Ajman Free Zone (AFZ) has emerged as one of the most attractive destinations for entrepreneurs and businesses looking to establish a foothold in the UAE. With its strategic location, cost-effective solutions, and business-friendly environment, AFZ offers a multitude of benefits for companies of all sizes. In this comprehensive guide, we will delve into the various aspects of setting up a business in Ajman Free Zone, including history ,costs, benefits, and the detailed process involved. Our aim is to provide you with a thorough understanding of why AFZ could be the perfect location for your next business venture.

History of Ajman

The Ruling Family

The Al Nuaimi tribe, who migrated to the region around 1775, formed Ajman. The first recognition of Ajman as an autonomous state came in 1820.

Ajman is ruled by H. H. Sheikh Humaid Bin Rashid Al Nuaimi. As the 10th ruler of the emirate of Ajman, he succeeded his late father H. H. Sheikh Rashid bin Humaid Al Nuaimi on 6 September 1981. The reign of late Sheikh Rashid Bin Al Nuaimi lasted 53 years, from 1928 to 1981.

Sheikh Humaid received his early education in Dubai in 1940 before proceeding to Cairo, Egypt, to continue his higher education. Soon after, he became involved in the political affairs of the emirate and became the Deputy Ruler of Ajman. He held this position from 1960 to 1981. H. H. is considered the founder of the new emirate of Ajman.

Why Choose Ajman Free Zone for Business Setup?

Ajman Free Zone offers a range of benefits that make it a preferred destination for business setup. These include its strategic location, cost-effective solutions, and a range of business support services. The Free Zone provides a conducive environment for businesses to thrive, supported by state-of-the-art infrastructure and a transparent regulatory framework.

Strategic Location and Accessibility

Ajman Free Zone is strategically located in the Emirate of Ajman, providing easy access to key markets in the Middle East, Africa, and Asia. It is well-connected by road, sea, and air, making it an ideal hub for international trade. The proximity to Ajman Port and major airports like Dubai International Airport and Sharjah International Airport enhances the ease of doing business.

Cost-Effective Business Solutions

One of the most significant advantages of setting up a business in Ajman Free Zone is the cost-effectiveness. The Free Zone offers competitive pricing on company formation packages, office spaces, and other business services. This makes it an attractive option for startups and small to medium-sized enterprises (SMEs) looking to minimize their initial investment. The total cost of Ajman Free Zone business setup ranges from AED 6,000 to approximately AED 17,000.

Tax Benefits and Incentives

Ajman Free Zone provides numerous tax benefits and incentives to businesses. Companies registered in the Free Zone enjoy 100% foreign ownership, 100% repatriation of profits, and exemption from import and export duties. Additionally, there are no personal or corporate income taxes, making it a tax-efficient environment for businesses.

Ease of Doing Business

The Ajman Free Zone Authority has streamlined the business setup process, making it quick and straightforward. The entire process can be completed online, and businesses can start operations within a few days. The Free Zone also offers a range of support services, including visa processing, licensing, and administrative assistance.

Comprehensive Business Support Services

Ajman Free Zone provides comprehensive business support services to ensure the smooth operation of companies. These services include legal and financial advisory, IT support, marketing assistance, and access to business networks. The Free Zone also hosts various networking events and workshops to help businesses grow and expand.

Wide Range of Business Activities

Ajman Free Zone allows businesses to engage in a wide range of activities, from trading and manufacturing to consultancy and e-commerce. This flexibility enables entrepreneurs to explore multiple business opportunities and diversify their revenue streams. The Free Zone also offers specialized licenses for specific industries, ensuring compliance with regulatory requirements.

State-of-the-Art Infrastructure

Ajman Free Zone boasts state-of-the-art infrastructure, including modern office spaces, warehouses, and industrial units. The Free Zone also provides access to high-speed internet, advanced telecommunication systems, and reliable utilities. This ensures that businesses have everything they need to operate efficiently and effectively.

What Is the Ajman Free Zone Company Formation Process?

The process of setting up a business in Ajman Free Zone is straightforward and involves the following steps:

1. Choose a Business Activity: Determine the type of business activity you want to engage in and ensure it is allowed in AFZ.
2. Select a Company Name: Choose a unique and compliant company name for your business.
3. Submit Required Documents: Prepare and submit the necessary documents, including passport copies, visa copies, and a business plan.
4. Obtain Initial Approval: Receive initial approval from the AFZ authorities.
5. Sign Legal Documents: Sign the Memorandum of Association (MOA) and other legal documents required for company formation.
6. Pay Fees: Pay the necessary fees for the business license, office space, and other related costs.
7. Receive Business License: Once the fees are paid and documents are processed, receive your business license from Ajman Free Zone.
8. Start Operations: Set up your office or warehouse and commence business operations in AFZ.

How Much Does It Cost to Set Up a Business in Ajman Free Zone?

The cost of setting up a business in Ajman Free Zone varies depending on the type of license and business activity. Here is a breakdown of the costs involved in 2024:

1. Business License: The cost of obtaining a business license in AFZ ranges from AED 11,000 to AED 30,000, depending on the type of license and the number of activities.
2. Office Space: The cost of office space in Ajman Free Zone starts at AED 15,000 per year for a flexi-desk and can go up to AED 50,000 or more for a larger office.
3. Warehouse: The cost of renting a warehouse in AFZ ranges from AED 30,000 to AED 100,000 per year, depending on the size and facilities.
4. Visa Fees: The cost of obtaining a visa for investors and employees ranges from AED 3,000 to AED 10,000 per visa, depending on the type and duration.
5. Registration Fees: The initial registration fee for setting up a company in AFZ is approximately AED 1,000 to AED 3,000.
6. Renewal Fees: Annual renewal fees for business licenses and visas range from AED 10,000 to AED 25,000, depending on the type of license and number of visas.

What Types of Licenses Are Available in Ajman Free Zone?

Ajman Free Zone offers a variety of licenses to accommodate different business activities. These include:

1. Trading License: For businesses involved in import, export, and trading activities.
2. Professional License: For service-oriented businesses, such as consultancy, marketing, and IT services.
3. Industrial License: For manufacturing and industrial activities.
4. E-commerce License: For online businesses and e-commerce activities.
5. National Industrial License: For manufacturing companies with at least 51% local ownership.
6. Freelance License: For individuals providing freelance services.
7. Offshore License: For businesses operating outside the UAE but registered in Ajman Free Zone

Benefits of Ajman Free Zone Company Formation

Setting up a business in Ajman Free Zone offers numerous benefits that contribute to the success and growth of your company. Here are some of the key benefits:

100% Foreign Ownership

Ajman Free Zone allows 100% foreign ownership, enabling international investors to have complete control over their business. This is a significant advantage for foreign entrepreneurs looking to establish a presence in the UAE.

100% Repatriation of Profits

Businesses in Ajman Free Zone can repatriate 100% of their profits and capital, providing financial flexibility and security. This benefit ensures that investors can maximize their returns without any restrictions.

Tax Exemptions

Ajman Free Zone offers complete tax exemptions on personal and corporate income. There are also no import or export duties, making it a tax-efficient environment for businesses.

Simplified Business Setup Process

The streamlined business setup process in Ajman Free Zone allows entrepreneurs to start their business quickly and efficiently. The entire process can be completed online, reducing the need for physical paperwork and visits to government offices.

Access to Global Markets

The strategic location of Ajman Free Zone provides businesses with easy access to key markets in the Middle East, Africa, and Asia. This makes it an ideal hub for international trade and expansion.

Comprehensive Business Support

Ajman Free Zone offers a wide range of business support services, including legal and financial advisory, marketing assistance, and IT support. These services help businesses operate smoothly and focus on their core activities.

Modern Infrastructure

The state-of-the-art infrastructure in Ajman Free Zone ensures that businesses have access to modern office spaces, advanced telecommunication systems, and reliable utilities. This creates a conducive environment for business growth and productivity.

Flexibility in Business Activities

Ajman Free Zone allows businesses to engage in a wide range of activities, from trading and manufacturing to consultancy and e-commerce. This flexibility enables entrepreneurs to explore multiple opportunities and diversify their revenue streams.

Networking Opportunities

Ajman Free Zone hosts various networking events, workshops, and seminars to help businesses connect with potential clients, partners, and investors. These events provide valuable opportunities for business growth and collaboration.

Business-Friendly Environment

The business-friendly policies and transparent regulatory framework in Ajman Free Zone create a supportive environment for entrepreneurs. The Free Zone Authority is committed to fostering business growth and providing the necessary resources and support.

Ajman Free Zone Business Setup Guide

Setting up a business in Ajman Free Zone involves several steps. Here is a comprehensive guide to help you navigate the process:

Step 1: Determine Your Business Activity

Identify the business activity you want to engage in and ensure it is permitted in Ajman Free Zone. The Free Zone offers a wide range of activities, so choose one that aligns with your business goals.

Step 2: Choose a Business Structure

Select the appropriate business structure for your company, such as Free Zone Establishment (FZE), Free Zone Company (FZC), or Branch of a Foreign Company. Each structure has its own set of requirements and benefits.

Step 3: Select a Trade Name

Choose a unique trade name for your business that complies with the naming guidelines set by the Ajman Free Zone Authority. Ensure the name is not already in use or infringing on any trademarks.

Step 4: Apply for Initial Approval

Submit the necessary documents and apply for initial approval from the Ajman Free Zone Authority. This step involves paying the required fees and obtaining approval to proceed with the company formation process.

Step 5: Prepare Legal Documents

Prepare the legal documents required for company registration, such as the Memorandum of Association (MOA), Articles of Association (AOA), and a lease agreement for office space.

Step 6: Obtain a Business License

Apply for the appropriate business license based on your chosen business activity. Ajman Free Zone offers various licenses, including trading licenses, industrial licenses, and service licenses.

Step 7: Register Your Company

Submit the required documents, pay the registration fees, and obtain the Certificate of Incorporation from the Ajman Free Zone Authority. This completes the company registration process.

Step 8: Set Up Office Space

Choose and set up your office space in Ajman Free Zone. You can select from flexi-desks, executive offices, and industrial units based on your business needs and budget.

Conclusion

Ajman Free Zone offers a range of benefits for entrepreneurs and investors looking to establish a business in the UAE. From strategic location and cost-effective solutions to tax benefits and comprehensive business support services, Ajman Free Zone provides a conducive environment for business growth and success. By following the streamlined company formation process and leveraging the advantages offered by the Free Zone, businesses can thrive and expand in this dynamic market.

For expert assistance in setting up your business in Ajman Free Zone or any other Free Zone in Dubai, contact GCS Group. We are a leading business setup company in Dubai, dedicated to helping entrepreneurs and investors navigate the business setup process and achieve their goals. Let us help you turn your business vision into reality.