The emergence of EdTech companies, online training institutes and many other digital businesses have helped the education sector in the UAE thrive and pivot amidst the virus scares. Interestingly, free zones in the country, such as Ajman free zone, are at the forefront of enabling a robust platform for entrepreneurs in the education sector. The landscape of business setup in the UAE looks stable for the Education Sector as evidenced by the increase in the number of new educational businesses incorporated in the free zones.
For instance, Ajman Free Zone Authority (AFZA) has reported a 39% growth in the number of new educational companies in the first quarter of 2021. The number of total education companies in the Ajman free zone has touched 170 in 2021, which is a phenomenal achievement for any free zone in the UAE. The steady growth in the education sector also includes the incorporation of companies focusing on training, educational counselling, and freelancing.
In this article, we provide aspiring entrepreneurs with valuable insights on how the free zone created a perfect ecosystem of company formation for the education sector. In the meantime, consulting with the best business consultants in the UAE will help you open a company in the Ajman Free zone. Let’s start exploring in detail.
A Free Zone of Immense Reputation
The total number of new companies registered in the free zone reached 492 during the first three months of 2021, compared to 269 companies in the same period last year. This marks a 33% growth in the number of new companies registered in the Ajman free zone irrespective of the business sector. Reputation is one of the top reasons why many companies opted for company formation in the Ajman free zone.
Ajman free zone is one of the oldest free zones in the UAE, which started its operations in 1988. Over the years, the free zone achieved many milestones and accolades due to the impeccable services it provides to investors. Recently, the free zone was awarded the ‘Superbrands 2020 honouring its flexible business setup procedures and e-services. In 2020, Ajman free zone received meritorious accolades from fDi magazine for incentives, large tenants, sustainability, red tape reduction and facilities upgrade.
Best Infrastructure in the Region
Robust infrastructure is an important requisite for any educational company for smoothly running a business. Ajman free zone has a sturdy infrastructure that can accommodate all types of businesses including freelancers. The following are the major types of office spaces available in the Ajman free zone,
- Executive Office
- Business Centre
- Freelancer hub with Flexi Desks
- Eco-friendly zone
Unique Licenses and Packages for Entrepreneurs
The process of business setup in Ajman free zone favours both big companies as well as entrepreneurs, startups and SMEs. As a result, the license packages are created to benefit all sizes of businesses, especially the small ones. Education companies can start a business in Ajman free zone with a service license. Apart from that, the free zone provides a freelance license for education, tech and media professionals. Unlike other free zones, Ajman free zone has rolled out a unique business license package for entrepreneurs in the age group of 20 to 30.
Multiple Legal Structure to Choose From
Investors can choose from a variety of legal structures for business setup in the Ajman free zone. The ideal legal structure is based on the number of shareholders the company is set to have. Investors can set up the following legal structures,
- Free Zone Company (FZC)
- Free Zone Establishment ( FZE)
- Branch of a foreign company
- Branch of a local company
Choosing a legal structure is a strategic decision nowadays, as the investors need to consider regulations including the Ultimate Beneficial Ownership (UBO) and Economic Substance Regulations (ESR). However, top business setup consultants in the UAE provide robust advice for investors in choosing business activities as well as a legal structure.
The Rise of EdTech as a Sunrise Sector is a Big Positive
According to Alpen Capital, the Dubai-based leading investment bank, the total number of students in the GCC is estimated to reach 14.5 million in 2022. However, the COVID-19 pandemic has forced students across the world to sit at their homes. The rise of online learning enablers and other EdTech companies have proven to be an effective solution for this dilemma.
Middle East consultancy ValuStrat, states that the value of the global EdTech market is projected to touch USD 40 billion by 2022. Moreover, the UAE’s Ministry of Education is expected to boost its spending on e-learning initiatives by 60% to a worth of USD 7.1 billion by 2023. This is a major leap considering in 2017 just USD 2 million was invested in EdTech start-ups across the entire MENA region. In light of such reports, it is the best time for entrepreneurs to start education firms in Ajman Free Zone.
How Can Jitendra Business Consultants Help Entrepreneurs?
Ajman free zone has recently witnessed a surge in new companies and a great number of the newly incorporated firms are from the education sector. Robust infrastructure, flexible license packages, and easy setup procedures are some of the top reasons why the investors prefer business setup in Ajman free zone. Considering the unprecedented economic landscape, foreign investors are advised to open companies through company formation specialists in the UAE such as Jitendra Business Consultants (JBC).
JBC can take care of the licensing and leasing process for a smooth company formation in Ajman free zone. JBC’s business setup services in Ajman free zone include consultation on the required license, activities, and type of legal structure ideal for company formation. JBC also provides assistance in getting resident visas for employees and corporate bank account opening. By taking advantage of JBC’s efficient company formation services in the UAE, entrepreneurs can start business operations in no time.