All you need to know about Ajman Free Zone

All you need to know about Ajman Free Zone

Ajman Free Zone Authority or AFZA is a strategically situated Free Zone at the entrance of the Arabian Gulf. AFZA was established in the year 1988 and was granted independent status by the ruler of Ajman. It was given the Amiri decree no 3 of 1996 and has been named the sole regulatory agency for the free zone in the Emirate (i).

AFZA is well positioned to serve the eastern and the western markets to set up businesses. Ajman port serves over 1000 vessels every year and today, it has emerged as an important maritime focal point. AFZA is located half an hour from Dubai and 10 minutes from Sharjah makes it an interesting opportunity with ease of accessibility to the two international airports and four ports. Ajman Free Zone’s main aim is to offer a global opportunity for foreign investment with a platform for investment, trade and industry business establishment. It also provides essential cost saving benefits for entrepreneurs compared to other free zones within the United Arab Emirates (ii). AFZA’s pricing is very competitive along with world-class infrastructure; it has no hidden fees or service charges.

The zone offers many benefits including 100% foreign ownership, repatriation of capital and profits, no corporate tax, single window clearances and cheap energy to businesses, who are interested in setting up an offshore company.

Benefits of Ajman Free Zone Company Setup (iii).

  • A company established in Ajman can hold an account in a bank in the UAE
  • Resident or employment visas for investor and employees
  • A company located in Ajman enjoys 100% legal exemption from all imports and export duties.
  • Cheap energy: Companies in Ajman enjoy low energy costs; it is popular for energy intensive businesses such as manufacturing to start their business in Ajman.
  • Foreign Investors can obtain a 20 year land lease, which is renewable for another 20 years. This guarantees 40 years of legitimate tax exempt operations.
  • Registering your company in Ajman will allow you to own an office and do business in UAE.
  • 100% foreign ownership and repatriation of capital and profits.
  • Lowest tariffs in the region: Foreign investors enjoy lower set up costs than equivalent free zones in UAE. This makes business registration a cost effective solution to international entrepreneurs.
  • Exempted from financial reports submission and audit.
  • The most economical wage structure and easy access to vast work force
  • Total exemption from all import and export duties
  • Total elimination of all service charges and hidden fees.
  • No corporate tax
  • No personal income tax
  • Competitive pricing on premises
  • No hidden fees
  • No hidden charges
  • Exceptionally low handling charges
  • Lowest lease prices
  • World class infrastructure
  • Single Window Clearances (Licensing, Immigration, etc)
  • Low Labor Cost
  • No Red Tape

Other Advantages:

  • Business Facilities (Conference Room and Business meeting rooms)
  • 24 hours Security Services
  • Bank Services
  • Postal Services

Types of business set up in Ajman Free Zone

The Ajman Free Zone Authority allows four types of business setups: 1) Ajman Free Zone Entity 2) Ajman Free Zone Company 3) Branch of a Local Company 4) Branch of a Foreign Company

International Entrepreneurs can obtain one of the 5 different license types for their Ajman business:

Trading licenses

Trading Licenses are issued to business owners who wish to carry out trading activities in the Free Zone, example trading in garments. Only 3 activities can be added to a single license.

E-commerce license

Ajman Free Zone authority gives E-Commerce license to Ajman Free Zone company formation in Electronic trading or online business. It also provides technical and marketing support to investors.

Professional Services license

This license is issued to foreign/UAE companies with the intention of carrying out the business of providing professional services in the Ajman Free zone such as IT Consultancy, Management consultancy and Marketing among many other services.

Industrial license

This kind of license is issued to Foreign/United Arab Emirate companies who wish to carry out manufacturing activities in the Ajman Free zone as per environmental standards and manufacturing policies in Ajman. Ajman Free Zone authorities provide smart stores and warehouses to facilitate this activity. This helps to ensure that all the investor requirements are obtained in one place.

National Industrial License

This license is usually issued to a registered company in Ajman operating in the Free Zone and meets the following eligibility criteria:

  • The company should be registered with a GCC national or nationals owing majority shareholding of 51% and above.
  • At least 40% of the manufacturing process should be accomplished by the company within the Free Zone.
  • Companies holding a national Industrial License are entitled for duty free exports to the member states of the Arab Gulf Cooperation council.

Offshore License

An offshore license can be issued to people by Ajman Free Zone authorities, who intend to establish a business with no physical local presence.

Ajman Free Zone – Facilities

Ajman has world class facilities as part of their business set up agreement. Some of the facilities have been listed below:

Smart Offices:

Smart offices are suitable as a resourceful investment for startups and entrepreneurs. The costs can be kept low and to facilitate proactive business operations and support, Smart offices comes with two employment visa.

Executive Offices:

Executive offices are strategically located in Ajman Free Zone. It comes with up to 5 employment visas. Business operation can be easily and immediately started with these offices. Executive offices have excellent facilities, easy parking and security.

Warehouses:

Ajman Free Zone is keen on meeting the requirements of investors by designing and providing high-quality warehouses, with all service facilities and specifications. Warehouses for rent start from 100 square meters.

Lands:

These are areas for investment and trade zones suitable for industrial investment, prepared as per accurate research on investors’ needs.

To know further about the costs, documentation and packages for Ajman Free Zone, write to us at info@commitbiz.com