Setting up a business in Ajman in the United Arab Emirates

December 22, 2022 Sahil

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 Company

Bonjour Dubai knows the rules and tips for setting up a business in Ajman 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 Ajman.

Ajman Free Zone

The Ajman Free Zone was launched in 1988 and is located 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 Ajman 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. This is done by matching the professional mindset of individual entrepreneurs and companies. 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

All business entities in commercialized geographies directly registered with the UAE government and its authorities are referred to as mainland corporations. The continent represents the most developed economy as it is set up directly following the legal structures of government policies. 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

Off Ajman

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 opportunities that an exclusive economic zone is supposed 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 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 required in Ajman to conduct business in Ajman 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.

Trade license

Companies carrying out business activities in Ajman are issued with this license. Trade includes importing, exporting, and re-exporting goods and services to the United Arab Emirates.

Industrial license

This business license is granted to any foreign, UAE, or free zone entity carrying out manufacturing activity in Ajman.

Professional/service license

This business license is granted to any UAE, foreign or free zone entity interested in providing professional license/service business in Ajman.

E-commerce license

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 in Ajman and the United Arab Emirates, with around 42% of the population transacting online. Even the Ajman 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 in Ajman, the first step is to choose a legal entity from those mentioned below –

Single establishment
Limited Liability Company
Public/private shareholding company
Professional firm
Branch

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 Ajman 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.

Required documents

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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