Why Trade License
What is a Free Zone?
A free zone residence visa allows the visa holder to live in any part of the country outside or inside the free zone. SHAMS is a free zone which came up in 2015 and has become very popular because of minimal red tape.
A free zone’s popularity is because of its low costs or location or reputation or the facilities it provides or its convenience of procedures and facilities.
SHAMS provides only Shared Desk space. But not larger physical offices or warehouse facilities yet. If your business activities require space you will not be able to do so in SHAMS.
You can do trading if your goods don’t require your own warehouse. However, you could appoint a Freight agent or Distributor to keep and distribute the goods on your behalf.
For example, if you want to print a newspaper it will require a plant with space for printing. This will be infeasible in SHAMS in the absence of space.
SHAMS provides only Virtual offices or “Flexi Desk”.
For a free zone company, and SHAMS being a free zone, conducting business inside the UAE mainland will need a “distributor” which must be a mainland company.
Any such company which is registered with customs can take goods directly from the free zone.
For a services business where no physical goods pass boundaries, no such constraint exists except that services must be rendered from within the free zone.
Visa, in this case, means a residence visa. Anybody who lives in UAE must have a valid residence visa. 80% of UAE residents are ex-pats on residence visas.
A residence visa can be sponsored by an employer or by the spouse or parent as their dependent. Thus a person can have an employee visa or a dependent visa.
SHAMS residence visa allows 3 years of residence in UAE. You must renew your visas after 3 years.
Visa application is separate from the company registration application and requires separate approval from the UAE ministry of immigration.
Visa eligibility also called visa allocation means the number of residence visas your company is allowed to take now or in the future.
The number of visas you are allowed is governed by the size or type of office space you have taken in your package. The cost of the Flexi Desks goes up if you need more visas.
It is not compulsory to take the visas in your package immediately. You can have no visas issued or part of allocation issued or the whole of it issued. The leftover allocation remains in your account for future use.
Once you exhaust your allocation, your next visa application will be rejected unless you upgrade your package.
The total number of visas allowed will include all types of visa users i.e. owner and employee both.
However, the visas of the dependents of the owner or employees are not counted as part of the visa allocation of the company. They are allowed extra.
It is not compulsory for owners to take a residence visa.
SHAMS is the only Free zone with a Flexi desk facility, which allows zero to six visas.
If you have chosen a product that allows 0 residence visa to start with, you will be eligible to enhance up to a maximum of 6 visas by paying for additional Visa allotment.
A company can hire employees and apply for their visas.
All employees under the company need to have a valid residence visa either an employee visa or a dependent Visa.
Dependent visa holders must apply and receive employment cards to work as employees in your company.
A company does not need to apply for the employee visa for dependent visa holders.
In SHAMS if you want a Flexi Desk Lease agreement for address proof for the 0 visa package which you have chosen, such an agreement costs extra.
If you choose higher visa packages then the lease agreements costs are included.
Bank Account Opening
You will also be eligible to get a bank account provided you meet all the requirements of the bank. The decision to open your company account rests with the bank.
Bank account opening can be initiated only after the company is registered and the business license is obtained.
Bank accounts opening assistance is included in the price.
Chances of the bank opening an account for your company improve if you have a residence visa.
What do you get for the charges paid to Varal
Features, Advantages, Disadvantages