Company Setup in Ajman

Company Formation in Ajman

Ajman provides cost-effective business registration options and offers various other beneficial incentives to foreign investors. The presence of a world-class infrastructural network, flexible legal framework, tax incentives, and excellent logistic facilities are some advantages that make Ajman's business setup 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.

Benefits of Starting a Business in Ajman

When it comes to advantages that businesses receive after setting up a business in Ajman, here are a few you must know,

• No currency restriction
• No mandatory to file yearly audit
• Conduct business with local market
• No limit on activities
• Zero capital requirement
• Tax free
• No visa limit

Special Features of Ajman

• Ajman is known for having a strategic location as it is located between Dubai and Sharjah
• It has all the facilities readily available such as telecommunication, power, and medical services
• National capitals are available
• Ajman port provides facilities for imports and exports, maintains, and vessels repair
• State-of-art infrastructure such as port, roads, transport, and industrial zones
• Governments pro-business incentives to all the investors, boosting and enhancing their capabilities in carrying out their business carefully
• Basic industries are available providing raw materials required for ready and semi-manufactured industries
• Low cost of operation of many industries compared to other free zones in the world
• Financial incentives and transfer facilities are also available encouraging investment

Legal Entities Available in Ajman

The different types of company structures available in Ajman are,

1. Joint Liability Company
   
   • Can be started with two or more partners
   • All partners must be from the UAE
   • The partners must be liable in their own funds and properties in regard to the company’s liabilities and no agreement shall be applied otherwise
   • The bankruptcy of the company shall lead to the bankruptcy of all the partners
2. Simple Commanding Company
   
   • Can be started with two or more partners
   • Partners are in two categories
   • Category of one partner shall only be liable within the limit of their shares in the capital
   • All the partners in the partnership company must be nationals from the UAE and their share in the company’s capital shall not be less than 51%
3. Limited Liability Company
   
   • The capital of an LLC must not be less than Dhs 150,000
   • The partners must not be less than two, nor exceed fifty
   • The partners must not be liable for the company’s liability other than in proportion to their shares in the capital
4. Service Agents
   
   • The national must be of emirate of Ajman
   • The owner of the license shall be liable to meet all the liabilities pertaining the establishment towards the others
   • The national shall not meet any liabilities arising in the name of the establishment or due to conduct of the owner of the license

Foreign companies can also set up subsidiaries and branch offices in Ajman.

Process of Company Formation in Ajman

Before diving into the procedure, let us first know the requirements to start a business in Ajman.

Conditions and Prerequisites

• Licensee must be eligible and qualified according to the law pertaining to trading licenses
• The investor should apply to the municipality to obtain the necessary application forms and make sure one completes all that is required for the business or the license
• The place of business is to be setup in an industrial or commercial location that enjoys the approval of the municipality
• Payment of the applicable fees

Documents Required

• Passport photocopy of the shareholders
• Leasing contract or copy of the location ownership
• Schematic drawing for the business location
• Proof of trade name reservation
• Personal information sheet of each shareholder and manager

Procedure

The Department of Economic Development (DED) in Ajman is the authority who helps in business setup.

• Submit the application form at the Customer Services Center in the municipality for initial approval
• Follow up with the Inspection Unit in the municipality for inspection of the business location in real terms
• Obtain the approval of the specialized departments inside the municipality, if applicable
• Check with the AJCC in the municipality on how to obtain the approval for the trade name and issuing of business register and membership certificate
• In case of establishment a new company, submit all the necessary approvals, in addition to receipts from the ministry of trade as acceptance into the register of the companies
• After all fees are paid, submit the application to the Customer Services Center in order to get the receipt
• It takes 1 day to receive the license and the business setup cost in Ajman depends on the license that is chosen

People who want to set up a business in Ajman can experience the efforts taken by the government when it comes to ensuring that all the business owners who want to establish a business have their needs met with. The needed amenities of each sector are present to further facilitate the business owners who are looking to begin their venture in Ajman. Over the years, Ajman has been developing ways to diversify its investments. A variety of businesses are now residing in the Emirate such as manufacturing, retail, and services. There are even more organizations that are being set up each day. Transport companies in Ajman are reaching a higher number and even IT companies in Ajman as well. These established businesses provide economic diversity that pushes other business owners to invest in this Emirate.

After going through all the things Ajman has to offer, anyone would want to start their business here. If you are one of them, we at Business Setup Worldwide can help you with it. Our advisors in Ajman have years of experience in this field and can help you in business formation in smooth and hassle-free manner. For more information, contact us today.