Since its inception in 1988, Ajman Free Zone (AFZ) has attracted thousands of businesses. Presence of large numbers of businesses is the direct result of the confidence of investors and entrepreneurs on the Ajman Free Zone Authority (AFZA).
AFZ is the main free zone in the emirate of Ajman. As a general free zone, it allows incorporation of a large number of businesses. Like most of the other free zones, it is also located near seaside. This location makes it appropriate for the import and export of various products. AFZ is also in the proximity of nearby emirates of UAE. This further makes it easier for companies to transport their logistics in and out from this free zone.
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Types of Business entities
In order to facilitate a large number of corporations, AFZA allows the establishment of four types of business structures. These include:
- Ajman Free Zone Company (FZC): It is the type of company with more than one shareholder.
- Ajman Free Zone Entity (FZE): If there is a single shareholder in a company, then it is called Ajman FZE (free zone entity).
- Branch of a Local Company (BLC): A UAE-based company can set up its branch in AFZ.
- Branch of a Foreign Company (BFC): A foreign company is also allowed to take advantage of AFZ through its branch.
Ajman Free Zone License
Ajman free zone is open for multiple business structures and types. Therefore, it is providing 5 types of licenses to accommodate a wide range of businesses.
As the name suggests, this type of license is available for trading activities. Companies that want to perform any type of trading (garments, supplements, metals, etc.) can apply for a trading license in AFZ. A single license allows 3 types of trading activities.
If a company wants to provide professional services to its customers, then it can apply for professional services license. Local or foreign companies that provide Consultancy services, marketing, management, etc. can apply for a professional license in AFZ.
This license is generally available to companies with an online business or electronic trading. Investors can also get marketing and technical support from Ajman free zone.
A company can apply for an industrial license if it wants to start manufacturing activities in Ajman free zone. The free zone provides warehouses and smart stores to facilitate such companies. Through these measures, investors can meet all their requirements at a single place.
National Industrial License
Like industrial license, this license is also available to manufacturing units. But there are a few important differences between the two types of licenses. This type of license is specifically for GCC nationals. Following are important conditions required to apply for a national industrial license.
- Company’s owner must be a GCC national or at least 51% shares of the company should belong to GCC national/s.
- The company is required to accomplish a minimum 40% manufacturing process within AFZ.
Ajman Free Zone Facilities
In order to facilitate businesses, It provides various facilities. These facilities are intended to improve business and accommodation of companies. Following are important facilities available in AFZ.
This is best suitable for freelancers. These modernized business centers allow freelancers to start their business without delay. They can get a single employment visa with a freelance license.
These affordable offices provide an easy solution to startups. They don’t need to worry about the high cost at the start of their business with smart offices. Startups can avail two employment visas after acquiring a smart office.
These strategically-located executive offices are suitable for large corporations. They provide several additional facilities like easy parking space and up to 5 employment visas.
These warehouses are mainly for manufacturing units. They provide facilities according to international standards. Size of these warehouses ranges from 100 to 1,000 square km. Therefore, they are suitable for both small and large units according to their preferences.
Space for Accommodation
Accommodation is also available for workers inside Ajman free zone. A single room can provide living space for 4 workers. Prayer room, restaurant, laundry, parking, etc. are few of the several facilities available with accommodation.
How to start a business in Ajman Free Zone?
You have to take several important decisions before setting up your company in this free zone. You need to select a company name, type of business and appropriate license according to your business. Apart from that, it is also extremely important to prepare all required documents and choose a location before starting the company setup procedure in AFZ.
Steps for company formation
- The initial step is to submit all the required documents in their respective department (AFZA).
- The next step is to apply for the visa and registration of your company.
- In the third step, you will be required to mention your desired business structure (FZC, FZE or branch of a local/foreign company).
- After approval of your company name and structure of a business, you will be eligible for a license.
Business Setup Cost in Ajman Free Zone
The cost of any business structure matters a lot for different companies. Ajman is one of the most cost-effective free zones in UAE. The cost of Ajman free zone company formation largely depends on various factors. Things like license cost, rent of office structures, Ajman free zone visa cost, etc. varies according to business type.
We at RIZ & MONA Consultancy can assist you in accomplishing all tasks related to AFZ company formation. We are available via our WhatsApp # 971-54-9821012 and email firstname.lastname@example.org.