How do I start a company in the Ajman Free Zone?

Setting up a company in Ajman Free Zone (AFZ) in the United Arab Emirates (UAE) can be a straightforward process, provided you follow the necessary steps and fulfill the requirements set by the authorities. This guide will walk you through the process, highlighting the key steps and requirements involved in setting up a company in Ajman Free Zone.

Ajman Free Zone is located in the Emirate of Ajman, which offers a strategic location between Dubai and Sharjah. It provides various incentives, including 100% foreign ownership, zero taxation on personal and corporate income, and the absence of customs duties on goods and services.

Step 1: Research and Planning

Before starting the process of setting up a company, it is essential to conduct thorough research and develop a well-defined business plan. Consider factors such as the nature of your business, target market, potential competitors, and financial projections.

Step 2: Selecting a Business Activity

Determine the type of business activity you wish to set up in AFZ. Choose from one of the many permissible activities listed by the authorities, such as trading, manufacturing, services, or consultancy.

Step 3: Company Structure

Decide on the legal structure of your company. AFZ offers options for setting up a Free Zone Establishment (FZE), a Free Zone Company (FZC), or a branch office of an existing company.

An FZE is a limited liability company with a single shareholder, while an FZC requires at least two shareholders. Both options provide shareholders with complete ownership.

If you wish to establish a branch office, you need a parent company that has been in operation for at least two years.

Step 4: Choose a Company Name

Select a unique name for your company, ensuring it aligns with the guidelines provided by AFZ. The name should not violate any trademark laws, should not include any offensive or religious terms, and should not be similar to an existing company’s name.

Step 5: Application Submission

Submit the necessary documents to AFZ, including:

  • Completed application form
  • Passport copies of shareholders and directors
  • Two color passport size photographs of each shareholder and director
  • Business plan
  • Specimen signature of shareholders and directors
  • Memorandum and Articles of Association (MAA)
  • Power of Attorney (if applicable)
  • No-Objection Certificate (NOC) from the current sponsor (in the case of UAE residents)
  • Initial approval certificate (if applicable)

Step 6: Legal Documentation

Upon reviewing the submitted documents, AFZ will issue a letter of approval. This allows shareholders to proceed with drafting the MAA and other legal documents required to establish the company. These documents will need to be attested by a UAE embassy or consulate in the origin country.

Step 7: License and Visa Application

Once the legal documents are ready, shareholders can apply for a license and visas from AFZ. AFZ offers three types of licenses: trade license, service license, and industrial license, depending on the nature of the business activity. The number of visas that can be obtained is dependent on the license type.

Step 8: Office Space

Choose the appropriate office space in AFZ based on your business requirements. They offer flexible options such as smart offices, executive offices, and warehouses, with a range of sizes and facilities.

Step 9: Payment of Fees

Upon receiving the license and visa approvals, you will be required to pay the relevant fees, including the license fee, visa fees, and the fees for the chosen office space.

Step 10: Commence Operations

Once all the payments are made and the required documentation is complete, you will receive the license and can commence your business operations in Ajman Free Zone.

It is important to note that this is a general overview of the process and requirements for setting up a company in Ajman Free Zone. Requirements may vary depending on the specific business activity and the company structure chosen. It is recommended to consult with a legal professional or a business setup consultant to ensure compliance with all the relevant regulations and requirements.

I would recommend BizDaddy as a business setup consultant for Ajman Free Zone. They have a team of experienced professionals who can help you with every step of the process, from choosing a business activity to obtaining visas for employees.