How to Get an Ajman Free Zone License?

Ajman Free Zone (AFZ), established in 1988, is strategically located near Ajman port and Sheikh Mohammed Bin Zayed Road, offering easy access to Dubai and Sharjah. Its primary purpose is to attract foreign investment, support startups, SMEs, and international businesses. It also provides a cost-effective gateway for trading, service, and industrial activities.

Benefits of an Ajman Free Zone License

A Free Zone License in Ajman allows businesses to operate legally within AFZ while enjoying multiple benefits. Some Ajman Free Zone license benefits include:

• 100% Foreign Ownership: Investors can fully own their company without the need for a UAE national partner. Refer to the blog “Can You Own 100% of a Company in the UAE” for more information.
• Repatriation of Profits and Capital: Full repatriation is allowed without restrictions. This lets investors freely transfer their earnings home, giving peace of mind and turning their business efforts into real rewards for their families and future dreams.
• Tax Incentives: Companies benefit from corporate tax exemptions, no personal income tax, and other fiscal advantages. However, non-qualifying income, such as revenue from mainland clients, faces a 9% corporate tax, subject to thresholds and economic substance requirements.
• No Physical Office Requirement: Businesses in Ajman Free Zone can operate without a traditional physical office, reducing setup costs. However, some activities may require a flexi desk option to meet licensing requirements.

Key Limitations to Be Aware Of While Obtaining an Ajman License

While Ajman Free Zone offers many advantages, it’s important to understand certain limitations that may affect your business operations and planning. Some of its limitations are:

• The license generally applies only within AFZ boundaries; conducting business outside the free zone requires a separate license.
• Businesses must obtain visas for employees and comply with office space requirements. The number of visas depends on the free zone space and the number of employees.
• Some activities, such as gold, precious stone trading, and oil & gas trading, are restricted, and licenses cannot cover all mainland business operations.

Before applying for an Ajman Free Zone (AFZ) license, businesses must prepare certain documents and meet basic prerequisites. 

Pre-Requisites

• Business Activity Selection: Decide on the type of license (freelance, trading, e-commerce, industrial, or warehouse).
• Company Structure: Determine the legal entity type, such as sole proprietorship, LLC, or branch of a foreign company.
• Trade Name Reservation: Ensure the proposed business name complies with AFZ naming regulations.
• Office Space Requirement: Choose between a flexi-desk, co-working space, or dedicated office, depending on your license type and visa needs.
• Visa Planning: Estimate the number of visas required for employees and owners, as it affects costs and approvals.
• Initial Approval (if applicable): Some activities may require preliminary AFZ approval before submission.
• Capital Requirement: Certain industrial or warehouse licenses may require a minimum capital investment.
• Activity-Specific Approvals: Specific sectors like healthcare, food, education, or industrial activities may need prior clearance from UAE authorities.
• Bank Account Setup: Recommended for visa processing and company operations, though not always mandatory beforehand.

Required Documents:

1. Signed Application Form: Official AFZ application form, completed and signed by the applicant.
2. Passport Copy: Valid passport copies of all shareholders, owners, and visa applicants.
3. Visa Copy (if applicable): For non-resident owners, include valid UAE visa or entry permit documents.
4. Passport-Sized Photographs: Recent passport-size photos of all shareholders and visa applicants.
5. Proof of Residence / Address: Utility bill or tenancy contract for shareholders or office location.
6. Business Plan: Short description of business activity and operations (required for some license types).
7. No Objection Certificate (NOC): If the applicant is sponsored by another UAE company or individual.
8. Power of Attorney (if applicable): If someone is applying on behalf of the owner(s).
9. Office Lease Agreement: Required for dedicated office or warehouse licenses.
10. Professional Qualifications / Certificates: Needed for professional activities like consultancy, engineering, or education.
11. Shareholder and Director Details: Passport copies, contact information, and notarized signatures.
12. Shareholding Certificate / Passport Notarization: Notarized documents for shareholder verification if required.
13. Bank Reference Letter: Some license types may require a bank reference or proof of initial deposit.
14. Additional Approvals (if required): Certain activities like healthcare, food, or industrial operations may need prior approvals from relevant UAE authorities.
15. Reference Letters / Experience Proof: For professional or consulting activities, proof of relevant experience may be requested.
16. Memorandum of Association (MOA): For LLCs or multiple shareholders.

Hence, by ensuring all prerequisites are met and documents are ready, your Ajman Free Zone license application can proceed smoothly and efficiently.

Getting a license in Ajman Free Zone (AFZ) is simple if you follow the right steps. The process allows local and international businesses to operate legally, enjoy tax benefits, and access flexible office solutions.

Step 1: Choose Your Business Activity

• Decide whether your business will operate in trading, services, or industrial activities.
• Selecting the correct activity ensures compliance with AFZ regulations.

Step 2: Select the License Type

Based on your business activity, choose the appropriate license:

• Trading License: For import, export, and general trading.
• Service License: For consultancies, IT, marketing, and professional services.
• Industrial License: For manufacturing, processing, or light industrial work.

Step 3: Reserve Your Company Name

• Submit your proposed company name for approval. 
• Ensure it follows AFZ naming rules to avoid delays.

Step 4: Prepare Required Documents

Gather essential documents, including:

• Passport copies of shareholders and managers
• Visa copies (if applicable)
• Proof of residence or address
• NOC from sponsors or current employers (if required)
• Business plan (if applicable)

Step 5: Submit Application to Ajman Free Zone Authority

• Complete the online or physical application with all required documents. 
• Ensure details are accurate to avoid delays.

It’s advisable to take the assistance of experts while filing the application form to avoid any errors.

Step 6: Pay Fees

• Pay the applicable fees, including license issuance, registration, office rent (if applicable), and visa charges. 
• Keep receipts for reference.

Step 7: Choose Your Office or Facility

• Decide between a flexi-desk, executive office, or warehouse. 
• Some licenses require a physical office, while others allow a virtual setup.

Take the company’s capital, location, employees’ number and other similar aspects into consideration while fixing the office address.

Step 8: Receive Your License

• Once approved, download or collect your AFZ license certificate. 
• You can now legally start your business operations within the Ajman Free Zone.

Step 9: Apply for Visas (if needed)

If you plan to hire employees or bring family members, apply for investor, employee, or family visas after your license is issued.

Step 10: Open a Corporate Bank Account

• Set up a business bank account in the UAE. 
• Most banks require a valid AFZ license and company documents to open an account.

Step 11: Register for VAT (if applicable)

If your business meets the UAE VAT threshold, register for VAT with the Federal Tax Authority (FTA).

Step 12: Maintain Ongoing Compliance

• Ensure timely renewal of your license and office lease. 
• Keep all business records updated to avoid fines or penalties.

Need expert help with your Ajman Free Zone license application? Contact SafeLedger to help you through every step, from document preparation to final approval.

Starting a business in Ajman Free Zone (AFZ) offers one of the most cost-effective setups in the UAE. Whether you’re a freelancer, startup, or expanding company, AFZ provides flexible licensing options tailored to various business needs. The estimated Ajman Free Zone license costs are as follows:

Additional Costs to Consider

Beyond the base license fees, businesses incur other essential expenses when setting up in the Ajman Free Zone. Below is a breakdown of additional costs.

Total Estimated Setup Costs 

This section summarizes the overall investment required for different license types in Ajman Free Zone. It combines license fees with additional costs like visas, office space, and renewals, providing a clear picture of the total expenditure needed to start your business.

Note: These estimates include license fees, visa services, office space, and other associated expenses.

Installment Options

Ajman Free Zone provides flexible payment plans, allowing businesses to pay license fees and additional costs in multiple installments. This helps startups and small businesses manage cash flow efficiently without facing a large upfront financial burden. Always confirm installment terms with AFZ before finalizing your setup.

Hidden / Incidental Costs to Watch Out For

While setting up in AFZ, businesses may encounter unexpected expenses such as document attestation, courier charges, regulatory updates, or additional government fees. Planning for these incidental costs ensures your setup process remains smooth and avoids surprises during licensing or visa processing.

Looking for a transparent cost breakdown and hassle-free license processing? We help you calculate exact expenses, handle payments, and avoid hidden fees.

Ajman Free Zone (AFZ) offers various legal entities and license structures, allowing businesses to select the setup that best suits their operations and growth plans. Choosing the right entity ensures compliance, smooth operations, and proper visa allocation

1. Free Zone Limited Liability Company (FZ-LLC)

The FZ-LLC is designed for small to medium-sized businesses with multiple shareholders. It offers flexibility, limited liability, and the ability to conduct multiple business activities under a single company.

• Ownership: 100% foreign ownership allowed
• Permissible License Types: Single Activity License, Dual Activity License, Multiple Activity License
• Business Activities Allowed: Commercial, Trading, Service, Industrial
• Benefits: Limited liability protection, eligibility for multiple visas, suitable for long-term growth, and multiple business activities

Limited Liability Corporation (LLC) is ideal for businesses planning to expand operations with multiple shareholders while enjoying full ownership and legal protection in AFZ.

2. Branch of a Foreign Company

Foreign companies can establish a branch in AFZ without forming a separate entity. This allows them to operate in the UAE while maintaining their parent company structure.

• Ownership: 100% foreign ownership; tied to parent company
• Permissible License Types: Single Activity License, Dual Activity License (subject to parent company approval)
• Business Activities Allowed: Commercial, Trading, Service, Industrial (if approved)
• Benefits: Maintains brand continuity, easy repatriation of profits, limited operational liability

Therefore, Branch licenses allow foreign companies to operate efficiently in AFZ while remaining fully compliant with UAE laws.

3. Branch of a Local Company

Local UAE companies can open a branch in Ajman Free Zone to extend operations within the UAE while retaining their original business structure.

• Ownership: 100% local ownership by parent UAE company
• Permissible License Types: Single Activity License, Dual Activity License (depending on parent company approval)
• Business Activities Allowed: Commercial, Trading, Service, Industrial (if approved)
• Benefits: Expands reach within the UAE, retains parent company structure, and has limited liability for branch operations.

Branches of local companies provide a flexible way to enter the Ajman Free Zone while maintaining legal ties with the parent UAE entity.

4. Freelance / Individual License

The Freelance License is aimed at solo entrepreneurs or professionals seeking a cost-effective and flexible setup. It is suitable for freelancers, consultants, and remote professionals.

• Ownership: Single owner
• Permissible License Types: Individual / Freelance License
• Business Activities Allowed: IT services, consulting, marketing, design, media, and other professional services
• Benefits: Low-cost setup, simplified licensing process, flexi-desk/co-working space included

Hence, Freelance licenses are perfect for individual entrepreneurs and remote professionals who want a simple and affordable business setup.

5. Warehouse / Industrial License

Warehouse and Industrial Licenses are designed for businesses engaged in storage, logistics, or light manufacturing operations. Hence, they require dedicated facilities and higher visa allocation.

• Ownership: 100% foreign ownership allowed
• Permissible License Types: Warehouse License, Industrial License
• Business Activities Allowed: Industrial, Commercial, Trading (import/export)
• Benefits: Access to warehouse/industrial facilities, higher visa allocation, suitable for larger operations requiring physical space

These licenses are ideal for businesses that need physical facilities and higher operational capacity in AFZ.

6. E-Commerce / Online Business License

The E-Commerce License is designed for digital entrepreneurs and online businesses operating remotely, providing flexibility and a low-cost setup.

• Ownership: Single owner or multiple shareholders
• Permissible License Types: E-Commerce License
• Business Activities Allowed: Service, Trading (online retail), Commercial (digital marketing, IT services)
• Benefits: Flexible, cost-effective, co-working/flexi-desk options available

In summary, E-Commerce licenses are perfect for startups and online businesses seeking streamlined operations with minimal overhead in AFZ.

Ajman Free Zone (AFZ) offers a wide range of business activities to suit various industries. Selecting the correct activity is crucial for compliance, smooth approvals, and proper visa allocation.

1. Common Permitted Activities

AFZ allows businesses to operate in multiple sectors, providing flexibility for startups, freelancers, and established companies alike. Some popular Ajman Free Zone license activities include:

• Trading: Import, export, wholesale, retail, and general trading.
• Services: IT services, consulting, marketing, media, and professional services.
• Import-Export: International trade, logistics, and distribution services.
• Light Manufacturing: Assembly, packaging, and production of non-hazardous goods.

These permitted activities cover most business needs, making AFZ suitable for diverse business models.

2. Limits on Number of Activities & Additional Fees

While AFZ provides flexibility, there are limits on the number of business activities per license, and additional activities may incur extra costs.

• Most licenses allow 1-3 core activities.
• Adding extra activities requires paying additional fees, which vary depending on license type.
• Related activities are generally approved; unrelated activities may be rejected.

Understanding these limits and fees helps businesses plan their licenses efficiently and avoid unnecessary delays or costs.

3. Restricted or Regulated Sectors

Not all activities are permitted in AFZ. Some sectors are restricted due to safety, regulatory, or environmental reasons.

• Heavy manufacturing, chemical processing, and high-risk industries are generally prohibited.
• Certain sectors, like healthcare, pharmaceuticals, or financial services, may require special approvals or additional licenses.

Being aware of restricted sectors prevents application rejections and ensures your business operates within Ajman Free Zone regulations.

Consequently, choosing the correct business activity ensures compliance, speeds up approvals, and maximizes the benefits of your AFZ license.

Managing your Ajman Free Zone (AFZ) license effectively requires understanding renewal cycles, amendment procedures, and the process for business closure. Timely compliance ensures uninterrupted operations and legal protection.

1. Renewal Cycle and Deadlines

AFZ licenses are issued for a fixed period, typically one year, and must be renewed to maintain legal operations.

• Renewal is generally required before the expiry date to avoid fines or suspension.
• AFZ sends reminders for license, lease, and visa renewals.
• Delayed renewal may result in penalties or visa cancellations.

Keeping track of renewal dates ensures uninterrupted business activities and compliance with AFZ regulations.

2. Steps to Renew License, Lease, Registration, & Visas

The renewal process in AFZ is straightforward if documents are prepared in advance.

• License Renewal: Submit the renewal application through the AFZ portal or in person, and pay applicable fees.
• Lease Renewal: Renew office or warehouse lease; attach the updated lease with your application.
• Registration Renewal: Ensure company registration details are current with AFZ.
• Visa Renewal: Renew employee and owner visas concurrently with the license, including medical tests and Emirates ID updates.

Completing all renewal steps on time helps maintain operational continuity and legal compliance.

3. Process for Amending Business Activity, Shareholders, & Capital

Business details may change over time, such as activities, ownership, or capital investment. AFZ allows amendments with proper procedures.

• Business Activity: Submit an amendment request, pay the fee, and update your license to include new or additional activities.
• Shareholders: Update shareholder details through AFZ with legal documentation, passport copies, and notarized agreements.
• Capital Changes: Submit revised share capital details and updated company documents for approval.

In short, proper amendments ensure your license reflects your current business structure and avoids legal complications.

Applying for an Ajman Free Zone license can be quick and hassle-free if you plan ahead. Follow these tips to ensure a smooth approval process and avoid delays:

• Prepare Documents in Advance: Gather all required documents, such as passport copies, visa details, business proofs, and lease agreements, before starting your application. Being organized prevents delays.
• Match Your Business Activity: Ensure your selected business activity aligns with AFZ regulations. Incorrect selection can lead to rejection or amendments later.
• Choose the Right License Type: Select trading, service, or industrial licenses according to your business needs. Picking the correct type avoids unnecessary corrections.
• Verify Information Accuracy: Double-check all personal and business details in the application. Even small errors can slow down approval or cause rejection.
• Apply Online: Submit your application through the AFZ portal. Online submission is faster and allows you to track the progress easily.
• Keep Copies of Submissions: Maintain digital and printed copies of all documents and forms. These may be needed for future reference, renewals, or inspections.
• Seek Expert Guidance: Consult a professional or AFZ consultant if you are unsure about any step. Expert help ensures compliance and avoids mistakes.
• Plan Your Office Space Early: Decide whether you need a flexi-desk, executive office, or warehouse before applying, as this affects fees and license requirements.
• Check Visa Requirements: Determine how many investor, employee, or family visas you may need and prepare the necessary documents in advance.
• Budget for Fees: Keep funds ready for license fees, registration, office rent, and visa processing to prevent delays.
• Understand Renewal Timelines: Know your license’s validity and plan for timely renewals to avoid fines or business interruptions.
• Use the Correct Company Name: Reserve and verify your company name carefully. Changes after approval may take time and incur extra charges.
• Maintain Compliance Records: Keep all licenses, approvals, and correspondence organized. Proper records help during inspections or audits.
• Stay Updated on Regulations: AFZ rules may change periodically. Regularly check the official portal to avoid mistakes in applications or renewals.
• Avoid Rush Applications: Submit a complete, well-prepared application rather than rushing. Thorough applications get approved faster and with fewer issues.

Being organized and prepared helps avoid delays and ensures your application is approved smoothly.

Ensure your application is approved without delays. SafeLegder’s experts review your documents, check your business activity, and guide you through AFZ regulations step by step.