Limited Liability Company in Ajman

Ajman, an Emirate in the United Arab Emirates (UAE), has emerged as a popular option among entrepreneurs. As a growing business hub, it offers numerous business opportunities. If you are considering a business setup in Ajman, it is important to understand the need to choose a good business structure to ensure success.

A Limited Liability Company (LLC) has become quite prominent in Ajman, given its benefits. We will explore the legalities behind LLC formation in Ajman and try to break down the concept for better understanding.

What is a Limited Liability Company?

A Limited Liability Company (LLC), also known as a Limited Liability Partnership (LLP) in a few countries, is a type of business structure that limits an entrepreneur's responsibility or liability regarding debts and other financial burdens.

Benefits of Choosing Limited Liability Company (LLC) Structure

There are certain benefits you can enjoy when choosing to set up a limited liability company in Ajman. Let’s delve into them:

1. Liability Protection

You and other shareholders are not responsible for the company's financial burdens and legalities. Starting an LLC separates your assets from the company's liabilities. Additionally, you can also retain complete control over the business management and its operations.

2. Tax Benefits

Ajman has a tax-free environment that allows you to enjoy tax exemptions for corporate and personal taxes. This will enable you to maximise your profits and gain a competitive edge in the market.

3. Business-friendly environment

Setting up a limited liability company in Ajman provides access to skilled individuals across various industries. Given the Emirate’s strategic location, it also helps access advanced logistic facilities.

4. Financial Ease

Ajman is relatively cheaper than other Emirates. Starting an LLC in Ajman is cost-effective due to low operation costs and economical leasing options.

Conditions to Start an LLC in Ajman

When looking to set up an LLC in Ajman, you must fulfil certain conditions. Take a look at them for a better understanding:

• Profit and loss must be divided equally among shareholders unless stated otherwise in the Memorandum of Association (MoA)
• Registering an LLC in Ajman allows you to conduct any commercial activity except for banking, insurance, and other investment businesses.
• You cannot issue shares to the public to raise capital.
• An LLC can be managed by up to five managers, who may be partners or individuals appointed through the MoA or management contract.
• Having a minimum of 2 and a maximum of 50 members is necessary.
• There is a minimum capital requirement, where the value of each share must be equally divided between the members unless the MoA states otherwise.
   

What are the Steps for LLC Formation in Ajman?

To benefit from incorporating an LLC, you must be aware of the legalities of establishing a business in Ajman. Follow these processes to ensure legal compliance-

1. Choose Trade Name 

You must choose a trade name reflecting your business activity and end with ‘LLC’. It should also include the name of at least one partner.

2. File Application

Submit the business application form to the Department of Economic Development - Ajman (Ajman DED) and obtain initial approval to register the business in the Emirate.

3. Submit Documentation

If additional approval is required from other authorities, you must submit the relevant documents to the authorities at Ajman DED. Depending on the chosen business activity, you must obtain additional permits and approvals.

4. Avail License

Pay the requisite fees once the DED authorities review the application and documents.

Once the process is completed, they will issue your Ajman trade license and certificate of incorporation.

Documents Required to Register an LLC in Ajman

The documents needed to start a limited liability company in Ajman are mentioned below:

• Memorandum of Association (MoA).
• Passport copies of the partners.
• No-objection certificate (NOC).
• Articles of Association (AoA).
• Bank reference letter.
• Lease agreement.
• Business plan.
   

Why Commitbiz?

Legalities and documentation while setting up your business are often considered troublesome. We at Commitbiz LLC have professionals who can handle these tasks efficiently while letting you focus on developing success strategies. Our business setup consultants can handle the legalities of setting up a limited liability company in Ajman. Contact us to learn more and get the wheels rolling!