Business setup in Sharjah

A SHAMS or SPC Free Zone licence costs AED 5,750–6,885 for most activities. SPC charges AED 5,750 for e-commerce and publishing and AED 6,875 for other activities; SHAMS charges AED 5,760 for its media-only package and AED 6,885 for its Standard package. A first year with one residence visa in a budget zone typically comes to AED 13,000–15,000. Sharjah companies are under the same federal law as Dubai companies: corporate tax at 0% up to AED 375,000 and 9% above it, 5% VAT and the same federal visa system. Courts differ: Sharjah uses the federal judiciary, while Dubai has its own courts (Dubai Courts) outside the federal system. Banks can take longer to onboard a budget-zone company.

Sharjah free zones and the mainland

SHAMS (Sharjah Media City) and SPC Free Zone (Sharjah Publishing City) are the zones most small service and e-commerce companies look at first. Both include a flexi‑desk, both advertise online licence issuance within about an hour, and both allow up to five activities per licence. SHAMS allows up to 50 visas per licence; SPC offers unlimited visas on a flexi‑desk. The price depends on the activity group, so check your tier before comparing quotes.

SAIF Zone at Sharjah International Airport and Hamriyah Free Zone at the deep-water port serve industrial and logistics companies, with warehouses, land plots and customs on site. SRTIP (Sharjah Research, Technology and Innovation Park) is aimed at research and technology companies and gives access to university laboratories. Sharjah mainland licences are issued by the Sharjah Economic Development Department (SEDD), and licence and office costs are usually below Dubai’s onshore rates.

SPC also offers a dual licence: one setup holds a free zone licence and a Sharjah mainland licence, which helps when you invoice UAE customers directly but want a free zone company for the rest of the business. Each zone’s tariff, visa allocation and activities are listed in the Free Zone Index, and we check which option fits your activity before anything is filed.

What a Sharjah licence costs

The licence fee is only part of the first-year cost. A working first year also includes the establishment card, the immigration file, one residence visa (entry permit, change of status, medical test, Emirates ID) and the registration fees. For one visa in a budget zone, the total usually comes to AED 13,000–15,000. From the second year you pay mainly the licence and card renewals, so the gap with Dubai zones is repeated every year.

SHAMS and SPC prices come from the zones' own published tariffs. SAIF Zone and Hamriyah price the licence together with the warehouse, office or land you lease; the Index pages show current figures. Your quote lists every line before you commit, and the cost breakdown explains what each item pays for.

Free zone or Sharjah mainland?

A free zone company keeps 100% foreign ownership, trades internationally and reaches UAE customers through a distributor or agent, and has lighter substance requirements. A Sharjah mainland company registered with SEDD can invoice UAE customers directly, bid for government-related contracts and run a physical shop, and its licence and office costs are usually lower than on the Dubai mainland.

The deciding question is who your customers are. If you sell services abroad, run an e-commerce back office or hold assets, a free zone usually costs less for the same result. If most of your revenue comes from customers in the UAE, a mainland licence removes the need for a distributor. The full comparison is on mainland vs free zone, and SPC’s dual licence lets you hold both.

Corporate tax and VAT for a Sharjah company

Sharjah companies are taxed under the same federal law as the rest of the UAE. Corporate tax is 0% on taxable income up to AED 375,000 and 9% above it. A free zone company that meets the conditions can be a Qualifying Free Zone Person (QFZP): it pays 0% on qualifying income and 9% on all other taxable income, with no AED 375,000 band. It needs adequate substance in the zone, audited financial statements, and non-qualifying revenue that does not exceed the lower of 5% of total revenue or AED 5 million. A company that fails a condition loses QFZP status from the start of that tax period and for the next four.

Small companies can elect Small Business Relief in the return if revenue is AED 3 million or less in the current tax period and every earlier one. It applies to tax periods ending on or before 31 December 2029 (Ministerial Decision No. 131 of 2026) and is not available to a QFZP. VAT registration is mandatory once taxable supplies and imports exceed AED 375,000 over the past 12 months, and voluntary from AED 187,500. E‑invoicing becomes mandatory on 1 January 2027 for businesses with revenue of AED 50 million or more, and on 1 July 2027 for smaller businesses. Model your figures with the corporate tax calculator and read the rules on corporate tax.

Opening a bank account and meeting substance rules

A Sharjah address can slow down bank onboarding. UAE banks assess the file rather than the emirate, but with a budget free zone licence they usually ask more questions: what the business does, where the money comes from and whether the company has real substance. A clear, consistent file answers most of those questions. Expect it to take a week or two longer than for a Dubai zone company.

Visas, the establishment card and living in Dubai

Residence visas are federal, so a Sharjah licence gives you the same immigration position as a Dubai one. The company’s establishment card lets it sponsor investor and employee visas, and each visa goes through the entry permit, change of status, medical test and Emirates ID. A founder with a Sharjah company can live in Dubai; the emirate in which the company is licensed does not affect residency.

The number of visas depends on the zone and package (SHAMS up to 50 per licence, SPC unlimited on a flexi‑desk). Employees bring the usual Wage Protection System and end-of-service gratuity obligations. Founders who qualify can also apply for a Golden Visa, for example with property worth AED 2 million or more; Dubai (GDRFA) issues it for 10 years, so check the issuing emirate. All routes are listed under residence visas.

Who a Sharjah company suits

A Sharjah licence suits companies that provide services abroad, e-commerce back offices, holding-type structures and smaller industrial or trading businesses: cases where the licence is a cost rather than part of the brand. For these companies, the lower licence and renewal fees are a saving every year.

It suits less well if your customers expect a Dubai address, or if your activity is restricted under Sharjah’s rules on media content or alcohol-related trade. In those cases we tell you before you apply and suggest a zone in another emirate that fits the activity.

Frequently asked questions

This is general information on UAE rules. It is not legal, tax or immigration advice for your situation. Rules and government fees change; we confirm the position for your facts in writing before you act.