Ajman Free Zone (AFZ) Company Formation
Ajman Free Zone (AFZ), founded in 1988, is a premier hub for media, creativity, and diverse business ventures. Positioned on the Arabian Gulf coast, AFZ provides an ideal, sustainable environment for businesses and investors to grow rapidly. Located in Ajman, one of the most connected cities globally, AFZ provides easy access to two international airports and the bustling Ajman Port, which welcomes over 1,000 ships annually. With state-of-the-art infrastructure, strategic industrial clusters, and efficient highways, AFZ is a preferred destination for global business operations. Supported by over 50 strategic partners, AFZ offers a comprehensive range of services—including banking, finance, insurance, business support, fitness, and facilities—ensuring a seamless setup with Ajman Free Zone license and growth process for companies.
Starting a business can be daunting, especially if you are new to the UAE. Our team of experts is always available to guide entrepreneurs through the entire process, from Ajman Free Zone company formation, getting an Ajman Free Zone license, to visa processing. With our help, you can rest assured that your business will be up and running quickly.
Ajman Free Zone Authority (AFZA) - A Brief
Ajman, one of the seven emirates forming the United Arab Emirates, houses the Ajman Free Zone company setup, a free economic zone established in 1988. Its purpose is to offer businesses a tax-free and fully-serviced environment to operate. The Ajman Free Zone Authority (AFZA) oversees the free zone's development and regulation, providing various services, such as Ajman free zone company formation and registration, visa and immigration assistance, and office and warehouse rental.
The AFZA region has diverse businesses, including trading and manufacturing firms, consulting agencies, and advertising companies. It offers convenient access to major ports, airports, and road networks. Companies operating within AFZA using the Ajman Free Zone license have the same legal status as any other free zone company in the UAE, allowing them to engage in trade, exports, contracts, visas, imports, e-commerce, and banking facilities. The AFZA free zone aims to provide significant cost-saving benefits for entrepreneurs compared to other free zones across all UAE Emirates. If you wish to start a business in Ajman Free Zone, you have come to the right place.
Benefits of Ajman Free Zone Company Formation
There are numerous benefits to setting up a company in the Ajman Free Zone (AFZA), including:
- Proximity: Ajman Free Zone offers convenient access to the nearby Ajman Port, as well as Dubai and Sharjah airports, enabling seamless connectivity for logistics and travel.
- Digital Gateway: With a fully digitized business setup in Ajman Free Zone, it allows companies to manage operations efficiently through a streamlined digital platform.
- 100% Company Ownership: Ajman Free Zone provides customizable business packages, allowing 100% foreign ownership, offering investors full control over their ventures.
- Customer Care Support: Businesses in Ajman Free Zone company setup benefit from 24-hour customer support services, ensuring round-the-clock assistance for smooth operations.
- World-Class Infrastructure: Situated in a thriving business hub, Ajman Free Zone offers world-class infrastructure to support diverse industries and foster growth in a dynamic commercial environment.
- Tax benefits: The AFZA is tax-free, meaning businesses operating in the free zone are not subject to corporate or personal income tax.
- Flexible leasing options: The Ajman Free Zone Authority offers flexible leasing options for office and warehouse spaces, allowing companies to scale up or down as needed.
- Range of business activities: The AFZA allows companies to engage in various business activities, including manufacturing, trading, and services such as consulting and advertising.
- Supportive business environment: The Ajman Free Zone provides various support services to a company based in the free zone, including immigration assistance, business development support, and access to various promotional and networking events.
- 100% foreign ownership for the Company: Foreign investors can fully own companies based in the AFZA, allowing for complete control over the business.
- No currency restrictions: there are any restrictions on foreign currencies, making it easier for firms to conduct international business.
- Strategic location: The AFZA is located near major ports, airports, and road networks, providing the company with excellent connectivity to the rest of the region.
Overall, the Ajman Free zone offers a range of benefits, making it an attractive option for companies looking to set up a business in the UAE.
Major Sectors in Ajman Free Zone
The following are some of the new and major sectors in Ajman Free Zone,
- Food & Beverage: Ajman Free Zone supports one of the largest global industries—the Food & Beverage (F&B) sector—known for its vast contributions to revenue and employment worldwide. Businesses in this sector benefit from a prime location to access regional and international markets.
- Automotive: As one of the world’s most significant economic sectors, the automotive industry thrives in Ajman Free Zone, with strong annual revenue and a market geared for future growth.
- Health & Beauty: With increasing consumer demand and digital advancements, the Health & Beauty industry is rapidly expanding. Ajman Free Zone provides an ideal base for businesses in this sector to grow and innovate.
- Construction: Ajman Free Zone offers comprehensive facilities for the construction sector, including executive offices, warehouses, business centers, and onsite accommodations, supporting businesses that are building the infrastructure of tomorrow.
- Agriculture: Positioned to become a leading destination for agribusiness, Ajman Free Zone provides a supportive environment for companies in agriculture and agricultural commodities, fostering growth in this essential industry.
- Education: With over 170 education-focused facilities, Ajman Free Zone contributes to the region’s evolving education sector, aligning with the UAE's commitment to educational reforms and development.
Ajman Free Zone (AFZ) Facilities
Ajman Free Zone (AFZ) offers world-class facilities designed to provide businesses with a seamless and productive working environment. Here is the list of facilities with their description given in the following table:
Facility | Description |
Executive Offices | Spacious, strategically located offices with customisation options to meet specific business needs. |
Furnished Office Spaces | Fully equipped office spaces designed for startups and expanding businesses, offering flexibility and productivity-enhancing amenities. |
Business Centre | Shared co-working space with meeting rooms, networking lounges, and collaborative work areas for startups and SMEs. |
Freelancer & Pioneers Hub | Cost-effective co-working spaces for freelancers, independent professionals, and graduates, providing flexibility and growth opportunities. |
AI Robotics Hub | A hub for AI and robotics startups offering co-working spaces, executive offices, networking events, training programs, and funding support. |
E-Commerce Hub | A dedicated space for e-commerce businesses, offering networking opportunities, business incentives, and shared workspaces. |
Eco-Friendly Warehouses | Gold LEED-certified warehouses near Ajman Port and Customs, prioritising sustainability with customisable spaces starting from 100 sq.m. |
Pre-Built Warehouses | Ready-to-use warehouses, starting from 100 sq.m., located in a designated industrial area with easy port access. |
Land Leasing | Long-term land leases (20+ years) for investors to build customised business facilities. |
Onsite Accommodation | Fully equipped accommodations with 24/7 security, air conditioning, laundry services, prayer areas, restaurants, and parking facilities. |
Eligibility Criteria for Ajman Free Zone Company Setup
Certain eligibility criteria must be met to establish a business at the Ajman Free Zone Authority (AFZA). These criteria are as follows:
- Business type: The AFZA offers licenses for various types of businesses, including commercial, industrial, and services. The type of Ajman Free Zone license required will depend on the nature of the business.
- Legal structure: The business must have a legal structure, such as a Limited Liability Company (LLC), Branch Office, or Free Zone Establishment (FZE).
- Shareholders: The business must have at least one shareholder, and the shareholders can be individuals or corporations.
- Capital requirement: The capital requirement for setting up a business in AFZA will depend on the type of Ajman Free Zone license required.
- Office space: The business must have a physical office space in the AFZA, which can be a flexi desk, executive office, or warehouse.
- Documents: The required documents for setting up a business at the AFZA include a business plan, passport copies of the shareholders, and a no-objection certificate (NOC) from the current sponsor for UAE residents.
- Visa eligibility: The number of visas that can be obtained will depend on the type of Ajman Free Zone license and office space rented.
- Annual renewal: Once the business is established, it must be renewed annually, and the renewal fee will depend on the type of license and office space rented.
By meeting these eligibility criteria, businesses can establish themselves in the AFZA and benefit from the tax-free environment and other advantages offered by the free zone.
Types of Business Structures Available in AFZ
The Ajman Free Zone Authority (AFZA) permits the registration of various entities, including the following.
Free Zone Establishment (FZE)
A Free Zone Establishment (FZE) is a company formation option allowing a single shareholder, either an individual or a corporate entity, to establish a business in the Ajman Free Zone. This structure is ideal for sole proprietors or entities seeking full ownership without partners.
Free Zone Company (FZCO or FZ-LLC)
An FZCO, also known as a Free Zone Company or Free Zone LLC, accommodates multiple shareholders, with up to 50 allowed. This structure is suitable for partnerships or businesses requiring a flexible ownership model in an Ajman free zone company setup.
Branch of a Foreign Company
This formation type enables foreign companies to establish a branch within the Ajman Free Zone. While legally distinct, the branch remains under the control of the parent company and serves as a regional extension, often used for marketing or regional representation.
Branch of a UAE Company
A UAE Company Branch is an extension of an existing local business that already holds a UAE licence. This option is used by UAE companies seeking to expand their footprint within the Ajman Free Zone, leveraging their existing operations to reach a broader market.
Ajman Free Zone Licenses
Ajman Free Zone Authority (AFZA) offers various trading licenses to companies based in the free zone, allowing them to engage in different business activities. Here are some of the trading licenses offered by AFZA along with Ajman Free Zone License requirements:
General Trading Licence
The general trading licence allows companies to import, export, store, and trade a wide range of goods under a single licence, covering items like foodstuff, furniture, and electronics. Specific activities may require a No Objection Certificate (NOC) for restricted goods as one of the Ajman Free Zone license requirments.
Commercial Licence
A commercial licence permits businesses to sell products and services within the UAE and internationally. It authorizes companies to import, export, and trade items within the Free Zone and the local UAE market.
Industrial Licence
The industrial licence is for businesses involved in manufacturing, assembly, and processing. It allows importation of raw materials and the export of finished goods, covering the complete manufacturing process within the Free Zone.
Service Licence
The service licence supports companies offering specialized services, such as consulting, logistics, insurance, and travel. It includes fields like accounting, legal services, and IT, enabling these businesses to operate within the Free Zone.
Trading Licence
This licence allows companies to trade specific goods listed on the licence, enabling the import, export, and sale of designated items in the UAE.
E-commerce Licence
An e-commerce licence allows businesses to conduct online trading, including selling goods and services via websites or mobile applications.
National Industrial Licence
The national industrial licence is for companies engaged in key manufacturing activities that are strategically important to the UAE’s economy.
The type of trading license required will depend on the nature of the business activity, based on the Ajman Free Zone activity list, that the company wishes to engage in. Ensure to have all the Ajman Free Zone license requirements before proceeding to secure a license. Filings.ae provides guidance and support to companies to help them determine the most appropriate license for their business needs.
Ajman Free Zone Authority (AFZA) Business Activities
The AFZA offers various business advantages, including 100% foreign ownership, 100% repatriation of capital and profits, 0% corporate and personal income taxes, and no customs duties on imports and exports.
There are various business activities allowed in AFZA, which include:
- Trading: Import and export of goods and commodities.
- Industrial: Manufacturing, assembling, and production of goods.
- Service: Providing professional or non-professional services.
- E-commerce: Selling and buying goods and services online.
- Logistics: Warehousing, distribution, and transportation of goods.
- Consultancy: Providing professional advice or guidance in any field.
- Media: Publishing, broadcasting, and advertising of media products.
- Education: Providing educational and training services.
- Hospitality: Operating hotels, restaurants, cafes, and other tourism-related services.
- Health: Providing medical and healthcare services.
Note that the above list is not exhaustive, and additional business activities may be allowed in AFZA.
Documents Required for Ajman Free Zone Company Setup
To set up a company in Ajman Free Zone, the following documents are typically required:
- Three proposed names for the company
- Passport copy of the shareholder(s) and director(s) (valid for at least 6 months)
- Passport-size photograph (taken on white background) of the shareholder(s) and director(s)
- No Objection Certificate (NOC) from the current sponsor if the applicant is a UAE resident and employee
- Business plan (required for industrial and service licenses)
Please note that additional documents may be required depending on the type of company and license being applied for.
Setting up a Branch of a Local Company
To set up a branch of a local company in the Ajman Free Zone, the following documents are typically required:
- Passport valid for at least six months
- Passport size photo (white background)
- The original license of the parent company
- Original Chamber of Commerce certificate of the parent company
- Original commercial registration of the parent company
- Business plan (if applying for an Industrial or Service license)
- No capital is required
It's important to note that the requirements may vary depending on the business's nature and the license type being applied for.
Branch of a Foreign Company
- Memorandum & Articles of Association
- Certificate of Incorporation
- Power of Attorney
- Board Resolution
- Passport copy that is valid for six months minimum for the representative or manager of the Firm
- A colored photograph (Photo taken on white background)
- Company Incorporation/Registration certificate from the authority of the country where the company is registered.
- A feasibility report will be submitted for Industrial and Service Enterprises.
- A bank reference letter, a letter of good standing from their current bank.
It's also worth noting that the documents mentioned may need to be attested by the UAE embassy in the country of origin or by the relevant authorities, depending on the requirements of Ajman Free zone company setup.
Ajman Free Zone Company Formation Procedure
Ajman Free Zone company formation can be completed within 1-3 working days after all required documentation has been compiled and submitted. Follow these steps to establish your business efficiently.
Step 1: Choose a Business Activity
Decide on the business activity you want to engage in, such as trading, manufacturing, or service provision. A well-defined business plan can help streamline approvals. Go through the Ajman Free Zone Activity list to determine the right choice for your business.
Step 2: Determine the Legal Structure and License Type
Select the appropriate legal structure for your company:
- Free Zone Establishment (FZE): Single shareholder
- Free Zone Company (FZC): Multiple shareholders
- Branch of a Local Company
- Branch of a Foreign Company: Choose the right license type based on your business activity, such as commercial, industrial, or professional.
Step 3: Choose a Company Name
Select three potential company names and submit them to the Ajman Free Zone Authority (AFZA) for approval, ensuring compliance with UAE business naming regulations.
Step 4: Prepare and Submit the Required Documents
Gather and submit the necessary documents, including:
- Passport copy
- Passport-size photo
- Residential address, phone number, and email
- Company name and business activity details Pay all registration and processing fees at this stage.
Step 5: Obtain Initial Approval
Once AFZA verifies your documents, you will receive initial approval, allowing you to proceed with further steps.
Step 6: Sign the Lease Agreement
To operate within Ajman Free Zone, sign a lease agreement for office or warehouse space. This document is required for business licensing.
Step 7: Receive Business License and Registration Documents
After completing the registration, you will receive:
- Business License
- Chamber of Commerce Registration Certificate
- Lease Agreement
- Memorandum of Association (for multiple partners) These documents enable you to open a corporate bank account in Dubai. Note that at least one shareholder must be a UAE resident to open a business account.
Step 8: Obtain an Establishment Card
The establishment card contains company details and is necessary for sponsoring residency visas for employees.
Step 9: Apply for an Entry Permit
If you are outside the UAE, obtain an entry permit to enter the country. If already in the UAE, convert your visa status to a residence visa after permit issuance.
Step 10: Undergo Medical Checkup and Submit Residency Visa Documents
A medical test is mandatory for visa processing. You can complete this in Dubai without traveling to Ajman.
Step 11: Apply for an Emirates ID
Submit your documents for an Emirates ID, a crucial document for legal identification in the UAE.
Step 12: Complete Biometrics Process
Visit an Emirates ID center for fingerprint and biometric verification.
Step 13: Receive Visa Approval and Emirates ID
Once your medical and biometric processes are complete, submit the details for visa approval. The electronic visa will be sent via email and can also be accessed through the UAEICP app. Your Emirates ID will be issued shortly after visa processing.
Step 14: Open a Corporate Bank Account
Apply for a UAE corporate bank account. Approval may take a few weeks, but once received, you can officially begin business operations.
Starting a business in an AFZA through Filings.ae
In conclusion, Ajman Free zone company setup offers various advantages, such as 100% foreign ownership, 100% repatriation of capital and profits, low corporate and no personal income taxes, and no customs duties on imports and exports. AFZA also provides a range of services to support businesses, including assistance with Ajman free zone company formation, licensing, visas, and legal documentation.
To set up a business in AFZA, you can visit our website and choose the relevant service that suits your business needs. The process typically involves submitting the required documents and paying the necessary fees. Once the Ajman Free zone company setup is established, you can start operating within the free zone and take advantage of the benefits offered by AFZA.
It is important to note that different business activities may have different requirements and restrictions, so it is essential to talk to our experts, who have expertise in Ajman Free zone activity list, to ensure that your intended business activity is permitted and to obtain the necessary licenses and permits.