The SHAMS Free Zone
Dubai is a bustling hub of business and innovation that has attracted entrepreneurs and investors from all corners of the world. With its welcoming business environment and thriving economy, it’s no surprise that Dubai is a top choice for both startups and established companies.
One of Dubai’s most sought-after free zones is the Sharjah Media City (SHAMS) Free Zone, which offers many benefits for entrepreneurs starting their businesses in the UAE. These benefits include 100% foreign ownership, zero corporate and personal tax, and a streamlined registration process that makes setting up your business a breeze.
If you’re interested in company formation in SHAMS, you’ll want to keep reading! In this blog post, we’ll dive into the advantages of choosing SHAMS Free Zone for your business venture and why it could be the perfect location for your next business venture.
Types of Companies and Licenses Offered in the SHAMS Free Zone
If you’re considering forming a company in the UAE, SHAMS Free Zone company setup could be an excellent option. The SHAMS Free Zone offers a range of company types and licenses that can be tailored to meet the needs of different types of businesses. Some business types include:
1. SHAMS LLC Companies
One of the most popular company types in the SHAMS Free Zone is the Shams LLC Company Formation. This type of company allows 100% foreign ownership, allowing you to set up your company without needing a local partner or sponsor.
2. SHAMS Branch Companies
This type of company is an extension of the parent company and does not have a separate legal identity. The branch company must obtain a license from SHAMS Free Zone and operate under regulations set by the parent company.
In addition to business types, entrepreneurs seeking company formation must choose one of several license types depending on the business they intend to conduct.
A Service License is for companies providing consulting, legal, accounting, or other professional services. Industrial License is for businesses involved in manufacturing or industrial activities, while Trading License is for companies engaged in trading activities.
On the other hand, an Industrial License is necessary for businesses that engage in manufacturing, processing, and other industrial activities. With this license, companies can import raw materials, manufacture their products, and export them to other countries.
For companies involved in import and export activities, a Trading License is required. This license permits businesses to import, export, distribute, and store goods within the SHAMS Free Zone and the UAE.
A Holding License is ideal for businesses that own assets, shares, and investments in other companies. This license allows companies to hold assets and investments in other companies within the UAE and other countries.
Company Formation in SHAMS: Why You Should Start Your Business in This Free Zone
There are plenty of advantages to choosing the SHAMS Free Zone might be right for your next business endeavor. Here are just a few:
Setting up your business in the SHAMS Free Zone is more affordable than in other areas of Dubai. The cost of living and business operations is lower, saving you money on business expenses.
2. Fast and Hassle-Free Registration Process
The registration process in the SHAMS Free Zone is straightforward and quick, allowing you to set up your company in SHAMS Free Zone within a matter of days.
3. Full Repatriation of Profits
One of the benefits of establishing your business in the SHAMS Free Zone is that you can repatriate 100% of your profits without any restrictions.
Setting up your business in the SHAMS Free Zone is faster and more efficient than in other areas of the UAE.
5. 0% Corporate Tax
Businesses in the SHAMS Free Zone are exempt from paying corporate taxes, making it an attractive location for companies looking to minimize their tax burden.
6.0% Import & Export Tax
Companies operating in the SHAMS Free Zone can import and export goods without taxes or duties.
7.Easier Visa Process
Business owners and employees can quickly obtain visas to live and work in the UAE through the SHAMS Free Zone.
8.Business Formation Benefits Without Need for Physical Presence
The SHAMS Free Zone offers business formation benefits without needing a physical presence in the UAE. This can save you money if you’re running a branch company from another country or region.
9.Introduction of Registered Agent System
The SHAMS Free Zone offers a registered agent system to assist with company formation and ongoing business operations, making business setup easy and straightforward.
The SHAMS Free Zone provides modern office facilities that meet the needs of businesses in various industries.
Steps for Business Setup in SHAMS Free Zone
Starting a business in the SHAMS Free Zone can be an excellent way to take advantage of the various benefits offered in the jurisdiction. However, obtaining a business license can seem daunting to some if they lack a background in local laws, customs, and regulations. To make the process easier, here are the steps you’ll want to follow for a successful SHAMS Free Zone business setup:
1. Choose a License Type
SHAMS Free Zone offers four types of licenses – service, industrial, trading, and holding. Choose the license that best suits your business needs.
2. Choose a Legal Structure
SHAMS Free Zone allows two types of company formation – LLC and branch. Choose the company type that suits your business structure and needs.
3. Choose a Trade Name
You’ll want to submit a name for your company to the Department of Economic Development (DED), ensuring that your chosen business name does not include profanity and has not been previously used.
4. Gather Documentation and Submit Application
The next step is to register your company in the SHAMS Free Zone. This involves gathering the necessary documentation and submitting an application through the online application portal.
5. Pay Fees
Once you’ve submitted your application, you’ll need to pay all fees involved with your business formation process.
6. Lease Office Space
To conduct business in SHAMS, you must have a physical address within the SHAMS Free Zone. You can choose between leasing business premises or using one of the flexi-desk options available.
7. Receive Your License
Once your application has been approved, you will receive your business license, allowing you to start your business operations in the SHAMS Free Zone.
Documents Required for Business Setup in SHAMS Free Zone
When you submit your license application, you’ll be required to include several important pieces of documentation. These documents include the following:
•Memorandum and Articles of Association
•Board resolution for company establishment
•Certificate of good standing
•Board resolution providing authority or Power of Attorney to a third party
•Certificate of Incorporation
•Passport copy of individual shareholders
•Passport copy of the Director, Company Secretary, and General Manager (if applicable)
Failing to provide these documents will result in the outright rejection of your business license application.
Business Setup Cost in SHAMS Free Zone
The cost of forming a business in SHAMS will likely vary based on your license type and other business setup costs.
However, you can estimate that the total amount will include the license cost, visa fees, office space rental, and other related expenses. These license fees can vary depending on the type, ranging from AED 11,500 for a service license to AED 15,000 for a trading or industrial license.
Additionally, the visa fee for each employee starts from AED 3,300, and the office space rental cost is based on the size and location of the office.
To get a comprehensive understanding of the total expenses for business formation in SHAMS Free Zone, you’ll need to factor in these costs along with any other overhead expenses you may incur.
Need Help with Business Setup in SHAMS Free Zone? MSZ Can Help!
Setting up a business in the SHAMS Free Zone can be an excellent way to take advantage of the UAE’s thriving economy and business-friendly policies. However, navigating the various legal requirements and regulations can be daunting, especially for those unfamiliar with the territory.
And that’s where we come in! MSZ Consultancy has the experience to help you manage your investments in the UAE from start to finish, ensuring that your business is set up correctly and legally and that you have all the necessary permits and licenses to operate smoothly.
Our team of experienced professionals can guide you through every step of the business setup process, from selecting the appropriate business structure to securing visas for yourself and your employees.
So, if you’re ready to take the next step in your entrepreneurial journey and start a business in the SHAMS Free Zone, contact MSZ Consultancy today at +971 52 544 1248. Our expert team is waiting to help you streamline your business and achieve your financial goals in the UAE.