Ajman emerges as a prime choice for investors, entrepreneurs, and businessmen seeking to launch their ventures in the UAE. With a welcoming and business-friendly environment, Ajman’s economy is experiencing rapid growth, ensuring stability and promising returns for business setup within the Ajman Free Zone.
Ajman’s strategic location, coupled with its natural attributes, positions it as a key player in the region, opening up new avenues and opportunities in the realm of the global economy. Opening a company in the Ajman free zone is easy as accomplished by the following steps. The cost of making a company and different categories of licenses are mentioned in this article.
NOW Consultant provides an easy and comprehensive approach to entrepreneurs and investors to open a company in the Ajman Free Zone in compliance with the Ajman Free Zone Authority (AFZA) within an effective price.
How To Open a Company In Ajman Freezone? Step By Step Process:
The optimal method for forming a company in the Ajman Free Zone involves a systematic step-by-step approach. By following the steps, you can initiate your business operations within this free zone.
Step 1: Select the Appropriate Business Entity
The initial step involves strategically selecting the most suitable business structure for your enterprise within the Ajman Free Zone. The following are the primary business structures available in this zone:
- Free Zone Establishment (FZE)
- Free Zone Company (FZC)
- Branch of a Foreign Company
- Branch of a UAE Company
Step 2: Choosing a Distinctive Business Name
After determining the preferred business entity, it’s crucial to pick a distinctive company name unavailable for registration by any other entity.
Step 3:Request Authorization from the Ajman Free Zone Authority (AFZA)
After finalizing the trade name, the next step is to obtain approval from the Ajman Free Zone Authority (AFZA). Your application will be carefully reviewed, and approval granted if all criteria are met.
Step 4: Official Company Registration
Upon successful approval from AFZA, the next crucial step is to formally register the company with the Ajman Chamber of Commerce and Industry (ACCI). This registration process is pivotal as it results in issuing the company’s trade license and a vital company registration certificate. These documents are essential for businesses to operate legally and establish their presence in the Ajman Free Zone.
Step 5: Establish Your Business Bank Account
Upon successfully obtaining the trade license and company registration certificate, it’s essential to initiate the process of setting up a dedicated bank account for the company. This can be done with any bank that holds a valid license to operate within the UAE.
Step 6: Secure Employee Visas
In the event that your company requires the hiring of personnel, the next important step is to initiate the visa application process for your employees. This can be achieved by submitting visa applications through the Ministry of Human Resources and Emiratisation (MOHRE), ensuring your workforce is legally authorized to work in the UAE.
Step 7: Establish Your Office Space
Upon securing the necessary visas, the next phase involves creating your company’s physical presence. You have the option to lease office space within any of the well-equipped business parks located within the Ajman Free Zone, providing your business with a professional and functional workspace to operate from.
Step 8: Commence Business Operations
After establishing your office, it’s time to initiate your business operations. You gain the capability to engage in both imports and exports of goods and services, as well as conduct trade activities within the United Arab Emirates.
Ajman Free Zone Company Setup Cost:
The overall cost of establishing your company in the Ajman Free Zone will primarily hinge on the specific factors you select, including your choice of business license, visas, and facilities. Ajman Freezone business setup starts at AED 5,000 per license.
Additional fees vary based on business activities and visa allocations, with the lowest being AED 13,000 for a trading license with one visa. You can choose payment plans, including 2, 3, or 5 installments, but post-dated UAE bank checks are necessary.
For instance, if you opt for a 3-installment plan, you can pay the initial installment in cash and post-date two reviews on your business application day to cover the remaining cost. However, there are also competitively priced alternatives for other available licenses.
When you consider all the essential components, the total setup cost for your company amounts to approximately AED 25,000. It is important to keep in mind, though, that other factors can represent significant long-term expenses. These include renewal fees for your license and visas.
Benefits Of Setting Up Your Business In Ajman Freezone:
Here are the key advantages of setting up a company in the Ajman Free Zone:
- Strategic Location: Ajman Free Zone enjoys a strategic location within the UAE, offering distinct advantages compared to other free zones.
- Comprehensive Facilities: Ajman Free Trade Zone provides a range of essential facilities, including power, telecommunications, and medical services.
- Investor Support: The Ajman Free Trade Zone Authority offers robust support to all free zone investors in their business formation endeavors.
- 100% Ownership: Ajman Free Zone allows for 100% ownership of businesses, providing a unique advantage to investors.
- Well-Developed Infrastructure: The free zone boasts a well-planned infrastructure, encompassing roads, ports, transportation, and other essential facilities.
- Cost-Efficiency: Ajman Free Zone stands out for its cost-effective benefits, including minimal setup costs, 100% tax exemption, multi-currency bank accounts, zero custom duties, and no currency movement restrictions.
- Port Facilities: AFZ offers extensive port facilities for both imports and exports.
- Sound Financial Structure: The free zone maintains a robust financial structure that benefits businesses.
- Low Setup Costs: Compared to other free zones in the UAE, Ajman Free Zone offers a cost-effective setup for various industries.
Company Structures Available in Ajman Free Zone
In Ajman Free Zone, there are four distinct business categories available for establishment. As an entrepreneur or investor initiates a business in this zone, the selection must be made from these four defined company types
1. Free Zone Establishment (FZE) :
An entity established in the Ajman Free Zone operates as a fully separate corporate entity devoid of any affiliations or ties to other companies globally. The owner’s liability is limited to the capital invested in the business, ensuring financial responsibility solely up to that amount. Ajman Free Zone Entity necessitates a minimum capital requirement of $50,000.
2. Free Zone Company (FZC)
Individuals or corporate entities establish an Ajman Free Zone Company. This implies that if an individual belongs to a business group, one can establish an Ajman Free Zone Company as a corporate entity. The person or company selecting an Ajman Free Zone Company is solely responsible for the capital they invest in the business.
3. Branch of a Foreign Company
If a company currently operates a business elsewhere globally, it can establish a branch of that company in the Ajman Free Zone. Establishing a foreign company branch, AFZ grants 100% ownership unless otherwise specified. This allows the company to distribute its products and services across different locations in the UAE through a registered local distributor or agent.
4. Branch of a UAE Company
If a company holds a valid license from any licensing authority in the UAE, excluding the Ajman Free Zone Authority, the branch of the local company can effortlessly establish its setup in the Ajman Free Zone. The process of incorporation is straightforward and budget-friendly.
You can also check the process of opening a company in dubai freezone.
What Are The Capital Requirements for Ajman Free Zone?
The capital requirement for the Ajman Free Zone is a minimum share capital of AED 185,000 (approximately USD 50,685), which must be declared in corporate documents. There’s no necessity to deposit funds into a bank account.
Is Ajman the Cheapest Freezone in UAE?
The UAE stands as a major business hub, globally recognized for its 16th position in ease of doing business. Ajman Free Zone stands among the top five cheapest zones in the UAE, allowing business start-ups with under AED 10,000 (USD 2,700).
How Can Now Consultant Help You?
Establishing a company in the Ajman Free Zone becomes a straightforward process with the support of experienced business setup consultants in the UAE. At Now Consultant, we are dedicated to assisting aspiring entrepreneurs and business professionals realize their goals by facilitating company formation in the ajman freezone.
Our skilled business setup consultants specialize in guiding you through how to open a company in the Ajman Free Zone. We aim to expedite and streamline the business setup procedure, saving you time and effort.