SHAMS Business Activities for UAE Companies | A Practical Guide

A business activity defines the operations a company is authorized to conduct under its license. During company formation, founders must identify the activities that correspond to the products or services they intend to offer. 

SHAMS supports businesses across a range of sectors, making it an option for entrepreneurs with different business models. The challenge is identifying the specific activity that aligns with the company's operations, rather than relying solely on a broad industry category.

To begin, it helps to understand the main types of activities available.

SHAMS offers business activities across several categories, including media, consultancy, IT, trading, education and events. The table below highlights some common options. 

These examples are indicative, not exhaustive. Refer to the current SHAMS activity list to confirm the exact activity descriptions and eligibility for the intended business model. 

The most suitable activity is one that corresponds to the company's actual services, operating model and intended scope. Four considerations can help founders evaluate their options. 

1. Start with your core offering

Identify the primary product or service the business will provide. A clear understanding of the core offering makes it easier to identify relevant activities and distinguish essential requirements from those that may not apply. 

2. Identify supporting services 

Rather than assuming that one activity covers the entire offering, founders should check whether additional activities are needed and whether the proposed combination is permitted under the applicable SHAMS licensing rules. 

3. Match the activity to your actual operations 

An activity's name may appear suitable without fully describing the work the company intends to undertake. Reviewing the official description helps establish whether it aligns with the proposed services. 

This is particularly important for businesses operating across several functions or offering specialised services that may have specific licensing requirements. 

4. Consider how the business may evolve 

The initial activity selection should reflect current requirements while accounting for realistic expansion plans. Founders intending to introduce new services should consider whether those services may require additional activities, approvals or a licence amendment. 

The appropriate SHAMS licence depends on the proposed business activities and applicable licensing requirements. Founders should confirm which licence category applies, whether their intended activities can be combined and whether the selected package accommodates them. 

Since not all activity combinations may be permitted, any applicable conditions or additional approvals should be verified with SHAMS before finalising the licence. 

Before proceeding with company formation, review the proposed activities against the current SHAMS requirements.

• Verify the activity description: Confirm that the selected activity accurately reflects the intended operations. 

• Check activity combinations: Establish whether the proposed activities can be included under the same licence. 

• Identify additional requirements: Determine whether the business needs specific approvals or must satisfy other conditions. 

• Understand the amendment process: Check how activities can be added or a licence amended if the business expands into new areas. 

These checks can help prevent avoidable complications during setup and reduce the likelihood of discovering licensing gaps after operations begin. 

A few common oversights can complicate the setup process, even when the available options appear straightforward. 

• Choosing an activity based only on its name: Similar wording does not necessarily mean the activity covers the intended services. Always verify the official description. 

• Selecting unsuitable activities: If the licence does not reflect the company's actual services, the business may need to amend its activities before undertaking additional work. 

• Assuming all activities can be combined: Verify permitted combinations and any applicable licensing conditions. 

• Overlooking future requirements: Consider realistic expansion plans, particularly where new services may involve different licensing or approval requirements. 

Addressing these considerations early can help founders establish a more suitable foundation for their business. 

As a business grows, it may introduce new services or expand into related areas. Founders should consider realistic growth plans when selecting their initial activities, without adding unnecessary activities from the outset. 

Choosing activities that reflect current operations while accounting for potential expansion can help founders plan ahead. Any changes remain subject to SHAMS licensing conditions and applicable approvals. 

Choosing the right SHAMS activities requires a clear understanding of the business's operations, licensing requirements and future plans. Verifying these details before incorporation can help founders establish a suitable foundation for their UAE business.

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