Situated on the Arabian Gulf coast, Ajman is the smallest of the seven emirates in the UAE, with an estimated area of 260 square kilometers. The prime industries in Ajman are manufacturing, real estate, retail, construction, transport, and business services.
Business setup in Ajman needs detailed planning and decision making. It includes choosing a company name, determining the type of business activity, obtaining the necessary licenses, hiring human resources, selecting suitable infrastructure, depositing a minimum capital in a corporate bank account, etc. All this requires having a business setup consultant who will look into the legalities of business setup. Many management consultancies in Ajman provide such opportunities to the investors by helping in all the business setup formalities.
Ajman Company Formation
Commitbiz knows the company formation rules and guidance in Ajman and can help you set up your business here. We help in availing the needed licenses like Industrial/Service License, Trading/Commercial License, and Professional/General Trading License. You can choose from among a free zone, mainland or offshore company in Ajman.
Here is a description for each free zone in Ajman.
Ajman Free Zone
Ajman free zone was launched in the year 1988 and is situated in the Arabian Gulf Coast. It is located strategically and has access to four seaports and two international airports, leading to the flourishing of companies in the region. The Ajman free zone companies have secure business setup procedures, and issuance of business licenses to companies established and managed by the Ajman Free Zone Authority. To open a company in Ajman Free Zone, one must have to go to this authority only.
There are many benefits of business setup in Ajman Free Zone are-
- 100% repatriation of capital and profits
- No red tape
- Corporate tax is fully exempted for companies
- Business-friendly laws for the companies
- Simplified immigration policies and quick for workers
To know more about company formation in Ajman free zone, click here.
Ajman Media City Free Zone
Ajman Media City Free Zone is a newly formed free zone that provides comprehensive media and digital facilities in the UAE. This is done by matching the professional mindset of individual entrepreneurs and businesses. The free zone is located in the City of Ajman and has high-tech telecom, communication links, top-notch digital customer service, and incentives for entrepreneurs interested in starting a business in Ajman Media City free zone.
All Business Entities in commercialized geographical areas and directly registered under the Emirates government and its authorities are known as mainland companies. Mainland represents the most developed economy as it is set up directly following the legal structures of the Government policies. If one decides to start a business in mainland Ajman, then having a local sponsor is essential. A local sponsor will have a 51% share in the company, and the business person will own the remaining 49%. A mainland company in Ajman can go for the following business entities-
- Limited Liability Company
- Public Shareholding Company
- Branch Office
- Representative Office
- Professional Firm
Ajman offshore is regulated by the Ajman Free Zone Authority. It is similar to other offshore jurisdictions as there are no taxes, and the company’s confidentiality is kept intact as the address is that of a registered agent. An offshore company in Ajman is the one who engages in offshoring businesses in the UAE. This jurisdiction involves the following activities-
- General trading
- Professional services
- Stake holding
- Investment and joint investment companies
- Advisory/Consultancy services
- Commission agents/brokers
To know more about incorporation in Ajman offshore, click here.
Advantages of Setting up a Business in Ajman
- In the Emirate, 100% foreign ownership and full repatriation of capital and profits are allowed in Ajman free zone.
- Ajman free zone presents all the opportunities an exclusive economic area is supposed to provide, at a relatively lower cost than other free zones in the UAE. This is because Ajman Free Zone Authority levies no registration fee.
- The business registration process in Ajman is straightforward – there are single-window clearances for multiple government services like postal services, licensing, immigration, visa, etc.
- In Ajman, foreign investors can get a 20-year land lease, renewable for another 20 years, thus allowing legitimate tax-exempt operations for 40 years
- A company located in Ajman enjoys 100% legal exemption from all import and export duties
- As a part of the UAE, a respected international trading jurisdiction, an Ajman business is not perceived as an offshore company in a foreign tax haven
Types of Business Licenses in Ajman
One needs a business license in Ajman in order to practice a business activity in Ajman, as per the government guidelines. There are four main types of business license available in Ajman, which are as follows-
1. National Industrial License
There are a few criteria ones have to meet to get this license, they are-
- The business must be registered with the Gulf Cooperation Council (GCC), and they must own at least 51% of its shares
- At least 40% of the manufacturing processes should be accomplished in the free zone. businesses holding a National Industrial License are eligible for duty-free customs fees to member states of Arab Gulf Cooperation Council
2. Trading License
Business carrying trading activities in Ajman is issued with this license. Trade includes import, export, re-export of goods and services in the United Arab Emirates
3. Industrial License
This type of business license is granted to any foreign, UAE, or free zone entity carrying out manufacturing activity in Ajman
4. Professional/Service License
This type of business license is granted to any UAE, foreign, or free zone entity interested in providing professional/service license activities in Ajman
5. E-Commerce License
E-commerce license is a new license level for e-commerce enterprises. It will facilitate online business entrepreneur's partnerships with the free zone to tap into the growing e-commerce segment of the GCC and the region. There is an excellent scope for E-commerce business in Ajman and the UAE, with around 42% of the population reportedly making online transactions. Even the Ajman free zone has a record number of applications for issuance of e-commerce license in the Emirate
6. General Maintenance License
If anyone wants to start a maintenance business in the Emirate, having a General Maintenance License is necessary. Having this license can give authority to individuals in a maintenance business is to make repairs and performs regular maintenance duties to keep buildings in good shape
Process of Ajman Company Registration
For starting a company in Ajman, the following steps may be followed:
- Submit a company application form at the Customer Services Centre in the municipality for initial approval.
- Follow up with the Inspection Unit in the municipality of Ajman for verifying the chosen business location.
- Obtain approval of specialized departments in the municipality, if required.
- Obtain approval for the trade name and issuing of business register and membership certificate.
- Submit the necessary approvals, along with receipts from the Ministry of Trade as acceptance into the Register of Companies.
- Pay all fees and submit the application to the Customer Services Centre to get the receipt It would take one day to get the license for your company
The registration process is simple, and a particular set of documents are required mandatorily
- A valid copy of the passport of the company shareholders
- Proof of residence of the company owner
- Memorandum of association
- Article of association
- Duly filled application for incorporation of an offshore account
- Bank reference letter
- Resume of the owner of the offshore account
- Business plan with cost-benefit analysis
Business Activities in Ajman and Required Approvals from Authorities
Ministry Of Education
Private Schools, Kindergartens, Educational Institutions, Gymnasiums
Ministry Of Justice, Islamic Affairs, And Awqaf
Organizing Hajj And Omrah Campaigns, Quran Recital Centres, Law Firms
Ministry Of Agriculture And Fisheries
Plant Nurseries, Farm, Cattle And Bird Trading, Fish Trading, Seeds And Fertilizer Trading
Ministry Of Labor And Social Affairs
Babysitting Services, Labor Services
Ministry Of Finance And Industry
All Industrial Licenses
Ministry Of Health
Hospitals, Private Clinics And Practices, Medical Laboratories, Pharmacies
Ministry Of Economy
Accounts Auditing, Foreign Companies Branch
Ministry Of Information And Culture
Advertising And Publicity Office Drawing And Scripting, Organizing Events And Shows, Computer Trading, Digital TV And Cable Services
Banks, Money Exchange And Transfer, Financial Consultancies
Why Invest in Ajman?
The Emirate of Ajman enjoys natural aspects and features, making it one of the most crucial attraction spots in the area. It qualifies to be a vital core for investments which can open new horizons in the world of economy, and provide significant investment opportunities. To know why Ajman is an excellent place for investment, listed below are a few of its features:
- It lies between Dubai and Sharjah, and is easily accessible
- Availability of facilities and services such as power, medical, and telecommunication
- The free zones in Ajman are very investor-friendly, providing 100% foreign ownership, hassle-free approvals and several tax benefits
- Ajman port offers facilities for exports and imports, vessel repair, and maintenance
- Low-cost operation of many industries compared to other free zones in the world
- Primary industries are available making it provide such raw materials required for some ready and semi-manufactured industries
- State-of-art infrastructures like ports, roads, industrial zones, and transport
Our Business Setup Services in Ajman
Commitbiz Management Consultants can help you with the following business setup services in Ajman:
- Company incorporation
- Company registration
- Local sponsorship
- Public Relations Officer (PRO) services
- Accounting and bookkeeping
- Tax consulting
- Value Added Tax (VAT) registration
- Legal advisory
- Setting up a branch office in Ajman
- Intellectual property protection
Commitbiz helps entrepreneurs and firms in setting up a company in Ajman through company registration, incorporation, and legal consulting services. Our experts take care of the banking, visa, legal, and licensing formalities, following the UAE laws. We guide you through your company formation, with your business objectives at the core.
We assist you in planting your company in this booming economy by handling all the legal formalities. Our goal is to help your business gain a foothold, establish free trade agreements, and ensure that you avail all the state-of-the-art facilities of the region. For company setup in Ajman, contact us – we'll be glad to assist.
1. What are the steps for company formation in Ajman?
To register a business in Ajman, follow these steps:
(1) Submit an application at the Customer Services Centre for initial approval
(2) choose a business location and follow up with the Inspection Unit in Ajman
(3) obtain membership certificate
(4) submit documents into Register of Companies, and
(5) pay fees.
2. What is the procedure for issuing a license in Ajman?
The procedure includes:
- Trade name reservation
- Obtaining preliminary approval
- Obtaining extra approvals if necessary
- Drafting MoA
- Obtaining service agent contract for occupational license
- Getting lease contract from Real Estate Regulatory Agency
3. What is the minimum capital requirement for business setup in Ajman?
The minimum capital required if the companies fall under Free Zone Company or Free Zone Establishment is AED 183,500.
4. Is having a physical office mandatory for business in Ajman?
Yes. It is mandatory to have a physical office with a minimum space of 550 sq. ft. in Ajman.
5. What type of business activity can a branch of a foreign company practice in Ajman?
The indirect industrial, commercial, and professional activities can be practiced.
6. What is the procedure for reserving a trade name in Ajman?
You can apply for a trade name online or go through an authorized document clearing office or approved law/consultancy firm.
7. What documents are required to get initial approval for company registration in Ajman?
The documents required are:
(1) a copy of passport,
(2) a copy of a family book or identity card, and
(3) a NOC from the current sponsor to practice the business.
8. What are the types of business licenses available in Ajman?
- National Industrial License
- Trading License
- Industrial License
- Professional License
- E-commerce License
- General Maintenance License