Comprehensive guide to setting up and operating a business in SHAMS, licensing, costs, visas, facilities, advantages and practical considerations.
Explore What is a Freezone in UAE?
Free Zone Overview & Key Statistics
| Official Name | Sharjah Media City Free Zone Authority |
|---|---|
| Commonly Known As | SHAMS Free Zone |
| Year Established | January 2017 |
| Registered Companies | Over 2,000 (companies from 160+ countries) |
| Location | Al Messaned, Al Bataeh, Sharjah — ~5 minutes from Sharjah Intl Airport, ~15 minutes from Dubai Intl Airport |
Key Industries
- Media & creative industries (advertising, film, publishing)
- Information technology & software development
- E-commerce & digital marketplaces
- Professional services, design, training & education
SHAMS is positioned as an affordable, flexible entry point into the UAE for digital marketing, e-commerce, content creators and software companies.
History and Vision
Founding Vision
Established by Emiri Decree in January 2017, SHAMS was created to fill a gap in the UAE free zone ecosystem — specifically to support creative and media entrepreneurs through low-cost licensing, easy incorporation and a community-driven approach.
Growth Phases & Milestones
- 2017–2019: Foundational infrastructure and early adopters (media, design, marketing).
- 2019–2021: Sector diversification — IT services, e-commerce and consultancy.
- 2021–present: Tech modernization, digital concierge and expanded studio/training facilities.
Future Plans
SHAMS continues to invest in studios, AI generative services, partnerships with financial institutions and digital process improvements (including potential blockchain-backed administration).
Business Setup Process: A Step-by-Step Guide
The SHAMS setup workflow is primarily online and designed for speed. Typical timeline: 5–10 working days from application to license issuance (may vary depending on documents and activity).
Step 1 — Choose Business Structure
Options: Limited Liability Company (LLC) or Branch Office. Both permit 100% foreign ownership in SHAMS.
Step 2 — Select License Type
Service, Trading or Holding licenses (and specialized Freelance / E-commerce options). Multiple related activities can usually be combined under a single license.
Step 3 — Reserve Trade Name & Select Activities
Pick up to three name options; activity selection follows ISIC4 classifications. Name reservation: ~1–2 working days.
Step 4 — Prepare Documents
- Individual shareholders: passport, photo, UAE visa/Emirates ID (if applicable).
- Corporate shareholders: registration docs, certificate of good standing, authorized signatory documents.
Step 5 — Submit Application & Obtain Initial Approval
Use the SHAMS portal to apply. Initial approval typically within 2–3 working days. Pay application/registration fees at this stage.
Step 6 — Sign Incorporation Documents & Lease Office Space
Sign MoA/Articles and secure workspace (virtual, flexi, dedicated office). Virtual options support minimal visa needs and lower costs.
Step 7 — License Issuance
Once incorporation & lease are confirmed, SHAMS issues trade license, establishment card and lease agreement (digital copies provided immediately).
Step 8 — Immigration & Visas (if required)
If visas are part of the package: medical checks, biometrics and Emirates ID processing — typically an additional 7–10 working days after initial approvals.
Licensing Options & Business Activities
Service Licenses
For consultancies, IT & software, marketing, media production, training and professional services.
Trading Licenses
For e-commerce, wholesale/retail, import/export and logistics activities.
Holding Licenses
For companies holding shares/assets in other businesses.
Freelance Permits
Designed for individuals (photographers, designers, consultants), allowing operation under personal names with lower fees.
E-Commerce Licenses
Targeted at online retail and marketplace operations.
Special / Regulated Activities
Certain activities (financial services, data hosting, insurance) may require additional regulatory approvals from sectoral authorities.
Ownership, Taxation & Regulatory Advantages
- 100% foreign ownership — no local sponsor required.
- 0% corporate & personal income tax for free zone operations (VAT at 5% may still apply where relevant).
- 0% customs duty for imports into the free zone; streamlined customs clearance.
- 100% repatriation of capital & profits.
Note: Tax and customs benefits typically apply to free zone operations — onshore/mainland activities may attract different tax or customs treatment and require additional registrations.
Office & Facility Options
Virtual Office & Flexi-Desk
Low-cost business address, mail handling, phone forwarding (virtual office: ~AED 1,500–3,000/year). Flexi-desk provides shared workspace access and basic visa options.
Dedicated Desk & Private Offices
Dedicated desks: AED 2,500–4,500/month. Private executive offices and multi-room suites available with higher monthly fees.
Shared Offices & Suites
Shared office suites for growing teams (AED 5,000–10,000/month depending on size).
Studios & Production Facilities
Hourly/daily rentals for photography, video, podcasting and gaming development — ideal for media producers.
Warehousing
Storage options from small lockers (~AED 500–1,000/month) to large units (AED 5,000+ depending on size).
Costs & Fee Structure
License Packages (Indicative)
- Zero-Visa Media License: from AED 5,750/year (no visa included).
- Standard (1 Visa): AED 8,500–11,500/year.
- 2–3 Visas: AED 12,000–14,000/year.
- 4–6 Visas: AED 15,000–24,000+/year.
Multi-Year Discounts
2–3 year packages typically ~30% discount; 5-year packages ~35% discount.
Typical Visa & Admin Costs
- Investor Visa (2 years): ~AED 3,360
- Employee Visa (2 years): ~AED 2,200
- Medical exam: ~AED 765
- Emirates ID: ~AED 330
- E-Channel registration (one-time): ~AED 2,525
Practical Examples (First-year estimated)
Freelancer: ~AED 11,775 (zero-visa license + virtual office + registration fees).
Small agency (2 employees): ~AED 57,630 (license with 2 visas + shared desk + visa/admin costs).
Established IT business (5 staff): AED 125,000+ depending on office size and visa needs.
Visa & Immigration Services
Investor & Employment Eligibility
Investor visas for owners/shareholders; employment visas for staff with valid employment contracts. Minimum passport validity, medical checks and background clearances required.
Dependent Visas
Investor and employee visa holders can sponsor spouse, children and domestic workers subject to income & eligibility rules.
Process & Timeline
- Submit visa application via SHAMS portal
- Security clearance (approx. 3–5 working days)
- Medical exam & biometrics
- Visa stamping & Emirates ID issuance (total ~10–15 working days)
Visas issued through SHAMS typically have 2-year validity and straightforward renewal processes.
Additional Benefits & Support Services
- PRO & immigration handling, document attestation, and license renewals.
- Banking assistance and established relationships with UAE banks.
- Meeting rooms, event spaces and video conferencing facilities.
- Regular networking events, training workshops and investor meetups.
- AI content tools, influencer coordination and digital marketing support packages.
Challenges & Considerations
Main Limitations
- Limited direct mainland access: SHAMS companies cannot typically trade directly onshore without a mainland partner, distributor or additional structure.
- Government contracts: Many government procurements require mainland registration.
- Competition: High density of digital/creative service providers — differentiation is essential.
- Compliance & renewal: Annual renewals, VAT compliance and lease maintenance are ongoing obligations.
For businesses needing frequent physical deliveries across the UAE mainland or government contracting, plan for distribution, mainland branch or partner arrangements.
Conclusion & Contact
SHAMS provides a very attractive, cost-effective platform for creatives, digital agencies, software firms and e-commerce entrepreneurs seeking entry to the UAE market with full foreign ownership, tax advantages and flexible licensing.
Interested in next steps? Visit shams.ae or contact the authority at +971 800 SHAMS (74267) to confirm the latest packages and any recent policy updates.
