Setting up a business in the United Arab Emirates (UAE) can be a highly rewarding venture, especially when considering the various free zones that offer numerous benefits to entrepreneurs. Among these, the Ajman Free Zone stands out for its strategic location, cost-effective setup options, and a range of business-friendly policies. In this comprehensive guide, we will delve into the essentials of setting up a company in the Ajman Free Zone, exploring the key benefits, procedures, costs, and necessary documentation.
The Ajman Free Zone (AFZ) is one of the prominent free zones in the UAE, established in 1988. It is strategically located in the emirate of Ajman, providing easy access to both the Arabian Gulf and international markets. The AFZ is known for its business-friendly environment, offering a range of incentives to attract foreign investors and entrepreneurs.
1. Cost-Effective Business Setup
One of the primary attractions of the Ajman Free Zone is its cost-effective business setup options. The zone offers competitive pricing for licenses and office spaces, making it an ideal choice for startups and small to medium-sized enterprises (SMEs).
2. 100% Ownership and Repatriation of Profits
In the Ajman Free Zone, foreign investors can enjoy 100% ownership of their businesses without the need for a local partner. Additionally, there are no restrictions on the repatriation of profits and capital, providing full financial control to business owners.
3. Strategic Location
Ajman's strategic location provides easy access to key markets in the Middle East, Africa, and Asia. The free zone is in proximity to major airports and seaports, facilitating smooth logistics and trade operations.
4. Wide Range of Business Activities
The Ajman Free Zone allows a wide range of business activities, including trading, manufacturing, services, and e-commerce. This flexibility enables entrepreneurs to explore various business opportunities and expand their operations.
5. Simplified Business Setup Process
The business setup process in the Ajman Free Zone is streamlined and efficient. With minimal bureaucracy and a supportive regulatory framework, entrepreneurs can establish their businesses quickly and start operations without unnecessary delays.
1. Choose the Business Activity
The first step in setting up a company in the Ajman Free Zone is to choose the type of business activity you wish to engage in. The AFZ offers licenses for various activities, including trading, industrial, professional, and e-commerce license.
2. Select the Company Structure
Next, you need to select the appropriate company structure. The options include:
3. Register the Company Name
Choose a unique name for your company and ensure it complies with the naming regulations of the Ajman Free Zone Authority. The name should reflect the nature of your business and should not contain any offensive or restricted terms.
4. Apply for a Business License
Submit the required documents to apply for a business license. The documents typically include:
5. Lease Office Space
Depending on the nature of your business, you may need to rent office space in the Ajman Free Zone. The AFZ offers various office solutions, including executive offices, warehouses, and industrial plots.
6. Obtain Approvals and Licenses
Once your application is reviewed and approved, you will receive the necessary licenses and permits to start your business operations. This includes the business license, lease agreement, and other relevant documents.
The cost of setting up a company in the Ajman Free Zone varies based on several factors, including the type of license, office space requirements, and additional services. On average, the costs can range from AED 11,000 to AED 30,000 per year. Below is the typical expenses:
Establishing a Branch of a Foreign Company:Businesses from abroad can open a branch within the UAE through the Ajman Free Zone. This setup allows 100% foreign ownership, making it an attractive option for international firms seeking full control over their operations. The branch can engage in commercial, service-related, or manufacturing activities. To apply, you need valid passport copies of all partners, a no-objection certificate for UAE residents, color photographs, and UID or visa copies.
Forming a Free Zone Company (FZC):Ajman Free Zone supports corporate individuals in establishing Free Zone Companies (FZCs), functioning as limited liability entities. This option is designed to attract foreign investors, offering them the ability to operate with full ownership and limited liability.
Setting Up a Free Zone Establishment (FZE):A Free Zone Establishment (FZE) is an independent entity that allows for 100% foreign ownership and full profit repatriation. This setup exempts businesses from corporate taxes, providing a significant financial advantage. Required documents for an FZE include a valid visa copy of the company manager, passport copy, color photograph, and a no-objection letter from the sponsor for UAE residents.
Ajman Free Zone offers a variety of office solutions, including Flexi Desks and Executive Offices. Flexi Desks provide shared workspace for startups, allowing them to manage costs effectively without time restrictions on usage. Executive Offices, on the other hand, offer spacious, customizable environments designed to meet all business needs, located strategically for maximum convenience and productivity.
To support businesses and their employees, Ajman Free Zone provides onsite accommodation with amenities such as centralized air conditioning, restrooms, prayer areas, and more. Additionally, companies can lease land on a yearly basis to build their facilities, starting from 1000 mt sq . This option includes access to utilities and telecommunication facilities, with well-connected roads and ample workforce availability.
For companies involved in trade and manufacturing, Ajman Free Zone offers warehouses equipped with office space and security. These warehouses are suitable for various business activities and come with additional services like forklifts and cleaning. The Business Centre provides shared spaces, meeting rooms, and lounges, ideal for trading, professional, and commercial services, ensuring a comprehensive support environment for business operations.
Plan My Firm assists in setting up businesses in the UAE by offering comprehensive consultation and tailored solutions, including guidance on choosing the appropriate business structure, such as Ajman Free Zone Authority. Our services extend to handling legal formalities, registration processes, and trade license issuance. Additionally, we provide ongoing support with visa applications, residency permits, and business license renewals, ensuring a seamless and efficient setup experience.For expert assistance in setting up your business in the UAE and to learn more about our comprehensive services, including Ajman Free Zone Authority registration and support with legal formalities, please contact us at Plan My Firm. We're here to support you throughout the entire process.