United Arab Emirates

Company Formation in Shams

Sharjah Media City (Shams)

Formation Time

1–3 business days

Min. Capital

No minimum required

Corporate Tax

0% qualifying / 9%

Foreign Ownership

100%

Overview

Shams (Sharjah Media City) is the most budget-friendly and accessible digital free zone in the United Arab Emirates. With formation packages starting from just AED 5,750, Shams offers the lowest barrier to entry in the country for solo entrepreneurs, freelancers, remote consultants, creative agencies, and digital marketing firms. Despite the 'Media' in its name, Shams licenses over 1,500 diverse business activities, including general commerce, software engineering, e-commerce, and corporate advisory. Formation is completed entirely online in 24 to 48 hours without requiring physical office space, paid-up capital, or annual audit submissions.

Cheapest free zone in the UAE (AED 5,750)

24-hr setup

No office required

No audit required

Up to 6 visas

Why Choose Shams

Lowest setup cost in the UAE — licensing packages starting from just AED 5,750

Rapid 24 to 48-hour electronic formation with zero physical paperwork

Over 1,500 approved activities: media, consulting, IT, e-commerce, and trading

No paid-up share capital requirement and no mandatory annual audit submission

Flexible visa allocation packages allowing up to 6 residence visas per license

0% Corporate Tax on Qualifying Income under UAE Federal Corporate Tax QFZP rules

Seamless digital banking integration with Wio Bank Business and Mashreq NeoBiz

Low annual license renewal costs guaranteeing long-term operational affordability

Business Entity Types

Entity	Ownership	Directors	Capital	Tax	Best For
FZ-LLC	100%	1	None	0% on Qualifying Income; 9% on non-qualifying income	Digital nomads, freelance consultants, creative studios, e-commerce, marketing agencies
Branch Office	100%	1	None	0% qualifying / 9% standard	Affordable UAE representative offices for foreign corporations

Step-by-Step Formation Process

Online Application

30 min

Submit passport and select activities via Shams digital portal.

Payment & Approval

1 day

Pay government fees and receive instant automated approval.

Digital License Issuance

Same day

Download official electronic Shams Trade License.

Immigration & Entry Permit

3–5 days

Issue establishment card and electronic visa entry permit.

Emirates ID & Banking

1–2 weeks

Complete medical/biometrics in UAE and open account with Wio Bank.

Costs & Fees

Government / License Fee	AED 5,750 – 18,000
Our Service Fee	USD 2,000+
Annual Renewal	AED 5,750+

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

Because of Shams's low-cost structure, digital banks like Wio Bank Business and Mashreq NeoBiz offer the highest approval rates and fastest account onboarding.

Account Opening Time

3 days (Wio) to 3 weeks (traditional banks)

Multi-Currency

Yes — multiple currencies supported

Recommended Banks

Wio Bank (instant digital onboarding in 48 hrs)Mashreq NeoBizRAKBANK

Tax Overview

Corporate Tax

0% on Qualifying Income; 9% on non-qualifying income

Personal Income Tax

VAT / Sales Tax

5% standard VAT

Capital Gains Tax

Withholding Tax

Double Tax Treaties

137 countries

Subject to UAE Federal Corporate Tax Law (Decree-Law No. 47 of 2022). All Shams companies must register with the FTA and secure a Corporate Tax TRN.

Frequently Asked Questions

Why is Shams the most popular free zone for freelancers and digital nomads?

Shams offers the lowest government setup fee in the UAE (from AED 5,750), requires no physical office, requires no capital deposit, issues the license in 24 hours, and enables entrepreneurs to obtain a 2-year UAE residence visa and Emirates ID at minimal expense.

Can I conduct business outside the media sector with a Shams license?

Yes! Despite the name 'Sharjah Media City', Shams offers over 1,500 approved activities, including general commerce, IT, software development, management consulting, e-commerce, and marketing.

Does Shams require an annual audit?

No. Shams does not require submission of an audited financial statement to renew your trade license, which significantly reduces annual compliance costs.

Can I open a corporate bank account with a Shams license?

Yes. Digital banks like Wio Bank Business have automated onboarding for Shams licenses, allowing account opening in 48 to 72 hours. Traditional commercial banks (RAKBANK, Mashreq) are also accessible with adequate business documentation.

How many visas can I get with a Shams company?

Shams offers packages ranging from zero-visa licenses (ideal for remote founders who do not need UAE residency) up to 6 visas under flexible virtual office allocations.

Can I form a Shams company without visiting the UAE?

Yes. Company formation is 100% remote. You only need to travel to the UAE briefly to complete the medical test and biometrics for your Emirates ID if applying for a residence visa.