E-Commerce License 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.

The free zone has quite a strategic geographical placement: at the entrance of the Arabian Gulf, in the vicinity of Sharjah and Dubai, with convenient accessibility to four ports and two international airports.

Why is Ajman Free Zone apt for getting an E-commerce License?

Thus, Ajman Freezone is aptly placed to serve the eastern and Western markets. Moreover, it’s the only free zone in Ajman and has played a pivotal role in expanding commercial development over the last 20 years. Ajman Free Zone Authority (AFZ) is responsible for issuing business licenses and registering companies in the free zone.

This creates a grand opportunity for starting an ecommerce business. And if you want to start one, getting an e-commerce license in Ajman freezone is the key for getting started.

How to setup an E-Commerce Business in Ajman Free Zone?

The steps are simple and straightforward. They are -

• Decide a Legal Structure

Choose a legal structure for your business as per your business requirements and the business activity you choose to be involved in

• Choose a Trade Name

Register your trade name, keeping in mind that it is not similar to any other trade names in the UAE

• License Application

Make an eCommerce licensing application

• Apply for a Visa

Apply for the visa with the relevant authority, and you can also request a dependent visa, but the number of visas depends on the size of your business in Ajman

• Open a Corporate Bank Account

Open a bank corporate bank account to make all the transactions

Business Licensing in Ajman Free Zone

For carrying 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 License

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 process of the company should be conducted in the free zone

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

• Trading License

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

• Industrial License

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

• Professional/ Service License

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 License

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 license in Ajman

An 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 business license in Ajman 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 business in UAE and the GCC, with around 42 percent 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 in Ajman Free Zone

Below is the list of activities included under the E-Commerce license in the Ajman Free Zone; 

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

Why set up an E-Commerce Business in Ajman Free zone?

The following are the reasons for setting up a company in Ajman Freezone; 

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

End Note

If you are still stuck, you can ask a business consultant for assistance in your business setup in Ajman. They'll make everything more straightforward, and you can concentrate on your business operations.

We at Commitbiz fit in 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.