Setting up a business in Ajman in the UAE
Located on the coast of the Persian Gulf, Ajman is the smallest of the seven emirates of the United Arab Emirates, with an estimated area of 260 square kilometers. Major industries in Ajman are manufacturing, real estate, retail, construction, transportation, and business services.
Starting a business in Ajman requires detailed planning and decision-making. Remember that all documents are in English; you must use a free English French translator. This includes choosing a business name, determining the type of business activity, obtaining the necessary licenses, hiring human resources, selecting suitable infrastructure, depositing a minimum capital in a corporate bank account, etc. This requires a business start-up consultant who will research the legal aspects of starting a business. Many managements consulting firms in Ajman provide such opportunities to investors by assisting them with all formalities of setting up a business.
Creation of the Ajman Free Zone Company
Bonjour Dubai knows the rules and tips for setting up a business in and can help you set up your business here. We help to use necessary licenses such as industrial/service licenses, commercial/commercial licenses, and professional/general commercial licenses. You can choose from a free zone, Dubai mainland free zone, or offshore company in uae.
Ajman Free Zone Authority.
The Ajman Free Zone was launch in 1988 and is locate on the coast of the Arabian Gulf. It is strategically located and has access to four seaports and two international airports, which drives business growth in the region. Ajman Free Zone Companies have secure business formation procedures and issuance of business licenses to companies established and managed by the Ajman Free Zone Authority. To open a business in the Free Zone, one must apply only to this authority.
Starting a business in the Ajman Free Zone has many advantages:
- 100% repatriation of capital and profits
- No paperwork
- Corporation tax is exempt from companies.
- Business-friendly laws for businesses
- Simplified and fast immigration policies for workers
Ajman Media City Free Zone
Ajman Media City Free Zone is a new free zone that offers comprehensive media and digital facilities in the United Arab Emirates. The Free Zone is located in Ajman and offers high-tech telecommunications, communication links, top-notch digital customer service, and incentives for entrepreneurs interested in setting up a business in the Ajman Media Free Zone City.
The Emirate of Ajman Free Zone
If one decides to start a business in mainland Ajman, having a local sponsor is essential. A local sponsor will hold 51% of the company’s shares, and the businessman will hold the remaining 49%. A mainland business in Ajman can opt for the following business entities:
- Limited Liability Company
- public limited company
- Branch Representative office
- Professional firm
Ajman Free Zone Authority
The Ajman Free Zone Authority regulates Ajman Offshore. It is similar to other offshore jurisdictions as there are no taxes, and company confidentiality is maintained as the address is that of a registered agent. An offshore company in Ajman engages in the relocation business in the UAE. This jurisdiction involves the following activities:
- General trade professional services
- Participation Investment and co-investment companies
- Advisory/consulting services
- Commission agents/brokers
Benefits of company registration in Ajman
- In the Emirate, 100% foreign ownership and full repatriation of capital and profits are permitted in the Ajman Free Zone.
- Ajman Free Zone presents all the opportunity that an exclusive economic zone is suppose to provide at a relatively lower cost than other free zones in the UAE. Indeed, the Ajman Free Zone Authority does not charge any registration fees.
- The business registration process in Ajman is straightforward – there are one-stop clearances for several government services such as postal services, licensing, immigration, visas, etc.
- In Ajman, foreign investors can obtain a 20-year land lease, renewable for another 20 years, allowing legitimate operations tax-free for 40 years.
- A company located in Ajman enjoys 100% legal exemption from all import and export duties.
- Being part of the United Arab Emirates, a respected international free zone authority dubai business jurisdiction, an Ajman company is not perceived as an offshore company in a foreign tax haven.
Types of business licenses in Ajman
A business license is require in Ajman to conduct business in as per government guidelines. There are four main types of business licenses available in Ajman, which are as follows:
National Industrial License
There are a few criteria to be met to get this license; they are-
- The company must be registered with the Gulf Cooperation Council (GCC) and own at least 51% of its shares.
- At least 40% of the manufacturing processes must be carried out in the free zone. Companies with a national industrial license are eligible for duty-free customs fees for Arab Gulf Cooperation Council member states.
Companies carrying out business activities in free zone are issue with the license. Trade includes importing, exporting, and re-exporting goods and services to the United Arab Emirates.
This business license is granted to any foreign, UAE, or free zone entity carrying out manufacturing activity.
This business license is grant to any UAE, foreign or free zone entity interest in providing professional license/service business.
The e-commerce license is a new license level for e-commerce businesses. It will facilitate partnerships of online entrepreneurs with the free zone to tap into the growing e-commerce segment of the GCC and the region. There is excellent potential for e-commerce and the United Arab Emirates, with around 42% of the population transacting online. Even the Free Zone has a record number of applications for e-commerce license issuance in the Emirate.
General maintenance license
If someone wants to start a maintenance business in the Emirate, they must have a general maintenance license. Having this license can give individuals in a maintenance business authority to make repairs and perform regular maintenance tasks to keep buildings in good condition.
Ajman company registration process
To start a business, the first step is to choose a legal entity from those mentioned below:
- Single establishment
- Limited Liability Company
- Public/private shareholding company
- Professional firm
After choosing, the following steps can be followed:
- Submit a business application form to the municipality’s customer service center for initial approval.
- Follow-up with Municipality Inspection Unit to verify chosen business location.
- Obtain approval from the municipality’s specialized services, if necessary.
- Obtain trade name approval and issuance of business register and membership certificate.
- Submit necessary approvals and receipts from the Ministry of Commerce as acceptance to the Registrar of Companies.
- Pay all fees and apply to the customer service center to get the receipt. It would take one day to get the license for your business.
The registration process is simple, and a special set of documents is necessarily required:
- A valid copy of the passport of the shareholders of the company
- Proof of residence of the business owner
- Constitutive Act
- The article of association
- Completed application for incorporation of an offshore account
- Bank reference letter
- Offshore account holder CV
- Business plan with cost-benefit analysis
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