Ajman Free Zone company setup (step by step guide)
he UAE garners much attention the world over thanks to its seemingly ever-thriving business landscape. It’s not hard to see why it has gained such a reputation. As well as its 0% corporate tax rates on both personal and corporate income, the Emirates also benefits from a strategic location in the heart of the Middle East – the perfect place from which to conduct international trade.
Then there are the nation’s free zones. Offering a range of tax exemptions and freedoms – such as no currency restrictions and the ability to repatriate 100% of your capital and profit – these economic zones attract entrepreneurs from every corner of the globe.
Take Ajman Free Zone (AFZ) for instance. Established in 1988, AFZ offers a progressive infrastructure and top-of-the-line facilities to both local and international entrepreneurs. The free zone is also incredibly well-connected with easy access to international seaports, airports and several major highways. Other free zone benefits include:
- 100% foreign ownership
- No paid-up share capital requirements
- Physical presence in the UAE not required for incorporation
- No NOC requirement from current visa sponsor
- Low start-up and operational costs
- No mandatory office rental requirements
- No visa restrictions
- No annual audit requirement
- No currency restrictions
- Access to state-of-the-art facilities
With the right support and guidance, Ajman Free Zone company registration is easy. If you’re looking to start your business, here’s everything you need to know.
Why do business in Ajman?
There are a number of reasons why international entrepreneurs should consider setting up in Ajman. As mentioned previously, the emirate benefits from a strategic location with great access to its surrounding emirates and beyond – the Ajman and Khorfakkan ports are in close proximity as are both the Dubai International and Sharjah International airports.
Ajman also offers low start-up costs, a welcoming business regulation and plenty of affordable labour.
Your step by step guide to Ajman Free Zone company setup
When you work with a company formation expert, your journey to Ajman Free Zone company setup consists of just five simple steps.
Step one: Outline your business activities
The first step when starting any business in the UAE is to choose your business activity or activities. AFZ welcomes most activities that are permitted in the UAE including accounting and bookkeeping, consultancy, hospitality, IT, marketing, trading, and transport.
While there is a lot of scope when it comes to the type of business you can conduct in AFZ, it is vital that you list all intended activities on your license application. Failure to do so can cause significant complications further down the line.
Step two: Choose your company name
The next step is to choose a company name. This step takes a little more thought here in Ajman than in much of the rest of the world as the UAE imposes a strict, yet easy to follow, set of naming conventions that will not be familiar to anyone outside of the region.
When choosing a name for your business, you must keep in mind that it cannot include any offensive or blasphemous language, nor any references to Allah or Islam. If you wish to include your own name in your company name, you must use it in full rather than just your surname or initials. Finally, you must check that your chosen name is available to be registered. Again, a company formation expert can help you with this step, making suggestions and checking that your chosen name is free.
Step three: Make your license application
The next, and most important step, in establishing your Ajman Free Zone business is to make your application. The exact process will differ here depending on the type of business you wish to form. There are several to choose from: a branch of a local or foreign company, a Free Zone Company (FZE), or a Free Zone Entity (FZE).
In most cases, you will be asked to provide:
- A passport copy with six months validity for each partner
- One colour photograph for each partner
- No Objection Letter from the existing sponsor if the applicant is a resident of the UAE
- A business plan if applying for an Industrial or Service license
If you wish to open a branch, you may also be asked to provide:
- Memorandum and Articles of Association
- Board Resolution
- Certificate of Incorporation
- Power of Attorney
- A Registration Certificate issued by the competent authority in the country in which the company is registered.
Providing your application is complete and free from errors, it is possible to receive your business license in just one business day. To ensure this is the case, it is a good idea to work with a company formation expert throughout the entire incorporation process.
Step four: Applying for visas
With your license secure, you can now apply for any visas you may require. A company formation expert can take care of this step for you, along with your license application.
You can apply for your own visa, as well as those of your employees and dependants including your spouse, children and domestic staff.
In most cases, the number of visas you can apply for will depend on the size of your business and your chosen license package. When it comes to applying for visas for dependants, the process is very straightforward providing you meet the eligibility criteria.
Step five: Opening a corporate bank account
The final step to launching your Ajman Free Zone business is to open your corporate bank account. This is not always a straightforward process for international entrepreneurs. There are many local and international banks to choose from, all with different application and acceptance criteria and navigating them can be a minefield.
This is another reason why it is a good idea to work with an expert during this process. As well as advising on the most suitable bank for your business, we can also organise meetings with financial institutions too.
Ajman Free Zone Company cost
It’s difficult to offer a ballpark figure when it comes to Ajman Free Zone company cost. The exact amount will depend on your business activities and the size of your organisation, among other factors.
What can be said, however, is that setting up in a free zone is one of the most cost-effective ways to do business in the UAE. Ajman is also well-known for its low cost of doing business, so setting up here is an option on most budgets.
Starting your business in Ajman Free Zone
As you can see, setting up in AFZ is a simple, five-step process. However, while the process may not be difficult, it does require an expert eye. Any errors in your application could lead it to being delayed or rejected. That’s why it’s a good idea to work with a company setup specialist to help you establish your business. When you work with a company setup expert, all you need to provide is some basic documentation and a little information about the nature of your business. Then, sit back and let the experts take care of the rest – managing your license and visa applications, communicating with all relevant departments and authorities, and reporting back when you’re ready to start trading. It really is that simple.