Why Choose Ajman Free Zone for Business Setup?
Ajman Free Zone, established in 1988, is renowned for its affordability and streamlined processes. It caters to a wide range of industries, from trading and manufacturing to services and e-commerce. Here’s why it’s an attractive destination for entrepreneurs:
- Cost-Effective Setup: Ajman offers some of the lowest licensing and operational costs in the UAE.
- Strategic Location: Proximity to Ajman Port and easy access to Dubai and Sharjah enhance trade opportunities.
- Tax Benefits: 100% exemption from corporate and personal income taxes.
- Full Ownership: Foreign investors can own 100% of their business without a local sponsor.
- Fast Setup: Company registration can be completed in as little as one business day.
Ajman Free Zone supports over 9,000 businesses, making it a thriving hub for startups, SMEs, and established enterprises. Its modern infrastructure and flexible office solutions further enhance its appeal.
Benefits of Ajman Free Zone Company Formation
Setting up a business in Ajman Free Zone comes with numerous advantages. These benefits make it a preferred choice for international investors looking to establish a presence in the UAE.
Tax Advantages and Financial Incentives
Ajman Free Zone operates as a tax-free zone, meaning businesses are exempt from corporate taxes, personal income taxes, and import/export duties. This significantly reduces operational costs. Additionally, there are no currency restrictions, allowing seamless profit repatriation.
100% Foreign Ownership
Unlike mainland businesses, Ajman Free Zone allows foreign investors to retain full control of their company. No local sponsor is required, simplifying the setup process and giving entrepreneurs complete autonomy.
Strategic Location and Connectivity
Located near Ajman Port, which handles over 1,000 vessels annually, the free zone is ideal for trading and logistics companies. Its proximity to two international airports and major highways ensures easy access to global markets. Dubai, a major commercial hub, is just 12 km away.
Flexible Business Licenses
Ajman Free Zone offers a variety of licenses tailored to different business activities:
- Commercial License: For trading and distribution of goods.
- Service License: For consulting, IT, marketing, and other professional services.
- Industrial License: For manufacturing and light industrial activities.
- E-commerce License: For online businesses and digital trading.
- Freelance Permit: For individual professionals in over 40 categories.
Businesses can choose between one service activity or up to three trading activities per license, with additional activities available for AED 1,600.
Streamlined Setup Process
The registration process is designed for efficiency, requiring minimal paperwork. With the right documentation, businesses can obtain a license within 24 hours. The free zone also offers installment payment options, making it accessible for startups.
Types of Companies in Ajman Free Zone
Ajman Free Zone offers flexibility in choosing the legal structure of your business. The two primary company types are:
- Free Zone Establishment (FZE): Suitable for single shareholders, ideal for solo entrepreneurs or small businesses.
- Free Zone Company (FZ Co.): Designed for multiple shareholders, perfect for partnerships or larger ventures.
Businesses can also establish a branch of an existing local or foreign company. Each structure offers the same tax benefits and ownership advantages, but documentation requirements may vary.
Step-by-Step Process for Ajman Free Zone Company Setup
The process of Ajman Free Zone company setup is straightforward and efficient. Follow these steps to establish your business:
Step 1: Define Your Business Activity
Identify the activities your company will undertake, such as trading, consulting, or manufacturing. Ensure they align with the license type you choose. A detailed business plan may be required for certain activities.
Step 2: Choose a Company Name
Select a unique name that complies with UAE regulations. Avoid offensive terms or names already registered. Check availability through the Ajman Free Zone Authority (AFZA) or a business setup consultant.
Step 3: Submit Application and Documents
Prepare and submit the following documents:
- Passport copies of shareholders and manager/director.
- Completed application form.
- Business plan (if required).
- Specimen signatures of shareholders and manager/director.
- Proof of residence for shareholders (e.g., utility bill).
- Memorandum and Articles of Association (for FZ Co.).
For freelancers, fewer documents are needed, such as passport copies and a CV.
Step 4: Pay Fees and Obtain Initial Approval
Once your application is reviewed, you’ll receive initial approval. Pay the license and registration fees, which range from AED 5,500 to AED 15,000, depending on the license type. Installment plans are available for eligible businesses.
Step 5: Sign Lease Agreement
Choose an office or warehouse space that suits your needs. Options include shared desks, smart offices, or larger warehouses. Sign the lease agreement to finalize your physical presence in the free zone.
Step 6: Receive Business License
After all payments and approvals, AFZA issues your business license, typically within one business day. You can now open a corporate bank account and apply for residence visas.
Step 7: Visa Processing and Bank Account
Apply for visas for shareholders, employees, or dependents. Visa costs start at AED 3,400 for two years. Open a corporate bank account with UAE banks like Mashreq or Emirates NBD, ensuring at least one shareholder is a UAE resident.
Key Considerations for Ajman Free Zone Company Formation
While Ajman Free Zone is ideal for many businesses, certain factors should be considered:
- Industry Suitability: Ajman is best for trading, light manufacturing, and service-based businesses. Heavy manufacturing or IT companies may find better options in JAFZA or IFZA.
- Visa Quotas: Packages with visa quotas (e.g., 1-35 visas) increase costs but allow sponsorship of employees or dependents.
- Women Entrepreneurs: Women sponsoring dependents face a AED 20,000 deposit, which may be lower in Dubai free zones.
- Bank Account Requirements: At least one shareholder must be a UAE resident to open a corporate bank account.
Consulting with a business setup expert can help navigate these nuances and ensure compliance with AFZA regulations.
Documents Required for Company Formation
To streamline the registration process, prepare the following documents:
- Passport copies of shareholders and manager/director.
- Two color photographs per shareholder/director.
- Proof of residence (e.g., utility bill or bank statement).
- Completed application form and business plan (if applicable).
- Board resolution for branch offices or FZ Co.
- Memorandum and Articles of Association (for FZ Co.).
For offshore companies, additional documents like the Memorandum of Incorporation may be required. Always verify requirements with AFZA, as they may vary by business activity.
Why Ajman Free Zone Stands Out
Compared to other UAE free zones like Dubai Multi Commodities Centre (DMCC) or Jebel Ali Free Zone (JAFZA), Ajman Free Zone offers lower costs and faster setup times. Its proximity to Ajman Port and affordable office spaces make it ideal for trading and logistics businesses. Additionally, the free zone’s customer portal allows companies to manage licenses, visas, and payments online, enhancing operational efficiency.
Ajman Free Zone also supports diverse industries, including food and beverage, health and beauty, and real estate. Its 2021 airport inauguration further boosts connectivity, making it a strategic choice for global trade.
Ajman Free Zone Company Formation Cost
The cost of setting up a business in Ajman Free Zone ranges from AED 5,500 to approximately AED 17,000. While expenses vary based on license type, visa quotas, and office space, Ajman remains one of the most affordable free zones in the UAE. Below is a breakdown of typical costs:
Component | Estimated Cost (AED) |
|---|
Business License Fee | 5,500 – 15,000 |
Registration Fee | 1,000 – 2,000 |
Visa Cost (per visa, 2 years) | 3,400 (incl. medical, Emirates ID) |
Office Space (Smart Office) | 6,000 – 12,000 annually |
Additional Shareholders | 600 per shareholder |
- License Packages: A zero-visa service license starts at AED 9,000, while a general trading license with one visa quota costs around AED 17,000.
- Visa Costs: Each visa includes entry permits, medical checkups, and an Emirates ID, totaling approximately AED 3,400 for two years.
- Office Solutions: Smart offices start at AED 6,000 annually, while warehouses and executive offices vary based on size and requirements.
- Installment Options: Ajman Free Zone allows payments in 2, 3, or 6 installments via post-dated checks from a UAE bank.
For a comprehensive cost estimate, consult with a business setup expert, as fees depend on specific business needs and activities.
