How to Open a Company in Ajman Free Zone?
Ajman Free Zone is now a hub for a company that aims to harness the potential of the UAE market. Located in the emirate of Ajman, AFZ provides several advantages to business people and large-scale organizations in equal measure. AFZ has significant economic values, is a source of the UAE’s overall GDP, and is an avenue to promote exportation and investment.
AFZ is a convenient place for business as several procedures for business establishment, licensing, and visa services are much easier here. Whether established as a small business firm or a large-scale enterprise, AFZ provides the best prospect. So, how do you open a company in Ajman free zone?
Benefits of Setting Up a Company in Ajman Free Zone
- The first advantage could be taxation factors such as incentives and exclusions. Corporate and personal income taxes are nonexistent for businesses within AFZ, which increases the possibility of high-profit margins.
- Further, there are no restrictions on foreign ownership. Thus, one can 100% own the business from a distance without having a local counterpart.
- AFZ enjoys a strategic geographical location that allows it to penetrate key markets in the Middle East, Africa, and Asia effectively.
- Invitations are rare, which indicates a high level of competition in the trading business.
- The zone also has good infrastructure, such as ports, airports, and highways, to enhance the flow of stocks and the functioning of companies.
- Another clear advantage is the availability of skilled labor. By having a pool of jobs to choose from, AFZ allows employers to hire employees with the best qualifications to spur the organization’s growth.
Types of Companies You Can Establish
Ajman Free Zone (AFZ) provides companies with several choices to incorporate based on their specific needs and structure. Here are the main types of companies you can establish:
Free Zone Company (FZC):
This type of company is ideal for having more than one shareholder since it allows up to five shareholders. An FZC can also be formed by individuals, more preferably by legal entities or by both legal entities and individuals. It offers versatility and suits any organization with more than one owner who can share all business assets.
Free Zone Establishment (FZE):
An FZE is ideal for a single shareholder, individual or corporate. This type of business structure is clear and suitable for businesspersons who seek total control over their organizations. Small and midsize companies widely prefer it because they desire easy incorporation and complete control of the process.
Branch of a Foreign Company:
Multinational firms are allowed to open offices in the Ajman Free Zone. This enables the parent company to export its operations in the UAE while maintaining its original form. A branch is an office that functions in the name and on the legal basis of the enterprise, which controls it and is under its authority.
Representative Office:
A representative office is a suitable solution for foreign companies that plan to be in the UAE but are willing to carry out trading activities. This type of office mainly deals with sections such as marketing, research, and liaison services. It permits companies to engage in market research and relationship building without embarking on full business functioning.
How to Open a Company in Ajman Free Zone?
One needs to follow general procedures to register a company in AFZ. Here’s a simple guide:
Initial Inquiry and Feasibility Study:
To begin with, you must initiate exploratory communication to determine the need and advantages of establishing an AFZ. Then, a pre-viability analysis must be carried out to gauge the viability of your business idea, AFZ requirements, and legal framework.
Choosing a Business Activity:
The second is to choose the type of business activity that we are willing to undertake. AFZ has much to offer in certain areas, especially trading, manufacturing, services, and consultancy. Ensure that the chosen activity is allowed within the free zone.
Reserving a Trade Name:
Select a suitable trade name for your company and register it at the AFZ administration. It should comply with the free zone’s naming policy without violating trademarks.
Submitting Application and Documents:
Complete the application forms, ideally two sets, and attach the necessary documents for the course. These are mainly passport photographs, proof of residence, and business proposals. The AFZ officials will consider your application and issue you a business permit.
Documentation Needed:
- Completed application form
- Passport copies of shareholders and managers
- Proof of residence
- Passport-sized photos
- Business plan or feasibility study
- Memorandum and Articles of Association (for corporate entities)
- Bank reference letter (if required)
Business License Types
The various types of licenses available for businesses in the Ajman Free Zone include:
Trading License: This license enables one to export, import, and distribute merchandise. It is suitable for those engaged in general trading, specific product trading, and retail businesses in the UAE and other countries.
Service License: A service license is intended for companies that act in consulting, IT services, marketing, and professional services. This license allows business people to undertake consultancy and support services for clients in the local and global markets.
Industrial License: This license is for producers, manufacturers, producers of industrial products, and establishments engaged in industrial production and processing. The industrial license holder can establish factories, process, fabricate, and manufacture articles they might distribute.
E-commerce License: This license is ideal for companies that intend to sell online. It enables firms to offer their products and services on e-commerce, create trading marketplaces, and reach customers worldwide.
Cost Breakdown of Setting Up
Establishing a company in the Ajman Free Zone involves certain expenses as follows:
Initial Setup Costs include filing your company and reserving a trade name. Expenses may also vary in the initial stage by the type of organization, such as a Free Zone Company or Free Zone Establishment. Normally, such initial costs can be expected to be between 1,0000 AED and 5,000 AED higher.
License Fees: The costs of a business license also differ according to the type of license required in the business. For instance, Trading, service, industrial, and e-commerce licenses attract different fees. Licenses range from AED 5,000 to AED 15,000 annually.
What is the Cost of Ajman Free Zone Visa Charges?
When obtaining a visa in the Ajman Free Zone (AFZ), there are several costs and charges to consider:
Investor Visa: Usually costs from AED 3,000 to AED 5,000 for the first application and the subsequent issuance.
Employment Visa: Ranging from AED 3000 to AED 4000 based on the employee’s position and the contract period.
Dependent Visa: In general, it costs about AED 3,000, which includes the application fee and the processing fee for each visa.
Get All The Information Through Consultycs!
How to open a company in Ajman free zone? AFZ has favorable taxation policies, is located strategically, and boasts extensive supportive services; it is a perfect ground for growth and success.
Are you ready to open a company in the Ajman Free Zone? That’s where Consultycs comes in to help out! We are prepared to assist you with applying the rules, forms, and steps necessary for starting your business in the free zone. We will help you save time during company setup by leveraging our experience to ensure legal compliance with Ajman Free Zone regulations, making your investment process more accessible.
