About Ajman free zone (AFZ):
Ajman Free Zone (AFZ) is a free trade zone located in the northern United Arab Emirates (UAE). Established in 1988, it is open to both local and foreign investors. AFZ offers a number of advantages to businesses; including 100% foreign ownership, no corporate tax, and 100% import and export tax exemption.
AFZ is a great location for businesses of all industries, as Ajman Free Zone is located in a strategic location, which gives you easy access to markets in the Middle East, Africa, and Asia. The free zone has a progressive infrastructure and top-of-the-line facilities, making it a perfect place to set up or expand a business. The Ajman Free Zone’s innovative approach to industrial expansion has led to its rapid growth, making it an attractive place to set up a company.
Benefits of setting up the company in (AFZ):
- Competitive costs: Ajman Free Zone is still considered a cost-effective option for business setup. This is because the free zone offers competitive prices for facility usage, power, electricity, and leasing, as well as low-cost skilled labor. Additionally, Ajman Free Zone is the only free zone in the UAE that offers installment plans for business setup fees. Ajman Free Zone offers competitive prices for office space, warehouse space, and other facilities and has a large pool of skilled workers who are available at a relatively low cost.
- Strategic location: Ajman Free Zone is located in the Emirate of Ajman, which is one of the seven emirates that make up the United Arab Emirates (UAE). The free zone is just a short drive from Ajman Port, Dubai International Airport, and Sharjah International Airport. This gives businesses in the free-zone easy access to a wide range of markets, both in the East and the West.
- Favorable business environment: If you are considering setting up a business in the Middle East, AFZ is a great option. The free zone offers a number of benefits that can help businesses succeed, including 100% foreign ownership, no corporate or personal income tax, low import and export duties, easy access to markets, competitive labor costs, high-quality infrastructure, and strong government support. AFZ is a major hub for logistics and transportation in the region. The free zone has a number of companies that provide warehousing, shipping, and freight forwarding services.
- Business-friendly processes and regulations: AFZ is a great place to set up a business. Companies in the free zone are exempt from most taxes, including corporate tax, which will be 9% starting from June 2023. There are also minimal import and export duties for countries outside the GCC. Full foreign ownership is allowed, and investors can repatriate their capital 100%. In terms of business setup, Ajman Free Zone offers a fully digitized process. You can apply for a license, open a bank account, and get a visa all online. The free zone also offers added services for banking, medical, and insurance.
Process of setting up a company in the Ajman Free Zone (AFZ):
- Choose a business name: The first step is to choose a business name that is not already in use in the free zone. You can check the availability of a business name online or by contacting the Ajman Free Zone Authority. The name should also not reference anything political or religious. To avoid any problems, it is a good idea to have at least a few options ready when you begin the registration process.
- Apply for a trade license: To obtain an Ajman Free Zone license, you must first choose the entity type that best suits your business. Once you have chosen an entity type, you must gather the required documentation and submit it to the Free Zone Authority. The Free Zone Authority will review your documents and contact you if there are any discrepancies. If you meet all the necessary criteria, the Free Zone Authority will approve your license.
- Set up a bank account: You can choose to open a bank account with a local or international bank in the UAE. Our team of experts can help you choose the best bank for your needs and guide you through the entire process.
- Obtain a visa: The next important step is to obtain Ajman Free Zone visas for your team so that you can begin operations. We would happily assist you with the required documentation and the application process.
Activities offered by Ajman Free Zone :
If you are considering setting up a business in the UAE, Ajman Free Zone is a great option. The free zone offers a number of advantages that can help your business succeed.
The business activities offered in AFZ are: Consultancy, Delivery services, project management, education, hospitality, translational services, trading, E-commerce, IT infrastructure, advertising, Marketing, Accounts & bookkeeping, transport & web design & Delivery Services
- Trading: Ajman Free Zone (AFZ) allows foreign investors to own 100% of trading companies. These companies are not required to pay customs duties on imported or exported goods.
- Manufacturing: Ajman Free Zone (AFZ) offers a number of incentives to attract and support manufacturing companies. These incentives include subsidized land, tax breaks, and access to skilled labor.
- Services: AFZ is a popular destination for businesses in these sectors due to its competitive tax rates, strategic location, and skilled workforce.
- E-commerce: AFZ is a popular choice for e-commerce businesses because it offers a tax-free environment and easy access to global markets.
- Offshore: The Ajman Free Zone (AFZ) offers offshore licenses to businesses that want to operate outside of the UAE. Businesses that operate under an offshore license do not have to pay corporate taxes or personal taxes.
Office requirement to set up a company in AFZ:
- Copy of passport: The passport of the company’s owner or manager must be valid for at least six months.
- Copy of visa: If the company is employing expatriates, they will need to provide a copy of their visa.
- Two passport-sized photographs of the company’s owner or manager are required.
- Business plan: The business plan should include information about the company’s products or services, target market, marketing strategy, and financial projections.
- The Memorandum and Articles of Association are the company’s governing documents.
- The Power of Attorney is a document that gives someone else the authority to act on behalf of the company.
- The specimen signature is a copy of the company’s owner or manager’s signature.
Cost estimates for setting up a company in AFZ:
- Trade license: The cost of a trade license in AFZ varies depending on the type of business activity and the size of the company. For example, the cost of a trade license for a trading company is AED 10,000, while the cost of a trade license for a manufacturing company is AED 20,000.
- Office space: The cost of office space in AFZ varies depending on the location and size of the office. For example, the cost of a small office in a central location is typical AED 10,000 per month, while the cost of a large office in a more peripheral location is typically AED 20,000 per month.
- Staff salaries: The cost of staff salaries will vary depending on the number of employees and their qualifications. For example, the average salary for a secretary in AFZ is AED 5,000 per month, while the average salary for a manager is AED 10,000 per month.
- Other costs: Other costs that may be incurred when setting up a company in AFZ include:
- Legal fees
- Accounting fees
- Marketing fees
- Registration fees
The total cost of setting up a company in AFZ will vary depending on the specific circumstances of the business. However, the estimates above provide a general idea of the costs involved.
How BizDaddy can help you set up the company in AFZ:
BizDaddy can help you set up a company in Ajman Free Zone (AFZ) in a number of ways. We can:
- Provide advice on the best type of company structure for your business. There are a number of different company structures available in AFZ, and the best structure for your business will depend on your specific needs. BizDaddy will help you choose the right structure and ensure that your company is set up correctly.
- Help you with the registration process. The registration process for a company in AFZ can be complex and time-consuming. BizDaddy can help you with the process and ensure that all the necessary paperwork is filed correctly.
- Obtain the necessary licenses and permits. In order to operate in AFZ, your company will need to obtain a number of licenses and permits. BizDaddy can help you obtain these licenses and permits and ensure that your company is compliant with all applicable regulations.
- Find office space. BizDaddy can help you find suitable office space in AFZ. They can also negotiate on your behalf to get the best possible price on office space.
- Provide administrative support. BizDaddy can provide administrative support for your company, such as bookkeeping, payroll, and IT support. This can free up your time so you can focus on running your business.