In case you are an aspiring entrepreneur who wishes to set up his business operations in the United Arab Emirates without having to go through the hassle of incurring huge costs or facing complications while doing so, then one of the best options for you is to set up your operations in the Shams Free Zone, established in 2017.
Why Choose Shams Free Zone?
The reasons for which Shams Free Zone has gained immense popularity among international businesspeople are very compelling. Firstly, it allows 100% foreign ownership without necessitating a local sponsor/partner. Secondly, there is no corporate and individual tax applicable, besides the provision for complete profit/capital repatriation. Thirdly, its incorporation process is very simple, with a licence typically issued within 2-5 days. Fourthly, up to five business activities may be combined under one licence, regardless of industry sector. Lastly, it is one of the most inexpensive free zones in the UAE, with licence fees beginning at AED 5,750.
All the above-mentioned benefits coincide with the UAE government policy formulated to attract foreign investments.
Types of Business Licenses Available
Shams offers a range of licence types to suit different business models. A service licence is designed for professionals offering consultancy, marketing, IT, or other service-based work. An A.A. trading licence covers businesses involved in the import, export, and sale of goods. A media licence is suited for content creators, digital agencies, and production companies. An industrial licence applies to businesses involved in manufacturing or production. An e-commerce licence is ideal for businesses selling products or services online. Finally, a freelance permit is available for independent professionals working as solo operators.
Legal Structures for Company Formation
You have to first determine the legal entity that you want to choose before going into the registration process. Shams provides three types of entities to its customers. The first type of entity is the Free Zone Establishment (FZE). This is meant for the sole proprietorship entity. It means that one person will have total ownership over the business. The second type of entity is the Free Zone Company (FZC), which can be established by more than two people. Up to fifty shareholders can form such a company.
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Step-by-Step Process to Register a Company in Shams
Step 1: Establish Your Business Activities
Firstly, define the activities that your business engages in and then select those activities that fall within the categories of the approved business activities of Shams. This includes a selection of a maximum of five activities for one licence.
Step 2: Decide Your Business Legal Form
Secondly, you need to make a decision about the structure of the company that can be a sole proprietorship (FZE), partnership (FZC), or LLC based on the goals of the firm and how the ownership is shared.
Step 3: Selecting a Business Name
Third, apply for at least three different names for your business through the Shams system online. The selected name must be unique and different from that used by another firm. Moreover, it must be acceptable to the naming laws of the UAE.
Step 4: Apply for the Right License Type
Fourthly, obtain the most suitable business license.
Step 5: Gather your documents.
Get your documents ready for submission in advance. They include copies of the passports of all the shareholders (valid for at least six months), proof of residential address (utility bills), passport-size photographs of all shareholders, a filled-in application form, and a Memorandum of Association following the template provided by Shams.
Step 6: Submit and Pay Registration Fee
Submit your application along with the relevant documents via the website of Shams. You can pay via credit cards and also use their payment service named “Buy Now Pay Later” via Tabby. They offer discounts on multi-year packages (2, 3, or 5-year packages). Great for long-term investors.
Step 7: Get Your Licence
After successful completion of processing and approvals of your application within 2 to 5 working days, you will get your trade licence, certificate of incorporation, and company documents through digital mode only.
Step 8: Apply for Visa and Corporate Bank Account
Once your company is registered in the UAE, you can now proceed to apply for a UAE resident visa for yourself, your business partners, and employees. You can also create a corporate bank account for your business since they have tied up with Sharjah Islamic Bank and RAK Bank.
How Much Does It Cost?
Shams is considered one of the most economical free zones in the UAE. The licence packages commence from AED 5,750 for the basic package, whereas the licence packages that come with the visa quota begin from about AED 13,420. The share capital required is AED 150,000, but there is no requirement of producing any evidence of the same.
Conclusion
Setting up your business in Shams Free Zone is one of the simplest, cheapest, and easiest methods that will allow you to start operating in the UAE. Being completely owned by foreigners, tax-free, having all the procedures done online, and allowing you to pursue any activity, it is an ideal solution for all entrepreneurs. It’s also easy to do – as soon as you know what you want to do and which legal form suits you best, you can start your company within a week. However, if you prefer to have someone to help you out, e-startup can take care of everything for you.
FAQs
1. Am I supposed to come to the UAE to register my company in Shams?
No. The entire process is fully online. You can register, pay, and receive your licence without stepping foot in the UAE.
2. Do I require a local partner or sponsor?
No. In the case of Shams Free Zone, the level of foreign ownership can be up to 100%. Hence, you don’t need to look for local partners, sponsors, or NOCs from any other firms.
3. Do you need an office physically?
A physical office is not compulsory. Your registered address will be at Sharjah Media City. You may choose to have either a private office or a shared office.
4. Which industries/businesses are allowed in Shams?
There are over 200 activities which can be operated in Shams, such as consultancy, trading, filmmaking, e-commerce, technology, marketing, etc. You can do five activities in one licence.
5. Can I apply for my UAE residence visa through Shams?
Certainly. Once you incorporate your company, you can apply for investor, partner, employee, and dependent visas depending on the type of licence you have and your office space allocation.
