Are you planning to set up a business in Ajman? Do you wish to trade successfully with no limitations? Here’s when you will need a general trade license in Ajman from the Ajman Department of Economic Development. This license is a mandatory legal authorization that allows you to conduct commercial activities in the territory.
This blog is a comprehensive guide on how to get trade license in Ajman, UAE.
Let’s get started–
Why Start a Business In Ajman, UAE?
Before we begin understanding how to get trade license in Ajman, let us first list down the reasons to start a business in the city. Some prominent advantages include:
It’s an Economic Choice
The price of an Ajman business license is the lowest, whether it is in a free zone, on the mainland, or offshore. Apart from that, there are several benefits to establishing a business in Ajman. Reduced lease payments, excellent economic activities, reasonably priced real estate, and rental space are some of these benefits.
Two international airports and four ports are easily accessible to trading companies. Additionally, the emirate boasts a strong infrastructure system that is within the means of all investors and entrepreneurs. Therefore, forming a company in Ajman offers incredible benefits.
Provides An Opportunity to Expand Business
Ajman is an excellent location for establishing a business and practicing a variety of trades, as it offers substantial expansion opportunities and global exposure, making it ideal for startups and new enterprises. In addition to reasonably priced business installations, the mainland and free zone companies of Ajman provide expandable commercial platforms.
You may be able to launch a business in Ajman with a little initial cost, depending on the size of the enterprise. Especially, if you start a business in the Ajman free zone, the cost of setup will be considerably lower.
Various jurisdictions
We now all know that a mainland company, offshore, or a free economic zone of Ajman is quite profitable. The lowest startup costs for firms in the region are found in the Ajman Free Zone. These economic zones make it simple for foreign investors to comprehend the benefits of establishing a company in an Ajman free zone. Establish a business in the free zone of Ajman and re-domicile it whenever it is more convenient for you. Remember, whichever jurisdiction you choose, a trade license is required to set up your business!
Offshore companies operating in the Ajman free zone can access re-domiciliation services, which facilitate international investors’ direct investments. Ajman is also one of the top emirates in the UAE with flexible and versatile jurisdictions.
Steps To Get a Trade License in Ajman
It’s important to follow a process to get your trade license for a business! Here’s a guide on how to get Ajman trade license in the UAE –
Step 1: Understand the Types of Trade Licenses
A variety of trade licenses are available from Ajman based on the type of business you conduct. All licenses are issued by the Ajman official department of economic development’s sector. Here’s what a trade license covers in Ajman:
Commercial License: Businesses that purchase, sell, import, export, distribute, or re-export products and services are eligible for a commercial or trading license.
Industrial or Manufacturing: An industrial or manufacturing license authorizes the import and export of raw materials and completed items as well as their production, processing, and assembly.
E-commerce License: For internet companies following e-commerce activities and working in industries such as media, automobile, industrial equipment, fashion retail, and others.
Professional License: For people who work on their own in creative or professional domains. It’s best to check a trade license online for your type before applying.
Pioneer Package: The Pioneer Package is intended for new businesses and young entrepreneurs who prioritize professional freedom and an affordable business setup.
Step 2: Run a Market Research
It’s advisable to run a thorough market research about Ajman’s business environment before you choose a license. If you want to establish strong trade in the market, analyze your target audience, competitors, preferred business activities in Ajman, and industry trends well.
Step 3: Defining Business Activity and The Legal Structure
Selecting the right trade license Ajman depends on the specific business activity your organization will engage in. When you apply for your particular form of license, select a legal form, such as a limited liability company, partnership, or sole proprietorship. To make sure this fits with your objectives, you might get professional guidance from legal or business professionals. They help you establish your business in the Emirate.
Step 4: Select and Hold Your Business Name
Select a unique and memorable business name for your company and reserve it with the Ajman DED. This trade name reservation is required before submitting your application and verifies that the name you have selected is available. A good name helps you stand out in your industry in the UAE.
Step 5: Submit Your Application and Documents
Next, you have to submit your application and the required documents to the Ajman Department of Economic Development (DED). Here’s when you also have to pay the fees and provide any other documentation they ask you.
Step 6: Application Review and Approval
Your application will go through a rigorous assessment process that includes compliance checks, background checks, and document verification. It often takes a few weeks to complete this process. For a more seamless approval process, make sure your documentation is correct and comprehensive.
Step 7: Obtain Your Trade License
Your trade license, which will outline the allowed business operations and trading activities, the validity period (usually one year), and any unique requirements specific to your enterprise, will be granted to you upon acceptance. You can lawfully begin trading in Ajman with this license.
Step 8: Renewal of Licenses and Compliance
In order to prevent disruptions in business operations, trade permits in Ajman must be renewed every year before their expiration. Throughout your company’s existence, you must also adhere to all legal requirements and Ajman’s business laws.
Documents Required
The documents required to issue trade license are as follows:
- Passport copies of all shareholders or partners
- Proof of residence address, phone number, and email
- A detailed business plan
- Completed license application form
- Receipt of fee payment
- Name reservation certificate from the Ajman DED
- Emirates ID for UAE nationals or residents, or a passport copy for visitors
The exact document requirements may vary depending on your business activity and legal structure. However, to get a trade license for starting a company in Ajman, you need these documents.
Note: The specific requirements may vary depending on the type of business and how it operates. Contacting the Ajman Free Zone Authority (AFZA) is recommended for a comprehensive and up-to-date list of the required documents.
Trade License Fees
When you apply for a trade license, different factors, like the business type, business activities, and the size of the business, determine the cost of obtaining a trade license in Ajman, UAE. However, have provided an estimate below:
License Fees: The one-time cost to obtain an Ajman business license can vary between AED 5,000 to AED 20,000*. The Ajman free zone trade license cost is around AED 25,000*.
Office Space Rental Price: When you start a business in the UAE, especially in the mainland, you need to rent office space. The cost of an Ajman office rental can range between AED 10,000 to AED 30,000* per year.
Company Formation Fee: The initial cost of forming the business can be anything from AED 10,000 and AED 15,000* each year.
Final Takeaway
Obtaining this license in Ajman involves securing a trade name, finding a location, and completing the documentation carefully. This guide will streamline the process of how to get trade license in Ajman, UAE. Entrepreneurs may effectively launch and expand their companies, whether online businesses or offline setups, in one of the UAE’s most promising economic centers, thanks to Ajman’s business-friendly atmosphere and affordable setup alternatives. The economic growth and development in the region call for a thriving business!
Take Your First Step Towards A Successful Business!
If obtaining a trade license and the overwhelming process feels nerve-wracking, find yourself a professional business consultant. Xpert Advisory can be your guide, streamlining the entire process for you from start to end. We have experience helping passionate business owners with successful company formation. Get in touch with us and know more about how we can help you!
Frequently Asked Questions
Is It Possible To Renew A Trade License in Ajman?
Yes, you can. You can renew your license through the official DED website, which offers a convenient online process for Ajman trade license renewal.
Can a Non-Resident Obtain a Trade License In Ajman?
Yes, it is possible for non-residents to obtain a trade license in Ajman. However, it’s important to seek the help of a local agent. However, you must be up to date with the documents, like your visa, license, etc.
What Is The Duration Of Obtaining a Trade License in Ajman?
Although it can vary, getting a trade license in Ajman usually takes a few days to a few weeks. And, typically, the license is valid for one year.
