Do you want to set up a business in one of the UAE’s free zones? An entrepreneur need to be well-versed in the establishment of their own business, even though each of these free zones has unrivalled advantages, such as 100% ownership, full profit and capital repatriation, 100% export and import exemption, and exemption from corporate and personal taxes, etc. Each free zone differs from the others due to specific criteria and advantages. Ajman Free Zone is one such free zone. About 256 industrial enterprises, or 20% of all industrial firms in the UAE, are registered in AFZ.
When preparing to launch a business in the United Arab Emirates (UAE), forming a freezone corporation is one of the most lucrative possibilities. The Ajman free zone, created in 1988 and situated across the Ajman port 40 minutes drive from Dubai, is a ready choice for independent contractors and small manufacturing and trading businesses. Ajman’s free zone business setup offers investors 100% ownership of their company, a streamlined establishment process, and other benefits similar to those of other free zones in the United Arab Emirates.
There are three primary business structure types are available in the Ajman Freezone –
- Free Zone Establishment (FZE): An FZE company can be incorporated in the Ajman Free Zone, giving a single shareholder 100% control of the business.
- Free Zone Company (FZC): An Ajman free zone company can be formed by several shareholders via an FZC company formation. Individuals or non-individuals (businesses) may be among these stockholders.
- Branch Office of Domestic or International Firm: A branch office of a domestic or international firm is a legal entity that can only transact business under the name of its parent company.
Types of Licenses in Ajman Free Zone
Here are the types of licences required to set up business in Ajman Free Zone –
Trading Licence
All traders operating within the free zone territory are granted a trading license. The Ajman Free Zone Authority has authorised the company to add three operations to a single permission.
Professional Services Licence
All UAE or foreign businesses wishing to shop in the Ajman Free Zone and offer PRO services – like IT, management, or marketing consulting must first get a professional license.
Industrial Licence
All businesses engaged in the manufacturing of commodities must first apply for an industrial license from the Ajman Free Zone Authority to construct a manufacturing plant within the free zone. The Ajman Free Zone Authority also offers services for smart stores and storage.
Industrial License Nationally
Businesses who fulfil the requirements listed below are given this license:
- It has to work in the free zone but must be registered in Ajman.
- The company's manufacturing should occur in the free zone of at least 40%.
- Companies with a national industrial license (AGC) can export duty-free to all members of the Arab Gulf Cooperation Council.
- Has to be registered with citizens of the Gulf Cooperation Council (GCC) who possess at least 51% of the shares of the business.
E-Commerce License
A company looking to enter the e-commerce space or start an online business can apply for an e-commerce license. Investors might also benefit from it for technical and marketing problems.
Steps to Set Up Business in Ajman Free Zone
- Select an activity and business type: Decide which license best fits your business activity and your company's organisational structure (FZE, FZC, or Brand office). With the assistance of our knowledgeable advisers at CBS, you can select the best facility, license type, and legal structure.
- Send your application: Please send your application together with the necessary files. Complete the AFZ application form and send it in with the required paperwork. Our professionals will assist you from the application form completion to the document submission and final submission.
- Get a business licence: You must pay the license fee and any additional costs to obtain a business license after completing all requirements. You must also obtain a registration letter to open a bank account for your firm.
Set Up Your Business in the Ajman Free Zone with AIMS UAE
As one of the top consulting firms in the UAE, AIMS UAE can assist you with obtaining a license and establishing your company in the Ajman Free Zone. Our team of experts is constantly alert to provide you with timely advice. Give us a moment to discuss the most straightforward and practical option for your company to open for business in the United Arab Emirates.
Ajman freezone is one of the most established and reasonably priced free zones in the UAE. It is, therefore, without a doubt, the most crucial location to launch a business in the United Arab Emirates. AIMS UAE offers local and international investors and businesspeople a one-stop shop for solutions.
Frequently Asked Question
The benefits of setting up a business in the Ajman Free Zone include:
- 100% foreign ownership and full repatriation of capital and profits.
- Exemption from all import and export duties can significantly reduce operational costs.
- Access to cheap energy is crucial for businesses with high power requirements.
- A 20-year renewable land lease for another 20 years provides long-term stability for businesses.
- The ability to own an office and conduct business within the UAE.
- No taxation on personal or corporate income allows businesses to maximise their earnings.
- It's easy to do business with a simple registration process, multiple visa options, and a quick and easy corporate bank account opening.
AED 5600 is the starting price for a license in Ajman (professional fee not included). You can contact us to understand the price of setting up a business and the factors affecting it.
