Benefits of setting up a business in SHAMS Freezone

In recent years, the United Arab Emirates (UAE) has emerged as a thriving hub for business and entrepreneurship, attracting investors and companies from all over the world. Among the various options available for starting a business in the UAE, Sharjah Media City Freezone, commonly known as SHAMS, stands out as an excellent choice for entrepreneurs and businesses looking to establish a presence in the region.

Setting up a business in Sharjah Media City Freezone (SHAMS) is a strategic decision that offers a multitude of benefits. With 100% foreign ownership, tax incentives, a straightforward setup process, and access to global markets, SHAMS provides the perfect platform for entrepreneurs and businesses to thrive in the UAE. Whether you’re a startup, a tech company, or a media enterprise, SHAMS offers an ideal environment to realize your business goals. If you’re looking for a business-friendly destination in the heart of the UAE, SHAMS is undoubtedly worth considering.

Key features of Business setup in SHAMS

1. 100% Foreign Ownership:
   One of the most significant features is the ability to have 100% foreign ownership of your company, granting you full control over your business.
2. Tax Incentives:
   SHAMS provides a tax-free environment, including exemptions from income tax and corporate tax, ensuring more substantial returns on your investment.
3. Easy Setup Process:
   The registration and licensing process in SHAMS is user-friendly and streamlined, allowing for a quick start to your business operations.
4. Diverse Business Activities:
   SHAMS accommodates a wide range of business activities, making it suitable for various industries, including media, technology, and e-commerce.
5. Access to Global Markets:
   Situated strategically in the UAE, SHAMS provides easy access to international markets, facilitating networking and growth opportunities.

Benefits of Setting up a business in SHAMS Freezone

1. 100% Foreign Ownership
   The freedom of complete foreign ownership is a huge advantage, particularly for international investors and entrepreneurs.
2. Tax Incentives
   Enjoy a tax-free environment with exemptions from income tax and corporate tax, helping you maximize your profits.
3. Easy Setup Process
   The straightforward registration process ensures minimal bureaucratic hassles and a swift launch for your venture.
4. Diverse Business Activities
   Whether you’re in media, technology, e-commerce, or another industry, SHAMS caters to a wide range of business activities.
5. Access to Global Markets
   The central location of SHAMS in the UAE provides a gateway to international markets, enabling global networking and market expansion.
6. Infrastructure and Facilities
   SHAMS offers state-of-the-art infrastructure and modern facilities to support your business’s growth and efficiency.
7. Supportive Ecosystem
   SHAMS is committed to providing a supportive business ecosystem, offering services like legal, administrative, and licensing assistance.

The Registration Process for SHAMS

Setting up a business in Sharjah Media City Freezone (SHAMS) is an exciting endeavor, and understanding the registration process is crucial to ensure a smooth and successful launch. Below, we provide a detailed overview of the steps involved in the registration process within SHAMS.

1. Preliminary Preparations
   Before diving into the registration process, it’s essential to have a clear understanding of your business activities, structure, and ownership. Make sure you’ve determined the nature of your business and how it will operate within SHAMS. Decide on the legal structure of your company, whether it will be a sole proprietorship, a partnership, or a corporate entity.
2. Documentation and Pre-Approval
   The first step in the registration process is preparing the necessary documentation. This typically includes:

A Passport Copy: A copy of your passport, as the business owner, is required.
Visa: If you are currently residing in the UAE, you will need to provide your visa details.
No Objection Certificate (NOC): If you are residing in the UAE and are sponsored by another entity, you’ll need an NOC from your sponsor.

3. Business Name Reservation
   Choosing an appropriate name for your business is essential. SHAMS allows you to reserve your preferred business name, ensuring it’s unique and compliant with their guidelines. This step helps in avoiding potential naming conflicts.
4. Completing the Application
   Once your business name is reserved, you can proceed with completing the application for your business setup. This will include details about your business activities, ownership structure, and other relevant information.
5. Submission and Review
   After filling out the application form, you will submit it to SHAMS along with the required documents. The review process typically takes a few business days. During this time, SHAMS will verify the information provided and conduct any necessary background checks.
6. License Issuance
   Upon successful review, you will receive your trade license from SHAMS. This license permits you to legally conduct business within the freezone. It’s worth noting that SHAMS offers various types of licenses, depending on your business activities and requirements.
7. Office Space Selection
   SHAMS provides a range of office space options to choose from. Whether you require a flexible desk setup for a startup or a dedicated office space for a larger company, you can select the type of workspace that best suits your needs.
8. Visa Application
   If your business requires visas for employees or investors, you can apply for these through SHAMS. The freezone offers efficient visa processing services to assist in obtaining the necessary visas for your staff.
9. Bank Account Opening
   To manage your company’s finances effectively, it’s advisable to open a corporate bank account in the UAE. This allows you to handle financial transactions smoothly and access the local banking system.
10. Commencing Business Operations
    With your trade license, office space, visas, and bank account in place, you are now ready to commence your business operations in SHAMS. This marks the successful conclusion of the registration process.

Managing your new company in SHAMS

1. Business Activities
   Your first step in managing your new company is to ensure your business activities align with your initial plan. Make sure you’re operating within the scope defined in your trade license issued by SHAMS. If you intend to expand or diversify, consult with SHAMS to update your trade license accordingly.
2. Office Space
   Selecting and maintaining an appropriate office space is crucial for your business. SHAMS offers various office options, including flexi-desk spaces for startups and dedicated offices for larger enterprises. Ensure that your office space suits your business requirements and complies with any regulations or guidelines set by SHAMS.
3. Staffing and Visas
   If your business requires hiring employees or if you have investors who need visas, SHAMS provides efficient visa processing services to facilitate the necessary procedures. Ensure that you maintain accurate and up-to-date records of your staff and their visa statuses. Compliance with UAE labor laws is essential.
4. Banking and Finance
   Opening a corporate bank account in the UAE is recommended for effective financial management. Your company’s bank account will be essential for conducting transactions, receiving payments, and managing day-to-day financial operations. It’s advisable to work with a local bank familiar with the UAE’s regulatory requirements.
5. Tax and Accounting
   Understanding and adhering to tax and accounting requirements is a critical part of managing your company in SHAMS. While SHAMS offers a tax-free environment, you must ensure your business complies with all tax regulations. This includes keeping detailed financial records, maintaining transparent accounting practices, and filing any necessary tax returns.
6. Regulatory Compliance
   Staying compliant with local regulations is a fundamental aspect of running a business in SHAMS. This includes adhering to the rules and guidelines set by SHAMS, as well as those established by relevant UAE authorities. Stay updated on any regulatory changes that may impact your business operations.
7. Networking and Growth
   Leverage the strategic location of SHAMS within the UAE to expand your network. Engage with other businesses and entrepreneurs within the freezone and take advantage of networking opportunities. Building relationships and partnerships can play a significant role in your company’s growth.
8. Ongoing Communication with SHAMS
   Maintaining open and transparent communication with SHAMS is vital. If you encounter any challenges, require updates to your trade license, or need assistance with various services, reach out to SHAMS’ customer support and service teams for guidance and support.
9. Expanding and Diversifying
   As your business matures, you may consider expanding or diversifying your offerings. SHAMS allows businesses to adjust their trade licenses to accommodate changes in business activities or the introduction of new services. Consult with SHAMS on the procedures and requirements for these changes.
10. Annual Renewals
    Finally, keep track of your trade license renewal dates. SHAMS typically issues trade licenses with a validity period, which usually ranges from one to three years. Ensure you renew your license on time to avoid any interruptions in your business operations.

Next reading: FAQ’s for setting up a company in Sharjah Media City Freezone

Arnifi is digital first Corporate service provider helping companies enter the Middle East region, starting with UAE and Saudi Arabia markets. Founded and backed by professionals from Amazon, Souq and other large companies operating in KSA – the team understands what it takes to succeed as a startup in both UAE and Saudi Arabian markets, apart from going through the setup process multiple times.

Arnifi will provide a truly digital experience to entry and scale up of companies both UAE and Saudi Arabia. The Arnifi promise is simple, yet revolutionary, use technology and a great team to provide transparency, efficiency and great customer experience in the whole process.
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