Ajman is a city in the United Arab Emirates - considered an ideal place for business for local & foreign entrepreneurs because of its proximity to Dubai and Abu Dhabi, its low corporate tax rate, free zone & mainland company formation facilities, and its high quality of life.
Ajman is the oldest & smallest of seven emirates in the UAE. As it is located on the coast of the Persian Gulf & closest to Umm Al Quwain and Sharjah has seen rapid economic growth and development in recent years. From real estate to construction & transportation to e-commerce popular business, you will get a variety of trade licenses depending on the entity.
As Ajman is only 40 minutes drive from Dubai & connects two international airports & four seaports so it is easy to access eastern & western markets easily based on the prime location. As the license issue for Ajman free zone can be done within a few steps, Ajman offshore company formation is easy & quick. In this article, we are going to cover types of licenses in the Ajman free zone & how to apply to obtain the license.
Why is Ajman Better For Company Formation?
Being known as one of the free economic zones of UAE, Ajman Free Zone Authority has allowed business owners to conduct various kinds of industries to manufacturing services. Ajman is also one of the best places for business owners to go if they want to invest in the real estate industry. The government has made it easier & convenient for investors to get loans and grants that will help them purchase property at a possible low price.
In the past, the economy was mainly based on maritime fishing and trading. But, Ajman has emerged its land through trade and industry and supports investors with a set of efficient, insightful laws and regulations to achieve a positive ROI for the business. Now, AFZ is considered & worldwide recognized as the safest business place for entrepreneurs with its unbeatable & cost-effective company formation in UAE.
Some economic factors play vital roles, such as:
- Advantages & extra facilities for being a free zone
- Easy access to Dubai & Sharjah makes Ajman strategic location
- Lands, Warehouses, and offices at a possibly lower price
- Low startup cost
- Feasible visa option
- Availability of raw material
- Inexpensive prices of power and electricity
- Economical lease rents
- Modern infrastructure
Some other advantages of company formation in Ajman are:
- Zero corporate, income, import & export tax.
- 100% foreign ownership for offshore company formation
- Fast track company setup
- Within 1-day trade license issued facilities
- Experience, skilled & low wage labor
- Easy corporate bank account opening
- 24/7 client accessible facilities & securities
Types Of Company Formation
To obtain a general trading license in Ajman, you need to select the trading entity first. It offers four types of company formations for entrepreneurs. The business entities are:
- Free Zone Establishment (FZE)- license is issued for an independent corporate entity
- Free Zone Company(FZC)- license is issued for the company made by a number of corporate people
- Branch of a local company- license is issued for the company who have a valid trade license from UAE authorities
- Branch of a foreign company- license is issued for the company that already has a parent company outside UAE
FZE & FZC owners require a minimum capital for company formation & it depends on the business types. But, branches of local & foreign companies don’t require any capital.
Licensing in Ajman
To conduct legal business in Ajman free zone, you have to obtain a license issued by the Ajman Free Zone Authority(AZFZA). One of the major advantages that made Ajman a reason & suitable choice for any kind of venture is it’s ease process of company registration & getting hassle free trade license within a day.
Before applying for the trade license you need to submit some legal & attested documents like:
- Passport Copies of the shareholders or investors
- Proof of residential address, phone & email
- Memorandum of Association & Articles of Association
- Full business plan
- License application
- Fees payment receipt
- Name Approval letter from DED(Department of Economic Development)
Types of license in Ajman you could apply:
- Trading or Commercial License:
It is the basic license type. If your company is related to trading any specific service or products, you have to obtain a trading license. It helps to import, export, distribute & re-export of goods or entertainment products within the UAE.
- Industrial or Manufacturing License:
Under this license holders can incorporate manufacturing, processing & assembling facilities like- imports of raw materials, manufacturing listed products or goods, export of products abroad. There are some preconditions for this type of license:
- Businesses need to be registered in the Gulf of Cooperation Council.
- The holder must own 51% of the share
- Minimum$ 40% manufacturing goods to be processed in this free zone.
- Service or Professional License: This license is issued to the person or company who wants to carry out any specific professional service or any kind of consultancy service in the UAE.
This type of license has been developed for young entrepreneurs to enable professional independence. Pioneers package is suitable for the postgraduates & start-up companies in a cost-effective manner without any restriction of long-term overheads.
- Freelancer Permit License:
Now, Ajman authority permits freelancer licenses to support & expand this sector in the UAE. The economic renewal rates ensure advanced business growth in this freelancing competitive market.
E-commerce business is emerging at a high rate in the UAE. E-commerce license enables online business owners & entrepreneurs to expand their electronic trading over B2B & B2C opportunities. The list of e-commerce activities under this license are:
- Fashion Retail E-Trading
- Media Entertainment E-Trading
- Industrial Equipment E-Trading
- Automotive E-Trading
- Home, Office & Personal Utilities E-Trading
Steps To Obtain Trade License In Ajman:
- Select the appropriate business entity you would like to set up in a free zone or mainland.
- Registration of name for your General Trading License.
- Submit the application with related documents to get approval from AFZA.
- Receive General Trading License after approval.
- Select bank account or payment gateways.
Forming a company in Ajman is an important step for any business as it will allow you to easily trade globally, which can be very profitable. This economic zone is great & business environment friendly for small start-ups because business incorporation is much cheaper than in other states.
You can start your first company in Ajman with the professional guidance of KWS- one of the leading business consultancy firms in Dubai. We can provide you with the guideline to obtain a Dubai economy trade license, as there are different types of legal laws & frameworks based on the economic zone.
For more business consulting advice contact KWS. KWS is a leading business consulting service that provides- any kind of business setup services in Dubai, Offshore company formation in Dubai, business support(Trade license, Visa service, Legal Translation service, Trademark Registration, Company liquidation, Finding local sponsors) & so on.