Business Setup in Ajman Mainland and Free Zone
Ajman Mainland and the Free Zone are fine options for entrepreneurs and businessmen who are looking to set up a business in the UAE. Foreign and local businesspeople and investors can benefit a lot from the incentives and perks that this Emirate offers. The process of business setup in Ajman is very economical and hassle-free. Plus, it’s easy accessibility and strategic location will allow businesses to make enormous profits in the UAE. Read on to know everything about company formation in Ajman mainland and the free trade zones.
Process of Business Setup in Ajman Mainland
The procedure for processing the business setup ranges from two to four weeks. Here are the steps you need to take for Ajman mainland business setup.
Choose a Business Activity
To begin the process of setting up your business, the first step is to decide what type of business activity you want to do in the Ajman Mainland.
Submit Company Application
Then, you need to submit the business setup application along with the required documents. To submit the application, you need to get in touch with the customer service center in the municipality of Ajman.
Obtain Initial Approval from Specialized Departments
Post that, you must follow up with Ajman’s Inspection Unit of the municipality to confirm the company location. You might also need to request approval from other departments, depending on your business activity.
Obtain Approval of Trade Name
After getting approval, you need to get another approval for the company’s trade name and reserve it. Once you receive the approval of the trade name, receive the issued business register and membership certificate.
Submit the Required Approvals
After everything has been authorized and approved, you must provide the information and get receipts from the Ministry of Trade in order to be accepted into the Register of Companies. Make sure to follow up with the economic department and provide any relevant external approvals for your business activities. Submit the external approvals depending on your business activity, if any.
Draft Memorandum of Association
Then, draft the Memorandum of Association of your company.
Prepare a Legal Form
Preparing a legal form is also necessary. The shareholders and specialists in the field must be consulted when preparing the business’s legal structure. An authorized registrar must notarize the legal structure. The performance and expansion of the company are greatly influenced by the legal structure.
Lease or Rent Space
To run your business in Ajman, you must lease or employ commercial and office space. The minimal dimension required by the municipality for the commercial space must be met. The space will be inspected by the officials for confirmation purposes.
Obtain Your Business License
Finally, you must pay all applicable fees and send the application to the Customer Services Center. The following day, a business license is granted. Once your license is received, you can start your business in Ajman Mainland.
Documents Required for Ajman Mainland Company Formation
The following are the primary documents that you need to submit for business setup in Ajman:
- Bank reference letter or other documents from the bank confirming capital details
- Passport copy of the shareholders and of the owner
- Notarized Memorandum of Association
- Proof of residence
- Business plan
- Company Immigration card
- Labor cards and Visa
- Notarized Articles of Association
Shareholders must submit bank statements of the last six months from the country of residency and original passports. Also, please note that during the submission of requirements, some nationals may require security approvals.
Advantages of Company Registration in Ajman Mainland
Following are some of the primary advantages of setting up your company on the mainland of Ajman:
- Modern infrastructure
- Excellent connectivity between other emirates in the UAE and around the emirate
- Low-cost business setup
- Central and strategic location
- Advanced resources such as access to airports and seaports
- Cost-effective subsequent business operations
- The market in Ajman is lucrative
- Supportive authority and policies
- Repatriation of profits
- Lower prices of office rentals and land
- Quick and easy business setup process and hassle-free incorporation
- Free movement of funds
- You can have 100% ownership of your business
- Availability of Visas
- Low cost of living
- You can save a huge amount of money due to exemption from import and export duties
- Taxation benefits
Legal Entities for Your Company in Ajman Mainland
The structure of your company will be determined by its legal entity. This lists the number of shareholders your business will have and their nationalities. In Ajman, there are several different types of business entities which are as follows:
The Service Agent must belong to Ajman. The license owner needs to meet all the liabilities pertaining to the company establishment towards the others.
Simple Commanding Company
Two or more partners can form the foundation of this business structure. The partners will be held accountable only to the extent of their capital shares. All partners must be UAE nationals, and they must each own at least 51% of the business.
Joint Liability Company
A Joint Liability Company can be launched by two or more partners. Each partner is responsible for their own investments in the business. The partners must all be nationals of the UAE.
Limited Liability Company (LLC)
With an LLC, there must be two or more partners, but less than 50. An LLC’s capital must be at least DHS 150,000. Other than partners’ capital shares, they are not liable for the company’s liability.
Process of Business Setup in Ajman Free Zone
With a huge number of awesome advantages of Ajman Free Zone, business setup in this economic zone is currently regarded as an entrepreneur’s heaven. It is perfectly situated to serve both the western and eastern markets for setting up a business; located strategically at the entrance of the Arabian Gulf.
There are only five easy steps required for starting a company in Ajman Free Zone. The steps are:
Step 1. Outline Your Business Activities
Choosing your business activities is the first step in beginning any business in the UAE. The majority of legal activities in the UAE are welcome in the AFZ, including transport, IT, consulting, hotel, bookkeeping & accounting, trading, and marketing.
The types of businesses you can run in the AFZ are very diverse, but it’s crucial that you include all proposed activities on your license application. Failing to do so could lead to serious problems in the future.
Step 2. Select Your Business Name
The next step is to select a business name. The UAE imposes a strict yet simple set of naming rules that are unfamiliar to people outside the region. This task requires a bit more thinking here in Ajman than in the rest of the world.
You must keep in mind that the company’s name should not make any references to Allah or Islam nor cannot have any incendiary or blasphemous words. If you want to use your name as part of the business name, you must use your entire name rather than just your initials or surname.
Then, make sure your desired name is available for registration. A business setup expert can assist you with this step offering options and ensuring that the name you’ve picked is available.
Step 3. Make Your License Application
Making your license application is the next and most crucial step in starting your business in the Ajman Free Zone. Depending on the type of business you want to start, the specific procedure will change.
There are a few options available, including a branch of a foreign or local company:
- Free Zone Entity (FZE)
- Free Zone Company (FZC)
Generally, you need to submit the following:
- Each partner must give a color picture.
- A business plan whether requesting a Service or Industrial license
- A copy of each partner’s passport with six months left on its validity.
- If the applicant is a resident of the UAE, the current sponsor must provide a No Objection Letter.
If you are looking to open a branch, you need to submit the following documents:
- A Registration Certificate of the company. It must be issued by the relevant government body in the country where the business is registered
- Articles of Association and Memorandum
- Certificate of Incorporation
- Board Resolution
- Power of Attorney
You can get your business license in as little as one business day if your application is accurate and complete. To make your application free from errors and perfectly filled up, it is a good idea to work with business setup consultants in the UAE from the start of the procedure till the end.
Step 4: Applying for Visas
Now that your license is issued, you can start the visa application process. This step, along with your license application, can be handled for you by a business setup specialist.
You are able to apply for a visa on your own behalf as well as on behalf of any employees or dependents you have, such as your kids, spouse, or domestic help. When it comes to filing for dependent visas, the procedure is relatively simple as long as you complete the requirements.
The number of visas you are eligible to apply for will often depend on the size of your company and the license package you choose.
Step 5: Open a Corporate Bank Account
The opening of a corporate bank account is the last step before you start your business in the Ajman Free Zone. For multinational business owners, this is not always an easy task. It can be difficult to navigate the many local and international banks available because they all have unique application requirements and acceptance criteria.
Working with a business setup consultant during this procedure is a smart option for this reason as well. We, at Riz & Mona Consultancy, can help you in opening a corporate bank account in the UAE.
Advantages of Free Zone Company Setup in Ajman
Established in 1988, AFZ provides local and foreign business owners with a modern infrastructure and premier amenities. The free zone has excellent access to numerous international airports and seaports, as well as main highways. Other advantages of this free zone are as follows:
- Accessibility to modern amenities
- 100% foreign ownership
- It is not necessary to be physically present in the UAE to incorporate the company
- No capital limits for paid-up shares
- Low operational and start-up costs
- No NOC from the existing visa sponsor is required
- Absence of visa limitations
- There are no mandatory office rental requirements
- No restrictions on currencies
- No necessity for a yearly audit
- Two international airports
Types of Companies in Ajman Free Zone
Before you start a business in Ajman, you need to learn about the different entities that are allowed in this region. Following are the business setup entity types that are legal in Ajman Free Zone:
Branch of a Local Company
Companies that are currently operational in the UAE are allowed to register their branches in Ajman Free Zone.
Free Zone Company (FZCO)
Free Zone Company is a company that has more than one shareholder.
Branch of a Foreign Entity
Register a representative or branch office of foreign entities to can create their presence in the Ajman Free Zone.
Free Zone Establishment
When a business is formed with just one shareholder, it adopts the shape of a Free Zone Establishment. It can be fully owned by either a legal entity (company) or a person.
Types of Business Licenses for Ajman Mainland Business and Free Zone Business
You need a business license for business setup in UAE, including Ajman. Your company’s business license establishes your legal status and indicates the nature of your business. The rules and guidelines for Ajman business setups vary depending on the type of business license. The various license categories are listed below.
National Industrial License
If you have a national industrial license, you are not subject to customs duty. To obtain this license, you must meet a few conditions.
- A minimum of 40% of manufacturing operations must be carried out in the free zone.
- A company must own at least 51% of the shares and be registered with the Gulf Cooperation Council.
A trading license is for those who are considering using their company to trade in Ajman. This includes the export, import, and re-export of services and goods in the United Arab Emirates.
An industrial license in Ajman is required for those companies who want to import raw materials for processing, producing, or assembling specific products in Ajman. The finished goods can subsequently be imported into other countries. You must work through a local agent or local distributor if you are willing to sell the products in the United Arab Emirates.
A professional or service business license is necessary for Free Zone, UAE, or foreign entities that offer services or professional activities.
An E-commerce license is for businesses that want to take advantage of the region’s and the GCC’s growing e-commerce market. This license will make it easier for online company owners to collaborate with the Free Zone.
General Maintenance License
You need a maintenance license to operate a maintenance business in Ajman. With the help of this license, you will be able to maintain and make repairs to structures in order to make they are kept in good condition.
Business Setup Services in Ajman, UAE
So, that was all about how to setup a business in Ajman Mainland or Free Zone. The procedure of company setup in Ajman is renowned for being very fast and completed in no time. Plus, you can also easily get a license in Ajman. The procedure can be made even simpler with the assistance and guidance of a business consultancy like RIZ & MONA.
For company registration on the Mainland and in the Free Zone, there are a number of steps to follow and a significant amount of documents must be submitted. You will be guided through the entire process by RIZ & MONA CONSULTANCY to make sure there are no obstacles in your path. So, contact us now, book a free consultation, and form your company right away.