Introduction to Shams Free Zone
The Sharjah Media City Free Zone, better known as Shams Free Zone, has become one of the UAE’s fastest-growing business hubs since its launch in 2017. Designed to attract entrepreneurs, SMEs, and global investors, Shams offers affordable company setup packages, world-class infrastructure, and a prime location.
Strategically located in Sharjah, just a short drive from Dubai, Shams has positioned itself as a center for creative industries while also accommodating a broad range of business activities across different sectors. Its appeal lies in its low-cost licensing, 100% foreign ownership, and streamlined setup process—often completed in just a few days.
What is Shams Free Zone?
Shams Free Zone is a government-regulated jurisdiction that allows foreign and local investors to set up companies with full operational rights within the UAE. While it was initially geared toward media, marketing, and creative businesses, today it supports over 200+ business activities, including:
- E-commerce
- Consultancy
- Trading
- IT services
- Event management
- Education and training
- Design and production services
Why Choose Shams Free Zone?
Entrepreneurs choose Shams for several reasons:
- Cost-effective setup packages starting from AED 5,750
- Fast licensing process (as little as 2 days)
- No need for physical office space for certain license types
- Prime location between Sharjah and Dubai
- Multiple visa options for employees and investors
- 100% foreign ownership and profit repatriation
Business Activities Allowed in Shams
Shams Free Zone offers flexibility in business activities, meaning you can combine different services under one license. Popular activities include:
- Media production & broadcasting
- Digital marketing & advertising
- Software development
- Import/export trading
- Management consultancy
- Photography & videography
- Publishing and printing services
Types of Licenses in Shams Free Zone
When you set up a company in Shams, you must select a business license that matches your intended activity. The main types are:
| License Type | Description | Examples |
|---|---|---|
| Service License | For service-based activities | Consultancy, IT services, marketing |
| Trading License | For buying, selling, and distribution | Import/export, retail, wholesale |
| Industrial License | For manufacturing or production | Light manufacturing, packaging |
| Holding License | For owning assets or shares | Real estate holding, corporate holding |
Company Structures in Shams Free Zone
Shams supports different legal structures to suit individual entrepreneurs and corporate investors:
- Shams LLC (Limited Liability Company) – Most common structure for small to medium businesses
- Branch of a Local Company – For UAE-based companies expanding into Shams
- Branch of a Foreign Company – For international businesses entering the UAE market
Cost of Setting Up a Business in Shams Free Zone
Shams is known for its budget-friendly packages. Below is an estimate for 2025:
| Package Type | License Fee (AED) | Visa Eligibility |
|---|---|---|
| Zero Visa Package | From 5,750 | No visa allocation |
| One Visa Package | From 8,050 | 1 investor visa |
| Three Visa Package | From 11,500 | 3 visas |
| Six Visa Package | From 16,000 | 6 visas |
Additional Costs:
- Visa processing fees
- Office space (if required)
- Bank account opening charges
Steps to Set Up a Company in Shams Free Zone
Setting up in Shams is straightforward:
- Choose your business activity – Select from over 200 options.
- Select license type – Service, trading, industrial, or holding.
- Pick a package – Based on visa requirements and budget.
- Submit documents – Passport copy, photo, and application form.
- Receive your license – Usually within 2–3 working days.
- Open a corporate bank account – Required for operations.
Required Documents for Shams Company Setup
For individuals:
- Passport copy (valid for 6+ months)
- Passport-sized photo (white background)
- Completed application form
For corporate shareholders:
- Company trade license copy
- Certificate of incorporation
- Board resolution for company setup in Shams
Office Options in Shams Free Zone
Shams offers flexible workspace solutions:
- Flexi-desk – Shared workspace for startups
- Dedicated desk – For small teams
- Private office – For privacy and branding
- Custom space – For large operations
Visa Options in Shams Free Zone
Shams offers up to 6 visas per company license, depending on your package. Visa options include:
- Investor visa
- Employment visa for staff
- Dependent visas for family members
Banking in Shams Free Zone
After receiving your license, you can open a corporate bank account with local UAE banks like Emirates NBD, Mashreq, or ADCB. Shams also supports fintech solutions for startups.
Benefits of Shams Free Zone
- 100% foreign ownership
- No personal income tax
- Repatriation of capital and profits
- Low setup and renewal costs
- Access to a wide range of business activities
- Networking opportunities with creative professionals
Shams vs. Other UAE Free Zones
| Feature | Shams Free Zone | Dubai Media City | Sharjah Publishing City |
|---|---|---|---|
| Cost | Affordable | Higher | Moderate |
| Setup Time | 2–3 days | 7–10 days | 5–7 days |
| Visa Options | Up to 6 | Limited | Up to 6 |
| Activity Range | Wide | Media-focused | Publishing-focused |
Shams Free Zone for E-commerce Businesses
Shams is a great choice for online sellers because:
- No need for a physical shop
- Easy integration with payment gateways
- Affordable license packages for startups
Taxation in Shams Free Zone
Shams companies benefit from:
- 0% personal income tax
- 0% corporate tax for most activities
- Compliance with UAE’s VAT regulations (5%) if applicable
Renewal Process in Shams
Renewing your license is simple—submit the renewal form and pay the annual fee. No need to resubmit all documents unless there are changes to ownership or activities.
Common Mistakes to Avoid in Shams Free Zone Setup
- Choosing the wrong license type
- Underestimating visa needs
- Not checking bank requirements before setup
- Missing renewal deadlines
Future of Shams Free Zone
With its growing popularity, Shams is expected to expand its facilities, add more co-working spaces, and attract even more global investors by offering competitive digital services.
FAQs
How long does it take to set up a business in Shams Free Zone?
Usually 2–3 working days.
Can I operate outside the UAE with a Shams license?
Yes, you can conduct international business activities.
Do I need a local sponsor?
No, Shams allows 100% foreign ownership.
Is Shams only for media businesses?
No, it supports over 200 business activities across multiple sectors.
What is the cheapest package in Shams?
The zero-visa package starts from AED 5,750.
Can I upgrade my package later?
Yes, you can add visas and upgrade office space anytime.
Conclusion
Shams Free Zone is one of the UAE’s most attractive destinations for entrepreneurs looking for affordable, fast, and flexible business setup. With its strategic location, low costs, and wide range of allowed activities, Shams is an ideal choice for startups, freelancers, and SMEs seeking to establish a strong presence in the Middle East.
Whether you’re in media, trading, IT, or consultancy, Shams offers a business-friendly environment, world-class infrastructure, and straightforward licensing—making it one of the best free zones in the UAE in 2025.
