Business Setup in Ajman

Business setup in Ajman provides a strategic entry point for business owners who would like to open a company in the UAE. Ajman’s business-friendly policies, good infrastructure, and affordable setup make it an ideal point for investors. To start a small business in Ajman or a large-scale business, one needs to be conscious of the legalities, licensing, and business formations that are accessible.

Setting up a business in Ajman requires careful planning and adherence to regulatory requirements. Entrepreneurs must complete several key steps to ensure a smooth registration process. Below is a step-by-step guide on how to set up a company in Ajman.

Choose Business Activity

The first step in Ajman business setup is selecting a business activity that aligns with your industry and long-term goals. The chosen activity determines the type of trade license required. Business activities are categorized into commercial, industrial, and service-based operations. Investors must ensure that their selected activity complies with the permitted categories under Ajman’s business regulations.

Get a Business Name

Selecting a business name is critical, as it must adhere to the UAE’s naming conventions. You must consider the following things when deciding the business name.

• Be unique and not already registered by another company.
• Avoid any offensive or religious terms.
• Do not contain references to political organizations.
• Using a personal name should be the full name, not just initials.

The relevant authority must approve the chosen name before proceeding with the registration process.

Select License Type (Commercial, Industrial, Professional)

Businesses in Ajman must obtain a trade license based on their operational activities. The available license types are given below.

• Commercial License – For businesses trading goods, and involved in retail, import, and export.
• Industrial License – For manufacturing, assembly, and production activities.
• Service License (Professional License) – For consultancy, legal, IT, and other service-based businesses.

Each license is issued by the Ajman Department of Economic Development (Ajman DED) for mainland businesses or the respective free zone authority for free zone companies.

Choose Office Type (Private Office, Shared Desk, Shared Office Space, etc.)

Companies can choose from the following office setups.

• Private Office – Suitable for businesses requiring a dedicated office space.
• Shared Desk – A cost-effective option where multiple businesses share a single workspace.
• Shared Office Space – Provides flexibility with shared facilities while maintaining a professional business presence.

The office type selected should align with the business requirements and budget considerations.

Prepare and Submit the License Application with the Required Documents

Once the business activity, name, and office type are finalized, the next step is to submit the trade license application. The application is submitted to Ajman DED for mainland businesses, while for a free zone business, you can apply through the respective free zone authority.

Get Business License

The business license is issued once the application is reviewed and approved, The business license allows the company to operate in Ajman legally. It must be renewed annually to maintain compliance.

Apply for Visas (Owner, Employee, Dependents)

After obtaining the business license, entrepreneurs can apply for residence visas for themselves, employees, and dependents. The number of visas permitted depends on the business size and office space.

Open a Corporate Bank Account

Opening a corporate bank account is the final step in setting up a business in Ajman. UAE banks require a specific set of documents to open a corporate bank account. A business setup service provider can assist you with this. Choosing the right banking partner is crucial for seamless financial transactions and business operations.

Ajman business setup is the best for investors and entrepreneurs who want to establish a business in the UAE at an affordable price. Low-cost setup and closeness to significant markets are what make Ajman a perfect business setup location. The most significant reasons to set up a business in Ajman are given below.

Strategic Location with Market Access

Ajman is near to major trade cities like Dubai and Sharjah, providing easy access to the local and international markets. Its proximity to Ajman Port and other major highways enables convenient import, export, and distribution operations.

Affordable Business Setup

The emirate of Ajman generally offers comparatively cheaper business setup costs, thus emerging as a perfect destination for start-ups and small businesses due to the following benefits for an entrepreneur.

• Competitive trade license fees
• Affordable rent for offices

Business-Friendly Policies and Regulations

Ajman provides a streamlined business registration process with minimal bureaucracy. The licensing authorities, such as the Ajman Department of Economic Development (Ajman DED) for mainland businesses, Ajman Free Zone Authority, and Ajman Media City for free zone companies, ensure a smooth business setup experience.

Diverse Business Opportunities

Ajman has a variety of industries from trade and manufacturing to logistics and service industries. Therefore, the emirate provides a wide range of business activities and licensing opportunities.

Capital Gains Tax Perks

Companies in Ajman benefit from capital gains tax savings, making it a haven for all businesses. The tax policies of the UAE are appealing, attracting foreign investors in search of a business-friendly jurisdiction.

100% Foreign Ownership in Free Zones

Entrepreneurs setting up a business in the Ajman Free Zone can enjoy 100% foreign ownership, and simplified company registration procedures. This makes free zones an attractive option for international investors.

Simplified Visa Process

Ajman provides a straightforward visa application process, allowing business owners, employees, and dependents to obtain residence visas easily. Companies can apply for visas based on their office space and business category.

Thriving Business Ecosystem

Ajman supports a growing business ecosystem with networking opportunities, government incentives, and access to skilled professionals. The emirate’s pro-business environment encourages long-term growth and investment security.

Entrepreneurs looking to set up a business in Ajman can choose between mainland and free zone business setups. Each offers distinct benefits based on business objectives, ownership preferences, and operational requirements.

Mainland Business Setup

A mainland business setup in Ajman allows companies to operate anywhere in the UAE, including direct business engagements with the local market. Mainland businesses are regulated by the Ajman Department of Economic Development (Ajman DED), ensuring compliance with UAE’s commercial laws.

Key Features of Mainland Business Setup in Ajman:

• Ability to conduct business across the UAE and internationally.
• Eligibility to secure government contracts.
• No restrictions on office location.
• Straightforward visa processing for business owners and employees.

Mainland businesses are suitable for companies planning to serve both local and global markets and those requiring complete operational flexibility.

Free Zone Business Setup

A free zone business setup in Ajman is ideal for entrepreneurs who prefer full foreign ownership and specialized business facilities. Free zone companies operate within a specific economic zone and benefit from a simplified registration process.

Advantages of Ajman Free Zone Business Setup:

• 100% foreign ownership without a local sponsor.
• Corporate tax benefits.

Ajman Free Zone (AFZ)

Ajman Free Zone (AFZ) is a dedicated business hub providing an attractive environment for startups, SMEs, and multinational corporations. AFZ offers quick company formation, flexible office options, and business support services.

Key Benefits of Ajman Free Zone are –

• Affordable business setup packages for startups and enterprises.
• Access to customized office spaces, warehouses, and industrial units.
• Strategic location with connectivity to Ajman Port and major UAE highways.
• Fast-track licensing and registration process.

Businesses in the Ajman Free Zone can operate in sectors such as trading, e-commerce, consulting, logistics, and manufacturing.

Types of Entities in Ajman Free Zone

Entrepreneurs can establish different types of entities in the Ajman Free Zone (AFZ) based on ownership structure and business requirements.

Free Zone Establishment (FZE)

A Free Zone Establishment (FZE) is a single-owner company that operates as an independent legal entity in the Ajman Free Zone. This structure is ideal for solo entrepreneurs and small business owners seeking complete company control.

Free Zone Company (FZC)

A Free Zone Company (FZC) is a multi-shareholder entity that allows multiple investors to own and manage a business together. It is structured as a limited liability company, ensuring protection for shareholders.

Features of FZC:

• Ownership by two or more shareholders.
• Limited liability structure to protect investors.
• Ideal for startups, joint ventures, and medium-sized enterprises.

Branch of a Foreign Company

International companies can establish a branch in Ajman Free Zone to expand their operations in the UAE. A branch operates under the parent company’s name and engages in business activities permitted by the free zone authority.

Features of a Foreign Branch:

• 100% ownership remains with the parent company
• No minimum capital requirement.
• Can conduct the same activities as the parent company.

Setting up a business in Ajman has multiple advantages such as a business-friendly environment, cost-effective setup options, and strategic access to key markets. Below are the primary benefits of starting a company in Ajman.

Strategic Location and Proximity to Dubai and Sharjah

Ajman is strategically positioned between Dubai and Sharjah, providing businesses with direct access to major trade routes, seaports, and commercial hubs. Its proximity to Ajman Port, Dubai International Airport, and Sharjah International Airport makes logistics and trade operations highly efficient. Businesses involved in import-export, manufacturing, and logistics benefit significantly from this location.

100% Foreign Ownership

Entrepreneurs setting up their companies in the Ajman Free Zone enjoy 100% foreign ownership, allowing them complete control over their business without requiring a local sponsor. This is a significant advantage for international investors looking to expand their operations in the UAE. This makes Ajman a highly attractive destination for foreign investors and international businesses.

Tax Benefits

Ajman offers corporate tax benefits, making it a cost-effective location for businesses. Companies registered in the Ajman Free Zone can operate with reduced tax obligations, helping them maximize profitability. These benefits attract businesses looking to optimize their tax strategy while ensuring long-term financial efficiency.

Sector-Specific Zones

Ajman Free Zone features dedicated business clusters tailored to specific industries, providing specialized infrastructure and business support. These sector-specific zones help businesses network, collaborate, and scale efficiently.

Industries benefiting from Ajman’s sector-focused approach include:

• Trading and e-commerce
• Manufacturing and industrial production
• Consulting and professional services
• Logistics and warehousing

Companies within these zones benefit from customized licensing options, shared workspaces, and industry-specific incentives.

Lower Setup and Operational Costs Compared to Other Emirates

Ajman is known for its affordable business setup costs, making it an attractive choice for startups, SMEs, and multinational corporations. Compared to many other emirates, Ajman offers:

• Lower company registration fees.
• Reduced office rental costs.
• Flexible payment plans for business licensing.
• Cost-effective workforce hiring options

Setting up a business in Ajman mainland involves a structured process overseen by the Ajman Department of Economic Development. The first steps include selecting a suitable business activity and choosing a compliant trade name.

After obtaining preliminary approval, you must draft a Memorandum of Association. You must then obtain a rental agreement, and external approvals (if necessary). The final step is collecting the business license, which allows the company to commence operations, open a corporate bank account, and apply for visas. This process enables businesses to benefit from Ajman’s strategic advantages and operate freely within the UAE market.

Setting up a business at Ajman Free Zone involves a straightforward process designed to support entrepreneurs. The first steps include selecting a suitable business activity, choosing a compliant company name, and deciding on the appropriate license type (commercial, industrial, or service). Entrepreneurs must then choose an office type, which can range from private offices to shared desk spaces, depending on their needs and budget.

The next phase involves obtaining pre-approvals (if any). Then submit the application for a business license, and the Ajman Free Zone Authority will issue it. This allows the company to begin operations, apply for visas, and open a corporate bank account, effectively establishing its presence in this investor-friendly business environment.

Setting up a business in Ajman requires expert guidance to deal with the legal procedures, documentation, and licensing requirements efficiently. InZone is a trusted business setup consultancy that simplifies the process, ensuring a seamless and hassle-free experience for entrepreneurs.