Shams vs JAFZA: which free zone fits you?
A neutral comparison — no single free zone pays us more than another.
In short
Shams (licences from about AED 5,750) and JAFZA (from about AED 15,000) are both UAE free zones — Shams has the lower entry price. Shams best suits: Budget-conscious founders, freelancers, media and creative professionals, consultants, and online or service businesses who want a cheap, credible UAE licence and don't need a Dubai address or to trade directly on the mainland. JAFZA best suits: Import-export and trading houses, distribution and re-export businesses, logistics and freight-forwarding firms, manufacturers and light-industrial operations, and regional headquarters serving Asia, Africa and Europe. No single zone pays us more, so the recommendation depends only on your activity, visa count and budget.
Shams and JAFZA side by side
Approximate budgeting figures — your final quote is confirmed in writing. Government fees are passed through at cost, never marked up.
| Criteria | Shams | JAFZA |
|---|---|---|
| Licence from | AED 5,750 | AED 15,000 |
| Emirate | Sharjah | Dubai |
| Location | Sharjah Media City, Sharjah (approx. 15 minutes from Dubai) | Jebel Ali, beside Jebel Ali Port and Al Maktoum International Airport |
| Visas | Shams uses a flexible visa system rather than a fixed low cap. | JAFZA does not use a fixed package quota — your visa allocation is tied to the physical space you lease. |
| Activities | You can combine up to 5 business activities under a single Shams licence, and they can span different sectors — for example media, e-commerce, IT, consultancy and general services. | JAFZA licences are grouped by activity. |
Lower entry price: Shams.
Which one should you pick?
Choose Shams if
Budget-conscious founders, freelancers, media and creative professionals, consultants, and online or service businesses who want a cheap, credible UAE licence and don't need a Dubai address or to trade directly on the mainland.
Think twice if
Founders who need a Dubai address for prestige or clients, businesses that must sell goods or services directly to the UAE mainland without a distributor, or activities requiring heavy regulatory approval (financial services, healthcare). Banks can also be slightly more cautious with cheaper Sharjah zones.
Choose JAFZA if
Import-export and trading houses, distribution and re-export businesses, logistics and freight-forwarding firms, manufacturers and light-industrial operations, and regional headquarters serving Asia, Africa and Europe. Ideal for companies that physically move, store or process goods and want to sit on top of Jebel Ali Port with bonded warehousing and on-site customs.
Think twice if
Solo consultants, freelancers, online-only service firms and early-stage startups testing an idea — JAFZA's mandatory office/warehouse and higher fees make it overkill and expensive for them. Anyone wanting a true zero-visa, flexi-desk-only setup should look at a cheaper zone like IFZA. Businesses selling directly to the UAE mainland still face the usual free-zone restrictions.
Cost breakdowns
Shams
from AED 5,750
Trade licence (1 year, zero visa)
Cheapest media/e-commerce package; flexi-desk usually included.
AED 5,750 from
Licence + flexi-desk + 1 visa package
Typical working setup for a single founder; bundled price.
AED 11,000–13,500 from
Establishment / immigration card
Required once before issuing any residence visa.
AED 1,500–1,575
E-channel immigration registration
Often includes a refundable deposit (approx. AED 5,000).
AED 2,700–7,150
Residence visa (per person, 2 years)
Investor visa lower; employee visa higher; excludes medical/ID.
AED 2,200–3,700
Medical test + Emirates ID (per visa)
Medical approx. AED 365 + Emirates ID approx. AED 330–371.
AED 700–900
Flexi-desk (if charged separately / annual)
Usually bundled; standalone price in some packages.
AED 1,600–3,000
Corporate tax & VAT registration
FTA registration is free; 9% corporate tax applies above AED 375k profit; VAT only if turnover exceeds AED 375k.
Government: AED 0
JAFZA
from AED 15,000
Logistics / general-trading licence
Per year. Standard trading/service licences are cheaper (~AED 5,000–5,500). Licence fee only — facility is separate and mandatory
AED 15,000 (from)
General trading licence
Per year; allows unlimited trading activities across groups
AED 20,000 (from)
Office / warehouse / plot (mandatory)
Flexi/smart desk from ~AED 15,000; private office ~AED 60,000+; warehouse from ~AED 48,000 (200–300 sqm); plots quoted per sq ft
AED 15,000–200,000+
Establishment / immigration card
Year 1; renewal around AED 1,910. Required to sponsor visas
AED 1,975 (approx)
Residence visa (per person)
All-in including medical and Emirates ID; health insurance from ~AED 600/person
AED 3,500–5,000
Name reservation & initial approval
Usually bundled into the registration and licence package
Included / nominal
UAE corporate tax registration
FTA registration is free; 9% applies on profit above AED 375,000. Qualifying free-zone income may be 0% if conditions are met
Government fee: AED 0
Realistic first-year total (trading + warehouse + ~3 visas)
Approx — licence, mandatory warehouse/office, cards, visas and insurance. Industrial/large-scale setups are quote-based and can run well above this
AED 90,000–150,000+
Strengths and trade-offs
Shams
- Very low entry cost — among the cheapest credible UAE free zone licences.
- Up to 5 activities and 100% foreign ownership under one licence.
- Flexible visa allocation that scales with your office solution.
- Fast, largely remote incorporation — often 1–2 working days.
- Flexi-desk address that several UAE banks accept for account opening.
- Close to Dubai (about 15 minutes) while paying Sharjah-level costs.
- It's a Sharjah address, not Dubai — some clients and partners still prefer a Dubai licence.
- As a free zone, you cannot sell directly to the UAE mainland without a distributor or a separate mainland licence.
- Cheaper zones can face more bank scrutiny; account opening may take longer or need extra documents.
- Advertised "from" prices exclude visa, e-channel deposit, medical and Emirates ID — real total is higher.
- Shams no longer issues a separate freelancer permit — freelancers now use a standard company licence.
JAFZA
- Unmatched logistics location — on top of Jebel Ali Port and next to Al Maktoum International Airport, with on-site customs clearance.
- Bonded warehousing and duty suspension on re-exports make it ideal for import-distribute-re-export models.
- Real estate at scale — warehouses, temperature-controlled units, and large industrial land plots you cannot get in a desk-only free zone.
- High visa capacity for large teams — warehouse and plot leases unlock 15–50+ visas.
- Globally recognised, established free zone — a credible address for trading houses and regional headquarters.
- 100% foreign ownership, full profit repatriation and FZE/FZCO flexibility.
- Expensive versus low-cost zones — a mandatory office/warehouse pushes realistic first-year cost to AED 90,000–150,000+, not the licence headline.
- No genuine flexi-desk-only path for operational companies — a physical facility is required, so it is overkill for solo or online businesses.
- Industrial, warehousing and plot pricing is quote-based and varies by size and location — harder to budget upfront than a fixed package.
- Visas are tied to leased space, so scaling headcount usually means leasing more area.
- Still a free zone for direct mainland sales — selling goods inside the UAE mainland needs a distributor, branch or dual licence.
Frequently asked questions
Which is cheaper, Shams or JAFZA?+
Shams licences start from about AED 5,750 (licence only, 0 visa, approx. — add flexi-desk and visa for a working setup). JAFZA starts from about AED 15,000 (from / approx — this is the logistics / general-trading licence fee; a standard trading or service licence is cheaper (~AED 5,000–5,500). A physical office, warehouse or plot is mandatory and quote-based, so real first-year setups run far higher (AED 90,000–150,000+). Industrial and warehousing projects are priced on a bespoke quote). Shams has the lower headline price, but your real total depends on visa count and office needs — always compare a written, itemised quote.
Who is Shams best for?+
Budget-conscious founders, freelancers, media and creative professionals, consultants, and online or service businesses who want a cheap, credible UAE licence and don't need a Dubai address or to trade directly on the mainland.
Who is JAFZA best for?+
Import-export and trading houses, distribution and re-export businesses, logistics and freight-forwarding firms, manufacturers and light-industrial operations, and regional headquarters serving Asia, Africa and Europe. Ideal for companies that physically move, store or process goods and want to sit on top of Jebel Ali Port with bonded warehousing and on-site customs.
How do I decide between Shams and JAFZA?+
Compare licence cost, visa allocation and activity fit. Shams: Shams uses a flexible visa system rather than a fixed low cap. JAFZA: JAFZA does not use a fixed package quota — your visa allocation is tied to the physical space you lease. If you are still unsure, our free zone selector or a free 30-minute PRO Health Check will confirm the better fit for your case.
Still torn between Shams and JAFZA?
Tell us your activity and how many visas you need, and we'll confirm the better-fit zone and its real cost — in writing, line by line.