a cost without changing your whole license framework. Modifications usually need minimal paperwork and are processed rapidly.

Shams Free Zone primarily supports the Creative, Digital, and Media industries. This includes film, television, radio, publishing, marketing, digital content creation, software development, e-commerce, and different kinds of consultancy and professional services.