Ajman composes one of the seven Emirates of the UAE and is located alongside the Gulf of Persia and situated between UAQ and Sharjah. Ajman, from the last few years, has established itself as a favorable destination for property investors and real estate developers, mainly due to a transparent taxation system and robust infrastructure with state-of-art development.
Setting up a business in Ajman is a complementary step since the Emirate offers a pro-business environment to its entrepreneurs and business persons. Incorporating a company in Ajman must go in sync with the direct policies and structures for mainland business setup in the UAE, as laid down by the government.
LLC Formation in Ajman
The Limited Liability Company (LLC) formation is the most preferred business setup type in Ajman. It is a company where the number of partners cannot be more than 50 and cannot be less than 1. The liability of each partner is equal to the number of shares in the company. There are many advantages associated with the establishment of an LLC. However, like other Emirates, you must have a local partner who will hold the maximum, i.e., 51% share in the company while you will have 49% only.
Here are a few features of an LLC in Ajman
- The capital of this company must not be less than Dhs 150.000- divided into equal negotiable shares, and any amount of the same shall not be less than 1,000 dirhams.
- Minimum 2 partners and a maximum of 50 partners required.
- The UAE nationals share must not be less than 51% of the total shares.
Conditions of Starting an LLC in Ajman
- The name of the LLC must be taken from its purpose or one or more of the partners’ names. The statement Limited Liability Company must be added to its name, stating the company's capital.
- Other than the banking, insurance, and investment businesses for others, the LLC shall be allowed to practice any legal activity.
- The Company may not resort to Public Subscription to make up its capital or to increase it or get the necessary loans, and it may not issue any negotiable stocks or shares.
- Shares may not be divided, and if several people owned it, they should choose one to be an individual owner against the Company, and it may fix for the shareowners a time for such selection, given that after that date, the share may be sold to its owners, in which case partners shall enjoy a priority in the purchase.
- Profits and Losses must be divided equally among shares unless stated otherwise.
- The share of each partner must be transferred to their heirs, and the ones mentioned in the will shall be treated as heirs.
- An LLC can be managed by managers that may be elected from among the partners or any other parties, given that they do not exceed a total of five people.
- The managers must be appointed by a Memorandum of Association (MoA) or a separate management contract for limited/unlimited terms. If the manager/managers are not delegated as stated in the above point, the General Assembly of the partners will elect them.
- The company manager will enjoy the full powers of administration. Their acts shall be binding to the Company, provided that it is supported by stating the capacity they enjoy unless otherwise stated in the MOA.
- The manager's resolution shall be as liable as that of the company board, all the guidelines in the company contract inimical to that shall be invalid.
Procedure to Register a Limited Liability Company (LLC) in Ajman
Ajman makes an exciting opportunity for company formation. It offers a global opportunity for business investors with a platform for trade, investment, and industry business establishment. The steps to register a business in Ajman are -
- Submit the business application form to the Department of Development Ajman
- Obtain initial approval for registering the business
- Obtain approval for trade name
- Submit the required documents and get approval
- Pay the required fees and apply them to the customer service centre.
- Get the license to officially start the operations in Ajman.
The documents required to complete the process are -
- Proof of residence
- Memorandum of Association & Articles of Association
- Business plan
- Bank reference letter
- Passport copy of the partners
LLC set up in Ajman serves as an investment medium for businesses and benefits zero taxation. The process of registering the company is hassle-free and useful.
How can we help?
To complete all these steps and processes, if one needs a helping hand from an expert in LLC company formation, we at Commitbiz will provide you all the assistance. Our business setup consultants will guide you step by step to make important business-related decisions and also make you aware of the complete procedures for incorporating your business. Contact us today.