Overview of Ajman Free Zone
Ajman Free Zone has become a hub for businesses of all sizes, offering cost-effective solutions for company formation. This Free Zone attracts startups, freelancers, and established entrepreneurs alike due to its appealing incentives and tailored programs. Known as a prime destination for young entrepreneurs, Ajman Free Zone provides a robust platform for building businesses from the ground up. Competitive pricing, easy access to affordable labor, and state-of-the-art facilities further enhance its appeal.
Established in 1988, Ajman Free Zone has played a vital role in fostering industrial, commercial, and financial growth in the UAE. Strategically located at the Arabian Gulf’s gateway, it facilitates seamless trade with both Eastern and Western markets. Proximity to key commercial hubs like Dubai and Sharjah adds to its logistical advantage. Currently, over 8,000 companies operate within the Free Zone, contributing significantly to Ajman’s export and re-export activities.
Located just 2 kilometers from Sharjah and 12 kilometers from Dubai, the Ajman Free Zone spans an area of 324 square meters. It is an ideal location for businesses seeking quick and straightforward registration processes.
Features of Starting a Business in Ajman Free Zone
Ajman Free Zone offers numerous advantages for investors, including quick trade license issuance, low startup costs, multiple visa options, a wide range of business activities, and straightforward corporate bank account setup. Additional benefits include:
- 100% foreign ownership
- Tax exemptions
- Hassle-free capital and profit repatriation
- Affordable land leasing and utility costs
- Availability of low-cost labor
- Simplified sponsorship for dependents
- Formation of multi-shareholder companies
- Easy access to Ajman Port
Types of Licenses Available in Ajman Free Zone
The Ajman Free Zone Authority (AFZA) offers several licenses to cater to different business needs:
- Trading License
- For companies engaged in trading activities within the Free Zone. Up to three activities can be included under a single license.
- E-Commerce License
- Designed for businesses entering the online market. This license includes marketing and technical support for investors.
- Professional License
- For entities offering professional services like IT, management, or marketing consultancy.
- Industrial License
- Required for businesses involved in manufacturing. The Free Zone provides storage and smart-store services to support these activities.
- National Industrial License
- Reserved for companies meeting specific criteria, such as GCC ownership of at least 51% and manufacturing at least 40% of products within the Free Zone.
- Freelance License
- Suitable for individuals operating in various fields, such as media, IT, or education.
- Pioneers License
- Ideal for students, young entrepreneurs, and startups aiming for rapid business launch.
Types of Legal Entities Registered under Ajman Free Zone
Ajman Free Zone accommodates several types of legal entities:
- Free Zone Establishment (FZE)
- An independent entity with a minimum capital requirement of $50,000. Liability is limited to the invested amount.
- Free Zone Company (FZC)
- Established by multiple shareholders, either individuals or corporate entities.
- Branch of a Local Company
- For companies already licensed by other UAE authorities.
- Branch of a Foreign Company
- Allows international companies to operate in the Free Zone with 100% foreign ownership. Sales must be routed through UAE-based agents or distributors.
Types of Business Activities Allowed under Ajman Free Zone
Ajman Free Zone is particularly attractive to small and medium-sized enterprises (SMEs) due to its affordable setup costs and supportive infrastructure. Popular activities include:
- Management Consultancies
- General Trading (Import & Export)
- E-Commerce
- Gold and Diamond Trading (Import & Export)
- Real Estate Consultancy
- Food and Beverage
- Air Cargo Services
- Healthcare
Why Start a Business in Ajman Free Zone?
Ajman Free Zone offers numerous benefits to investors:
- Multiple Visa Options
- Packages cater to various business sizes, with options for multiple visas based on office type.
- Cost-Effective Setup
- Ideal for businesses of all sizes, with budget-friendly options for SMEs.
- Streamlined Registration
- Most processes can be completed online, with minimal in-person requirements.
- No NOC Required
- Entrepreneurs do not need a No Objection Certificate from their current employer, allowing them to start side businesses effortlessly.
- Diverse Business Models
- Offers licenses for various activities, including e-commerce and professional services.
- Low Entry Barriers
- No mandatory capital deposits, bookkeeping, or audits are required.
- Banking Made Easy
- Assistance in opening corporate bank accounts, tailored to your business needs.
- Strategic Location
- Close to key ports, airports, and road networks, ensuring global connectivity.
Frequently Asked Questions (FAQs)
Ajman Free Zone offers several advantages, such as:
- 100% Foreign Ownership: Businesses can be entirely owned by foreign nationals.
- Cost-Effective Setup: Ajman Free Zone has competitive license and rental costs compared to other UAE free zones.
- Proximity to Ports and Airports: Strategically located near Ajman Port, Dubai, and Sharjah, ensuring smooth logistics.
- Flexibility of Licenses: Multiple license types are available, such as trading, industrial, and service licenses.
- No Corporate or Income Tax: Complete exemption from taxes makes it a tax-friendly jurisdiction.
Ajman Free Zone offers the following license types:
- Trading License: Suitable for importing, exporting, and distributing goods.
- E-commerce License: Ideal for online businesses.
- Service License: For professionals offering services such as consultancy, IT, or marketing.
- Industrial License: Designed for businesses involved in manufacturing and production activities.
- General Trading License: Allows trading in a wide range of products without restrictions.
To register a business in Ajman Free Zone, you typically need:
- A copy of the shareholder(s) passport.
- Passport-sized photos of shareholder(s).
- Proof of address and contact details.
- A business plan for certain licenses, such as industrial or e-commerce.
- NOC (No Objection Certificate) from a UAE sponsor if the shareholder is on a UAE visa.
Setting up a business in Ajman Free Zone is relatively fast. The entire process usually takes 1 to 5 working days, depending on the type of license and the completion of all documentation. E-commerce and trading licenses are typically processed more quickly than industrial licenses, which might require additional approvals.
A business established in Ajman Free Zone can operate in the UAE Mainland under certain conditions:
- The company must appoint a UAE-based distributor or agent for trading activities.
- Service-oriented businesses may require additional approvals or partnerships with local entities.
- To directly operate in the mainland without restrictions, setting up a branch or a mainland company may be more practical.
Company Formation with Unicorn Global Solutions
Starting your business in Ajman Free Zone is a seamless process with Unicorn Global Solutions. Our streamlined six-step approach ensures:
- Comprehensive consultation
- Selection of appropriate licenses and facilities
- Documentation preparation
- Submission and approval of applications
- Bank account setup
- Completion of the registration process
Contact Unicorn Global Solutions today to explore the endless opportunities that Ajman Free Zone has to offer. Let us help you turn your business vision into reality.
