Any entrepreneur wanting to set up a business in the UAE needs to equip oneself with a good working knowledge of the free zones. With the benefits that they bring for a start-up, free zones can prove highly beneficial for business setup. One of the prominent UAE free zones that conduct industrial activities is the Ajman Free Zone Authority (AFZ). It was established in 1988 and was granted an autonomous status by the ruler of Ajman, H.H. Sheikh Humaid Bin Rashid Al Naumi. AFZ has a lot of businessmen carrying out Ajman Free Zone company formation as they continue to develop their infrastructure. The strategic geographical location of Ajman free zone is one of its advantages since it is only 25 minutes away from the international airport.
Business owners can choose from among 4 types of ownership when they choose to form a company in Ajman Free Zone:
- Free Zone Establishment (FZE) license
- Free Zone Company (FZC) license
- Branch of a Local Company
- Branch of a Foreign Company
What Is an Offshore Company?
An offshore company may be a reference to:
- A company, group or sometimes a division thereof, which engages in offshoring business processes
- International Business Companies (IBCs) or other types of legal entities, which are incorporated under the laws of a jurisdiction that prohibits local economic activities
Key Benefits of Forming an Offshore Company in Ajman Free Zone
- 100% foreign ownership
- 100% repatriation of capital and profits
- Low cost of company setup
- No need to rent an office space or industrial place. The legal address of offshore Ajman agent is the address of the offshore company
- No annual audit required
- No paid-up share capital required
- Easiest registration process as the company setup documents can be delivered within a day
- Businesses in Ajman offshore company formation are allowed to purchase as well as selling property. They are also allowed to take ownership of property in the UAE, subject to the earlier approval of the land department
- AFZ is globally recognized
- Offshore companies in Ajman can also open a bank account
Documents Required to Set Up an Offshore Company in AFZ
To proceed with the Ajman offshore company setup, you’d need the following documents:
- A clear passport copy of each of the shareholders
- An original proof of residence of each of the shareholders
- An original bank reference letter for each of the shareholders
- A CV of each shareholder in English
- Memorandum of Association (MOA) and application for setting up an Ajman offshore company
The process is simple and easy. These documents have to be submitted to the Ajman Free Zone Authority and, if there is no loophole the documents, they would be cleared within a day or two, and you are good to go.
Activities Allowed under Ajman Offshore Company Formation
1. General Trading
The first activity that one can do is trading and many businesses are opting for trading activities only
2. Professional Services
Companies in Ajman offshore can also go for professional services
The companies formed in AFZ can also hold stakes in other companies
4. Investment and Joint Investment Companies
5. Advisory/Consultancy Services
6. Commission Agents/Brokers
Why Set Up an Offshore Company in Ajman Free Zone?
AFZ offers many benefits for its entrepreneurs/investors looking to start an offshore company in Ajman:
1. Quick Release of Trade License
Obtaining a license in Ajman Free Zone is cost-effective and the process to get it is hassle-free. The quick release of trade license makes AFZ an ideal place for business formation. Apart from this, the 1-day process of documentation clearing speaks volumes of how well the feed zone is managed.
2. Multiple Visa Options
There are different packages of visa available for the businesses setting up in Ajman. The Smart Office package allows up to 3 visas, and the Executive Office package allows up to 5. Business owners who do not need physical office space can benefit from the flex-desk package – this gives entrepreneurs the use of office space, equipment and other services such as meeting rooms, without the need to rent a permanent desk.
3. Low Barriers to Entry
The pro-business environment in Ajman lets entrepreneurs set up businesses quickly and easily with minimal fuss. Not only is there no requirement to provide paid-up share capital to get your Ajman free zone company set up, but there’s also no ongoing auditing or bookkeeping requirements.
4. Multiple Shareholders
A minimum of 1 shareholder is required to set up a business in Ajman. New free zone companies – which are essentially limited liability partnerships within the free zone – are allowed up to 5 shareholders.
If you are sold on the benefits of setting up a business in AFZ, the question arises, what next? There is a number of steps to be undertaken to start an offshore corporation in Ajman; usually, the first thing to do is decide upon the business activity. From there, you have to collect documents, get approvals, open a bank account, and apply for a visa. To make this process less cumbersome you can also hire a consultant, who would sort all the registration process for you. If you are looking for one, we at Commitbiz have our team of experts to help you with company formation, registration, and counseling. For any business-related query or guidance, do contact us, even if it’s just for a friendly advice.