Ajman Free Zone Business Setup

business setup in ajman freezone

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Ajman Free Zone Business Setup

The Ajman Free Zone, commonly referred to as AFZ, was established in 1988 and is one of the pioneering free zones in the UAE. Despite being the smallest emirate in the UAE, Ajman has successfully fostered an impressive business environment, nurturing over 37,000 businesses, with more than 9,000 of these located within the free zone itself. This remarkable growth demonstrates Ajman’s strategic importance and appeal as a business destination in the region.

Setting up a business in Ajman offers entrepreneurs and companies access to an expansive array of over 1,500 business activities, allowing for a diverse range of operations. 

Businesses can thrive in various sectors, including trading, manufacturing, and services, making Ajman an attractive option for startups and established companies alike. The free zone's business-friendly policies, competitive pricing, and simplified processes are designed to support business growth and ensure a seamless setup experience.

In addition to the advantages offered by the free zone, Ajman Free Zone is known for its vibrant industries, particularly in real estate, retail, construction, transportation, and business services. These sectors have flourished over the years, contributing to the emirate's overall economic growth and enhancing its reputation as a commercial hub.

In 2021, Ajman further strengthened its infrastructure by inaugurating its own airport, which has significantly improved connectivity and logistics for businesses operating in the region. 

The new airport facilitates easier access for goods and services, enhancing trade opportunities and attracting more businesses to the emirate. This development is expected to boost the overall economy of Ajman and streamline operations within the free zone.

On the whole, the Ajman Free Zone serves as a key player in the UAE's economic landscape, providing a conducive environment for business establishment and growth. With its rich offerings, strategic location, and ongoing infrastructural improvements, Ajman is poised to remain a vital destination for entrepreneurs and businesses looking to expand their operations in the Middle East.

Ajman Free Zone Business Setup Advantages

Full Foreign Ownership

Full Foreign Ownership

International businesses do not require a local Emirati sponsor to be a partner to operate, maintaining 100% ownership.

Tax Benefits

Tax Benefits

Exemption from corporate tax, personal income tax and import and export custom duties.

Easy and Quick Setup Process

Easy and Quick Setup Process

The registration and licensing process is streamlined, often within a few days.

Wide Range of Business Activities

Wide Range of Business Activities

Supports various business activities, including trading, services, manufacturing, e-commerce, and more, providing flexibility for entrepreneurs.

Strategic Location

Strategic Location

Situated near major highways, seaports and airports.

Access to Modern Infrastructure

Access to Modern Infrastructure

Equipped with state-of-the-art infrastructure, including offices, telecommunications, utilities, and transportation facilities.

Support Services

Support Services

Provides a range of support services, including assistance with company registration, visa processing, and administrative services, helping businesses navigate the local landscape.

Networking Opportunities

Networking Opportunities

Collaboration and access to various business development opportunities.

Licenses Available in Ajman Free Zone

Commercial License: For businesses involved in retail, wholesale trading import, export, and distribution of goods.
Service License: For businesses providing a broad range of services.
Industrial License: For businesses involved in production, manufacturing and assembly operations. 
E-Commerce License: For businesses operating online and engaging in electronic transactions.
Pioneers Package: The license is for startups started by entrepreneurs of ages between 20 to 30.
Freelancer Package: The license is for individual contractors.
Offshore License: For offshore businesses that are incorporated in a jurisdiction different from the one where it carries out its business activities.
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Ajman Free Zone Business Setup Process

Timeline: 2 to 4 weeks

01 Choose a Business Activity

Determine the type of business activity you want to pursue and the appropriate license required.

02   Select a Company Name

Choose a unique name for your business that complies with the Ajman Free Zone Authority (AFZA) regulations and reserve it.

03   Prepare Required Documents

Check the list for the documents needed and gather the necessary documentation.

Takes 1 to 3 days

04 Submit Application for License

Submit the application form along with the required documents to the AFZA.

Takes 1 to 2 days

05  Receive Initial Approval

Upon review of your application, you will receive an initial approval notification from AFZ.

Takes 1 to 2 days after submission

06 Sign Lease Agreement

Finalize and sign the lease agreement for your office or warehouse space in the free zone.

Takes 1 day

07  Payment of Fees

Pay the necessary license fees, registration fees, and other related costs.

Takes 1 day

08  Receive Business License

Once all payments are made, you will receive your business license from AFZA.

Takes 1 to 2 days after payment

09  Obtain Visas and Other Permits

Apply for residence visas for shareholders and employees, as well as any additional permits required for specific activities.

Takes 1 to 3 weeks 

Documents Required in Ajman Freezone

Required documents vary based on the legal structure of the business: FZE, FZCO and Branch Office.

Document Type FZE (Free Zone Establishment FZC (Free Zone Company) Branch Office
Passport copies of shareholders Required (single shareholder) Required (multiple shareholders) Parent company’s directors/shareholders
Passport copies of managers Required Required Required
Personal Information Form Required for shareholder and manager Required for shareholder and manager Required for branch manager
Visa/Emirates ID copies (for UAE residents) Required if applicable Required if applicable Required if applicable
Business Plan Required for certain activities Required for certain activities Required for certain activities
Board Resolution (Parent Company) Not applicable Not applicable Required (to establish a branch)
Certificate of Incorporation (Parent Company) Not Applicable Not Applicable Required
Memorandum and Articles of Association (MOA/AOA Standard MOA provided by AFZ Standard MOA provided by AFZ Parent company’s MOA required
Shareholder Resolution Required for company establishment Required for company establishment Not applicable
Lease Agreement Required (for office or warehouse space) Required Required
Company Name Reservation Required Required Required
No Objection Letter (if applicable) Required for UAE residents if applicable Required if applicable Required if applicable
Bank Reference Letter Required for shareholder Required for all shareholders Not applicable

License Cost in Ajman Free Zone

The cost of setting up a business in the Ajman Free Zone varies depending on the type of license you require, the starting price of all licenses is AED 5,500.

In addition to the license fees, other potential costs include office space, which can vary significantly based on location and size. Local sponsor fees if applicable and visa and permit costs also add to the overall expenses.

*Note the price is an estimate and will vary in reality. For an accurate cost breakdown, get in touch with our consultants.

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Frequently Asked Questions

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