Denis Chernikov
← Company formation in the UAE

Company formation in SHAMS.

In short: the licence starts at AED 5,750 and issues in 1–3 working days. A realistic first year costs AED 11,000–16,000. Banking: 4–8 weeks — similar profile to other budget zones.

SHAMS built its reputation on speed and price for creative and media businesses, and has since broadened well beyond that. Licences start under AED 6,000 and issue within days. It is the cheapest credible entry point into a UAE company — with the same banking caveat that applies to every budget zone.

What it actually costs

ItemAED
Licence, per year5,750
Desk or officeincluded in base
Establishment card~1,500
Immigration card~1,500
Each visa (permit, medical, Emirates ID, stamping)4,000–5,000
Basic health insurance, per person per year~1,500
Realistic first year11,000–16,000

Year two is the number nobody quotes: licence renewal, office renewal, card renewals, visa renewals, insurance, accounting, audit where required, and corporate tax filing. Budget from AED 20,000 for a single-shareholder service company.

Timeline

StageDuration
Name and activity approval1–2 days
Licence issue1–3 working days
Establishment and immigration cards3–5 days
Residency for the shareholder3–6 weeks
Corporate bank account4–8 weeks

Who this zone suits

Media, marketing, design, freelance consultants, holding a licence for visa purposes.

What to watch

A Sharjah address on the licence occasionally complicates conversations with Dubai landlords and some banks. Not fatal, but worth knowing before you commit.

The broader point holds for every zone: choosing on licence price alone is the most expensive mistake in this market. Banking reception varies enormously between zones and appears in no price comparison. Saving AED 7,000 on the licence regularly costs two months without a working account.

What I do

  • Establish whether SHAMS is genuinely the right zone before anything is registered
  • Draft the activity list so it matches the transactions the company will actually run
  • Design the shareholding for tax treatment, succession and bank acceptance
  • Coordinate registration, cards and visas through licensed providers
  • Prepare the banking file so it answers compliance questions before they are asked
  • Hand over a company that is ready for a bank, not one that merely exists on paper

I do not execute the paperwork — licensed specialists do. What I sell is that one person designs the whole thing, chooses who does what, and answers for the outcome.

From AED 15,000

Jurisdiction selection, activity structuring and coordination of registration in SHAMS. Zone fees, government charges and third-party costs are separate and paid directly by the client.

Common questions

How much does it cost to set up a company in SHAMS?

The licence itself starts at around AED 5,750 per year. A realistic first year — including the desk or office, establishment and immigration cards, one visa and basic insurance — runs AED 11,000–16,000. Coordination and structuring from my side starts at AED 15,000; government and zone fees are paid by you directly.

How long does a SHAMS licence take to issue?

1–3 working days for the licence itself, plus three to five days for the establishment and immigration cards. The company exists within one to two weeks. The bank account is the longer part.

Will a bank open an account for a SHAMS company?

4–8 weeks — similar profile to other budget zones. The deciding factors are whether the activity wording matches the actual business, how the ownership is structured, and whether the source of funds can be evidenced. An estimated 30–40% of new corporate account applications in the UAE were rejected or stalled in 2025.

How many visas does a SHAMS package include?

0–6, depending on the package selected. This is worth establishing before registration: founders who plan to bring family and staff regularly discover the ceiling afterwards.

Is SHAMS the right zone for my business?

It fits: Media, marketing, design, freelance consultants, holding a licence for visa purposes. If your requirements differ — particularly on banking speed, visa quota or physical premises — another zone may serve you better, and that comparison should happen before anything is registered.

Can a free zone company invoice clients on the UAE mainland?

Not directly. A free zone entity generally needs a distributor, branch, service agent or dual licence to serve mainland customers. If most revenue will come from UAE corporate clients, retail or government tenders, mainland may be the correct structure despite the higher cost.

Reviewed by Denis Chernikov, Private Client Advisor, nine years in the UAE private client sector.

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