Setting up a business in Ajman offers many advantages, but the process can quickly become complex with multiple approvals, paperwork, and legal requirements. Here’s a detailed breakdown of what’s involved:
Step 1: Define Your Business Activity
Start by identifying exactly what your business will do. Are you offering consulting, trading goods, or launching an e-commerce platform? Ajman’s licensing authorities have specific activity codes, and your business activity must fall under one of them. Choosing the wrong one can delay your approvals or even result in license rejection.
Step 2: Choose the Right Company Type
Decide between forming a Mainland company (like an LLC) or a Free Zone entity (like in Ajman Free Zone).
- The mainland gives access to the UAE market but often requires more approvals.
- Free Zone setups are faster, cheaper, and allow 100% foreign ownership, but with some trade restrictions.
Your decision will affect costs, ownership, visa eligibility, and where you can do business.
Step 3: Reserve Your Company Name
You need to choose a unique trade name that complies with the UAE’s naming guidelines (no religious or political terms, and no duplicate names). The name must be approved by the Ajman Department of Economic Development (DED) or Ajman Free Zone Authority (AFZA) before proceeding.
Step 4: Get Initial Approval
Submit your application for initial approval. This is a green light from the authorities indicating that your business activity, company structure, and documents meet the minimum requirements. You cannot proceed with documentation or licensing without this step.
Step 5: Draft & Notarize Legal Documents
Depending on the company type, you’ll need to draft a Memorandum of Association (MOA) and other legal contracts. These documents lay out the company’s structure, shareholders’ responsibilities, capital investment, profit-sharing, etc.
For mainland companies, you must notarize these documents through a UAE notary public. Free Zone companies usually don’t require MOA notarization by a public notary — AFZA handles that internally.
Step 6: Secure an Office Space
Ajman Mainland businesses require a physical office and an official lease agreement aka tenancy contract attestation from Ajman Municipality. In contrast, Free Zone companies may opt for cost-effective alternatives like flexi-desks or virtual offices. Regardless, you must submit a valid tenancy contract.
Step 7: Obtain Special Approvals (If Required)
Some business activities, such as healthcare, legal, engineering, or education, require additional approvals from external regulators, like:
- Ministry of Health- For clinics, pharma, etc.
- UAE Central Bank- For financial services.
- KHDA or Education Authority – for training institutes.
- Legal Affairs Department – for legal consultancy.
These extra steps involve document submission, audits, and strict criteria.
Step 8: Application & Fees Submission
Once all documentation is in place, submit your full application along with the required fees for licensing, registration, name reservation, and lease registration. The total fees can vary depending on your chosen jurisdiction and business type.
After the authorities verify and approve your application, you’ll be issued a Business License. This document legally allows you to begin your operations and is valid for one year (renewable annually).
Step 9: Open a Corporate Bank Account
With your business license in hand, you can open a company bank account. UAE banks will require:
- Business license
- MOA
- Shareholder details
- Office lease agreement
- Additional KYC/due diligence documents
Due diligence checks can be time-consuming (around 7–21 working days) and vary between banks.
Step 10: Apply for Visas
Finally, you can apply for residence visas for yourself, your partners, employees, and dependents. This includes medical fitness tests, Emirates ID registration, and labor card issuance. The number of visas depends on your business activity and office space.
