Ajman Free Zone Company Formation

Ajman has rapidly emerged as a strategic and highly cost-effective hub for entrepreneurs looking to start a business in the UAE. Ajman Free Zone is one of the oldest and most well-regarded free zones in the UAE. It was created to boost the industrial, commercial, and financial sectors in the Emirate of Ajman by attracting foreign investment.

The free zone offers a unique combination of strategic location, state-of-the-art infrastructure, and exceptionally business-friendly policies. Entrepreneurs, startups, Small and Medium-sized Enterprises (SMEs), and international investors benefit from streamlined procedures, affordable setup options, and full ownership rights without the need for a local partner or sponsor.

Ajman Free Zone not only facilitates quick company registration but also provides modern office facilities, warehousing solutions, and easy access to key transportation hubs in the UAE. Businesses gain operational flexibility, legal protection, and access to a wide range of financial and administrative support services, enabling them to focus entirely on growth and market expansion.

With its competitive costs, minimal bureaucratic hurdles, and investor-centric approach, the Ajman Free Zone continues to attract ambitious entrepreneurs looking to establish a strong presence in the UAE.    

The basic eligibility requirements for applicants are:

• Age Requirement: The applicant, whether a shareholder or manager, must be at least 18 years of age.
• Legal Standing: The applicant must have a clean criminal record and be in good legal standing.
• Passport Validity: A valid passport with at least six months of validity remaining is essential for all non-GCC national shareholders and managers.
• Business Plan: For certain business activities or license types, the Ajman Free Zone Authority may request a brief business plan outlining the proposed venture.
• No Local Sponsor Required: One of the key eligibility factors is that foreign investors do not need a UAE national as a sponsor or partner, allowing them to retain full ownership of their company.

Ajman Free Zone offers several legal structures to accommodate different business needs, from solo entrepreneurs to large multinational corporations. The main types of companies include:

• Free Zone Establishment (FZE): This is a legal entity with a single shareholder. The owner can be an individual or a corporate body. A sole establishment in the UAE free zone is often structured as an FZE, making it ideal for individual entrepreneurs.
• Free Zone Company (FZCO): This structure is designed for businesses with two or more partners. The shareholders can be individuals, corporate entities, or a combination of both. It is a flexible option for joint ventures and partnerships.
• Branch of a Local Company: An existing company registered in the UAE mainland can open a branch in Ajman Free Zone. The branch is considered an extension of the parent company.
• Branch of a Foreign Company: A company incorporated outside the UAE can establish a branch in Ajman Free Zone. The branch is 100% owned by the foreign parent company and can conduct the same business activities.

Beyond eligibility, there are several practical Ajman Free Zone Company Formation Requirements that must be met to complete the registration are as follows:

• A Unique Trade Name: The proposed company name must be unique and not violate public morals or the public order of the UAE. It should not be identical to any existing company name and must be approved by the Ajman Free Zone Authority.
• Defined Business Activities: The business must select its specific commercial activities from the list approved by AFZA. The chosen activities will determine the type of license issued.
• A Registered Address: Every company must have a registered address within Ajman Free Zone. It offers a range of facilities to meet this requirement, from cost-effective flexi-desks to physical offices and warehouses.
• Shareholders and Directors: A company must appoint a manager, who can also be a shareholder. The minimum number of shareholders is one for an FZE and two for an FZCO.

For a detailed comparison between FZE and FZCO structures, please refer to our dedicated blog post: Difference Between FZE and FZCO.

• Share Capital: While there is often a stated minimum share capital in the legal documents, Ajman Free Zone is known for its flexibility and does not always require the capital to be physically deposited in a bank.

The process to open a company in the Ajman Free Zone is designed for speed and simplicity. The following steps outline the typical journey from application to operation.

1. Determine Business Activity and Legal Structure: The first step is to decide on the specific business activities and choose the appropriate legal structure (FZE, FZCO, or Branch). This will determine the type of license required.
2. Choose and Reserve a Trade Name: Select a unique name for the company and submit it to the Ajman Free Zone Authority for approval and reservation.
3. Submit Application and Required Documents: Complete the official application form and submit it along with all the necessary documents, such as passport copies and proof of address.
4. Pay the Required Fees: Once the initial approval is granted, the authority will issue an invoice for the registration and license fees. Payment must be completed to proceed.
5. Receive the Business License: After the payment is processed and all documents are verified, AFZA will issue the official trade license. This typically includes the Certificate of Incorporation and other legal documents.
6. Process Visas and Open a Bank Account: With the license in hand, the company can apply for an Establishment Card, which is necessary to process residence visas for owners and employees. The company can also proceed with opening a corporate bank account.

Preparing all the necessary documents in advance is crucial for a smooth and fast Ajman Free Zone Company Registration. The standard required documents include:

• A completed application form for company registration.
• Clear, colored passport copies for all individual shareholders and the appointed manager.
• A passport-sized photograph with a white background for each individual.
• Proof of residential address (such as a recent utility bill) for each shareholder.
• A brief business plan (for certain activities).
• A No Objection Certificate (NOC) from the current sponsor if an applicant is a UAE resident holding an existing visa.

For a Corporate Shareholder or Branch Office, additional documents are needed:

• Attested and notarized copies of the parent company's registration documents (Certificate of Incorporation, Memorandum of Association).
• A Board Resolution from the parent company stating its intent to establish the new entity in Ajman Free Zone.

The Ajman Free Zone Company Formation Cost is widely recognized as one of the most competitive in the UAE. The total investment depends on the license type, visa requirements, and facility choice. The following table provides a breakdown of the typical costs.

An Ajman Free Zone Company Registration offers a wealth of financial and legal advantages that are highly attractive to international investors.

• 100% Foreign Ownership: Foreign entrepreneurs can own 100% of their business without the need for a UAE national partner or sponsor.
• 100% Repatriation of Capital and Profits: Businesses can transfer all of their profits and capital back to their home country without any restrictions.
• Exemption from Taxes: Companies are exempt from corporate and personal income taxes. While the UAE has a 9% corporate tax, free zone companies meeting "Qualifying Free Zone Person" criteria can benefit from a 0% rate on qualifying income.
• Exemption from Customs Duties: Businesses are exempt from import and export duties on goods traded within the free zone.
• Access to Global Markets: Ajman's strategic location, with its port and proximity to major airports in Dubai and Sharjah, provides excellent logistical connectivity.
• Confidentiality: The legal framework ensures a high level of confidentiality for business owners.

A No Objection Certificate (NOC) is a formal letter from a current sponsor stating that they have no objection to an individual undertaking another activity, such as starting a business. An NOC is required for company formation in Ajman Free Zone only in specific cases:

• For UAE Residents: If an applicant is currently employed in the UAE and holding a residence visa sponsored by their employer, they will need to provide an NOC from that employer to register a new company.
• For Government Employees: Individuals working in UAE government departments must obtain special permission or an NOC before engaging in any private business activity.

The NOC to open a company in Ajman Free Zone is a signed and stamped letter from the sponsor, granting consent to establish the business.