Business Setup in Ajman Free Zone (AFZ)

Businesses, irrespective of their size, have been flocking to the Ajman Free Zone due to the cost-effective business set up opportunities it offers. The Free Zone has become a haven for businesses focusing on a variety of sectors and also for freelancers and new entrepreneurs. The Ajman Free Zone is often considered as the best place for those entrepreneurs aiming to start their business from scratch due to the special packages it offers for young entrepreneurs. Competitive pricing, easy access to low-cost labour, and a state of the art infrastructure make the decision to start a business in the Ajman free zone a strategic one.

Founded in 1988, the Ajman Free Zone has played an unquestionable part in developing industries, trade and financial businesses in the UAE. The Free Zone is strategically located at the entry point of the Arabian Gulf and provides access to Eastern and Western trade markets. Easy business connectivity with other commercial centers like Dubai and Sharjah is a major blessing for investors. The free zone houses around 8,000 companies from a variety of industries. The companies operating in the Ajman Free Zone contributes 32% of Ajman’s total exports and 60% of re-exports.

Ajman Free Zone License Categories

The Ajman Free Zone offers a variety of Licenses to choose from. Unlike the other free zones, the Ajman Free Zone also offers a specially dedicated license package for young entrepreneurs. The following are the types of licenses in Ajman Free Zone the investors can apply for:

  1. Trading
  2. Industrial
  3. Professional
  4. Freelancer
  5. Pioneer Package (for young entrepreneurs)

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    Benefits of Forming a Company in Ajman Free Zone

    The Ajman Free Zone offers a plethora of benefits for the investors including the strategic location and the low-cost setup. The Free zone is situated in close proximity to 4 major seaports – Ajman Port, Port Khalid, Port Rashid, and Khorfakkan Port. This makes the logistics easier for the companies operating in the Ajman Free Zone. Apart from this, the Ajman Free Zone offers the following advantages:

    1. 100% ownership of the establishment/company
    2. 100% foreign ownership
    3. Easy transfer of capital and profits
    4. Exemption from personal income tax
    5. Exemption from import and export duties
    6. Exemption from other taxes
    7. Competitive prices on facility usage
    8. Competitive prices for power/electricity
    9. Competitive prices on leasing
    10. Easy access to low-cost labour
    11. Modern infrastructure
    12. One-stop counter service for every transaction (residency, visa, etc.)
    13. Fast and easy procedures and in most cases, license within 24 hours

    List of Business Activities Allowed in the Ajman Free Zone     

    The Ajman Free Zone’s low-cost business setup procedure and the low cost of living in the emirate have attracted umpteen numbers of investors to start a company here. One of the major reasons for the rise in the number of new licenses issued in recent years is that the Free Zone welcomes businesses irrespective of their size. The Ajman Free Zone in recent years has emerged as the preferred destination for small and medium businesses due to competitive pricing and well-developed infrastructure. The Ajman free zone is best suited for trading companies, and businesses focusing on advanced technology and health-related services.

    The new investors should study the list of business activities allowed in the Free Zone before applying for the license. Approaching reputed company formation consultants in the UAE is highly recommended. The companies in the Ajman Free Zone are engaged in the following business activities:

    1. Management Consultancies
    2. General Trading Import & Export
    3. E-Commerce
    4. Gold and Diamond trading Import & Export
    5. Real Estate Consultancy
    6. Food and Beverage
    7. Air Cargo Services
    8. Healthcare

    How to Setup a Company in Ajman Free Zone?

    Setting up a business in the Ajman Free Zone doesn’t involve complex procedures. However, to understand the different licenses, business activities and documents required, it is advisable to hire the services of the best company formation specialists in Ajman or UAE. The investors can setup Free Zone Establishment (FZE), Free Zone Companies (FZC) or branch of a foreign company in the Ajman Free Zone.

    The Ajman Free Zone Company formation can be completed in the following steps:

    1. Trade name approval from the Ajman Chamber of commerce
    2. Prepare MOA in the case of Partnership Company and get it signed by the partner.
    3. Payment of the trade license fees
    4. Issue of the trade license

    VAT Obligation in Ajman Free Zone (Designated Zone)

    Ajman Free Zone is a designated free zone as per the Federal Tax Authority. The Cabinet Decision No.59 on Designated Zones of UAE VAT Law has defined Free Zones as Designated Zones (DZ) for which separate provisions of VAT are applicable. The goods transacted within the DZ and to/from DZ to DZ are out of scope of VAT. However, the goods transacted with DZ from non DZ, and to non-DZ are subject to VAT. The business owners should note that the services provided in the UAE are chargeable to VAT irrespective of DZ & Non-DZ.

    Business Setup Consultants in Ajman Free Zone (AFZ)

    Choosing the right free zone to open a company is a strategic decision in the competitive business landscape in the UAE. Ajman Free Zone is one of the most cost-efficient business setup options for entrepreneurs. Jitendra Business Consultants (JBC) recommends the Ajman Free Zone company formation due to the strategic location, and the low-cost business setup process involved. The highly qualified company formation specialists of JBC have helped thousands of clients launch their businesses in the UAE free zones including in the Ajman Free Zone. With the help of JBC business setup consultants, the process of establishing a business becomes a straightforward and quicker affair. JBC’s company formation consultants are well-versed in all the regulations and hence the investors can make their mind free of the complexities of the business setup process. JBC takes care of registration, documentation and all the legalities while the investors only need to think about enhancing their growth strategies.

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    If you need additional assistance or have any questions, please contact the following:

    Email: info@freezonesuae.com

    Tel: +971 4 343 8022

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