How to set up a company in Ajman Free Zone?

Ajman Free Zone, located in the emirate of Ajman, has emerged as a prime destination for businesses seeking to establish a presence in the United Arab Emirates (UAE). With its strategic location, world-class infrastructure, and attractive incentives, the free zone offers a conducive environment for entrepreneurs and companies from around the world to thrive. This comprehensive guide’ll walk you through the process, requirements, costs, and benefits of setting up a company in Ajman Free Zone.

Understanding Ajman Free Zone

Ajman Free Zone is a well-established free zone that offers a range of benefits to businesses operating within its premises. Established in 1988, the free zone has attracted companies from various sectors, including manufacturing, logistics, trading, and services. One of the key advantages of choosing Ajman Free Zone for your business setup in Ajman is its strategic location, situated just 20 kilometres from Dubai, providing easy access to major transportation hubs and international markets.

Read More: Company Setup in Ajman Freezone

Benefits of Setting up a Company in Ajman Free Zone

Choosing Ajman Free Zone for your company formation in Ajman comes with numerous benefits, making it an attractive option for businesses seeking to establish a presence in the UAE. Here are some of the key advantages:

1. 100% Foreign Ownership: The Ajman Free Zone allows for 100% foreign ownership, enabling international investors and entrepreneurs to have complete control over their businesses.
2. Tax Exemptions: Companies operating within the free zone are exempted from paying corporate taxes, personal income taxes, and import/export taxes, providing significant cost savings.
3. Streamlined Setup Process: The company registration in the Ajman process is designed to be efficient and straightforward, allowing businesses to start their operations quickly.
4. Access to Affordable Labor: Ajman Free Zone offers a skilled and cost-effective workforce, enabling businesses to optimize operational expenses.
5. World-Class Infrastructure: The free zone boasts state-of-the-art facilities, including modern office spaces, warehouses, and logistics support, ensuring a seamless business setup in Ajman.
6. Strategic Location: Ajman’s proximity to major cities like Dubai and Sharjah and its access to international airports and seaports make it ideal for businesses targeting regional and global markets.

Read More About: Ajman Media City Free Zone (AMC)

Step-by-Step Guide to Company Formation in Ajman

Following the correct steps and complying with the relevant regulations are essential to ensure a smooth and successful company formation in Ajman. Here’s a step-by-step guide to setting up a company in Ajman Free Zone:

1. Choose a Business Activity: Determine the specific business activity you wish to engage in. This will influence the type of license and requirements you’ll need to fulfil.
2. Select a Company Name: Propose a unique and appropriate company name that complies with the naming conventions of Ajman Free Zone.
3. Prepare Required Documents: Gather the necessary documents, including proof of investment, passport copies, and other relevant paperwork per the free zone’s requirements.
4. Apply for a License: Submit your application for the appropriate license, along with the required documents and fees, to the Ajman Free Zone Authority.
5. Obtain Approvals: Await the approval process, during which the free zone authority will review and validate your application and documents.
6. Rent Office Space: Once approved, you can secure office space within the free zone by renting or purchasing a unit, depending on your business needs.
7. Register for VAT (if applicable): If your business activities are subject to Value Added Tax (VAT), register with the Federal Tax Authority.
8. Open a Corporate Bank Account: To facilitate business transactions, open a corporate bank account with a licensed bank in the UAE.
9. Obtain Additional Permits: Depending on your business activities, you may need additional permits or approvals from relevant authorities.
10. Commence Operations: Upon completing all the necessary steps, you can officially commence your business operations within the Ajman Free Zone.

It’s important to note that the specific requirements and processes may vary depending on your business activity and the type of license you require. Working with experienced business setup consultants in Dubai can streamline the process and ensure compliance with all relevant regulations.

Costs Associated with Setting up a Company in Ajman Free Zone

When establishing a business in the Ajman Free Zone, it’s crucial to consider the associated costs to ensure proper budgeting and financial planning. Here’s an overview of the potential costs involved:

1. License Fees: The cost of obtaining a license from Ajman Free Zone can range from AED 10,000 to AED 25,000 (approximately $2,700 to $6,800), depending on the type of business activity and the license duration (typically one year).
2. Office Rental or Purchase: Office spaces within the free zone can be rented or purchased, with rental prices ranging from AED 30 per square foot per year (approximately $8 per square foot per year) to AED 50 per square foot per year (roughly $13.6 per square foot per year), depending on the location and size of the office.
3. Visa and Residency Fees: If you plan to hire employees or relocate to Ajman, you’ll need to factor in the costs associated with visa applications and residency permits, which can range from AED 3,000 to AED 5,000 (approximately $800 to $1,360) per employee.
4. Refundable Deposits: Ajman Free Zone requires a refundable deposit, which can range from AED 3,000 to AED 10,000 (approximately $800 to $2,700), depending on the type of business activity.
5. Professional Services: You may need to hire professionals, such as business setup consultants in Ajman, lawyers, or accountants, to assist with the company formation process, which can add to the overall cost.

It’s important to note that the costs mentioned are subject to change, and it’s advisable to consult with the Ajman Free Zone Authority or experienced business setup consultants for the most up-to-date information.

Required Documents for Company Setup in Ajman

To ensure a smooth and successful company registration in Ajman, it’s essential to have all the necessary documents prepared in advance. Here’s a list of the commonly required documents:

1. Completed Application Form: You’ll need to fill out and submit the appropriate application form provided by Ajman Free Zone.
2. Passport Copies: Provide clear copies of the passport(s) of the company owner(s) or authorized representative(s).
3. Proof of Investment: Provide evidence of the intended investment amount, such as a bank statement or a reference letter from a financial institution.
4. Business Plan: Submit a detailed business plan outlining your proposed business activities, objectives, and strategies.
5. Memorandum and Articles of Association: These legal documents outline the company’s structure, ownership, and operational guidelines.
6. Board Resolution (if applicable): If the company is owned by another entity, a board resolution authorizing the establishment of the new company in the Ajman Free Zone may be required.
7. No Objection Certificate (NOC): You may need to obtain an NOC from relevant authorities or government entities for certain business activities.
8. Additional Documents: Depending on the nature of your business and the specific license requirements, you may need to provide additional documents, such as trade licenses, educational certificates, or professional qualifications.

It’s important to note that the document requirements may vary depending on the type of business activity and the specific license you’re applying for. It’s advisable to consult with the Ajman Free Zone Authority or experienced business setup consultants in Ajman Freezone to ensure you have all the necessary documents prepared before initiating the company formation process.

Hiring Employees and Obtaining Visas in Ajman

As your business grows and expands, you may need to hire employees to support your operations. Ajman Free Zone offers a streamlined process for obtaining work visas and residency permits, making it easier for businesses to attract and retain top talent from around the world. Here’s an overview of the process:

1. Employment Visas: To hire foreign employees, you’ll need to obtain employment visas, which typically require submitting employment contracts, educational certificates, and other relevant documents.
2. Residency Visas: Once an employee has been issued an employment visa, they can apply for a residency visa, which allows them to live and work in Ajman for an extended period.
3. Sponsorship Requirements: As the employer, you’ll be responsible for sponsoring your employees’ visas and residency permits. This includes providing accommodation and health insurance for your employees.
4. Quota System: The Ajman Free Zone operates a quota system that determines the number of visas a company can obtain based on factors such as the size of its leased office space and the nature of its business activities.
5. Processing Time: The processing time for employment and residency visas can vary, but the Ajman Free Zone is known for its efficient processes, often taking less time than other free zones in the UAE.

It’s important to familiarize yourself with UAE labour laws and regulations to ensure compliance and avoid legal issues. Working with experienced business setup consultants in Ajman can help you navigate the visa and hiring processes smoothly, ensuring you have the right talent to support your business growth.

In conclusion, setting up a company in Ajman Free Zone offers numerous advantages for businesses seeking to establish a presence in the UAE. With its streamlined processes, attractive incentives, and strategic location, Ajman Free Zone provides a conducive environment for companies to thrive. By following the necessary steps, understanding the requirements, and seeking professional guidance, you can efficiently guide the company formation in Ajman process and position your business for success in this dynamic free zone.