Ajman, the smallest of the seven Emirates making up the UAE, offers tremendous potential for entrepreneurs and investors. Located between Sharjah and Dubai, this Emirate boasts a thriving economy. When you launch a business in Ajman, you can take advantage of this great opportunity.
In this article, we’ll describe the small business setup process, looking at the following areas:
- Factors to consider when setting up a small business in Ajman
- Legal requirements for setting up a small business in Ajman
- How to obtain a business license in Ajman – step-by-step
- Marketing strategies to grow a small businesses in Ajman
- Why work with Trade License Zone
Factors to consider when setting up a small business in Ajman
The economy of Ajman is primarily based on trade, manufacturing and services, with a particular focus on the construction, marine, and real estate sectors. The scope for small businesses is expansive – and lucrative. Ajman is also a popular tourist destination, attracting visitors from around the world with its cultural attractions, shopping, and outdoor activities.
These are some of the factors to consider for small business setup in Ajman:
- Business idea
Undertake careful market research to prepare a thorough business plan. That way, you can determine the demand for your products or services, your competition, market trends, and projections for the business’ growth.
- Business setup and trade license
As in other Emirates, Ajman offers two business jurisdiction types: Mainland and Free Zones. All businesses operating in Ajman require trading licenses, and the license type depends on the business activities. You’ll also need to consider the type of legal structure for your business, such as a limited liability company (LLC), a branch office, or joint liability company. Each aspect of your business setup and trade license has pros and cons; seeking expert advice is crucial before deciding.
- Other legal requirements
You must comply with other legal requirements for setting up a business in Ajman, including registering your trade name, complying with labour laws, and visa amendments.
Depending on your type of business, choosing a suitable location that is easily accessible, has adequate parking, and is in a high-traffic area is essential. You must also consider factors such as rent, utilities, and proximity to suppliers and customers.
- Human resources
Determine your staffing needs and plan your recruitment strategy. Consider the required skill set, experience, cultural fit, and compensation package.
Trade License Zone can guide you through the entire process of setting up your small business in Ajman. Our company formation services are customised to meet your unique requirements. We do not provide off-the-shelf solutions but tailor our services to your specific needs. Our support extends throughout the entire process, from the moment you engage with us until the successful completion of your business formation. We understand that there may be obstacles preventing you from starting your small business in Ajman, and we are committed to helping you overcome them. With our assistance, we can help make your business aspirations a reality.
Legal requirements for setting up a small business in Ajman
When setting up a small business in Ajman, you need to comply with various legal requirements, including the following:
- Trade license: As we have already mentioned, every business in the UAE must apply for a business license, which can be obtained from the Department of Economic Development (DED) in Ajman. The license fee and required documentation vary depending on the type of business activity.
- Legal structure: You must choose the right legal structure for your small business. You can select from various legal structures, including a limited liability company (LLC) or a branch of a foreign company.
- Trade name registration: You must register your company name with the Department of Economic Development (DED) in Ajman.
- Lease agreement: If you plan to operate your small business from a rented or leased premise, you need to sign a lease agreement with the property owner. The lease agreement should comply with the UAE’s rental laws and regulations.
- Memorandum of Association (MOA): If you opt for a legal structure such as an LLC, you must draft a Memorandum of Association (MOA) and have it notarised.
- Bank account: You need to open a corporate bank account with a UAE-based bank to receive payments and conduct financial transactions.
- Insurance: Depending on the nature of your business, you may need to obtain insurance coverage for your employees, premises, and assets.
- Labour Laws: You must comply with UAE’s labour laws and regulations regarding employee rights, working hours, wages, and benefits.
It’s essential to seek professional guidance to ensure compliance with all legal requirements and avoid any future legal complications. Contact Trade License Zone’s highly experienced team today for full support and guidance.
How to obtain a business license in Ajman – step-by-step
There are six steps involved in getting a business license in Ajman:
Step #1: Partner with Trade License Zone
When launching your business, partnering with a business setup expert, such as Trade License Zone, streamlines the complex process for you. We’ll guide you through all the required government steps and inform you when you can start trading in Ajman.
Step #2: Choose a business jurisdiction
Ajman offers two business jurisdiction types, Mainland and Free Zones. Each of these provides tax benefits, support services, and more, but the most significant aspect in which they differ is the ownership they bestow on entrepreneurs.
Free Zones enable business owners to have 100% ownership of their companies and need extra steps to trade directly with the domestic Ajman market, such as opening a branch office. Mainland companies require a local sponsor or service agent to hold 51% of the company’s shares but require no additional steps for the business to trade directly with the Ajman market.
The professionals at Trade License Zone can assist and guide you through choosing the best business jurisdiction for your Ajman-based company.
Step #3: Select your business activities
As we have briefly mentioned, you must select the business activities you wish your company to carry out. A company may only conduct business activities as selected for its trade license. If a business fails to do so, the Ajman authorities may issue harsh penalties.
Step #4: Select a trade name
Trade License Zone offers support in selecting a suitable business name. To register a trade name in Ajman, it’s important to follow the Department of Economic Development’s (DED) guidelines. The DED has strict rules regarding the use of trade names, and it’s essential to ensure that your chosen name is not offensive or disrespectful and does not reference Islam or Allah.
If you intend to include your name in the company’s name, it should be spelt out in full rather than using initials or surnames. You’ll need to provide three preferred names, and the DED will verify their availability and select the final choice.
Step #5: Apply for Initial Approval
For Initial Approval of your business trade license, you need to apply to the DED for verification. Once granted, you can apply for your trade license.
Step #6: Apply for your trade license
Applying for your trade license includes submitting all necessary documents for your application, and it usually includes your business plan, copies of the company’s shareholders’ passports and visas, rental agreements, an Initial Approval certificate, and more.
Marketing strategies to grow a small businesses in Ajman
There are several effective marketing strategies that small businesses in Ajman can use to grow their business. Here are the best marketing strategies for small business setup in Ajman:
- Social media marketing: Social media platforms such as Facebook, Instagram, and Twitter are excellent tools for small businesses to connect with their customers, build brand awareness, and promote their products or services. Create engaging social media content and interact with your followers to establish a loyal customer base.
- Search engine optimisation (SEO): SEO is all about optimising your website to rank higher in search engine results pages (SERPs). By improving your website’s visibility, you can attract more traffic, generate leads, and increase sales.
- Content marketing: Creating valuable and engaging content such as blog posts, videos, and infographics can help establish your business as an industry leader and attract more customers to your website.
- Local marketing: Participate in local events, sponsor local charities or sports teams, and advertise in local media to establish your business as a local brand and attract customers from your community.
Why work with Trade License Zone
When you partner with Trade License Zone, the UAE’s license applications and business setup are streamlined. We help with trade license applications, company registration, and more to save you time and money and avoid unnecessary delays or rejections during your small business setup in Ajman.
Getting started is as simple as sending us basic information about your e-commerce business, and our expert team will take care of the rest for you. We’ll manage business setup, communicate with all relevant government departments and authorities, handle visa amendments and applications, open corporate bank accounts, and report back to you when you’re ready to start trading. It really is that straightforward.