Who is Shams free zone best for?
Shams suits founders who want a low-cost UAE company, set up online, for media, consulting, e-commerce or trading work. Shams is the Sharjah Media City free zone. It was established in 2017 by Amiri Decree under the Ruler of Sharjah and is based in Al Messaned, Sharjah, on a site of 2 million square metres.
It is a good fit for:
- Content creators, agencies, publishers and production houses, on the Media Package
- Consultants, IT firms, online sellers and general traders, on the Standard Package
- Solo founders who want a company and residence visa without renting an office
- UAE employees, because Shams needs no NOC from the current employer
- Non-residents, because UAE residency is not needed to form the company
Shams may not suit heavy industrial or large-scale warehousing businesses; Shams itself says these may need other free zones. If most of your customers will be on the UAE mainland, read our mainland vs free zone guide first.
How much does Shams company setup cost in 2026?
A one-year Shams licence costs AED 5,760 on the Media Package and AED 6,885 on the Standard Package. These are Shams's published estimates, checked on 22 October 2026, and both include a flexi desk and lease agreement. Shams's packages page states that its prices include VAT. Visas are charged on top.
| Cost item, one-year licence (Shams figures, 22 Oct 2026) | Media Package | Standard Package |
|---|---|---|
| Licence with flexi desk and lease agreement | AED 5,760 | AED 6,885 |
| First investor visa, with allocation, e-channel registration, immigration card and Emirates ID typing | AED 7,050 | AED 7,050 |
| First-year total with one investor visa | AED 12,810 | AED 13,935 |
| Each extra investor visa | AED 4,130 | AED 4,130 |
| Each employee visa after the first visa | AED 5,630 | AED 5,630 |
| Visa allocation renewal, per visa, each year | AED 1,600 | AED 1,600 |
| Bank account assistance (optional) | AED 2,000 | AED 2,000 |
| Medical test | Paid to the medical centre | Paid to the medical centre |
The licence prices are published on Shams's site. The visa and bank lines are estimates from Shams's online cost calculator. A second calculator on Shams's campaign pages shows AED 14,635 for the Standard Package with one investor visa, so get a written quote before you pay.
Ofin's UAE desk does not publish a fixed Shams package price. Ask for a written quote that shows Shams's fees and Ofin's service fee as separate lines.
What the package price does not cover
- The medical fitness test, paid at the medical centre
- Change of status, if the visa applicant is already inside the UAE
- Health insurance, needed for the residence visa
- E-channel registration, charged separately where applicable
- External approvals that some activities need, and any activity beyond the five included
- A P.O. Box, for an extra annual fee
- A Chamber of Commerce certificate
Multi-year licences
Shams issues licences for 1, 2, 3, 4, 5 or 10 years. Its terms give 2% off a two-year licence, rising 1% per extra year to 10% for ten years, on licence and visa allocation fees. Shams publishes no separate renewal price list, but each visa allocation renews with the licence at AED 1,600.
What licences and business activities does Shams offer?
Shams issues three licence types: a Service License, a Trade License and a Light Industrial License. You buy them through two packages. The Media Package allows up to 5 media activities, and the Standard Package allows any 5 business activities. Both are issued as an LLC.
Each licence can hold either one activity Group plus four Classes, or up to five Classes, including every Subclass under them, at no extra cost. On 22 October 2026, Shams's online directory listed 1,857 activities:
| Category | Activities listed |
|---|---|
| Services and consultancy | 746 |
| Wholesale and retail | 703 |
| Media | 408 |
Shams names e-commerce, general trading, management consultancy, IT services, advertising, accounting and holding company activities among popular choices.
Some activities need another authority's approval: 113 need pre-approval and 288 need post-approval. Pre-approval activities get a red licence and cannot start until the outside approval arrives; post-approval activities need it after licensing but before trading. For example, "Media content production" needs post-approval from the Media Regulatory Office. If you advertise or market on digital platforms, Shams says you may also need an Advertiser Permit.
Is there a Shams freelance licence?
No. Shams's official site does not list a freelance permit or freelance licence as of 22 October 2026. Its packages page offers only the Media and Standard Packages, both issued as an LLC, and its terms provide only for LLCs and branches. A solo professional, freelancers included, usually sets up a single-shareholder LLC. If you want a permit in your own name, RAKEZ publishes a Freelancer Permit from AED 6,100.
How do Shams visas and office options work?
A Shams company can hold up to 50 visas per licence, depending on its activities and office space. The flexi-desk packages are described with up to 20 visas. Shams asks for a business plan and bank statements for more than 10 visas, and an annual audited financial report for more than 20.
A visa allocation costs AED 1,600 per visa and renews with the licence each year, but it is not a residence visa itself. To apply for visas, the company needs a valid e-channel registration, an immigration card and a free allocation.
Shams gives these stated timelines for the visa stages:
| Stage | Shams's stated time |
|---|---|
| Immigration card and e-channel (starts after licence approval) | 3 to 5 working days |
| Entry permit or change of status | 4 to 5 working days |
| Medical test | 1 to 2 working days |
| Residency visa and biometrics | 3 to 4 working days |
| Emirates ID after biometrics and visa approval | Usually 7 to 10 working days |
Other visa points:
- You can sponsor a spouse, children or parents on dependant visas, and Shams collects a refundable security deposit for each
- Cancelling the last shareholder's visa needs an AED 2,100 security deposit
- Medical tests can be done at any UAE centre affiliated with EHS or MOHAP
Both packages include a flexi desk and lease agreement, and the company's official address is registered under Shams Free Zone in Sharjah. For a private room, Shams lists serviced executive offices in its Business Center from AED 15,946.87 a year (checked 22 October 2026). Larger visa quotas depend on the office space allocated to the company.
What are the ownership, share capital and legal form rules?
Foreigners can own 100% of a Shams company, with no local partner. Shams registers two legal forms: a Limited Liability Company (LLC) and a local or foreign branch. Company names must end with "LLC" or "Branch", and Shams says its companies can use the LLC suffix without "FZ".
| Point | LLC | Branch |
|---|---|---|
| Separate legal person | Yes | No, it is part of the parent company |
| Shareholders | 1 to 50 | Owned by the parent company |
| Liability | Limited to the shareholder's share capital contribution | The parent carries the branch's debts and liabilities |
Shareholders set the share capital in the Memorandum, and Shams's terms default it to AED 100,000 unless you ask for another figure. Capital above AED 100,000 needs a bank statement showing at least the declared amount; below it, no extra documents are needed. Shares are whole numbers of AED 1 or multiples of it.
An LLC can appoint up to four managers and four directors, and all must be individuals. Shareholders, managers, directors and investor visa applicants must be at least 18 years old.
Renewal and ongoing compliance in Shams
You must renew a Shams licence before it expires. After a 30-day grace period, a penalty of AED 200 a month applies until you renew or cancel, and Shams can later suspend the company and cancel its visas.
Yearly obligations:
- Audit: Shams's 2024 Companies and Licensing Regulations require company accounts to be examined and reported on by an auditor.
- Corporate tax registration: Every free zone company must register for UAE corporate tax within three months of incorporation. Late registration attracts an AED 10,000 penalty.
- Corporate tax return: File within nine months of the end of each tax period.
- VAT: Register if taxable supplies and imports exceed AED 375,000 a year; you may register voluntarily above AED 187,500. The standard VAT rate is 5%.
- UBO register: File beneficial ownership data with Shams within 60 days of licensing and keep it current. Penalties apply under Cabinet Resolution No. 132 of 2023.
- goAML: Designated businesses, such as real estate brokerage, accounting and company formation services, must register and report on goAML.
Does a Shams company pay 0% corporate tax?
Only if it is a Qualifying Free Zone Person, and then only on qualifying income; its other taxable income is taxed at 9%. It must keep adequate substance in the free zone, prepare audited financial statements and keep non-qualifying revenue within 5% of total revenue or AED 5 million, whichever is lower. A company that fails any condition loses the status for that tax period and the next four.
Qualifying income includes income from other free zone persons (except from excluded activities) and income from qualifying activities with mainland or overseas customers. Ministerial Decision No. 229 of 2025 lists qualifying activities such as manufacturing, trading qualifying commodities, logistics and headquarter services to related parties. Media, marketing and consulting are not on that list, and transactions with natural persons are excluded activities. A Shams company that does not qualify pays the standard rates: 0% on taxable income up to AED 375,000 and 9% above it.
Small Business Relief lets a resident company with revenue of AED 3 million or less, in the current and all previous tax periods, elect to be treated as having no taxable income. Ministerial Decision No. 131 of 2026 extends it to tax periods ending on or before 31 December 2029. A Qualifying Free Zone Person cannot elect it.
How does Shams compare with SPC Free Zone and RAKEZ?
Shams and SPC Free Zone, both in Sharjah, publish almost the same entry prices, while RAKEZ in Ras Al Khaimah offers a Freelancer Permit that Shams does not list.
| Point | Shams | SPC Free Zone | RAKEZ |
|---|---|---|---|
| Emirate and area | Sharjah, Al Messaned | Sharjah, Al Zahia | Ras Al Khaimah |
| Published entry price, no visa | AED 5,760 (Media Package), AED 6,885 (Standard Package) | AED 5,750 (Publishing or E-commerce), AED 6,875 (Standard) | AED 6,000 (Instant Licence Basic) |
| Activities per licence | Up to 5 | Up to 5 activity groups | 1 on Instant Licence Basic; up to 10 on Biz Starter, for UAE-based founders |
| Option for a solo founder | Single-shareholder LLC | FZE-LLC (single shareholder) | Freelancer Permit from AED 6,100, one activity, no corporate bank account |
| Visas | Up to 50 per licence; flexi-desk packages up to 20 | Unlimited, as SPC states | None on Instant Licence Basic; 1 on the AED 14,000 all-inclusive package, plus up to 3 more at AED 4,000 each |
Prices are each authority's own published figures, checked on 22 October 2026. Read our guides to SPC Free Zone, RAKEZ and IFZA, or compare all UAE free zones.
Setting up a Shams company from India
You can form a Shams company from India without visiting the UAE, because the process runs online and UAE residency is not required. You need to be in the UAE only for the visa medical and biometrics.
- Documents: Individuals need a passport copy with a specimen signature, plus an Emirates ID or visa copy if they have one. An Indian corporate shareholder adds its certificate of incorporation, memorandum and good standing certificate. The UAE Ministry of Foreign Affairs says documents issued outside the UAE are subject to attestation procedures, so confirm the format with Shams first.
- FEMA and overseas investment: A resident Indian individual can invest only in an operating foreign entity under the Overseas Investment Rules, 2022. All transactions go through one designated authorised dealer (AD) bank, and Form FC is filed with that bank on or before the first investment. Resident individuals can remit up to USD 250,000 per financial year under the Liberalised Remittance Scheme.
- Visa medical: Shams says applicants from India who are outside the UAE receive a "Visa Detail" to do a pre-medical at the UAE embassy in India.
- Bank account: After registration, Shams shares a list of partner banks. Send the share capital from India only through your AD bank, so the ODI reporting matches the money trail.
- Tax residence: India treats a foreign company as resident if its place of effective management is in India. If the company will be run day to day from India, take tax advice before you start.
For an Indian entity alongside it, see private limited company registration or Indian subsidiary registration, and protect your brand with trademark registration.
How Ofin helps with Shams setup
Ofin's UAE desk handles a Shams setup remotely, from activity selection to licence handover, then visas, banking and compliance. Ofin Legal has served 5,000+ clients since 2019 and holds a 4.9-star Google rating.
Ofin's work on a Shams setup covers:
- Advice on the right package, activities and visa count
- Preparing documents and the application through to licence handover
- Investor and employee visas, Emirates ID and corporate bank account support
- VAT and corporate tax registration, accounting, PRO services and document attestation
- Advice on India to UAE tax and FEMA overseas investment rules
- One advisor who stays with you until the company is running
Call or WhatsApp Ofin's UAE desk on +971 50 523 5779 for a quote, or start from our UAE company setup guide.
