Forming your company in SHAMS is step one — but staying compliant ensures long-term success. From corporate tax to employee health insurance and UBO reporting, here’s the 2025 compliance checklist for all SHAMS Free Zone businesses.
Corporate Tax in SHAMS Free Zone
- UAE applies 9% corporate tax on profits above AED 375,000
- Free Zone Persons may pay 0% tax on qualifying foreign income
- All SHAMS companies must register and file returns with the FTA
Value Added Tax (VAT) Obligations in SHAMS
- Standard 5% VAT applies
- Mandatory registration once taxable supplies exceed AED 375,000/year
- Voluntary registration possible from AED 187,500
- Must charge VAT, file quarterly returns, and maintain records
SHAMS Licence Renewal Process
- Annual renewal required
- Fully digital, but delays result in fines and suspension
Visa & Health Compliance for SHAMS Employees
- Health insurance for all employees
- Renew visas and Emirates IDs every two years
- Maintain valid records for family sponsorships
Mandatory Reporting in SHAMS: UBO, ESR & AML
- UBO (Ultimate Beneficial Owner) Declaration – Submit real ownership info via SHAMS
- AML/CFT Registration – Mandatory for:
- Auditors
- Real estate brokers
- Corporate service providers
- Gold/jewelry dealers
Following these requirements ensures your SHAMS company runs smoothly and avoids penalties.
At Safari Star, we help entrepreneurs stay compliant, protecting their business while focusing on growth.
Watch the full video to learn more → https://youtu.be/js61ktNiI8I?si=WjikUcIWiDV1Rniv
FAQ
Q1: Is corporate tax mandatory for all SHAMS companies?
All must register with the FTA, but only those earning above AED 375,000 in UAE-sourced profits pay 9%.
Q2: What happens if I don’t renew my SHAMS licence on time?
You may face late fees, portal suspension, and visa inactivation.
Q3: Do freelancers in SHAMS need VAT registration?
Only if their annual taxable supplies exceed AED 375,000. Voluntary registration is optional from AED 187,500.