How to business setup in Ajman:
Ajman is the smallest of all emirates in the whole of UAE. Its entire area is estimated to be around 260 km. The main industries of Ajman are manufacturing real estate, retail, construction, transport and business services. Though it’s small in area, it has an impressive coastline. Furthermore, the amazing network of roads makes it easier to access it from anywhere across the UAE. Ajman has been developing its economy over the years by diversifying into various business sectors. The government of Ajman has also been making efforts to ensure that all the businessmen and investors’ requirements are met. Due to their constant efforts, many new companies are setting up businesses in Ajman. There has been an increase in transport and IT companies in the last few years. Some of the key aspects to know for setting up a business in Ajman are mentioned below.
Ajman Mainland Business Set-up:
It is important to note that all business entities that are set up in commercialized geographical areas are directly registered under the Emirates government. They are known as Mainland companies and are governed by Emirates authorities. Setting up a business in Mainland Ajman is advantageous as it directly follows the legal structures of government policies. Thus it is also one of the most developed economies. One of the most important factors for setting up a business is having a local sponsor. This is essential and local sponsor must be of UAE origin (More useful resources: mainland company setup in UAE). Another important fact to remember is that the local sponsor will have 51% of the shares on any new business set up. The rest 49% of shares will be with foreign business owners. Some of the various business entities that a business set up in Mainland can go for are given below:
- Limited Liability Company
- Public Shareholding Company
- Branch Office
- Representative Office
- Professional Firm
Business Set-up in Ajman Free Zone:
Ajman Free Zone was set up in the year 1988. It is situated on the Arabian Gulf Coast. It is one of the smallest yet one of the most developed free zones of UAE. Ajman Free Zone was granted autonomous status by H.H. Sheikh Humaid Bin Rashid Al Nuaimi, who is the ruler of Ajman. Due to the strategic location of the Ajman Free Zone, it has the advantage of serving both eastern and western markets. Another added advantage of Ajman Free Zone Companies is that it has access to 4 seaports and 2 International Airports. All the rules that are passed and governed are under the management of the Ajman Free Zone Authority (AFZA). All the procedures for business set up and issuance of business licenses are managed by Ajman Free Zone Authority. The basic cost of setting up a business including Trade License begins from approximately 14000 AED. There are 4 types of business licenses which are issued in Ajman Free Zone and may vary upon the business type (More useful resources: Freezone business setup in UAE). Some of these Licenses are Trading License, E-Commerce License, Professional License, National Industrial License and Industrial License. The basic costs of these licenses start from somewhere around 21,950 AED for one trading activity. Cost of E-Commerce in Ajman Free Zone starts from somewhere around 10,800 AED. Some of the advantages of setting up businesses in Ajman Free Zone are:
- Companies in Ajman Free Zone enjoy total exemption from customs duty for goods and services.
- Foreign Companies can have 100% ownership.
- There is no red tape.
- Liberal economic policies and legal framework are also an added benefit.
- Labour cost is low.
- There is provision for 100% repatriation of capital and benefits.
- Exemption from Corporate and Person Income Tax.
Ajman Media City Free Zone:
Ajman Media City Free Zone is one of the newest free zones in Ajman Emirates, UAE. Ajman Media City Free Zone has recently announced cost-effective packages for Trade Licenses for new businessmen and investors. The basic cost for setting up business in Ajman Media City Free Zone is somewhat around 8,806 AED. The major advantages of setting up businesses in Ajman Media City Free Zone are:
- 100% free ownership of companies.
- 100% repatriation of capital invested and profit gained is guaranteed.
- Company License issue can be obtained within 1 day.
- No requirement of No Objection Certificate (NOC).
- No requirement of physical presence in UAE.
- Very quick and simple registration process.
Business Set- up in Offshore Ajman:
An offshore can be described as a group of companies or a branch which is engaged in offshoring business processes. Another definition is that all those International Business Companies or other types of legal entities that are incorporated under the laws and jurisdiction of a region. An offshore company in Ajman is the one who is engaged in offshoring businesses in the UAE. Some of the business activities that come under its jurisdiction are:
- General Trading
- Professional Services
- Stake Holding
- Investment and Joint Investment Companies
- Advisory/Consultancy Services
- Commission Agents/Brokers.
- Some of the key benefits of setting up business in Offshore Ajman are:
- 100% foreign ownership
- 100% repatriation of capital invested
- Low cost of company set up
- No Annual Audit required
- No paid-up share capital required
- No need to rent an office space or industrial space.
- Offshore companies can also bank accounts.
- Ajman Free Zones are globally recognized.
- Businesses in Ajman Offshore company formation are allowed to purchase as well as sell property.
What are the Advantages of Setting up Business in Ajman?
Some of the key advantages of setting up business in Ajman are:
- 100% full ownership is guaranteed in the Ajman Emirates.
- Full repatriation of capital and profits is also assured in Ajman Free Zone.
- There is a levy of taxes in economically exclusive areas. Especially Ajman Free Zone levies no registration fees.
- The registration process for a business set up in Ajman is very simple and straightforward.
- A company located in Ajman gets 100% exemption from taxation.
- In Ajman foreign businessmen and investors can get a 20-year land lease, this is renewable for a further 20 years.
What is the process of Company Formation in Ajman:
For setting up a business in Ajman the following steps have to be followed:
- An application has to be submitted at the Customer Services Centre in the municipality for initial approval.
- Follow up to be done with the Inspection Unit for verification of the chosen business location in Ajman municipality.
- Obtain approval from specialized departments in the municipality.
- Obtain approval of Trade Name.
- Submit the necessary approvals along with receipts from the Ministry of Trade.
- Payment of all the required fees has to be done.
What are the Various Departments from whom Approvals are required?
- Ministry of Education
- Ministry of Justice, Islamic Affairs and Awqaf
- Ministry of Agriculture and Fisheries
- Ministry of Labour and Social Affairs
- Ministry of Finance and Industry
- Ministry of Health
- Ministry of Economy
- Ministry of Information and Culture
- Central Bank
What are the Documents Required to Start a Business in Ajman:
It is of vital importance that all the documents should be complete and accurately filled at the time of applying for registration. One of the major advantages in setting up a business in Ajman is that the registration process is very simple and very quick. Some of the documents that are required for registration are:
- A valid copy of the passport of the shareholders.
- Proof of residence of the company owner.
- Memorandum of Association
- Article of Association
- Duly filled application for incorporation of an offshore account.
- Reference Letter of Bank
- Resume of the owner of the offshore account
- Business plan with cost-benefit analysis.
Other Details required for Business Set up in Ajman:
Ajman Free Zone Authority:
Ajman Free Zone Authority (AFZA) is a free trade zone in THE EMIRATE OF Ajman, UAE. It was first established in 1988 and is considered to be one of the economically developed regions in the UAE. All businesses require a Trade License in Ajman, and they are renewed annually. Earlier a local sponsor used to have 51% shares in any new business set up; whereas others used to have 49% of shares. Now in a major landmark judgement in 2018, has allowed for 100% foreign ownership in onshore companies.
Address of Ajman Free Zone Authority (AFZA): Sheikh Rashid Bin Saeed Al Maktoum Street, Ajman, UNITED Arab Emirates
Ajman Free Zone Online Portal: This is the Official Portal of The Government of Ajman. Over here all the details are given as to how one can start a business; choose the type of legal entity, how much capital is required etc. The link of this official portal is
What are the Frequently Asked Questions?
- Some of the frequently asked questions are:
- What are the steps for company formation in Ajman?
- What is the procedure for issuing a license in Ajman?
- What is the minimum capital requirement for business set-up in Ajman?
- Whether it is necessary to have a physical presence in Ajman?
- What kind of business can a branch of foreign company do in Ajman?
- What is the procedure for acquiring a Trade Name in Ajman?
- What are the documents required for setting up a business in Ajman?
- What are the types of business licenses available in Ajman?