The development of the Ajman Free Zone (also known as AFZ) was founded in the year 1998 and was a huge step by His Highness Sheikh Humain Bin Rashid Al Nuaimi. The Ajman Free Zone Authority is the central regulating authority for the FTZ in Ajman. In the year 1996, the growth of the businesses increased four times, and since then, the number of companies in the free zone has quadrupled in the last two years.
At the current state, the free zone is a multi-million project which consists of almost 1500 companies. It spans in an area of millions of square meters, and the companies are still trying to expand further. Due to the strategic location at the gates of the Arabian Gulf and is located in the proximity of Dubai and Sharjah, companies in Ajman has free access to raw materials and marketplace. Ajman has fast access to two international airports and four seaports and can handle more than a thousand cargo vessels in a single year.
Advantages of Setting up a Business in Ajman
Setting up a company in the free zone can be a very strategic and cost-effective move for investors all over the world. The various benefits that Ajman Free Zone provides are:
There is a complete exemption for any import or export taxes and duties, and no corporate or individual tax is levied in the free zone.
The lease on the land is for twenty years, which can be extended for another twenty years. In addition to this, there is easy availability of cheap and abundant energy. Ajman Free Zone also has offices that have a plug and play option for quick and easy commencement of business activities.
Business Environmental Benefits
The business-friendly laws of Ajman take care that the companies do not face any problem in the long run. The process of setting up a business requires very fewer funds and is a straightforward process. The Free Zone also provides the various permissions, permits and licences at a single place, making the incorporation process very easy.
There is no bureaucratic red tape which will hinder the setting up or growth of a company. The free zone has liberal economic and legal policies. A foreigner can have 100% ownership of the company and is given the provision of 100% repatriation.
There are many other benefits too, such as 24-hour security service, access to services like banking, postal service, advanced communication facility etc. There are no currency restrictions in the Free Zone, and also there are no foreign exchange controls.
Starting a Business in Ajman Free Zone
There are specific steps which need to be taken before setting up your business. These steps include making decisions about the company name, type of licence and documents required and finally the location of the business.
The steps which have to be followed while setting up a business in Ajman Free Zone are as follows:
- First and foremost, it is crucial for you to get all the necessary approvals and licenses by submitting the relevant documents to the Ajman Free Zone Authority.
- After the submission of all the documents, you need to apply for registering a company with the Ajman Free Zone Authority. It is also required that you submit an application for the visa process also if it is needed.
- In the next step, you need to decide that your company will employ which type of business organization structure. In Ajman Free Zone, there are four different types of structures to choose from which are:
- Free Zone Establishment (FZE)
- Free Zone Limited Liability Company (FZ LLC)
- Branch of a Foreign Organization
- Branch of a Local Company
- Finally, you have to decide the name and nature of the company so that the Ajman Free Zone Authority provides you with a license.
When this complete process is finished, the company can commence its business in the Ajman Free Zone.
The Ajman Free Zone is trying its best to provide the best services and compete with the other free ones in the area. The Ajman Free Zone is gradually turning into the hub for all businessmen and entrepreneurs.
If you are looking to set up a business in Ajman Free Zone, taking the help of the services of “Commitbiz” is highly recommended. Commitbiz will not only help in the incorporation of a company in the free zone but will also assist in keeping track of the VAT and tax filing of the company. For more details, contact us – we will be glad to help.