Why Does a Business Need Business Setup Services in Ajman?
Situated on the Arabian Gulf coast, Ajman is the smallest of the seven emirates in the United Arab Emirates, with an estimated area of 260 square kilometers. Having a strategic location at the entrance of the Arabian Gulf, with proximity to Sharjah and Dubai, and convenient accessibility to 4 ports and 2 international airports, Ajman Free Zone is aptly situated to serve the eastern and the western markets.
Setting up a business in Ajman calls for thorough planning and decision making through various phases. It involves choosing a company name, determining the type of business activity, obtaining appropriate licenses, choosing suitable infrastructure, hiring skilled workforce, depositing a minimum capital in the mandated bank account, etc. As a result, it is best that a prospective entrepreneur looking to start a business in Ajman opt for business setup services, so as to fully capitalize on the superb facilities and economic environment of Ajman, while leaving the legal and procedural formalities to the service provider.
How Does the Process Work?
For setting up a business in Ajman, 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 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 issuedif 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 applicant 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
Advantages and Disadvantages of Business Setup in Ajman
- A company in Ajman is 100% exempt from all import and export duties.
- In Ajman, 100% foreign ownership is permitted, and there are no restrictions on the repatriation of capital or profits from the UAE.
- Foreign investors can benefit from lower setup costs in Ajman than equivalent free zones elsewhere in the UAE. This is because Ajman Free Zone Authority levies no registration fee, making business registration very economical.
- Companies in Ajman Free Zone are charged very low energy costs. Thus, Ajman is a great choice for setting up energy intensive businesses like manufacturing.
- Foreign investors can get a 20 year land lease, renewable for another 20 years, thereby guaranteeing legitimate tax exempt operations for 40 years.
- There is practically no red tape – the economic policies and legal framework are liberal.
- The business incorporation process in Ajman is simplified – there are single-window clearances for multiple government services, like postal services, licensing, immigration, visa, etc.
- Ajman has 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.
- Ajman is a tiny emirate, which does not enjoy the global image and reputation of a place like Dubai. Hence, businesses which prize corporate image might have to compromise a bit.
- Since Ajman is not very developed, it is still experiencing utilities development and construction work, which can prove to be disruptive to the operations of some companies.
- Ajman has a high minimum capital requirement of AED 183,500 (USD 50,000) for setting up a business, which must be paid during incorporation.
- A Free Zone Company (FZC) in Ajman requires at least 2 shareholders.
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.