How To Start An E-Commerce Business In Shams Free Zone: Step by Step Guide
Sharjah's SHAMS Free Zone (Sharjah Media City) attracts e-commerce businesses with its focus on digital ventures, making it a top choice for young entrepreneurs and established players. Consult Smart Zones® UAE for setup assistance
- 100% Foreign Ownership
- Easy Business Setup
- Exponential Growth
- Investor-Friendly Policies
Why You Should Start Your E-Commerce Business In Shams Free Zone ?
Sharjah Media City Free Zone (SHAMS) offers a compelling option for businesses seeking a hassle-free setup process in the UAE. Their two-step process minimizes administrative burdens, allowing you to focus on core operations. SHAMS welcomes a remarkably wide range of business activities, encompassing over 200 sectors, and fosters a vibrant ecosystem for companies in media, trading, retail, e-commerce, and more. The free zone currently offers flexible workspace solutions with on-demand access to state-of-the-art facilities. A dedicated free zone city is under development, which will provide a comprehensive range of permanent workspace options along with a thriving community atmosphere.
Additionally, SHAMS caters to businesses of all structures, allowing for single or multi-shareholder incorporation. Their flexible visa program simplifies the process for attracting and retaining talent, with the ability to sponsor up to six visas for employees or dependents. Establishing a corporate bank account is also a breeze, with the free zone staff readily available to assist you.
Benefits of Establishing An E-Commerce Business In Shams Free Zone, UAE
The landscape of consumer purchasing in the United Arab Emirates is undergoing a significant shift, with a marked migration from traditional retail channels towards online shopping. This trend signifies a burgeoning e-commerce sector brimming with potential.
- Exponential Growth: Research indicates a staggering 1500% increase in online purchases across the Middle East over the past decade. This surge in online customers has fueled the rise of e-commerce enterprises positioned to capitalize on this evolving market.
- Pandemic Impact: Lockdown restrictions and the closure of physical stores have further accelerated the shift towards online shopping, with consumers increasingly turning to the convenience and safety of e-commerce platforms from their homes. The rise in remote work arrangements has also contributed to this trend, as individuals have more time for online shopping.
- Grocery Boom: Online grocery orders have witnessed a significant surge, with volumes exceeding pre-pandemic levels by 10-15 times. This surge presents a golden opportunity for e-commerce businesses to engage a highly active online audience.
- Digital Shift: The UAE boasts a growing population of tech-savvy consumers who are increasingly comfortable shopping online for both personal and professional needs. Experts predict that by 2040, online purchases will account for a staggering 95% of all retail transactions.
- Informed Decisions: Consumers are becoming more adept at navigating the online marketplace, making informed purchasing decisions through a series of online interactions. This includes research, product education, information sharing, peer reviews, and ultimately, confident purchasing choices. This growing sophistication among online shoppers represents a critical driver of growth for e-commerce businesses.
- Domestic E-commerce: A noteworthy trend is the strong preference for local UAE-based websites among online shoppers in the region. This signifies significant growth potential for domestic e-commerce platforms, even when competing with global giants like Amazon and Alibaba.
- Market Growth: The UAE currently boasts over 100 prominent online shopping websites and applications. Established players like Dubizzle (often referred to as the "Amazon of the Middle East") and SOUQ (both launched in 2005) have achieved valuations exceeding USD 1 billion each, highlighting the sector's potential.
- Entrepreneurial Opportunities: This promising growth trajectory presents a wealth of opportunities for aspiring entrepreneurs to launch their own e-commerce ventures.
- Cashless Transactions: The UAE government actively promotes online commerce by facilitating cashless payment options for a wide range of goods and government services.
- Digital Infrastructure: The government has undertaken significant efforts to position the UAE as a leading e-commerce hub. This includes the development of comprehensive online services comparable to those offered by leading European Union nations.
- Investor-Friendly Policies: To further attract investment, the UAE government offers a range of benefits for establishing free zone companies, including exemptions from personal income and corporate taxes, 100% business ownership rights, full repatriation of business profits, and low customs duties.
Key Factors To Consider Before Establishing An E-Commerce Company in the SHAMS Free Zone:
The SHAMS Free Zone Authority is the licensing body for e-commerce businesses within its jurisdiction. Obtaining an e-commerce license grants entrepreneurs access to an online platform for facilitating product sales. Here's a breakdown of key factors to consider before establishing an e-commerce company in the SHAMS Free Zone:
Flexible Workspace:
The SHAMS Free Zone offers e-commerce licenses with Flexi-desk options. This eliminates the mandatory requirement for a dedicated warehouse or office space.
Supplier Storage:
If your business deals with consumer products, the storage responsibility falls on your partnered suppliers with whom you have established agreements.
Reduced Operational Costs:
The absence of a mandatory warehouse requirement translates to lower operational costs for e-commerce businesses operating under the SHAMS Free Zone license.
Supplier Responsibility:
The e-commerce license exempts your company from registering products with local authorities like municipalities or health departments. This is because you'll be dealing with pre-registered products from your suppliers who handle the registration process.
Customs Duty Covered:
Similarly, since the supplier has already paid the relevant customs duty (typically 5% in the UAE), your e-commerce business won't be responsible for additional customs fees.
Consider factors like your business services, target market, and long-term goals for a successful e-commerce business setup in the SHAMS Free Zone or consult legal and business experts for guidance.
Steps to Launch an E-Commerce Business In Shams Free Zone, UAE
Establishing an E-Commerce Business In Shams Free Zone involves several steps:
Embark on the journey of opening an E-Commerce Business In Shams Free Zone by partnering with Smart Zones® UAE. Our adept company formation specialists will guide you through the business license application and setup process, liaising with relevant government and municipal authorities on your behalf.
Secure a unique and memorable company name that complies with UAE regulations. Avoid offensive or blasphemous language, and ensure full spellings of names are used. Initiate the trademarking process for your chosen company name.
Determine the most suitable legal structure for your business (e.g., sole proprietorship, limited liability company). Prepare the Memorandum of Association (MoA) in accordance with the chosen legal structure.
Evaluate your employee requirements and determine the necessary workspace solution (consider the Flexi-desk option offered by SHAMS Free Zone). Assess any storage space needs based on your business model (warehousing may not be mandatory if you leverage supplier storage).
Choose the SHAMS Free Zone e-commerce package that aligns with your visa requirements. Packages start at AED 5,750 for sole proprietors with no visa allocation, and AED 9,425 for businesses seeking visas.
Compile all required application materials, including the trademarked company name, MoA, and any necessary workspace agreements (if applicable). Settle the applicable SHAMS Free Zone license fee based on your chosen package.
Once you have assembled all necessary documents and fees and Submit your complete application to the SHAMS Free Zone Authority.
Complete the process by opening your corporate bank account for your UAE Business with Smart Zones® UAE. This final step paves the way for the successful opening of your Business.
Remember that the process may vary depending on your chosen jurisdiction and business activities. Consulting legal and business experts familiar with Dubai's business setup landscape is highly recommended.
Looking for a seamless business setup experience? Trust Smart Zones® Dubai to pave the way.
Documents Required to Start an E-Commerce Business In Shams Free Zone, UAE
Establishing a Company at Shams Free Zone is a streamlined process. To facilitate a smooth application for your e-commerce license, please be prepared to submit the following documentation:
For Individual Shareholders:
- A copy of a valid passport
- A copy of your visa or Emirates ID (if applicable)
- A passport-sized photograph
- Your email address and contact number
- Two to three proposed company names
- Details outlining your intended business activity
For Corporate Shareholders:
- A copy of the company's license or incumbency certificate
- A board resolution authorizing company formation
- A copy of the manager's passport
- A passport-sized photograph of the manager
- Information regarding the ultimate beneficial owners
Submitting incorrect documents can lead to immediate rejection. Our consultants at Smart Zones® UAE ensure you have the right documents, avoiding any complications in the process.
Cost of Establishing an E-Commerce Business In Shams Free Zone, UAE
SHAMS Free Zone offers a cost-effective solution for e-commerce businesses. The e-commerce license starts at AED 5,750, including business license, MoA, lease agreement, share certificates, and formation certificate. However, it can vary depending on your various needs.
For a precise quotation, reach out to Smart Zones® UAE to obtain an updated estimate tailored to your specific requirements. This ensures that you are securing the most competitive rate for the services essential to your business.
Starting an E-Commerce business in Shams Free Zone involves partnering with Smart Zones® UAE, who will guide you through the business license application, setup process, and liaise with relevant authorities on your behalf. Ensure a unique business name compliant with UAE regulations, determine the legal structure, prepare the Memorandum of Association, evaluate workspace and staffing needs, choose a SHAMS Free Zone package, finalize your application, submit it to SHAMS Free Zone Authority, and open your corporate bank account with Smart Zones® UAE.
Shams Free Zone offers a hassle-free setup with a two-step process, welcoming a wide range of business activities across 200 sectors. It provides flexible workspace solutions, a growing online market with 1500% growth in the Middle East, and benefits like a dedicated city under development, flexible visa programs, and investor-friendly policies such as 100% foreign ownership and easy business setup.
The UAE's booming e-commerce sector offers exponential growth, accelerated by pandemic-driven trends like increased online shopping, a surge in online grocery orders, and a tech-savvy consumer base. With over 100 prominent online shopping platforms and investor-friendly policies, Shams Free Zone stands out for entrepreneurial opportunities, digital infrastructure, and cashless transactions.
Consider factors like flexible workspace options, supplier responsibilities, reduced operational costs, customs duty coverage, and business services alignment. Ensure your business services, target market, and long-term goals align with successful setup in SHAMS Free Zone. Consult legal and business experts for guidance.
Partner with Smart Zones® UAE, secure a unique business name, determine the legal structure, evaluate workspace and staffing needs, choose a SHAMS Free Zone package, compile necessary documents, submit your application to SHAMS Free Zone Authority, and open your corporate bank account. The process may vary based on jurisdiction and business activities.
For individual shareholders, submit a copy of a valid passport, visa or Emirates ID, passport-sized photograph, email address, contact number, proposed company names, and business activity details. For corporate shareholders, include the company's license, board resolution, manager's passport, photograph, and information on ultimate beneficial owners.
SHAMS Free Zone offers a cost-effective solution starting at AED 5,750, covering the business license, Memorandum of Association, lease agreement, share certificates, and formation certificate. Costs may vary based on specific needs; consult Smart Zones® UAE for a tailored estimate ensuring competitive rates for essential services.
Want to know more, talk to Smart Zones® Dubai advisory team they will be happy to help. Ready to invest in your future?
