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Ajman, the smallest emirate in the UAE, is becoming a popular, cost-effective base for businesses in 2024. Located near major ports and airports, it offers easy access to regional and international markets. With low setup costs, flexible leasing, and a growing economy, Ajman is ideal for various industries.
The government has streamlined the registration process and provides incentives for local and foreign investors. This guide will cover the key steps to setting up your business in Ajman Mainland.
Ajman

Types of Business Licenses in Ajman

Mainland Company

Industrial License

For companies involved in manufacturing and production. Holders can import raw materials, manufacture goods, and export products. To qualify, companies must be GCC-registered, and subsidiaries need 51% GCC ownership.

Free Zone Company

Trading License

For businesses buying and selling goods within the UAE and internationally. This license covers import, export, and re-export activities. Ajman offers both general trading (for various goods) and specific trading licenses (for particular goods).

Offshore Company

Service License

For individuals or companies providing specialized services like consulting, education, legal, or engineering services. Allows 100% foreign ownership with a Local Service Agent (LSA) to handle legal requirements without ownership rights.

Offshore Company

E-Commerce

With the growth of online shopping in the UAE, e-commerce licenses are in high demand. This license lets businesses sell goods and services online and handle imports and exports. Ajman’s location near logistics hubs makes it ideal for e-commerce businesses.

Process of Business Setup in Ajman Mainland

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Choose a Business Activity

The first step is determining the type of business activity your company will engage in. This is crucial as the chosen activity will define the type of license required. Ajman allows various activities across industries such as trading, services, manufacturing, and consultancy.

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Select a Legal Structure

Next, choose the appropriate legal structure for your business (such as LLC, Sole Establishment, or Branch Office). The structure determines your ownership rights, liability, and other legal requirements.

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Reserve a Trade Name

Submit an application to reserve your business name with the Department of Economic Development (DED) in Ajman. The name must adhere to UAE naming conventions, which means it should not include offensive terms or reference to religious or political institutions.

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Obtain Initial Approvals

After submitting your application, obtain initial approvals from the relevant authorities, including the DED and other specific regulatory bodies based on your business activity (e.g., health, environment, etc.).

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Lease a Physical Office Space

It is mandatory for Ajman Mainland businesses to lease or purchase office space. This step is necessary to meet the legal requirements for obtaining a trade license. The premises must be approved by the municipality.

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Draft the Memorandum of Association (MOA)

For entities like an LLC, you will need to draft and notarize a Memorandum of Association (MOA) that outlines the company’s ownership structure and shareholder responsibilities.

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Submit Final Documentation

Submit all the required documents to the DED, which generally include:

  • Trade name approval
  • Initial approval certificate
  • Lease agreement
  • Memorandum of Association (if applicable)
  • Copies of shareholders’ passports
  • Passport-sized photographs
  • Any additional approvals (depending on the business activity)
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Pay License Fees

Once the DED has approved your documents, you will need to pay the relevant fees for your business license. Fees vary depending on the type of license and business activity.

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Obtain the Business License

Upon successful completion of the process and payment, the business license will be issued. This allows your company to legally operate in Ajman Mainland.

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Open a Corporate Bank Account

Once you have received your trade license, you can open a corporate bank account with a UAE-based bank to manage your business transactions.

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Apply for Visas

After obtaining the license, you can apply for residence visas for shareholders, employees, and dependents. The number of visas you can apply for depends on the size of your office space.

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Benefits of Business Setup in Ajman Mainland

Cost-Effective Setup

Business-Friendly Environment

Diverse Economic Opportunities

Strategic Location

Tax Benefits

Real Estate Investment

Documents Required for Company Formation in Ajman Mainland

  • Shareholders’ Passports: Provide valid passport copies for all shareholders and partners.
  • Passport-Sized Photos: Two passport photos with white background per shareholder.
  • Residential Address: Proof of address from each shareholder’s country of residence.
  • Emirates ID: Required for UAE residents only. Non-residents don’t need this.
  • Visa Copy: If shareholders or partners already live in the UAE, submit a copy of their residence visa.
  • Trade Name Approval Certificate: DED certificate confirming business name approval.
  • Initial Approval: Approval from authorities allowing the business to proceed with setup.
  • Lease Agreement: Signed, attested lease for physical office space, as required by law.
  • MOA: Notarized document outlining ownership and responsibilities for LLCs.
  • Extra Approvals: Extra approvals may be needed for certain sectors like health, education, or legal.

Legal Requirements for Ajman Mainland Business Setup

Physical Office Space

Businesses must have a physical office in Ajman Mainland, verified by the municipality, to operate legally.

Local Sponsor Requirement

For commercial and trading businesses, a local UAE sponsor must hold 51% ownership, while providing no direct control over operations.

Compliance with Laws

Companies must follow UAE labor laws, including fair hiring practices and employee benefits, like end-of-service gratuity.

Memorandum of Association

LLCs need a notarized MOA, a legal document that defines ownership, partner roles, and key business rules.

Ultimate Beneficial Ownership

Businesses must disclose their main owner to promote transparency and prevent illegal activities.

Anti-Money Laundering

Companies must comply with AML rules to prevent illegal transactions and promote ethical financial practices.

Difference between Ajman Free Zones and Mainland

Ajman Free Zones

Ajman offers two free zones: Ajman Free Zone (AFZ) and Ajman Media City Free Zone (AMCFZ), ideal for businesses in international trade, media, and technology.

  • 100% Foreign Ownership: Allows full foreign ownership without a local sponsor, ideal for international investors.
  • Tax Benefits: Free zones offer tax exemptions and easy profit repatriation.
  • Streamlined Setup: Faster and simpler setup process with fewer regulations.
  • Best for Export and B2B: Suitable for businesses focused on export, manufacturing, or B2B services.

Ajman Mainland

Setting up a business in Ajman Mainland lets your company trade freely in the UAE and internationally, making it ideal for businesses serving local customers. Key benefits include:

  • Access to the Local Market: Mainland companies can trade freely in the UAE, ideal for retail and services.
  • Wide Range of Business Activities: Offers more flexibility in business types compared to free zones.
  • Physical Presence: Requires an office or warehouse, allowing direct interaction with local customers.
  • No Trade Restrictions: Can operate anywhere in the UAE, allowing to expand freely without geographical limitations.

Business Entities Permitted in Ajman Mainland

Professional Company

For professionals like doctors and lawyers. Foreigners can own 100%, but a Local Service Agent is needed for legal matters.

Sole Establishment

Owned by one person with full liability for debts. Foreign owners need a UAE Local Service Agent to set up.

Branch Office

Allows foreign companies to open a branch in Ajman Mainland, with the parent company responsible for all liabilities.

Representative Office

Primarily for marketing; it can’t conduct sales or generate revenue directly.

Limited Liability Company (LLC)

Popular structure allowing 2-50 shareholders, with liability limited to invested capital. Foreigners can own 100% in most sectors.

Private Joint Stock Company (PJSC)

For large businesses needing significant investment. Requires at least three shareholders and 51% UAE national ownership.

Key Sectors for Business in Ajman

Ajman offers growth opportunities across various industries, driven by its strategic location and business-friendly environment:

Construction and Real Estate

Trading and Retail

Manufacturing and Industrial

Food and Beverage (F&B)

Logistics and Transportation

Education and Training

Health and Beauty

Tourism and Hospitality

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Business Setup Consultants in Ajman Mainland

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 Business Setup in Ajman Mainland, from preparing your documents to completing the process. Connect with us now to begin your journey with a FREE consultation!

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FAQS

Is an audit required in Ajman Free Zone?

Yes, most businesses in Ajman Free Zone are required to submit an annual audit, particularly for Free Zone Companies (FZC) and Free Zone Establishments (FZE).

What is the minimum capital for Ajman Free Zone?

Ajman Free Zone does not impose strict minimum capital requirements for most business types, making it ideal for startups and small to medium enterprises (SMEs).

How much does it cost to cancel a business license in Ajman?

Canceling a business license typically costs between AED 1,000 and AED 3,000, with potential additional fees for visa cancellations and other formalities.

Can a foreigner start a business in Ajman?

Yes, foreigners can own 100% of their business in Ajman Free Zones, and even in the mainland for certain business activities, following the recent changes in UAE law.

What business sectors are growing in Ajman?

Ajman is experiencing growth in several sectors including real estate, trading, manufacturing, logistics, construction, and education.

How long does it take to set up a business in Ajman?

On average, it takes between 2 to 4 weeks to complete the business setup process in Ajman, depending on the type of business and completion of all required documents and approvals.