Business Setup in Ajman

Ajman is situated in the northern part of the UAE and lies on the coast of the Arabian Gulf. It is the smallest of the seven emirates, with 259 sq. km. It is popular for its beautiful beaches and different ranges of mountains. With a good population and a growing GDP, Ajman has a balance of traditions and welcomes modern updates, establishing businesses and industries and providing various services and facilities. 

There are various benefits, and Ajman's policies make it highly attractive for individuals who wish to set up businesses and companies in the emirate. However, company setup in Ajman needs certain decision-making and planning about different licenses, legal regulations, steps of establishing the respective enterprise, etc. This article will include everything important about business setup in Ajman, such as the benefits, processes, types, etc.

Ajman Company Formation

Commitbiz knows the company formation rules and guidance in Ajman and can help you set up your business here. We help in availing the needed licenses like Industrial/Service License, Trading/Commercial License, and Professional/General Trading License. You can choose from among a free zone, mainland or offshore company in Ajman.

Here is a description for each free zone in Ajman.

Ajman Free Zone:

A Free Zone is a jurisdiction area within each Emirate with specific regulations. It is operated by a regulatory body called The Free Zone Authority and allows individuals to trade within the free zones and outside the UAE.  

The Ajman Free Zone was launched in 1988 and is situated on the Arabian Gulf Coast. It has an emerging location with easy access to four seaports and two international airports, which leads to great heights for companies in the region. A business setup in Ajman Free Zone has a smooth registration process, a range of business licenses, various benefits, etc.

Ajman Media City Free Zone

Ajman Media City Free Zone is a newly formed free zone that provides comprehensive media and digital facilities in the UAE. This is done by matching the professional mindset of individual entrepreneurs and businesses. The free zone is located in the City of Ajman and has high-tech telecom, communication links, top-notch digital customer service, and incentives for entrepreneurs interested in starting a business in Ajman Media City free zone.

Ajman Mainland:

Business entities in commercialised geographical areas that are directly registered under the Emirates government and its authorities are called companies on the mainland. Companies on the mainland represent the most developed economy as their incorporation is completed directly by following the legal structures of government policies. 

Certain rules, like having a local sponsor with 51% sharing in the company and remaining 49% with the business person, are highly essential for setting up a business in Ajman Mainland. Business entities like LLC, PSC, branch offices, professional firms, representative offices, etc., are beneficial for a mainland company in Ajman.

c) Ajman Offshore:

Offshore refers to a location outside of one’s home country. They are regulated by the Ajman Free Zone Authority. This jurisdiction has many advantages and provides various opportunities. They offer low rates of taxes, access to various areas in the market, ensure compliance, etc. An offshore Ajman business setup involves many activities like general trading, professional services, stakeholding, investments, consultancy services, etc.

Advantages of Business Setup in Ajman

If you’re still wondering about why to establish a business in this emirate, then the advantages of a company incorporation in Ajman will clear up all your doubts. They are mentioned below –

• 100% full ownership and full repatriation of capital and profits.
• Various opportunities, like an exclusive economic area at lower costs, are available. 
• The process of business setup in Ajman is straightforward. There are single-window clearances for many government services like postal services, licenses, visas, etc. 
• Foreign investors enjoy a 20-year land lease, and it is renewable for another 20 years. It also allows legitimate tax-exempt operations for 40 years.
• 100% legal exemption from all import and export duties.

Types of Business Licenses in Ajman

Ajman is home to various business activities, industries and sectors in the market. Each of them requires certain approvals, and that is why the government provides different licenses to practice these activities in the emirate. The types of licenses are as follows –

a) Industrial License:

An industrial license is provided to entrepreneurs who wish to start a manufacturing unit in the emirate. Entrepreneurs can acquire an industrial license and be involved in activities like the purchase of raw materials, importing goods used for manufacturing, services for sale, etc. 

There are a few criteria one has to meet to get this license. They are-

• The business must be registered with the Gulf Cooperation Council (GCC), and it must own at least 51% of its shares.
• At least 40% of the manufacturing processes should be accomplished in the free zone. Businesses holding a National Industrial License are eligible for duty-free customs fees to member states of the Arab Gulf Cooperation Council.

b) Trading License:

Entrepreneurs who are into trading activities can apply for a trading license and register their respective companies. Import, export, and re-export of goods and services are all permitted by the license in Ajman.

c) Professional/Service License:

This type of business license is granted to any UAE, foreign, or free zone entity interested in providing professional/service license activities in Ajman.

d) E-Commerce License:

An e-commerce license is a license available for e-commerce entities. It facilitates online businesses and promotes online transactions, leading to growth in the economy and development of the respective emirate. 

e) General Maintenance License:

If entrepreneurs wish for a business setup in Ajman involving maintenance, then having a general maintenance license is highly essential. It provides authority to the individuals in a maintenance business, makes repairs, performs regular maintenance, etc.

Process of Company Registration in Ajman

After learning about the benefits and licenses of the emirate, you must be wishing for a business setup in Ajman which consists of an organised procedure, and they are as follows –

Step 1 – Selection

Entrepreneurs must make decisions and select certain factors like –

• Selection of the Jurisdiction, i.e., mainland/freezone/offshore.
• Selection of the Business Model, i.e., sole proprietary, partnership, LLC, etc.
• Selection of the Business Activities.
• Selection of a Business Name.

They must be appropriate and suitable according to the nature and purpose of the business. The business name must be unique and must adhere to the legal regulations of Ajman.

Step 2 – Documentation

Submit necessary documents and application forms for initial company registration in Ajman, obtain required business licenses, visa processing, etc.

Step 3 – Approvals

In this step, entrepreneurs must acquire certain approvals to continue with the company incorporation in Ajman. Approvals must be obtained by the Customer Services Centre, specialised departments, etc. 

These approvals, along with the receipts from the Ministry of Trade, must be submitted to the Register of Companies.

Step 4 – Bank Account

Companies must create a bank account to facilitate business transactions, multiple currencies, and maintain other finances from around the world.

Step 5 – Fees and Certificate

Lastly, pay the required fees to the authorities to obtain the necessary certificates for setting up a business in Ajman. These certificates will help in functioning with the business activities and operate as a legal enterprise in the emirate.

Documents Required for Business Setup in Ajman

Let’s look at the documents required for company formation in Ajman –

• A valid copy of the company shareholders' passports.
• Proof of residence of the company owner.
• Memorandum of Association.
• Article of Association.
• Duly filled out the application for incorporation of an offshore account.
• Bank Reference Letter.
• Resume of the owner of the offshore account.
• Business plan with cost-benefit analysis.

Business Activities in Ajman and Required Approvals from Authorities

Government Authority	Business Activity
Ministry Of Education	Private Schools, Kindergartens, Educational Institutions, Gymnasiums
Ministry Of Justice, Islamic Affairs, And Awqaf	Organizing Hajj And Omrah Campaigns, Quran Recital Centres, Law Firms
Ministry Of Agriculture And Fisheries	Plant Nurseries, Farm, Cattle And Bird Trading, Fish Trading, Seeds And Fertilizer Trading
Ministry Of Labor And Social Affairs	Babysitting Services, Labor Services
Ministry Of Finance And Industry	All Industrial Licenses
Ministry Of Health	Hospitals, Private Clinics And Practices, Medical Laboratories, Pharmacies
Ministry Of Economy	Accounts Auditing, Foreign Companies Branch
Ministry Of Information And Culture	Advertising And Publicity Office Drawing And Scripting, Organizing Events And Shows, Computer Trading, Digital TV And Cable Services
Central Bank	Banks, Money Exchange And Transfer, Financial Consultancies

Reasons to Invest in Ajman 

Ajman is a beautiful destination with a mix of traditions, natural aspects, and features, leading to it being one of the most attractive places for different industries and businesses in the market. Therefore, these successful business setups in Ajman qualifies to be a vital core for investments, opening new horizons in the world of economy and providing major investment opportunities. Let’s look at the feature of Ajman to understand the reasons to invest in the emirate –

• It lies between Dubai and Sharjah and is easily accessible.
• Availability of facilities and services such as power, medical, and telecommunication.
• The free zones in Ajman are very investor-friendly, providing 100% foreign ownership, hassle-free approvals and several tax benefits.
• Ajman Port offers facilities for exports and imports, vessel repair, and maintenance.
• The low cost of operation of many industries compared to other free zones in the world.
• Primary industries are available making it provide such raw materials required for some ready and semi-manufactured industries.
• State-of-art infrastructures like ports, roads, industrial zones, and transport.

Let’s look at the services we offer.

Our Business Setup Services in Ajman

Commitbiz Management Consultants can help you with the following business setup services in Ajman:

• Company incorporation
• Company registration
• Local sponsorship
• Public Relations Officer (PRO) services
• Accounting and bookkeeping
• Auditing
• Tax consulting
• Value Added Tax (VAT) registration
• Legal advisory
• Setting up a branch office in Ajman
• Intellectual property protection

Our Services for Business Setup in Ajman

We at Commitbiz, will provide various services that will help for an easy company setup in Ajman. They are as follows –

• Company Incorporation.
• Company Registration.
• Local Sponsorship.
• Public Relations Officer (PRO) Services.
• Accounting and Bookkeeping.
• Auditing.
• Tax Consulting.
• Value Added Tax (VAT) Registration.
• Legal Advisory.
• Setting up a branch office in Ajman.
• Intellectual Property Protection.

In conclusion, the Ajman business setup is highly profitable and beneficial to business owners. The emirate has various investment opportunities. Individuals can easily earn a living and see their future in the business world. However, company formation in Ajman requires thorough planning and research. Business owners must have knowledge about the legal regulations and must follow everything as issued by the authorities. 

It is advisable to reach out to a consultancy firm like Commitbiz because we help entrepreneurs and firms in setting up a business in Ajman through company registration, incorporation, and legal consulting services. Our experts take care of the banking, visa, legal, and licensing formalities, following the UAE laws. We guide you through your company formation in Ajman with your business objectives at the core.

We assist you in planting your company in this booming economy by handling all the legal formalities. Our goal is to help your business gain a foothold, establish free trade agreements, and ensure that you avail yourself of all the state-of-the-art facilities of the region.

Hence, you shouldn’t overthink it. Contact us today to build your dream company in Ajman.