Business setup in Ajman Free Zone

Objective of Ajman Free Zone 

• Ajman Free Zone (AFZ) was launched in 1988,it was formed with an objective to provide the businesses and investors a sustainable environment to help them accelerate their growth plans.
• Since it is strategically located just 30 to 40 minutes from the international airports of Dubai and Sharjah, the AFZ offers better connectivity to some of the world’s most popular business hubs and plays an important role in contributing to the economic sector of UAE.
• One of themain objectives of AFZ is to encourage the young entrepreneurs and provide themwith an easy procedure for setting up of businesses at the affordable costs.
• In this respect, AFZ has extended their support to accommodate the growth of business in various sectors including Food and Beverages, Automotive, Health and beauty, Construction, Education, Agriculture, Oil and Gas, Paper and Packaging, Jewellery (Gold and Diamonds), Marine, Textile, Advanced Technology, Sports, Petrochemical Industry, & Trade.

Offices, Land and accommodation in Ajman Free Zone

AFZ are designed in such a way, providing the basic needs to conduct your business in a worry-free atmosphere. AFZ always has the following facilities to accommodate the easy method of business-

1. Flexible office spaces – available without monthly time limits

• They have offered a wide range of Customised office spaces, with all the amenities tailor made to fit the requirement of different sector of businesses.
• Shared working spaces, meeting rooms are provided to support the Start-up and SME Companies for a pleasant business-like environment without incurring high overhead costs. As they grow, they can also be accommodated with more space.
• Free lancers & Pioneers are also provided with flexible co-working spaces helping them to conduct their business in affordable costs.

2. Warehouses

• Customised spaces of about 100sq.mts has been provided to meet the business requirements.
• These warehouses are also located within the proximity of Ajman Ports and customs for the easy inward and outward movement of products and their transport.

3. Onsite accommodation

There are also blocks for staff accommodation nearby the production area. They are provided with in-built bathroom and other facilities to accommodate them in order to have effective utilisation of efforts and time of workers.

4. Land

• AFZ’s also provided the land for lease to those investors wishing to build their own facility to suit their individual requirement
• These are given on yearly lease plan for a period of 20+ years.

Setting up of Company in Ajman Free Zone

• Types of companies that can be setup in Ajman Free Zone
  

1. Free zone Establishment
2. Free zone Company
3. Branch of a Local Company
4. Branch of a Foreign Company

However, the activities in Ajman Free Zone company formation are divided into traditional 3 groups:

1. Trading
2. Service
3. Industrial

Besides these, in 2019 Ajman Free Zone Authority (AFZA) introduced a category of Freelance permit, which allows having a license and 3 years visit for the most reasonable costs. As a freelancer company, they can use their license even in the Mainland.

• AFZA allows having either 1 service activity or 3 trading activities in the licence. Increase is not possible even for an extra payment.
• In the general trading activity only one activity can be done, if we want to add a new activity, we have to change to Commercial trade license for adding to 1,2 or 3 activities.Aiming for ease of operations using technologically innovative tools, the AFZ has created an online communications portal (E-channel) which aims to further simplify the process of setting up of businesses. Companies can choose from a wide range of licenses and infrastructure, as well as seek support services and workers’ accommodation to streamline the workflow.Different businesses can apply for different types of licenses basing on their type of activities.
• License costs in Ajman Free Zone
  Aiming for ease of operations using technologically innovative tools, the AFZ has created an online communications portal (E-channel) which aims to further simplify the process of setting up of businesses. Companies can choose from a wide range of licenses and infrastructure, as well as seek support services and workers’ accommodation to streamline the workflow.
  Different businesses can apply for different types of licenses basing on their type of activities.

Licenses	Nature of License	Fees
Commercial License	To allow the import, export and distribute the entertainment products throughout the UAE	Starting at AED 3200
Industrial/Manufacture License	Facilitating the manufacturing sector within the Freezone to accomplish the multiple functions like import of raw materials, manufacture of Listed goods and export of products abroad	Starting at AED 9100
Services License	To allow the operation of services listed in the contract clause	Starting at AED 5000
Pioneers Package	This package is designed for young businessmen from 20 to 30 years old. It is ideal for Under graduates, Post graduates, young entrepreneurs and Start-up companies	Package is for AED 5000
Freelancers Package	Benefit provided to freelancers by AFZ by providing the most cost-effective license	Package is for AED 6000
E-commerce license	To allow the companies to carry out their business in electronic trading activities and expand their business in digital age with AFZ	License is for AED 10,000
Offshore license	To provide license to the companies that are controlled by foreign enterprises or individuals that conduct their business in other parts of the world and using the tax haven only as a legal address of the company.	Depending on the type of activity

If you are planning to open resident visas under the company, extra fees for immigration will apply:

• E-channel deposit 5,000 AED
• E-channel registration fee 2,100 AED
• Visa, Medical check-up and Emirates ID 2,800 AED
• The cost of renewal of E-Channel is 1,100 AED annually. It should be renewed 5 days before the expiry date.Important points to note:
  • AFZA is the only free zone in the UAE which officially offers multiple instalments payment option. You can pay for the company by 2, 3 or 6 instalments.
  • There are certain conditions set by Ajman free zone authority to be met. Most important one – the payment should be provided by post-dated checks from a UAE bank. So, if you go for 3 instalments for Ajman free zone license, you can pay the initial one by cash and provide the remaining payments by 2 checks on the day of application for the company.
  • If you come from abroad, of course you won’t have any checks from a UAE bank. In this case you can use the checks of a friend or a relative, for example. But AFZA will ask him to sign a no objection letter to use his check book. Apart from that, you need to provide past 3 months bank statement as proof of funds.

• Procedure for setting up of the company in Ajman Free Zone

  It is most important to note that Ajman company formation can be done within 1 working day.

  The following documents and information will be required:

  Company	Documents required
  Free Zone Establishment	1) Passport Copy – Valid for at least 6 months 2) Coloured Photograph 3) No Objection letter from sponsor if the applicant is a resident of UAE 4) Visa Copy or UID
  Branch of a local company	1) Passport Copy of company manager – Valid for atleast 6 months 2) Coloured Photograph of the Company manager 3) Visa Copy or UID 4) Trade License Copy 5) MOA Copy 6) Board resolution Copy
  Branch of a foreign Company	1) Passport Copy of company manager – Valid for atleast 6 months 2) Coloured Photograph of the company manager 3) Visa Copy of Company manager 4) Trade License Copy 5) MOA Copy 6) Board resolution Copy
  Free Zone Company	1) Passport Copy for each partner- Valid for atleast 6 months 2) Coloured Photograph of each partner 3) No Objection letter from sponsor if the applicant is a resident of UAE 4) Visa Copy of each partner

You can hire business setup consultants in Dubai (Eg: Spectrum Auditing) for your Ajman free zone company registration. It can be done without your visit to the free zone.

Procedure:

• You will have to visit AFZA for Company formation
• Within one to three weeks Establishment card will be issued
• After that in a week the Entry permit will be given
• 1 day is required for Medical check-up and Emirates ID
• 4 days will be required for Visa Stamping*
• Emirates ID will be issued within 7 days from the date of Visa Stamping.

However, the procedure of getting a visa under your own free zone company is almost the same in all the free zones.

*If you opt for urgent service for visa stamping, it will be done in 2 days.

After the company is registered you will receive your set of corporate documents:

• License certificate
• Chamber of commerce registration certificate
• Lease agreement
• Memorandum (for companies with multiple partners)

These documents will enable you to apply for corporate bank account in Dubai.

Important Points to note:

1. Ajman visa costs 2,800 AED including Medical check-up and Emirates ID. They need to be done only in Emirate of Ajman.
2. Ajman Free Zone accepts a medical report only from Al Hamidiya Health centre in Ajman.
3. You can apply for M.O.A through the portal under Company Services

Renewal of Licenses requiredfor Ajman Free Zone:

Trade License and Establishment card should be renewed annually by the establishments in AFZ. The renewal costs will be exactly same as the registration fees.

However, we can also find the renewal cost from Customer Portal, click on Company services and then raise a service request for renewal and the cost for renewal of trade license will be shown there in the service request.

There is a grace period of one month only after the expiry of license within which you can renew.

Renewal can be done without the personal presence of shareholders, but you have to authorise someone to come to the free zone on your behalf to make the application. Original Trade license is required. Renewal can be done within 1 to 2 days.

After the renewal following renewed documents will be received-

1. New License
2. Renewed Lease agreement
3. Renewed Chamber of commerce License

However, audit report is not required to be submitted for renewal.

When the service request is completed and the status of the SR is closed, you can find the renewed license in the Service request for renewal under SR documents.

In order to renew the Establishment card, the E-channel portal should be updated.

You can renew your establishment card before it expires in less than two months.

Why choose Spectrum Auditing?

Spectrum Auditing is an expert firm in the Company Formation and Company Liquidation process across various Free Zones in UAE. Our passion and heart lie in serving the clients and we aim at utmost client’s satisfaction.We are registered Auditors under the Ministry of Economy UAE and also registered Tax Agent from Federal Tax Agency UAE, Dubai providing dedicated Audit, Accounting, Tax services and various Business Advisory Services complying regulatory requirements.

Reach us to have a frills free life in your journey in Dubai, UAE. We at Spectrum will assist you in taking care of all the legal procedures involved in the registration and de-registration of your company in Ajman Free Zone. Call us today for any kind of assistance at +971 4 2699329 or email us at [email protected] to get all your queries addressed. Spectrum is your partner in your success.