Sharjah Media City, commonly known as SHAMS Free Zone, was established in 2017 and has quickly become one of the UAE’s most dynamic hubs for entrepreneurs and investors. It provides a streamlined and affordable platform to set up various types of businesses, especially in the digital and e-commerce space.
Following the COVID-19 pandemic, e-commerce has flourished in the UAE, and SHAMS has emerged as a preferred destination for many entrepreneurs looking to establish their online business.
Why Choose SHAMS Free Zone for Your E-Commerce Business?
SHAMS has seen rapid growth in recent years, offering an attractive business environment for startups and young entrepreneurs. If you hold an e-commerce license from SHAMS, you can operate your business within the Free Zone and online. However, direct trade with UAE mainland customers is not permitted unless you partner with a local distributor or logistics provider.
One unique benefit of SHAMS is the low age requirement: individuals as young as 19 years old can apply for a business license, and employees can be as young as 18. This opens the door for young entrepreneurs to enter the market with fewer barriers compared to other UAE free zones.
Top Benefits of Setting Up an E-Commerce Business in SHAMS
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100% Foreign Ownership
SHAMS allows full ownership of your business without the need for a local sponsor. -
Repatriation of Profits and Capital
Business owners are free to repatriate their entire profits and capital without restrictions. -
No Corporate or Personal Income Tax
SHAMS offers a tax-free environment, allowing you to reinvest profits and grow your business. (Note: VAT may apply to taxable services/products.) -
Wide Range of Activities
You can register various e-commerce-related activities, making it easier to scale or diversify your offerings. -
Fast and Easy Licensing Process
Licenses can be obtained quickly through a streamlined process, often within a few days. -
Flexible Visa Packages
SHAMS offers visa packages that allow you to sponsor employees (up to 6 visas) and family members. -
Corporate Bank Account Setup
SHAMS provides support in opening local or international corporate bank accounts with minimal hassle.
How to Set Up an E-Commerce Business in SHAMS Free Zone
Starting your business in SHAMS involves several straightforward steps:
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Choose the Legal Structure
Most e-commerce businesses operate as an LLC or sole proprietorship. -
Select the Business Activity
Choose from SHAMS-approved activities, such as “Online Retail” or “Portal Development.” -
Reserve a Trade Name
Your trade name must comply with UAE naming conventions (no offensive or misleading terms). -
Apply for an E-Commerce License
Submit your documents and application to SHAMS for approval. -
Lease Office or Flexi Desk Space
SHAMS offers cost-effective desk options (no warehouse required for most e-commerce businesses). -
Open a Corporate Bank Account
Choose from local or international banking partners to facilitate your business operations.
Important Operational Considerations
Product Registration & Customs Duty
You must deal with registered products through licensed suppliers. In most cases, the supplier pays the 5% customs duty—so your company may be exempt from paying it again, depending on your arrangement.
Warehouse Requirements
If you’re working with a third-party logistics partner or supplier, there’s no need to rent a warehouse. This helps reduce your operational costs significantly.
Product Sales to Mainland
Free zone companies like SHAMS cannot sell directly to UAE mainland customers. However, you can work with a local distributor or fulfillment partner to serve mainland clients legally and efficiently.
Why Choose Business Link UAE for SHAMS Business Setup?
Setting up an e-commerce business in SHAMS is simple with the right guidance. At Business Link UAE, we offer end-to-end support for the entire business setup process, including:
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Trade name registration
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Activity selection and licensing
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Document preparation and submission
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Visa application and processing
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Corporate bank account assistance
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Ongoing PRO and compliance support
With our years of expertise and strong relationship with SHAMS authorities, we ensure your setup is fast, compliant, and stress-free.
Don’t let paperwork or technicalities slow you down—contact Business Link UAE today and let our experts guide you through every step of the process. Reach us via email at info@businesslinkuae.com, call us at 0096115120977, message us on WhatsApp at 0096544240444, or visit our website at www.businesslinkuae.com.
