Setting up a business in Ajman Free Zone (AFZ) offers numerous benefits for entrepreneurs looking to start or expand their operations in the United Arab Emirates (UAE). Ajman, being one of the seven emirates, provides a strategic location, a business-friendly environment, and various incentives for foreign investors. Here’s a comprehensive guide on setting up a business in Ajman Free Zone.
Benefits of Setting Up in Ajman Free Zone
- 100% Foreign Ownership: Investors can fully own their businesses without needing any local partner. This is a significant advantage for foreign entrepreneurs.
- Tax Incentives: Ajman Free Zone offers zero corporate and personal income taxes for up to 15 years, which can be renewed thereafter. There are also no import or export duties, allowing businesses to maximize profit.
- Strategic Location: Located close to major cities like Dubai and Sharjah, Ajman provides easy access to ports, highways, and air transport. The proximity to the Sharjah International Airport and Ajman Port enhances logistics and supply chain operations.
- Simple Registration Process: The business registration process in Ajman Free Zone is straightforward, with minimal bureaucratic hurdles. Most businesses can be established within a short time frame.
- Business Facilities: Ajman Free Zone offers a range of facilities, including office spaces, warehouses, and flexi-desks, tailored to different business needs.
- Support Services: The free zone authority provides various support services, including company registration, licensing, and office rental, guiding investors through the entire setup process.
Steps to Set Up a Business in Ajman Free Zone
1. Choose the Business Activity
Determine the type of business activity you wish to pursue. Ajman Free Zone allows various business activities across multiple sectors, including:
- Trading (general and specific categories)
- Manufacturing
- E-commerce
- Consultancy services
- Media
- Tourism and hospitality
2. Select a Business Structure
Choose the type of legal entity that best suits your business needs. Common business structures in the Ajman Free Zone include:
- Free Zone Company (FZC): Suitable for two or more shareholders.
- Free Zone Establishment (FZE): A single shareholder entity.
- Branch of a Foreign Company: If you have a business outside the UAE.
3. Register Your Business Name
Your business name must comply with the Ajman Free Zone naming criteria. The name should be unique, not violate UAE cultural values, or be similar to other registered names. Submit your proposed name to the Free Zone Authority for approval.
4. Prepare Required Documents
Typically, you’ll need the following documents for business registration:
- A completed application form.
- A copy of your passport (and that of any partner).
- Passport-sized photographs.
- A business plan detailing your planned activities and strategy.
- Proof of residence (utility bill or bank statement) if required.
- An initial approval letter from Ajman Free Zone.
5. Application and Licensing
Submit your application and the required documents to the Ajman Free Zone Authority. The following types of licenses are available:
- Commercial License: For trading and retail businesses.
- Industrial License: For manufacturing entities.
- Service License: For consultancy and service-providing businesses.
- E-commerce License: To online firms.
The processing time for license approvals can vary but usually takes a few days.
6. Office Spaces and Facilities
Once your application and business license are approved, you must secure office space or facility according to your business requirements. Ajman Free Zone offers various options:
- Flexi-Desk: Ideal for startups and freelancers.
- Office Space: Dedicated office units for businesses.
- Warehousing: For businesses requiring storage and logistics distribution.
Select the appropriate option based on your business model and space needs.
7. Open a Bank Account
Opening a local corporate bank account is essential for conducting business transactions. Several banks in the UAE offer services for free zone companies, so choose one that meets your needs regarding fees and services. You must provide the necessary documentation, including your business license and company registration papers.
8. Visa and Employment Process
After setting up your business, you may need residency visas for yourself and any employees. Ajman Free Zone offers investor and employee visa services, allowing you to secure:
- Investor Visa: This permits you to live and work in the UAE as a business owner.
- Employment Visa: This is for hiring employees according to your business needs.
The number of visas you can obtain often depends on your office type and business activities.
9. Compliance and Regulations
After your business is up and running, it’s essential to comply with the local laws and regulations. This includes maintaining proper accounting records, adhering to labor laws, and renewing your business license annually. AFZA Business setup in Ajman provides guidelines and support for these compliance requirements.
Costs and Fees
The cost of setting up a business in Ajman Free Zone can vary based on several factors, including the type of business, the size of the office, and the number of visas required. Here are some average costs you may encounter:
- Business License Fee: Starting from AED 10,000, depending on the license type and activities.
- Office Space/ Flexi-Desk Fees: Costs can range from AED 15,000 to AED 30,000, depending on the size and location of the office.
- Visa Costs: Typically AED 3,000 to AED 5,000 per visa, including medical and processing fees.
Creating a detailed financial plan that accounts for these costs and potential ongoing expenses is essential. Setting up a business in the Ajman Free Zone provides a strategic gateway to the UAE market and beyond, with attractive benefits for foreign investors. Its simplified processes, tax incentives, and robust infrastructure make it an ideal choice for entrepreneurs looking to expand their operations.
If you’re considering setting up a business in Ajman Free Zone, it’s advisable to consult with a local business setup advisor or service provider. They can help navigate the legalities, streamline the registration process, and ensure compliance with all regulations efficiently, allowing you to focus on your business’s growth and success.
For further guidance or assistance in setting up your business, feel free to reach out to local business consultants or the Ajman Free Zone Authority directly.
