Ajman provides cost-effective options for business registration in Ajman Free Zone in addition to offering various other beneficial incentives to foreign investors.
Ajman provides cost-effective options for business registration in Ajman Free Zone in addition to offering various other beneficial incentives to foreign investors. This free zone was established in 1988. Presence of 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 lucrative investment. Moreover, Ajman has a strategic location at the entrance of the Arabian Gulf, with proximity to Sharjah and Dubai, and convenient accessibility to four ports and two international airports, Ajman Free Zone is aptly situated to serve the eastern and the western markets. The governing body responsible for getting companies registered and issuing licenses in Ajman free zone is Ajman Free Zone Authority (AFZA).
Benefits of Setting up a Company in Ajman Free Zone
- Provision of 100% foreign ownership
- 100% repatriation of capital and profits
- Exemption from corporate tax, import/export tax, personal income tax, and customs duty for goods and services
- A host of amenities to offer like business facilities (conference room and business meeting rooms), 24-hour security services, bank services, postal services, advanced communication systems, etc.
- Provision of a 20 year land lease, renewable for another 20 years, thereby guaranteeing legitimate tax exempt operations for 40 years
Types of Licenses in Ajman Free Zone
- Trading License
- Professional Service License
- Industrial License
- National Industrial License
Ajman Free Zone – Legal Entities
An individual or corporate entity may set up their business in Ajman in any of the following forms:
- Free Zone Establishment (for a company with a single shareholder)
- Free Zone Company (for a company with 2-5 shareholders)
- Branch Office of a Foreign Company (where the applicant is a foreign national)
- Branch Office of a Local Company (where the applicant is a UAE national)
Process of Setting up a Business in Ajman Free Zone
For setting up a business in Ajman free zone, an investor needs to carry out the following processes.
- Submit a duly filled application form to Ajman Free Zone Authority (AFZA) along with the required documents
- Register the application (with the date of submission written on the application) with the registration office
- The application is processed on the same date as that of application submission
- The Ajman Free Zone Authority intimates the applicant about the decision taken on the day of application itself
- 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 meets all the requirements and the prescribed fees has been paid
- 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. In case the applicants choose to oppose 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
Documents Required for Company Formation in Ajman Free Zone
- Proof of trade name reservation
- Proof of initial approval for business activities
- Passport copies for the shareholders
- Passport copy and CV of the manager
- Personal Information sheet for each shareholder & manager
- Lease agreement [possessing a physical address for one’s office is mandatory in the UAE]
- Third party/authority approval for activities, where applicable
If you are still not convinced here are a few more benefits that you must know for setting up a company in Ajman Free Zone
1.Low Start-up Cost
One of the reasons why Ajman free zone is preferable is due to its low start-up cost. Regardless of the size of your enterprise, Ajman free zone welcomes businesses of all types and sizes. Especially, small and midsize companies operating on a shoestring budget will find AFZ the best place to run their business.
It has an easy access to two international airports- Dubai and Sharjah. The zone is located in close proximity to four major airports Ajman Port, Port Khalid, Port Rashid and Khorfakkan Port. In addition, the area is connected to Qatar, Saudi Arabia, Oman, Iran, Bahrain, Europe and Kuwait.
3.Feasible Visa Options
Another benefit for entrepreneurs wanting to establish a company in AFZ is the availability of multiple packages with different visa options. The Smart Office package allows business owners to glean up to three visas at a time while Executive Office package grants up to five visas.
4.Lower Nationality Issues
Those who are facing difficulties in other emirates can submit a visa pre-approval application through the visa pre-approval process of Ajman Immigration office. There will be no need to bear the costs of the company or having to cancel your current visa.
Another feather in the cap of Ajman’s economic system especially when it comes to business formation in Ajman free zone is the plethora of options they offer in terms of initial investment. AFZA typically favors small and medium enterprises by provided them grants and pro-business schemes and initiatives. Hence, if you have a small budget but great entrepreneurial skill set, business aspirations, and the spirit of starting an enterprise on a foreign soil then you can start business in Ajman Free Zone and make your dream come true.
Business setup in Ajman is a lucrative choice for entrepreneurs who are looking to capitalize on their investments in the smartest possible way. Business Setup Worldwide is a one-stop solution provider helping foreign investors setup their dream operations in Ajman by taking care of their entire business setup requirements including, banking, licensing, registration, documentation, and all other legal formalities. Our team leaves no stone unturned to ensure that your process of setting up a company here is hassle-free and delightful. Contact us today- we’d be happy to help.