Published on 30/03/21.

Free Zone:

UAE free zones provide unlimited opportunities to the investors all around the world which includes Small and medium Enterprises (SME) and industrialists. Since the investor will hold 100 % ownership of their company, many entrepreneurs prefer Free zone license.

The decision to form a free zone company is purely based on the nature of business of the company. For instance a trading company who majorly have their client base outside UAE will most probably form a Sharjah free zone company instead of Mainland. Some businesses form free zone Company for tax saving purposes.

About SHAMS Free zone:

Sharjah Media City Free Zone(SHAMS) is relatively recently established free zone. Located in the emirate of Sharjah. SHAMS have made giant progress in a relatively short period of time. Investors especially SME s find SHAMS flexible for various reasons – affordable costing for company formation, normal documentation among various other reasons, time saving processes, providing desk facility at a reasonable cost. It is most favoured destination for new media companies. SHAMS issues license in Media, Trading, Professional licenses.

Clubbing of activities in SHAMS:

SHAMS allows to perform 3 activities which can be in the combination of (Example: - Management Consultancy, E Commerce & General Trading) for the single license price. Below are the current pricing details (Note – Pricing can be changed in future by authority). This is very economical for small businessmen as this allows them to trade all 3 activities under a single license.

Activity details:

Let us see the process of forming license under the group – Hardware, Plumbing, Construction Materials, Heating equipment and supplies. Below are the activities:

  • Trading of products of primary processing of wood
  • Trading of paint and varnish
  • Trading of construction materials
  • Trading of wallpaper and floor coverings
  • Trading of flat glass
  • Trading of hardware and locks
  • Trading of fittings and fixtures
  • Trading of hot water heaters
  • Trading of sanitary equipment
  • Trading of sanitary installation equipment
  • Trading of tools such as hammers, saws, screwdrivers and other hand tools

Licensing process for Trading License – Construction materials, hardware Plumbing and heating equipment:

Documents required:

  • Valid Passport copy of partner/ Partner’s
  • Existing Valid visa copy of expat partner & Valid Emirates ID Copy of Investors (or) visit visa copy of expat partner & UID number
  • In case investor is a resident of UAE but if he is employed, he has to obtain NOC from his current employer
  • Passport copy of investor in White background.

Out of the 11 activities in the above group, since all activities fall under same group, the investor can add all activities without any additional cost. In case investor wants to add any activity outside this group then additional cost will be required to pay to SHAMS.

There are certain nationalities (Investor) which require initial approval as per rules of SHAMS. The list of nationalities for whom initial approval is enquired changes from time to time and INSTACO will inform our clients then and there. Investors have the choice to select Zero visa, one visa, two visas – based on their requirement. Once visa package is finalized, all required documents are in place, we will complete the company formation process in smooth process.

Role of Instaco:

Instaco has helped several clients to set up companies in SHAMS free zone for various activities. Instaco is one of the top free zone companies of UAE and can help you with forming amendment processes of the post company formation.

Note: This blog is posted by Mr. Ashok Poojari and he can be contacted +97150-1298609, email id

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