Company Setup in Ajman
Ajman, located on the Arabian Gulf coast, is the smallest of the 7 emirates in the UAE. It is close to Sharjah and Dubai, and conveniently accessible to 2 international airports and 4 ports. The major industries contributing to the GDP of Ajman are construction, manufacturing, real estate, retail, transportation, and business services. In terms of region, Ajman Free Zone and Ajman Port are the chief contributors to the emirate’s economy. Ajman Free Zone Authority (AFZA) is the governing body responsible for issuing business licenses and registering companies in the free zone.
Ajman Free Zone provides cost-effective options for business registration, apart from offering various other lucrative incentives to foreign investors. Presence of a world-class infrastructural network, flexible legal framework, tax incentives, and excellent logistic facilities are some of the advantages that make business setup in Ajman a highly economic investment.
Benefits of Business Setup in Ajman
- Business-friendly legal framework and company laws
- Fast immigration process
- Simplified business incorporation process
- Single-window clearances for multiple government services, like postal services, licensing, immigration, visa, etc.
- Provision of 100% foreign ownership, full repatriation of capital and profits, and exemption from corporate and personal income tax in Ajman Free Zone
- Economical wage structure, and sponsorship and visas for an affordable skilled workforce
Business Licenses in Ajman
A business license is required in order to practice a business activity in the Ajman, as per the corporate regulations. A company can avail one of the following 4 types of business licenses in Ajman:
1. National Industrial License
A company operating in the free zone is awarded an industrial license if it meets the following eligibility criteria:
- The company should be registered within the Gulf Cooperation Council (GCC), and at least 51% of its shares must be owned by GCC nationals
- At least 40% of the manufacturing processes should be accomplished in the free zone. Companies holding a National Industrial License are eligible for duty-free customs fees to member states of Arab Gulf Cooperation Council
2. Trading License
Any foreign, UAE, or free zone entity which wishes to carry out trading activities in Ajman is issued with this license
3 Industrial License
This license is issued to any foreign, UAE, or free zone entity carrying out manufacturing activity in Ajman.
4. Professional/Service License
This license is issued to any foreign, UAE, or free zone entity interested in providing professional/service activities in Ajman.
Process of Company Setup in Ajman
- 1. Submit a duly filled company application form to AFZA, along with the required documents.
- 2. The application (with the date of submission written on each application) is shall be registered with the registration office. The Free Zone Authority notifies the applicant about the decision taken, that very day.
- 3. If the application is accepted, the Free Zone Authority notifies the applicant whether the decision was conditional or unconditional. The relevant license is issued if the application has met all the requirements and the prescribed fees have been paid.
- 4. If the application is rejected, the Free Zone Authority notifies the applicant with reasons for the rejection of application within 15 days from the date on which the applicant was notified of the rejection.
- 5. In case the applicant opposes the application rejection, the Free Zone Authority reviews the opposition and issues its final decision within 30 days from the date of submitting the opposition. If a decision is not issued within 30 days, the opposition is considered to have been rejected.