Ajman Freezone Business Setup
Are you struggling with where and how to start your business in the UAE? Choosing the right location for company registration can be confusing, especially with many options available.
Many entrepreneurs face this challenge when considering expanding into the United Arab Emirates. One of the best locations for company setup is Ajman Free Zone. It allows 100% foreign ownership without any paid-up share capital requirements.
Benefits of Registering a Company in Ajman Free Zone
Ajman Free Zone company setup offers many benefits for businesses. Businesses here can benefit from a strategic location, welcoming business regulation, and attractive tax conditions.
Strategic Location and Global Connectivity
Ajman Free Zone, established in 1988, sits at a strategic spot with great access to its surrounding emirates and beyond – the Ajman and Khorfakkan ports are in close proximity as are both the Dubai International and Sharjah International airports. It provides easy access to seaports, airports, and highways.
This area benefits from its Middle East location. Companies here connect globally with ease. They engage in trading activities across regions like Europe and Asia seamlessly. Ajman is also well-known for its low cost of doing business, so setting up here is an option on most budgets.
Favorable Tax Conditions and Incentives
Ajman Free Zone company formation offers many tax benefits. There’s a 0% corporate tax rate on personal and corporate income. This means businesses don’t pay taxes on their earnings. Also, there is no personal income tax for individuals. However, a new 9% corporate tax started on June 1, 2023.
Businesses also enjoy reduced import duties. The import tax is only 5%, making it cheaper to bring goods into the UAE. On top of this, Ajman has a VAT rate of only 5%. Ajman Free Zone includes favorable conditions that help businesses save more money and grow faster in the free zone.
A variety of Available Licenses in Ajman and Business Activities Allowed
There are several types of licenses for Ajman Free Zone business that match different business needs. For business setup in Ajman Free Zone, you can choose from trading, service, industrial, general trading, e-commerce, and freelancer licenses.
For example, A freelance license in the Ajman Free Zone starts at AED 8,950 ($2,500) and can go up to AED 19,390 ($5,350). A general trading license ranges from AED 25,035 ($6,900) to AED 38,883 ($10,650).
You can also engage in various business activities like trading goods or offering services. Both local companies and branches of foreign corporations are welcome. This flexibility attracts many entrepreneurs seeking opportunities in logistics and duty-free zones within the emirate of Ajman.
Step-by-Step Guide to Ajman Freezone Company Registration
Ready to set up your business in Ajman Free Zone? Follow these simple steps to get started with the registration process.
Determine the Business Activities
Determining business activity or activities permitted in the UAE is the first step in Ajman Free Zone company registration. This decision guides the entire process.
Identify Target Market
Understand your audience. Focus on local or international markets.
Select Industry Sector
Choose from sectors like trading, service, or industrial. Consider market demand and competition.
Analyze Competitors
Study business competitors in Ajman Free Zone. Learn from their successes and challenges.
List Potential Activities
Create a list of all possible business activities. Ensure they align with your goals.
Check Allowed Activities
Verify if the intended activities are permitted in the Ajman Free Zone.
Evaluate Feasibility
Conduct a feasibility study to assess costs and risks. Predict potential profits and losses.
Get Expert Advice
Consult with business advisors or local experts.
Submit Enquiry
Decide on the Legal Form of the Ajman Free Zone Company
Choosing the right legal form for your business setup in the Ajman Free Zone is crucial. This step affects everything from taxes to operations.
Zone Establishment (FZE):
Free Zone Company (FZC):
Sole Establishment:
Branch of a Foreign Company:
Limited Liability Company (LLC):
Public/Private Shareholding Company:
Professional Firm:
Branch Office:
Required Documents for Registration
You need several key documents to register your company in UAE Free Zones. These include identification papers and proof of capital investment.
Personal Identification Documents of Shareholders
Personal identification documents are crucial for registering a company in the Ajman Free Zone. Each shareholder must provide specific documents.
Passport: A clear copy of the shareholder’s passport is mandatory. This includes all relevant pages showing personal details and the photo.
Passport Size Photo: Recent passport-size photographs of each shareholder are required.
Visa Copy: For UAE residents, a copy of the current visa should be included.
Emirates ID: UAE residents must provide a copy of their Emirates ID.
Proof of Address: A recent utility bill or bank statement showing the shareholder’s address is needed.
No Objection Certificate (NOC): If the shareholder is sponsored by another company in UAE, an NOC from their current sponsor will be essential.
These documents help verify the identity and legal status of each shareholder, ensuring compliance with local regulations.
Proof of Initial Capital Investment (if applicable)
Ajman Free Zone requires a minimum share capital of AED 50,000 for company registration. Different business structures have specific needs for proof of this investment. For FZE and FZC entities, you might need to show bank statements or other financial documents.
For certain types of enterprises, a feasibility study is also necessary as part of the proof. If you’re setting up a Branch of a Foreign Company, additional papers such as the registration certificate from your home country and an official resolution are needed. Clear documentation helps speed up your Ajman Free Zone company registration.
No Objection Certificate from Current Sponsor (for UAE residents)
UAE residents need a no objection certificate (NOC) from their current sponsor to register a company in Ajman Free Zone. This certificate shows that the sponsor has no issues with the resident starting a new business.
The NOC must be written and signed by the current sponsor. It should state that they have no objections to the business activities of the applicant. This step is crucial for obtaining approval from relevant authorities.
Understanding Ajman Freezone Licenses and Costs
Learn about different licenses available for your business and their costs. Read more to understand the best fit for your needs.
Breakdown of License Types (e.g., Trading, Service, Industrial)
A variety of license types is available in the Ajman Free Zone to cater to different business activities. The table below breaks down these licenses and their associated costs.
License Type | Cost Range (AED) | Cost Range (USD) |
Freelance License | 8,950 – 19,390 | 2,500 – 5,350 |
Trading License | 19,835 – 33,683 | 5,450 – 9,250 |
Service License | 22,435 – 36,283 | 6,150 – 9,950 |
General Trading License | 25,035 – 38,883 | 6,900 – 10,650 |
E-Commerce License | 25,935 – 39,783 | 7,150 – 10,900 |
Freelance License costs start from AED 8,950 ($2,500). This license suits independent professionals.
Trading License costs start from AED 19,835 ($5,450). This license allows the national and international trade of goods.
Service License starts from AED 22,435 ($6,150). This license is for service-oriented businesses.
A General Trading License starts from AED 25,035 ($6,900). This license covers a wider range of trading activities.
E-Commerce License starts from AED 25,935 ($7,150). This license is for online businesses.
These licenses cater to different business needs and have varying cost structures.
Overview of Associated Costs and Fees
After discussing the types of licenses, it is essential to understand the associated costs and fees with each license type in Ajman Free Zone.
License Type | Cost Range (AED) | Cost Range (USD) |
Freelance License | 8,950 – 19,390 | 2,500 – 5,350 |
Trading License | 19,835 – 33,683 | 5,450 – 9,250 |
Service License | 22,435 – 36,283 | 6,150 – 9,950 |
General Trading License | 25,035 – 38,883 | 6,900 – 10,650 |
E-Commerce License | 25,935 – 39,783 | 7,150 – 10,900 |
Facilities and Services Offered by Ajman Free Zone
Ajman Free Zone provides a wide range of facilities and services designed to support and accelerate the growth of different types of businesses in the UAE. Keep reading to learn more!
Office Spaces and Flexi-desks
Office spaces and flexi-desks in Ajman Free Zone offer flexible options for businesses. Prices for a flexi desk without visa cost range from AED 22,435 ($6,150) to AED 25,035 ($6,900).
Warehousing and Storage Solutions
Ajman Free Zone provides high-quality warehouses starting from 100 square meters. The cost is AED 250 per square meter. These spaces are ideal for a wide range of businesses that need storage and logistics support.
FREELANCER & PIONEERS HUB
AFZ's Freelancer & Pioneers Hub is built for freelancers and recent graduates ready to turn their business ideas into reality. It is flexible, cost-effective co-working spaces designed to help you grow without the weight of long-term commitments or overheads.
Submit Enquiry
Company formation in the Ajman Free Zone involves registering your business, obtaining industrial licenses, and ensuring compliance with UAE regulations.
Yes, foreign direct investments are welcome. You can establish limited liability companies or even a branch of a local company.
Businesses may benefit from various exemptions on taxes and import duties as part of the Gulf Cooperation Council (GCC) policies.
You will need invoices, cheques, payment records, and other standard documentation like work permits to register your corporate entities.
Ajman Free Zone is near key locations such as Masfout, Khorfakkan, Emirate of Sharjah, Hamriyah Port, and Ajman Airport in Ajman City.
DISCLAIMER –
This content is for informational purposes only and provided “as is.” We make no guarantees about the accuracy, completeness, or suitability of the information. Any reliance on it is at your own risk. We are not responsible for any losses or damages resulting from its use.
Fees and costs mentioned are for reference only, subject to change, and may vary based on individual circumstances.
