SHAMS Companies Licensing and What Needs to Comply
Forming a SHAMS company is easy and simple only if you know how it works. Check out these insights on what needs to comply to keep a company with good records.
Having the right knowledge about the SHAMS Free Zone community makes forming your company simple and easy. However, there can be unforeseen circumstances where changes are possible to happen. This means that when these circumstances are bound to happen, we need to have adequate knowledge on how to counter or address them accordingly. This article will share insights on how to respond on times of significant company changes, share capital acquisitions, important documents to comply and to keep, company renewals and securing a warehouse.
Formation Amendment for Significant Company Changes
One of the best perks on forming a Shams company is its flexibility and leniency when it comes to significant company changes. Usually, business jurisdictions don’t allow changes in trade licensing, business activities, company names or change of ownership. However, with the Shams Free Zone business community, the process of license amendment is possible, simple and easy.
For any significant change of the business like the company’s name, business activity, share structure, and other aspects, the owner will only have to follow and comply with the amendment of formation documents manifesting the changes that are being made. The process takes 1 to 3 business days only and costs AED 2,000.
The documents required are as follows:
- Renewal and Amendment Application Form
- Board Resolution
- Share Transfer Application Form (if applicable)
- Documents authenticating new shareholders
- (if applicable):
- Passport copy
- Visa copy
- (if applicable):
- Four passport size photos (if applicable)
Please note that there are document specifications for Passport and Passport Photo. You can check it here.
Share Capital Acquisition
The share capital of a company consists of one class of shares with equal value. A share can be priced higher than its nominal value. It cannot be issued lower than its actual value. Share capital can be acquired through cash and non-cash with a non-cash consideration stated on a resolution to be drafted by the board directors of the company.
In Shams, you can be an individual shareholder owning full shares of your company and start your own company set up as young as 19 years of age.
Keeping SHAMS Company’s All Significant and Related Records
The authenticity of a SHAMS company is supported by all the relevant and important records of the company. These records can be in any form of digital and physical files generated, communicated or received in an information system to be stored and kept at all times during the company’s operation period.
These files include but not limited to:
- Accounting records kept in accordance with the Memorandum of a Company
- All written resolutions of the Shareholders and Directors
- Minutes of all meetings of Shareholders, including the names of all shareholders present in person or by proxy and details of resolutions proposed and passed
- Minutes of all meetings of Directors, including the names of all Directors present and details of resolutions proposed and passed
- Minutes of all meetings of creditors
- All registers, including the register of employees, Shareholders, and Directors required to be maintained in accordance with these Companies Regulations
- An internal record of all security interests created over Shares in the Company
- forms and documentation submitted to the Authority and notices received from the Authority
My SHAMS Company Has Expired, Now, What’s Next?
Obtaining A SHAMS company comes with a valid period for any business activities permitted to operate. Should the company wish to continue its operations, the licensee must renew its license before the expiration of the current term of the license. This will allow the company to operate its business activities as permitted on the license for another business period. The license renewal process requires the submission of important documents specified by the SHAMS Authority.
Be reminded that if you will not be able to renew your license before its expiration date, you will have to pay penalty fees aside from the renewal fees based on the packaged license.
Selecting Warehouse with Proper Guidance
A SHAMS company can acquire its own warehouse if needed, however, it has to be with proper guidance on selecting.
This is because SHAMS prohibits the company to warehouse or enter products, goods, and services into Sharjah City if the products are boycotted by any Competent Authority or if they are listed as prohibited or against the laws, regulations or rules of the Emirate of Sharjah or the UAE.