The UAE has gained the attention of investors from all over the world due to its free zones, one of which is ajman free zone company setup. The reasons for its reputation are multiple including 100% tax exemption on personal and corporate income, advanced infrastructure, and strategic location for trading locally and internationally.
Not only that, the free zones in UAE are no less than a dream for businesses. The advantages, services, and facilities offered to investors of Freezone are invaluable and unmatched. Let’s talk about the most progressive free zone, the Ajman free zone.
Overview of Ajman Free Zone
Ajman Free Zone was established in 1988 and offers cutting-edge infrastructure, advanced technology, and many other top-notch facilities to its residents and outsiders. For trading, it is ideal as it is located near the airport, seaport, and major highways.
Why Ajman Free Zone Company Setup?
Multiple reasons make Ajman Free Zone a top choice for company setup. These include complete ownership, no visa restrictions, the lowest operational costs, no rental requirements, access to services, and much more.
In business, money is the most important factor as it decides everything and if you don’t have enough money, it is not possible to start your company. However, in Ajman, you can pay the amount in installments. Also, company setup in Ajman is quick and easy as it takes only 3 working days.
Step-By-Step Guide for Ajman Free Zone Company Setup
Follow this step-by-step guide for company setup in the Ajman Free Zone (AFZ) without any challenges and complications.
Ø Research And Planning
Before starting anything, it is crucial to do research on it and plan accordingly. Now you are familiar with the perks of the company set up in AFZ but considering the cons is equally important. After that, you need to identify that what type of activities are allowed in AFZ and what are illegal.
Research and planning before starting the process can save you from loss and provide a better understanding.
Ø Decide Business Activities
Several business activities are allowed in Ajman’s business setup such as trading, transport, services, and manufacturing. Choose the one that aligns with your interest, and business goals and has high demand in the business market.
Ø Select a Name
Select a unique and simple name for the company according to the rules of the AFZ naming convention. Ensure that the selected name gives the idea of the activities and services you are going to do and offer. Such a name attracts more customers as they do not get confused and remember it for a longer time, enhancing the chances of revisiting it.
The selected name should not contain any offensive word or any word related to religion. If you are confused and not sure about the name, it is better to include your name as the company name. It should be your full name as it cannot be just initials and surname.
Ø Submit License Application
The next step is to apply for a license but what makes this step a critical one is to select the business entity. The process and required documents vary with each entity. You can choose from
- Free Zone Company (FZC)
In FZC, there is no limitation of one owner, unlike in FZE. There can be up to 10 owners of the company that will have the same responsibilities and profit.
- Free Zone Entity (FZE)
FZE allows only the owner of the company, it can be an individual or a company.
- Branch of local/foreign company
If you are interested in opening a branch of already existing companies then you have to follow the same rules and activities that are being followed in the mother company.
Required Documents for Ajman Free Zone Company Setup
Generally, the required documents are
- Passport-sized pictures of each partner (colored)
- Passport copies of shareholders (should be valid for six months)
- No Objection Letter (NOC) from the existing sponsor (If you are local to the UAE)
- A detailed business plan
If you are going to open a branch of the company, then additional documents are required
o Memorandum of Association
o Articles of Association
o A registration certificate of the parent company
If the documents are complete and the details are correct, you might receive your license in one or two working days. To avoid complications and hurdles in the process, it is better to consult with a company formation expert.
Ø Apply for Visa
Along with that, you can also apply for any visa according to your business plan. Not only yours but you are allowed to apply for your dependents and employees as well.
The number of visas allowed depends on the size of Ajman business setup and the selected license package. The process of applying for a dependents visa is simple.
Ø Undergo Medical Checkup
The UAE government requires a medical examination to ensure that the applicant is healthy and has no disease or infection that can spread. You don’t have to come to Ajman free zone for it as it can be performed in any part of UAE.
Ø Apply for Emirate ID
After a medical examination and getting a visa, you can apply for an emirate ID. The government issues this identity card that gives access to different services and discounts. It is essential for several activities including opening a bank account, paying utility bills, paying rent of an apartment, and many others.
Ø Open Bank Account
The final step of company setup is opening a corporate bank account in Dubai. Managing funds effectively for a company without a bank account is a tough job and can create problems and misunderstandings. That’s why it is mandatory to open a bank account to operate business activities in AFZ. You can choose any bank and account type for funds transfer and transactions.
Ajman Free Zone License Cost
In the Ajman free zone, licenses of various types are available. Each license is suitable for some specific business activities. The common activities are dropshipping, retailing, consulting, and manufacturing.
The cost for a license varies with the type of license and generally, four types of licenses are commonly used in AFZ.
- Zero visa license cost is 6000 AED
- 1 visa permit costs 12121 AED
- 1 visa package with a trading/service license can be obtained for 13,121 AED
- 2 visa packages with trading/service license costs around 21212 AED
However, the Ajman free zone company setup cost starts from 5,555 AED. It does not include the cost of a visa and only 5 activities are allowed under one license. If you need a resident visa in the company setup then pay an additional fee that is
o E channel deposit is 1025 AED
o E channel registration fee is between 2000 to 2500 AED
o Visa, medical, and emirate ID fee is 3600 AED
o Renewal fee is 1200 AED
o Each shareholder fee is 600 AED
Benefits of Ajman Business Setup
The major benefits of business setup in AFZ are
Ø Strategic Location
A strategic location helps in trading and traveling and Ajman free zone provides these benefits to residents and investors. It is located between Dubai and Sharjah airports which makes it ideal for those who are interested in import and export business.
Ø Advanced Infrastructure
Advanced infrastructure is required to support various business activities. Ajman provides cutting-edge infrastructure that helps companies to operate efficiently. It has modern offices, a warehouse, advanced technology, high-speed internet and much more.
Ø Ownership
Ajman free zone provides complete ownership eliminating the need to hire local sponsor. You are allowed to make your own decision without interference from anyone.
Ø Tax exemption
The favorable tax environment is one of the top reasons for company setup in AFZ. Ajman is 100% tax-free and this tax system encourages people from all over the world to invest here and get a complete return.
Conclusion
At the end of this article, we hope it has provided you with a detailed overview of the Ajman Free Zone company setup, including its process, the benefits it offers, and its fee structure. Setting up business in AFZ is a wise idea, as no other region can compete with it in terms of efficient processing, unlimited benefits, and cost-effective setup. The cherry on top is that you get complete ownership even after paying in installments.
Although company setup in AFZ provides many benefits to investors, it is a complex process that requires the guidance and opinions of experts to avoid hurdles and challenges. For that, you can reach Al Riyady. Our expert team can also help you with getting a Business License, Opening a bank account and Bookkeeping.
