Ajman is a rapidly growing city in the United Arab Emirates with economic growth driven by massive industrial development in recent years, which encourages a large number of companies to benefit from investment privileges, strengthening the industry and financial sector in the United Arab Emirates.
Establishing a company in the Ajman Free Zone
Setting up a business in Ajman Free Zone offers you a wide range of benefits such as low investment cost and availability of raw materials which makes the process of sourcing suppliers easier. Another benefit is the possibility of renting offices and warehouses fully equipped with the latest technology at reasonable prices. As the local ports are easily accessible, logistics and transportation of goods both locally and internationally are easier, faster and more economical which increases the company’s returns. Of course, all these conditions make establishing your company in Ajman a smart choice.
Steps to establish a company in the Ajman Free Zone
Determine the type of activity
Identifying the activity is the first step to obtaining a business license. Through the activity, the parties associated with this activity and the permitted legal forms are identified.
The legal entity of free zone establishments in the country takes one of the following two types:
- Free zone limited liability company
- Free zone establishment
The difference between the two types lies in the number of shareholders and the nature of the shareholder, whether a natural or legal person. Not all free zones are obligated to register these two types of establishments.
Therefore, we advise the investor to refer to the body responsible for managing each free zone separately to inquire about the legal structure available for the type of activity that he wants to practice.
The Dubai Multi Commodities Center allows the establishment of a limited liability company, which takes the form of a subsidiary wholly affiliated with a local or foreign company.
Branches of establishments in free zones
Existing local and foreign companies can establish branches in other free zones.
Capital requirements
Capital requirements in free zones in the country vary depending on the region and activity.
Choose a trade name
When determining the type of legal entity for your business activity, you should also think about choosing a trade name that is appropriate for the activity.
In most cases, you must refer to the relevant free zone authority, or the relevant Department of Economic Development, to find out the authorized trade names and whether the name intended by you has been previously registered by a company.
On the other hand, the Departments of Economic Development require certain conditions to approve a trade name, including:
- It must not be contrary to public order and morals
- It must be followed by something indicating the legal entity of the company, such as: (LLC, PJSC, PJSC, FZE, FZE)
- Must not be registered or used for the same or similar type of activity
- It must comply with the nature of the activity and the required legal form
- It must not include sectarian or sectarian names, the names of the ruling authority, or the names and logos of local, Arab and international bodies, institutions and organizations.
- It must not be identical or similar to a local or international trademark registered with the Ministry of Economy
Applying for a commercial license
The type of license you seek depends on the core activity of your business
Selection of offices and work facilities
In free zones, you can buy or rent office space, and office requirements depend on the number of employees and the type of business activity of the company.
Obtaining initial approvals, registering the activity and obtaining the license
Establishments established in free zones are subject to the laws and regulations that govern each specific free zone body or authority.
In order to obtain the necessary approvals, you must apply for the necessary documents. The list of documents varies according to the type of activity and the requirements of the free zone authority.
Below are general instructions on the steps and documents needed to obtain approvals.
Initial approvals
In order to obtain initial approvals, you need the following:
- An application form for initial approval, complete with the required data
- Action Plan
- A copy of the existing business license/registration certificate (for existing companies, this applies to local companies only)
- Color copies of the passports of the company’s shareholders, and the director or member of management appointed to the new company
- A signature form for both the shareholders of the company, and the director or member of management appointed for the new company
- Audited financial reports on the company’s budget for two years, or a reference certificate from each shareholder’s bank
- No objection letter from the current sponsor (for individuals)
- Title deed for the real estate unit
- Letter of intent
- A form with the commercial registry identification code for the manager/member of management (submit the original copy officially certified by a notary public)
The freelancer needs to provide a smaller amount of documentation, and in most cases must:
- Submit a registration request
- biography
- Reference letter from the bank
- A form with the commercial registry identification code (submit the original copy, officially authenticated by a notary public)
Establishment registration
After obtaining initial approvals, you must pay the registration fees and license fees. Fees depend on the type of license required.
Documents required for registration:
- Request to register with complete data
- Board of Directors’ decision to appoint a director of the company/management member (officially authenticated by a notary and authenticated)
- A legal power of attorney through which the director/management member is authorized (officially authenticated by a notary and authenticated)
- The company’s articles of incorporation and articles of association (officially authenticated by a notary and authenticated)
- Director/management member signature form (officially notarized and authenticated by a notary public)
- A personal photo of the director/management member with a white background
- Information about share capital
Advantages of establishing a company in the Ajman Free Zone
- 100% retransfer of capital and profits abroad
- 100% exemption from import and export duties
- No tax is imposed on corporate gains or personal income in most cases
- No restrictions on the use of currency
- Low cost of operations
- Pre-built offices, factories and warehouses
- Fast establishment and licensing procedures
- Single window for customs clearance; That is, multiple administrative services in one station
- Provides labor recruitment assistance and additional support services, such as sponsorship and on-site housing
- Abundant and inexpensive energy
- Excellent infrastructure, communications, and attractive work environment
