Another free zone in the UAE, another opportunity for entrepreneurs, startups, SMEs, companies, and freelancers to start their business in one of the region’s strongest economies.
Sharjah Media City was launched in 2017 to provide facilities and cost-effective business setup solutions that turn creative ideas into successful projects.
Like other free zones, it offers 100% foreign ownership and income tax exemptions. What makes it unique is that it is more affordable than other free zone jurisdictions, also with the possibility of getting established there remotely.
Another good news is that, unlike some other areas, fresh and raw talent is welcome here.
We will get into the details of the authority of this jurisdiction and how to get established there in no time.
Mission and Vision
After seven years of activity, SHAMS is UAE’s fastest growing media free zone and continues to operate as a catalyst for innovation by making creative entrepreneurship accessible.
Sharjah’s media hub envisions a connected ecosystem thanks to a more dynamic and collaborative atmosphere compared to other jurisdictions in the UAE. Here, freelancers and entrepreneurs can leverage its services and expertise across global platforms to find success in their endeavors.
According to SHAMS, they “strive to support initiatives that enhance humanitarian values, serving as a model for empowering individuals through media content and fostering economic diversity”.
Today, creative and media companies from more than 160 countries are active in the undisputed leader of media and creativity in the region.
The Benefits of Establishing a Company in SHAMS
SHAMS has reached a point where it offers over 120 business activities to choose from and provides the flexibility to combine different activities on the same license.
Aside from shared workspaces and dedicated offices, the following benefits make it a great option for some startups and entrepreneurs:
- 100% repatriation of capital and profits
- 100% foreign ownership
- 0% rate on taxable income that does not exceed AED 375,000
- Affordable company setup options starting from AED 5,750
- Quick and simple online registration process
- Possibility of incorporating a company without the physical presence of shareholders
- Great location; 10 Minutes From Sharjah intl. Airport and 30 Minutes From Dubai intl. Airport
- Allocation of 6 Up to 12 Visas on a Shared Desk Facility
- Companies will have limited liability
- Availability of a wide range of business activities on the same business license
Regulatory in SHAMS
The SHAMS Authority is the main regulatory body overseeing operations within the SHAMS Free Zone. It is responsible for issuing business licenses, ensuring compliance with local laws, and promoting the free zone as a hub for media and creative enterprises.
Sharjah Media City in Numbers
SHAMS issued its first license in March 2017. By the end of December 2017, the number of licenses had reached 2,533 and in 2018, it rose to nearly 3,300.
As of 2024, SHAMS has proudly attracted over 2,500 companies, and its annual growth rate in business registrations since its establishment has reached a whopping percentage of 30.
Due to the increasing number of businesses, SHAMS is developing a master plan that covers an area of 2 million square meters. This plan includes office spaces, retail areas, and facilities for media production.
Three other important stats point to the upward trend of SHAMS:
1. GDP Contribution
As of 2024, Sharjah’s GDP is approximately AED 140 billion. This figure reflects the overall economic activity within the emirate, including contributions from SHAMS and other sectors.
2. Growth Rate
Since its launch in 2017, SHAMS has seen rapid expansion, with reports indicating an annual growth rate of around 30% in new business registrations.
3. Budget Allocation
For 2024, Sharjah’s budget is around AED 40.8 billion, including investments in infrastructure and initiatives to support business growth in free zones like SHAMS.
The Types of Companies/Entities in SHAMS
SHAMS allows for two primary types of company formations:
Limited Liability Company (LLC): An independent entity where owners have limited liability is known as a corporation.
Branch Office: An extension of an existing parent company, which does not have a separate legal identity.
Types of licenses issued by SHAMS
- Services
- Trading
- Industrial
- Holding
- Facilities
SHAMS Company Formation: Complete Setup Guide
If you are wondering what the required documents, the procedure, estimated time, and cost of establishing a company in Sharjah Media City are, take a look at this information:
1. Initial Preparation
Before submitting your application, you need the following essential documents:
- Passport Copies of all shareholders, the Chair (Director, Company Secretary, General Manager), including their recent passport-sized photos:
- Personal Information including full names, residence addresses, and contact details (email and mobile number) of shareholders and managers.
- A recent utility bill (less than three months old) for proof of address.
2. Choosing a Business Structure and Name
- Provide three preferred names for your company in order of preference to ensure availability.
- Specify the field of your business activities and choose out of the 120 approved activities in SHAMS.
3. Submission of Application
Assuming you have the documents ready, proceed with the application in the following order:
- Complete the online application form for company registration in SHAMS.
- Draft and submit the Memorandum & Articles of Association (MOA & AOA) to outline the company’s governance structure.
- A board resolution to establish a new company, and if applicable, a board resolution to establish a new branch.
- Finally, a board resolution providing authority or Power of Attorney to a third party for signing documents on behalf of the company is required.
4. Additional Documentation
Depending on your business structure, you may need to provide:
- For companies already established outside SHAMS wishing to open a branch, you may be required to provide a certificate of incorporation.
- For existing companies to demonstrate compliance with local laws, you are going to need a certificate of Good Standing.
5. Payment and Finalization
After submitting your application and documentation, you must pay the required fees associated with your chosen license type. Logically, fees vary based on the number of visas and business activities selected.
6. Lease Office Space
To operate within SHAMS, you must secure a physical address, even if you’re going to operate remotely. For that, you need to sign a lease agreement for either dedicated office space or flexible desk options available in SHAMS.
7. Visa Applications
If you plan to employ staff or require residency, you can apply for up to six investor or employment visas. You must also make sure that their health insurance regulations comply with SHAMS laws.
Main Differences from ADGM and DIFC
As mentioned earlier, SHAMS is a free zone company. The DIFC and the ADGM , are the most popular choices for companies when deciding to get established in the UAE. In this chart, we will have a broad comparison of the three jurisdictions:
| Criteria | SHAMS Free Zone | ADGM | DIFC |
| Primary Focus | Media and creative industries | Financial services and fintech | Financial services with a broader scope |
| Cost of Setup | Generally lower setup costs (starting from AED 11,500) | Higher setup costs due to regulatory requirements | Competitive but generally higher than SHAMS |
| Registration Time | Quick registration process (often within days) | Moderate speed, depending on the complexity of the application | Moderate speed with more extensive documentation requirements |
| Business Activities Allowed | Primarily media-related activities | Financial services, fintech, virtual assets | Financial services including banking, asset management |
Future projections
Analysts project that SHAMS will continue to grow, with expectations of expanding its business community by an additional 20-25% over the next few years due to its supportive environment and strategic initiatives.
Conclusion: How Tokenova Helps
The UAE has managed to become a global hub for e-commerce, driven by a rapidly growing digital economy, a tech-savvy population, and strong government support. If you seek a future in media and innovation or have fresh talent with potential, SHAMS is without a doubt one of your top options globally.
Generally, one can’t say one jurisdiction is better than the other. One authority could work for a company, while it may be a big mistake for another firm to bring its business there. That’s why firm establishment consultancies provide enough information and offer consultations to suggest the best option for each project.
