E-Commerce Licence in Ajman Free Zone

by Zaara 15, Jul 2017

E-Commerce Licence in Ajman Free Zone

Ajman is located on the Arabian Gulf coast and is the smallest of the seven emirates in the United Arab Emirates, with about 260 sq. km. Ajman Free Zone was established and granted autonomous status in 1988 by H.H. Sheikh Humaid Bin Rashid Al Nuaimi, the Ruler of Ajman, under Amiri decree no. 3 of 1996.

Ajman has quite a strategic geographical placement: at the ingress of the Arabian Gulf, in the vicinity of Sharjah and Dubai, with convenient accessibility to four ports and two international airports. Thus, Ajman Free Zone is aptly placed to serve the eastern and western markets. Moreover, Ajman Free Zone is the only free zone in Ajman and has played a pivotal role in burgeoning commercial developments in Ajman over the last 20 years. Ajman Free Zone Authority (AFZA) is responsible for issuing business licenses and registering companies in the free zone.

Business Licensing in Ajman Free Zone

To carry out a business activity in Ajman Free Zone, a business license is required, according to the free zone regulations. Therefore, for company formation in Ajman, the premier step is a selection of the type of business activity. Subsequently, one has to decide upon the legal business structure and reservation of the company name.

There are the following options available for a business license in Ajman:

National Industrial Licence

To be granted a national industrial license, a company must meet the following criteria:

  • It should be registered within the GCC (Gulf Cooperation Council), and GCC national(s) must own a minimum of 51% of its shares
  • At least 40% of the manufacturing processes of the company should be conducted in the free zone

Companies holding a national industrial license are eligible for duty-free customs fee to the Arab Gulf Cooperation Council member states.

Trading Licence

If a foreign, UAE or free zone establishment wants to perform trading activities in Ajman Free Zone, it is issued a trading license.

Industrial Licence

A foreign, UAE or free zone entity wishing to carry out manufacturing activity in Ajman Free Zone is issued an industrial license.

Professional/Service Licence

A foreign, UAE or free zone entity looking forward to furnishing professional/service activities in Ajman Free Zone is issued a professional/service license.

E-Commerce Licence

AFZ issues e-commerce licenses to a company to carry out business in electronic trading activities and provides technical and marketing support to investors.

More on E-Commerce Licence in Ajman

E-commerce license is a new license category for e-commerce enterprises that will facilitate online business entrepreneurs’ partnerships with the free zone to tap into the growing e-commerce segment of the GCC and the region. In addition, the new license category will allow business people to leverage the growth potential of e-commerce across B2C and B2B opportunities.

Earlier, entrepreneurs who wished to engage in e-commerce activities had to choose a normal trading license category with specific activities akin to e-commerce activities. This tended to create a lot of uncertainties for the investors as well as regulators.

There is immense potential for e-commerce in the UAE and the GCC, with around 42 per cent of the population reportedly making online transactions. The Ajman Free Zone announced a rise in the number of e-commerce licenses issued by it to a large variety of regional and global digital companies by 35% in 2016, compared to the previous year. The convenience drove this surge in demand for e-commerce licenses it offers in registering new enterprises through its e-services platform, coupled with the facility to do online transactions from anywhere in the world.

List of Activities Included under E-Commerce License

  • Industrial Equipment E-Trading
  • F&B E-Trading
  • Fashion Retail E-Trading
  • Home, Office & Personal Utilities E-Trading
  • Jewellery & Precious Stones E-Trading
  • Automotive E-Trading
  • Media Entertainment E-Trading
  • Events Ticketing E-Trading

Why Setup E-Commerce Business in Ajman Freezone?

  • Convenient accessibility to the adjacent Ajman port and Dubai and Sharjah airports
  • Entirely digitized set up for business
  • Value-added services for all type of businesses, including banking, medical, insurance
  • Customizable business packages
  • 24-hour round range of business support services
  • Developed infrastructure in the thriving epicentre of business and trade

How to Setup E-Commerce Business in Ajman?

The steps are simple and straightforward. They are –

  1. Decide on a legal structure for your business
  2. Register trade name keeping in mind that it is not similar to any other trade names in the UAE
  3. Make an eCommerce licensing application
  4. Apply for visa
  5. Open a corporate bank account

If you are still stuck, you can ask a business setup consultant to complete this process. They will make everything more straightforward, and you can concentrate on your business operations.

We at Commitbiz fit in the right where you need us. Right from business incorporation to office space, we cover everything. In addition, our consultants have years of experience in this field and can make the process hassle-free. So get in touch with us today.