Company Formation In Ajman Free Zone
Is The Ajman Free Zone The Best Option For Company Formation?
Why choose the Ajman free zone for company formation? Is setting up a company in the Ajman-free zone worth the money? The following article will explain.
As in the UAE, free zones offer multiple advantages to investors interested in company setup; every entrepreneur must contact them. But not all free zones provide the same benefits.
Ajman Free Zone is one of the most popular and oldest free zone locations within 40 minutes of Dubai in Ajman, The UAE. The seaport surrounds Ajman Free Zone, welcoming entrepreneurs who wish to set up a company.
Ajman Free Zone provides free registration to start a freelancing, manufacturing, or trading company.
The wide range of business activities in the Ajman Free Zone is as follows:
- The education
- The agriculture
- The construction
- Health and beauty
- The trading and automotive.
- The oil and gas, and paper and packaging.
- Marine, textiles, and sports.
- Advanced technology.
The Advantages Of The Ajman Free Zone
The following are the advantages of the Ajman Free Zone for company formation:
- It offers zero personal and corporate taxes.
- It has 100% foreign ownership.
- Lower living expenses.
- Access to the low cost of labour.
- Affordable handling fees.
- Good market position
- The availability of raw materials is easy.
- Highly affordable licence prices.
Business Facility By Ajman Free Zone
The following is the list of documents mandatory for an individual shareholder in IFZA
- Complete ownership of the company.
- Affordable prices for business facilities
- Simple service for carrying out a variety of transactions.
- Rates of electricity usage are reasonable.
- Rates of rent are also reasonable.
- Flexi desks without month limits
- It offers warehouses and office space.
- Favourable business environment.
- Customised licence fees
Required Different Types Of License In Ajman Free Zone
There are different types of licences required for operating a business, as follows:
This licence is required for trading in goods and selling certain services. Goods can be sold and imported into the UAE. Solely trading within the UAE is also possible.
This licence is required for manufacturing goods or operating any other commercial activity. It is issued for providing professional services in Dubai as a group or individual.
This licence is used for producing fully or partially manufactured goods and products. This licence is also issued to industries to make goods and products, such as manufacturing from raw materials, assembling and packaging, and processing goods.
The Department of Economic Development (DED) has given this licence. Usually, this licence is acquired by entrepreneurs who are engaged in digital trading, such as social media networking and websites.
Acquiring a service licence allows for delivering consulting services across all industries, such as a doctor offering media consulting services, an engineer offering consulting regarding engineering, and legal consulting offered by a lawyer.
In 2019, AFZA added a new licence, an offshore licence referred to as a freelancing licence, valid for three years at reasonable prices.
Types Of Ownership
Free Zone Establishment(FZE)
For this FZE, you require a capital amount for the establishment.
Branch of the Foreign Company
Under this, you will require a company branch licence. With 100% business ownership, shareholders can engage in commercial, industrial, or professional activities. However, you must be an agent or distributor registered in the UAE to conduct sales.
Local Branch company
You can establish a local firm branch in the Ajman free zone if you hold a current licence granted by a UAE licence authority.
What Are The Documents Required For Company Setup In Ajman Free Zone?
The following documents are required for the company’s registration in the Ajman Free Zone:
For establishments In the free zone:
- Partners’ passport copies who have a 6-month validity contract or period
- The proof of visa and UID (unique identification number)
- No objection letter from the sponsor is required in the case of an applicant living in the Emirates.
- Coloured images of an applicant.
Documents for the free zone company:
- Partners’ passport copies who have a 6-month validity contract or period
- Coloured images of a partner
- No objection certificate from the sponsor is required if the owner lives in the UAE.
- Detailed information about business activity and plan
- Residential phone number, address, and Email address.
- Mention the name of the company.
Documents required for the Branch of Local and Foreign Companies:
- The filled-out application form.
- The copy of the memorandum of association.
- The copy of the visa and UID of the company manager.
- The passport copy of the company manager is valid for six months.
- Coloured images of the company manager.
- The copy of the trade licence.
- The copy of the board resolution.
After Completing All The Documents For Company Setup, You Will Receive These Benefits:
- Memorandum of Association (for a company with multiple partners)
- Lease agreement
- The licence of your respective business operation
- Certificate of Chamber of Commerce registration
When renewing your licence or lease, the cost will be the same as what you paid at the time of registration.
No physical presence is mandatory for owners at renewal. After renewal, you will get:
- Lease extension agreement
- Extension of licence
- Extension of the chamber of commerce registration.
Procedures For Company Formation in the Ajman Free Zone
Let’s follow the procedure for company formation in the Ajman Free Zone.
Organise Your Business Activities
The first step is to organise your business idea and its intention. It would be best to sort out ideas, like how you plan to execute your business. You can run any legal business in the region without any obstacles.
You must have a list of the goods and services you’ll provide and the rates you’ll charge.
Apply For The Trade Name
It will help if you choose your trade name according to the policies mentioned in the application without offending any religion or caste. It must be written in both English and Arabic.
The name should be original and not copied by other businesses in the domain.
Open A Bank Account
The freedom to open a corporate bank account under a domestic or international account is free. Being experts in this sector, we have connections to various banks where you can easily open a bank account within an hour.
Planning a marketing strategy is crucial for the success of the business you are running. For example, if your business requires digital promotion over word-of-mouth, You must find agencies that provide relevant services.
Register For A Business Licence
You are responsible for acquiring any of these four licences:
- Free zone establishment (FZE)
- Free zone company (FZC)
- Branch of a UAE company
- Branch of a foreign company
Minor variations may differ based on your type of company. After submitting all documents, the authority will issue a licence after thoroughly examining your documents and certificate.
Look For A Good Supplier
After completing the above procedures, the next step is looking for a good supplier. The supplier will sell the products and services you intend to sell in the vast local market.
Get A Visa
After obtaining a business licence, you can expand your business by recruiting employees and applying for a number of visas according to the company’s size. With a business licence and visa, you can operate your business officially and smoothly without any legal hurdles.