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Company setup in Shams, Sharjah

State dutyloading

Terms days

This company can engage in designing the structure and content of, and/or writing the computer code necessary to create and implement systems software (including updates and patches), software applications (including updates and patches), databases, web pages; customizing of software, i.e., modifying and configuring an existing application so that it is functional within the clients' information system environment; planning and designing of computer systems that integrate computer hardware, software, and communication technologies; provision of on-site management and operation of clients' computer systems and/or data processing facilities, as well as related support services; digital content services; concept & design consultancy; computer disaster recovery; installation (setting-up) of personal computers; software installation; IT security management; cyber security consultancy; security systems consultancy; cyber risk management services; innovation and artificial intelligence research and consultancies.

About the company's activities

Types of activities

For setup of this company in Shams, the following business activities group has been chosen:

Computer programming, consultancy and related activities (group 620):
- 6201.01 - Designing the structure and content of, and/or writing the computer code necessary to create and implement:
  • Systems software (including updates and patches);
  • Software applications (including updates and patches);
  • Databases;
  • Web pages.
- 6201.02 - Customizing of software, i.e. modifying and configuring an existing application so that it is functional within the clients’ information system environment;
- 6202.01 - Planning and designing of computer systems that integrate computer hardware, software and communication technologies;
- 6202.02 - Provision of on-site management and operation of clients’ computer systems and/or data processing facilities, as well as related support services;
- 6202,11 - Digital content services;
- 6202,12 - Concept & design consultancy;
- 6209.01 - Computer disaster recovery;
- 6209.02 - Installation (setting-up) of personal computers;
- 6209.03 - Software installation;
- 6209,11 - IT security management;
- 6209,12 - Cyber security consultancy;
- 6209,13 - Security systems consultancy;
- 6209,14 - Cyber risk management services;
- 6209,15 - Innovation and artificial intelligence research and consultancies.

In addition to this group, the company can choose from 2 to 4 activity classes depending on the chosen package within one license without additional fees.

Additional External Regulator Approvals

No additional approval is required in order to complete the registration process of the company conducting this group of business activities.

Share Capital Requirements

The minimum share capital requirement for Shams companies is AED 100,000, its contribution is optional.

Company name requirments

May contain the name of a shareholder
Must not violate the country laws or contain words that are obscene, indecent or generally offensive
Must not contain the names of Allah, Buddha or God, or any other religious terminology
Must not infringe any third party's intellectual property rights
Must not be identical or similar to local/global brands or registered trademarks
Must not contain geographical names, such as the names of emirates, cities, countries and other landmarks
Must not contain the names of local/international religious, political or governmental organizations
Must not be identical to an existing social media name (applicable to media companies)
Must not contain words, such as "Park", "Venue", "Organization", "Bank", "Foundation" and others
May contain the words "University", "Academy", "School", "Institute", "College", subject to appropriate permission from regulatory authorities
Must correspond to the company’s business activities

Bank Account

Entrepreneurs can open corporate accounts in traditional banks with physical branches, as well as in digital banks and payment systems.

When choosing a bank to open a corporate account, consider the following: service level, fees, available currencies, online banking performance, bank reputation, as well as other conditions that may be important for your business.

Successfully opening a corporate bank account requires a well-prepared documentation package, which may vary depending on the specific requirements of each bank. Documents submitted incorrectly or incompletely may negatively affect the bank's final decision in processing the application.

About Jurisdiction

Name and Description

Title: Sharjah Media City
Description:
Shams (Sharjah Media City) is a free economic zone (free zone) established in 2017 in the Emirate of Sharjah, UAE. Despite its name, Shams is not limited to the media industry but offers a wide range of opportunities for companies in sectors such as trade, professional services, IT, education, and e-commerce. The free zone ensures equal opportunities for entrepreneurs at all levels—ranging from individual freelancers and startups to large corporations—by providing tailored solutions for efficient business operations.

The free zone boasts modern infrastructure, including coworking spaces and professionally equipped podcast studios, offering entrepreneurs and creative professionals a comfortable environment for work and project execution. Businesses registered in Shams are permitted to operate both within the free zone and beyond the UAE.

Shams issues the following types of business licenses:
- Commercial (wholesale and retail trade)
- Professional (provision of services)
- Media
With its strategic location and multifunctional infrastructure, Shams has established itself as a versatile business hub that attracts entrepreneurs and investors across various industries, supporting their growth and success in local and international markets.

Tax regime and income management

The UAE has several taxes and fees that regulate the financial activities of both legal entities and individuals. Below are the main ones.
1. Value Added Tax (VAT)
  - Since January 1, 2018, the UAE has implemented a VAT rate of 5%, which applies to most goods and services and is charged to companies operating within the country, except for those registered in designated zones.
  - A Designated Zone is a territory within a free zone that is treated as outside the UAE for tax purposes, allowing goods to be exempt from taxation, provided certain criteria are met. The main taxation rules in Designated Zones are as follows:
  - For local companies and those registered in Non-Designated Zones (free zones not included in the Designated Zones list), the standard tax rules set forth in the Federal Decree-Law on VAT apply.
2. Corporate Tax
  - As of June 1, 2023, the UAE has introduced a corporate tax at a rate of 9%, levied on the taxable net profit of companies with income exceeding AED 375,000.
  - A 0% rate is applied to taxable income not exceeding AED 375,000.
  - Charitable, non-profit organizations and medical institutions are fully exempt from corporate tax.
3. Excise Tax
  - Since October 1, 2017, the UAE has introduced an excise tax aimed at reducing the consumption of harmful products and funding healthcare initiatives. The tax applies to alcohol, tobacco products, and beverages containing added sugar, including energy drinks and carbonated beverages.Excise tax rates vary depending on the product category:
  - Companies dealing with excise goods must register with the Federal Tax Authority (FTA), submit monthly declarations, and maintain records. Excise tax is paid upon the import, production, or release of goods for consumption in the UAE.
4. Customs Duties
  - Custom duties in the UAE are applied to most imported goods at a standard rate of 5% of the cost, insurance, and freight (CIF). Exceptions include certain categories of goods, such as medicines and food products, which may be exempt from duties or subject to a reduced rate.
  - Goods imported into UAE free zones are generally not subject to customs duties as long as they remain within these zones. However, when such goods are transferred to the UAE mainland, standard duties apply.
5. Personal Income Tax
  - In the UAE, personal income is not subject to taxation.
  - UAE citizens and residents are exempt from paying taxes on their personal income, including salaries, interest, dividends, inheritances, gifts, luxury goods, and capital gains.
6. Local Taxes and Fees
  - Individual emirates may impose specific local taxes and fees in line with their economic and social needs. These taxes and fees are aimed at supporting public services and implementing infrastructure projects.

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