Ajman Free Zone (AFZ) is a leading business hub in the UAE, known for its tax-free environment, 100% foreign ownership, and streamlined setup process. Established in 1988, AFZ provides entrepreneurs with fast registration, strategic access to Middle Eastern markets, and modern facilities, including flexible workspaces, warehouses, and e-commerce licenses. Its cost-effective setup, skilled workforce, and strong connectivity make AFZ an ideal location for startups and international businesses aiming to expand in the region.
Why Setup Business in Ajman Free Zone?
Types of Business Structure in Ajman Free Zone
Free Zone Establishment (FZE)
Free Zone Establishment (FZE)
Ideal for solo entrepreneurs, this structure allows 100% ownership with a single shareholder. Minimum capital required is $50,000, and liability is limited to the invested capital. Suitable for commercial and industrial activities.
Free Zone Company (FZC)
Free Zone Company (FZC)
Designed for 2-5 shareholders, either individuals or corporates, this structure allows resource sharing and collaboration. Like the FZE, it requires $50,000 in capital, with liability limited to paid-up capital. Supports commercial and industrial activities.
Branch of a Local Company
Branch of a Local Company
Allows UAE-based businesses with an existing license to expand operations into AFZ, taking advantage of free zone benefits without forming a new legal entity.
Branch of a Foreign Company
Branch of a Foreign Company
For international companies looking to operate in the UAE without creating a separate entity. It allows full foreign ownership, though sales within the UAE must go through a registered local agent or distributor.
Types of Available Licenses in Ajman Free Zone
Ajman Free Zone Company Registration Requirements
Basic Requirements
- Trade License: Essential for conducting business operations within the Free Zone.
- Office Space: Office rental is generally required, but Ajman Free Zone offers options like flexi-desks and virtual offices. The size and type of office (desk spaces, warehouses, or small offices) directly influence the number of visas a business can apply for.
- Business Type: Precise identification of the business activity is required before license application.
- Visa Requirements: The number of visas needed must be decided in advance, with the office size determining eligibility for visa numbers.
- Management: No requirement to appoint a resident manager or director, nor for the business owner to be a UAE resident.
- Company Naming: Single shareholder companies must include the suffix “FZE,” and multiple shareholder companies “FZC.”
- Share Capital: A minimum share capital for $50,000 is required, to be demonstrated in a bank account upon registration.
Documentation by Company Type
- Basic Documents: Passport copy, color photo, No Objection Letter (if applicable), UAE visa/entry stamp, small business plan (for e-commerce), and trade license copy (for branches).
- New Free Zone Entity: Includes a business plan, passport copies of shareholders/manager, three passport-size photos, and three proposed company names.
- Foreign Company Branch: Requires Memorandum & Articles of Association, Certificate of Incorporation, Board Resolution, feasibility report, and Power of Attorney (if needed).
- UAE-based Company Branch: Includes Chamber of Commerce certificate, original license, and a business plan.
- Corporate Shareholders: Provide trade license, Memorandum of Association, Board Resolution, UBO list, and Incumbency Certificate.
- Individual Shareholders: Passport copy, visa page/Emirates ID (if applicable), passport photos, and personal information form.
Step-by-Step Process of Ajman Free Zone Company Setup
AFZ provides a conducive environment for business setup, appealing to entrepreneurs and corporations around the world. The process of establishing a company in AFZ is straightforward. Here are some essential steps required for Ajman Free Zone company formation:
Define Business Activities
The initial phase of setting up a company in AFZ involves selecting your business operations. AFZ accommodates a wide range of activities permitted in the UAE, including sectors such as IT, hospitality, and trading, among others. It’s critical to accurately list all intended business operations on your license application to avoid future complications.
Company Naming
Choosing a company name in Ajman requires adherence to UAE’s naming conventions, which prohibit offensive language and references to religious entities. It’s also important to ensure your chosen name is available for registration, a process that can be facilitated by a company formation expert.
License Application
The core step in forming your business is applying for and getting a license. The type of business entity – such as a Free Zone Entity (FZE) or a branch of a foreign company – will dictate the specific requirements. Generally, documentation such as passport copies of partners and a business plan are necessary. The process is fast, with permits potentially issued in a single business day, provided the application is error-free.
Visa Application
With the business license secured, visa applications for the entrepreneur, employees, and dependants can proceed. The eligibility for visas and the number available will depend on your business’s size and the specific license package chosen.
Corporate Bank Account Opening
The final step involves setting up a corporate bank account. This step can be complex due to varying requirements across banks, making the assistance of a company formation expert valuable. They can guide you in selecting a suitable bank and facilitate the necessary meetings.
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Facilities in Ajman Free Zone
Ajman Free Zone provides business investors with top-quality infrastructure and resources as part of their business setup agreement. Here are some of the key facilities:
Ajman Free Zone Company Setup Consultants
How Riz & Mona Consultancy Can Help?
Riz & Mona Consultancy is renowned as one of the top business setup consultants in Dubai, with over 15 years of experience facilitating a wide range of businesses throughout the UAE. Our deep connections with government officials and key authorities, combined with our extensive expertise in consultancy, streamline the process of establishing your business in Dubai. Additionally, we offer comprehensive financial, legal, and corporate services to support our clients throughout their business endeavors.
We are here to provide comprehensive support for your Ajman Free Zone Company Setup, from preparing your documents to completing the process. Connect with us now to begin your journey with a FREE consultation!
FAQS (Frequently Asked Questions)
Is a local Emirati sponsor required to start a company in the Ajman Free Zone?
No, a local Emirati sponsor is not required for businesses in the Ajman Free Zone, allowing 100% foreign ownership.
Can Ajman Free Zone company hold its offices outside the free zone?
Generally, companies registered in the Ajman Free Zone are required to operate within the Free Zone. Office space outside the Free Zone requires additional approvals.
Are there any visa options available for AFZ companies?
AFZ provides visa packages for employees, investors, and dependents, making it easy for companies to hire and relocate international staff.
What types of business activities are allowed in AFZ?
AFZ permits a wide range of activities, including trading, manufacturing, consulting, services, and e-commerce, catering to various industries like healthcare, food, and IT.
What types of licenses are available in Ajman Free Zone?
AFZ offers various licenses, including commercial, service, e-commerce, industrial, and freelancer licenses, each tailored to specific business needs.
How long does it take to set up a company in AFZ?
The company setup process in AFZ is fast and efficient, often completed within 1-3 days, depending on the type of license and business activity.
Can AFZ companies open UAE bank accounts?
Yes, companies registered in AFZ can open corporate bank accounts within the UAE, supporting smooth financial transactions and global trade.
Which is the cheapest Freezone license in UAE?
Ajman Free Zone is often cited as one of the most cost-effective options for obtaining a business license in the UAE, with e-commerce licenses and service licenses being particularly affordable.
How to check Ajman Free Zone visa status?
Can foreigners fully own a business in AFZ?
Yes, AFZ allows 100% foreign ownership, meaning no local sponsor is required, giving foreign investors complete control over their companies.
What are the tax benefits in Ajman Free Zone?
Businesses in AFZ enjoy full tax exemptions, including no corporate, personal income, or import/export taxes, making it a highly tax-efficient environment.
Is a physical office required in Ajman Free Zone?
No, AFZ offers flexible options like virtual and flexi-desk offices, allowing businesses to operate without a permanent physical space.