Ajman Free Zone, situated on the Arabian Gulf coast, \was established in the year 1988. It is the smallest but one of the most developed free zones of the UAE. Ajman Free Zone was established and granted autonomous status by H.H. Sheikh Humaid Bin Rashid Al Nuaimi, the Ruler of Ajman under Amiri Decree No. 3 of 1996. Ajman Free Zone has a strategic location, which gives it the advantage of serving both the western and the eastern markets.
Ajman Free Zone companies have access to 4 seaports and 2 international airports, leading to flourishing of business in the region. All the rules and regulations in Ajman Free Zone are passed and governed under the management of the Ajman Free Zone Authority (AFZA). The entire Ajman Free Zone business setup procedure and issuance of the business license to companies is controlled and handled by the Ajman Free Zone Authority.
Advantages of Setting Up a Business in Ajman Free Zone
The strategic and cost-effective location of this free zone makes it attractive for investors around the world to invest in different sectors and also for the business community to start their new ventures. Ajman Free Zone companies enjoy the following benefits:
1. Commercial Benefits
- Companies in Ajman Free Zone enjoy total exemption from customs duty for goods and services
- Foreign companies can have 100% ownership
- Provision of 100% repatriation of capital and profits
- No red tape
- Liberal economic policies and legal framework
- Labor cost is low
2. Tax Benefits
- Corporate tax is fully exempted for companies
- Personal income tax is also exempted
- Total exemption even on import-export tax
3. Environmental Benefits
- Ajman Free Zone Authority has set business-friendly laws for companies
- The process for setting up a business in Ajman Free Zone is easy and cost-efficient
- The immigration process is simplified and quick for workers
- AFZA has provided single window clearance for multiple government services like licensing, visa services, immigration, etc.
4. Infrastructural Benefits
- Companies enjoy land leasing for 20 years, renewable for another 20 years
- The energy supply is abundant and cheap
- No hidden charges
- Ajman Free Zone has pre-built offices, smart offices, and warehouses to facilitate companies
5. Other Benefits
- No currency restrictions
- No quotas or foreign exchange controls
- Companies have 24-hour security service
- Simple staffing and recruitment procedure for employment by companies
- Companies have access to other services like bank, postal, and advanced communication facility
Ajman Free Zone License Types
Ajman Free Zone Authority (AFZA) has 4 types business licenses, which they issue according to the type of business setup:
1. Trading License
People who carry out trading activities in the free zone region are issued with a trading license. The business can add 3 activities in a single license issued by the Ajman Free Zone Authority.
2. E-Commerce License
A company that wants to venture into e-Commerce or start an online business can opt for an e-commerce license. It also provides marketing and technical support to investors.
3. Professional License
All the UAE or foreign companies that are willing to set up their business in providing PRO services, such as IT, management or marketing consultancy, in Ajman Free Zone must acquire a professional license to start their business.
4. Industrial License
All companies involved in the production of goods have to acquire an industrial license from Ajman Free Zone Authority in order to start their manufacturing plant in the free zone region. Ajman Free Zone Authority also provides warehouses and smart-store service for manufacturing companies.
5. National Industrial License
This license is issued to companies that fulfil the following criteria:
- Should be registered in Ajman but operating in the free zone
- Should be registered with nationals of the Gulf Cooperation Council (GCC) owning at least 51% of the shares of the company
- A minimum of 40% of the manufacturing of the company should be completed within the free zone
Companies with a national industrial license enjoy duty-free exports to the member states of the Arab Gulf Cooperation Council (AGC).
Ajman Free Zone License Cost
Here is a list of the estimated cost of acquiring a business License in Ajman Free Zone:
|License Type||Cost In AED||Cost in USD|
|One Activity Trading License||21,950||5,975|
|Two Activity Trading License||23,250||6,329|
|Three Activity Trading License||24,550||6,683|
|General Trading License||27,150||7,391|
Business Setup Process in Ajman Free Zone
Ajman free zone is one of the most iconic destinations for setting up your business, which provides all the necessary requirements for your business. But prior to setting up your business, you need to make certain decisions like deciding the company name, deciding the type of business, the type of license which needs to be acquired, drafting the necessary documents, and, most of all, your business location in the free zone region.
Steps to Be Followed for Ajman Free Zone Company Formation
- Firstly, you need to get all the necessary documents and approvals by submitting all the requisite documents to Ajman Free Zone Authority
- After this, you need to apply for the registration process and the visa process
- Then the next step would be deciding on the legal entity that you want to establish. There are 4 types of legal entities: Free Zone Establishment (FZE), Free Zone Limited Liability Company (FZ LLC), Branch of a Foreign Company, and Branch of a Local Company
- Decide the company name and the nature of business in order to acquire a license from the Ajman Free Zone Authority
Ajman Free Zone is among the most cost-effective and developed free zones in the UAE. So, without a doubt, it serves as the best location for business setup in the UAE. Commitbiz is a one-stop solution and service provider for foreign as well as local investors and businessmen. Our team will take care of all your business setup requirements, including services like bank account, licensing, registration, documentation, and other legal formalities relating to your business. Contact us to avail our business setup service and get started with your dream business today!