Business Setup in Ajman Free Zone? Here’s What You Need to Know

12 Nov Business Setup in Ajman Free Zone? Here’s What You Need to Know

Setup Business in Ajman Free Zone

This article covers the things you should know to start a business in Ajman Free Zone .

Want to set up a company in one of the free zones of the United Arab Emirates (UAE)? An entrepreneur must equip himself with a good knowledge of how to set up his/her own company. Although all these free zones offer matchless benefits, such as exemption of corporate and personal tax, 100% ownership, complete profit and capital repatriation, and 100% exemption of export and import, etc. There are certain benefits and requirements of each free zone that made them distinct from each other. One such free zone is Ajman Free Zone. Currently, AFZ has about 256 industrial firms registered that comprise 20% of the total industrial firms in the UAE.

Established in 1998, the Ajman Free Zone (AFZ) is the oldest free zone of the UAE. It has played a vital role in the industrial development of the UAE by engaging foreign investors from all over the world by offering them matchless investment privileges. AFZ is the only free zone that offers the opportunity to exploit the benefits of Ajman Port which has emerged as a significant sea hub and serves over 1000 commercial vessels every year. Additionally, the major redevelopment of the Ajman International Airport has also boasted the role of Ajman in entire the Middle East as a trade and tourist hub. With Business Setup Consultants (BSC) you can also become a privileged investor or business owner in AFZ to reveal all the unique facilities and benefits offered by this remarkable free zone.

How To Start A Business In Ajman Free Zone

Setting up a company in Ajman Free Zone is relatively easier and comprised some simple steps. We have put together all the necessary information below to guide you through the process of your business startup.

• Firstly you need to get your hands on all the necessary approvals and legal documents. For this, you are required to submit all the documents to the Ajman free zone authority. Once you get the initial approval, you can now apply for the registration and then process the visa. Each of these steps is defined in detail below.
• To begin with, you need to decide on the legal entity that you want to establish. In AFZ you can set up two types of companies i.e. Free Zone Limited Liability Company (FZ LLC) and Free Zone Establishment (FZE). The difference between FZE & FZ LLC lies in the number of shareholders.
• You need to decide on a company name and the nature of the business in order to get a license from AFZ; because licenses and office space are allotted with respect to the nature of business activities.
• Like other free zones which necessitate a local sponsor, AFZ does not demand a local sponsor and you can enjoy 100% ownership of your business exclusively.

Why Choose Ajman Free Zone for Your Business?

For companies seeking a strategic location with streamlined processes and cost-effective advantages, Ajman FreeZone (AFZ) presents a compelling proposition. Here’s a closer look at the key benefits AFZ offers:

• Strategic Location:  AFZ boasts a prime location near Ajman Airport, providing exceptional connectivity for air freight and passenger travel. This proximity translates to enhanced efficiency in logistics, import/export operations, and attracting international talent. Imagine the ease of whisking clients or business partners straight from the airport to your office for a seamless experience.
• Cost-Effectiveness:  Compared to other free zones in the UAE, AFZ offers some of the most competitive business and company setup costs. This makes it an attractive option for startups, entrepreneurs, and even established companies seeking to expand their operations. The lower costs allow you to invest more in core business activity and growth initiatives.
• Streamlined Process:  AFZ is renowned for its fast-track company registration process. Their efficient procedures enable businesses to be up and running swiftly, minimizing delays and maximizing the time you can dedicate to core business activities. This focus on streamlining allows you to capitalize on market opportunities quickly.
• Business-Friendly Environment:  AFZ fosters a business-friendly environment that actively supports specific industries. Whether you operate in healthcare, food & beverage, or the dynamic e-commerce sector, AFZ offers dedicated facilities, tailored licenses, and a supportive ecosystem to help your business thrive. This targeted support system paves the way for your success within your chosen industry.

Get Ajman FreeZone Business License

Ajman FreeZone (AFZ) caters to a diverse range of business activities by offering a variety of business license options. Understanding these licenses and their suitability is crucial for setting up your business in AFZ. Here’s a breakdown of the most common types:

1. Free Zone Establishment (FZE) and Free Zone Company (FZC) Licenses:

These are the most popular licenses in Ajman Free Zone company formation, offering 100% foreign ownership and minimal capital requirements. Both FZE and FZC licenses allow for import, export, and trading activities within the free zone. However, there’s a subtle difference:

• FZE License: Ideal for single-shareholder companies, offering a cost-effective business or company setup option.
• FZC License:  Suitable for companies with multiple shareholders, providing more flexibility in ownership structure.

2. Commercial License:

This license is designed for businesses engaged in trading activities like buying, selling, and distribution of goods within the free zone and abroad. It allows for both import and export operations.

3. Industrial License:

A national Industrial License caters to businesses involved in manufacturing, assembling, or processing of goods within the free zone. This license permits import of raw materials and export of finished products.

4. Service License:

This license is ideal for companies offering professional or consultancy services within the free zone. It covers a broad spectrum of activities like IT services, management consulting, and marketing.

5. E-Commerce License:

Recognizing the booming online market, AFZ offers a dedicated E Commerce License. This license is specifically designed for businesses conducting online sales and trading activities. It allows for storage and distribution of goods within the free zone for online fulfillment.

• Other Specialized Licenses: AFZ also offers specialized licenses for specific industries, such as the Media License for media production companies and the Education License for educational institutions.

Choose the Right License for Your Business:

To ensure you select the most suitable trade license for your business, consider the core activities you will be undertaking.

• If your primary focus is on buying and selling goods, a Commercial License is the way to go.
• For manufacturing or production activities, an Industrial License is necessary.
• Businesses providing professional services should opt for a Service License.
• Companies conducting online sales can benefit significantly from the E-Commerce License.
• Freelancers seeking a professional business address can leverage the Freelancer License.
• And young entrepreneurs can take advantage of the Pioneer License program.

How Could Business Setup Consultants Help?

If you are looking for an experienced business setup consultant for your local company or foreign company then stop searching. Business Setup Consultants (BSC) is one of the leading consultancy companies in the UAE which can help you in license acquisition and set up your business in the Ajman Free Zone. 

Our team of professionals is always on their toes to serve you with their expedient advice. Please book a free consultation and take a minute to talk to us about the easy and convenient way for the business to set up in the UAE free zone or UAE mainland.