Ajman Free Zone (AFZ) is one of the most business-friendly and cost-effective free zones in the UAE, strategically located near Ajman Port and just 30 minutes from Dubai. Established in 1988, it has become a preferred destination for startups, SMEs, and international investors seeking to enter the Middle East, Africa, and Asian markets.

AFZ offers 100% foreign ownership, full repatriation of capital and profits, and zero corporate or personal income tax — making it an attractive choice for entrepreneurs from around the world. The free zone supports a wide range of business activities, including trading, manufacturing, services, e-commerce, and logistics.

Ajman’s appeal lies in its commitment to creating a business-friendly ecosystem. As one of the UAE’s most accessible free zones, it provides a perfect launchpad for new businesses. Its efficient, investor-centric approach minimizes bureaucratic hurdles, allowing entrepreneurs to focus on what matters most: growing their business.

The decision to set up a business in Ajman Free Zone is a strategic one, driven by a host of unique advantages that cater to a wide range of business needs.

• 100% Foreign Ownership and Full Profit Repatriation: Investors in AFZ enjoy complete ownership of their company without the need for a local sponsor. Additionally, they can repatriate 100% of their capital and profits to their home country without any tax or currency restrictions.
• Cost-Effectiveness and Budget-Friendly Options: Known as one of the most affordable free zones in the UAE, AFZ offers competitive pricing for licenses, visas, and office packages. License packages start around AED 5,500–8,000 for zero-visa options, and AED 9,000–12,000 for one-visa packages. This is a primary reason why many entrepreneurs, particularly startups and SMEs, are drawn to the low Ajman free zone company formation cost.
• Simplified Processes and Quick Setup: The entire company formation process is designed to be fast and complication-free. With minimal documentation and streamlined procedures, a business license can often be issued in a few working days, allowing for a quick market entry.
• Strategic Location and Connectivity (Near Ajman Port, Dubai & Sharjah): AFZ is strategically located next to Ajman Port, offering excellent connectivity for import and export businesses. Its proximity to Dubai and Sharjah also provides easy access to the region’s largest consumer markets and major transportation hubs, including two international airports.
• No Personal or Corporate Income Tax: Companies operating in AFZ benefit from a highly favorable tax environment, with a 0% tax rate on both corporate and personal income. This tax-free status, combined with a lack of customs duties on re-exported goods, significantly boosts profitability.
• Office Spaces: Flexi-desks, Co-working, Executive Offices: AFZ offers a variety of office solutions. Flexi-desks are an ideal, cost-effective solution for startups and freelancers. Flexi-desk and shared office options can cost AED 3,000–5,000 annually. Co-working spaces provide a collaborative environment for networking, while executive offices offer a private, professional setting for growing businesses.

• Warehouses and Industrial Land: For businesses engaged in manufacturing, trading, or logistics, AFZ offers a wide selection of warehouses of varying sizes. Industrial land is also available for lease for companies that wish to build their own custom facilities.
• On-site Accommodation Options: To support the workforce, AFZ provides comfortable and secure on-site accommodation facilities, ensuring employees have convenient access to their workplaces.
• Digital Services and Support: AFZ's commitment to technology is evident in its digital services, including an online portal for managing business needs, service requests, and payments, making administration seamless and efficient.

Ajman Free Zone offers a variety of licenses to cater to a diverse range of business activities, ensuring that every type of business can find a suitable structure.

• Commercial License: This license is designed for businesses involved in the trading of goods. It covers activities such as import, export, re-export, and distribution. A General Trading License, a subset of this, allows for the trading of a wide range of goods under a single license.
• Professional/Service License: Ideal for service-based businesses, this license covers a broad spectrum of activities, including consultancy, IT services, marketing, legal services, education, and healthcare.
• Industrial License: This license is a requirement for businesses engaged in manufacturing, processing, assembly, and packaging. It allows for the production of goods within the free zone and is suitable for companies that need warehouse and industrial land facilities.
• E-commerce License: Tailored for online businesses, this license is perfect for entrepreneurs running digital stores, online marketplaces, and other internet-based business models.
• Freelance License: This is a cost-effective option for individual professionals who want to operate as a sole practitioner in specific creative, media, or tech-related fields.
• Offshore License (where applicable): Allows incorporation primarily for international operations with tax and privacy benefits, but restricts onshore UAE business activity.

The Ajman free zone business setup is a systematic, step-by-step process that is easy to navigate with the right guidance.

Step 1: Choose Your Business Activity and Legal Structure

Before starting, you must define your business activity and choose a legal structure. The three main options available are:

• Free Zone Establishment (FZE) – Single Shareholder: This legal structure is for a company with a single shareholder.
• Free Zone Company (FZC) – Multiple Shareholders: This structure is for a company with two or more shareholders (up to 50).
• Branch of a Foreign or Local Company: This option allows an existing company to establish a branch office in the free zone.

Step 2: Select Your Company Name

You will need to propose a few unique company names for approval. The name must comply with AFZ regulations, which include avoiding offensive language, religious names, and names that are already registered.

Step 3: Determine Your Office or Facility Requirements

Based on your business needs, you will choose the appropriate facility: a flexi-desk, a co-working space, an executive office, or a warehouse. This choice will be a key factor in the overall Ajman free zone business setup cost.

Step 4: Submit Essential Documents

The documentation required is minimal and straightforward.

• Passport Copies, Photos, Visa Copy/UID (for UAE residents): Required for individual shareholders.
• Business Plan (for specific activities): Some activities, particularly industrial ones, may require a detailed business plan.
• Corporate Documents for Company Shareholders: For corporate shareholders, documents like the Certificate of Incorporation and Memorandum of Association (MOA) of the parent company are needed.

Step 5: Obtain Initial Approval and Pay Fees

Once all documents are submitted, the AFZ authority will review your application. Upon initial approval, you will be required to pay the necessary license and facility fees.

Step 6: Receive Business License and Registration Kit

After payment is processed, you will receive your official business license, corporate documents, and the lease agreement for your chosen facility.

Step 7: Apply for Visas (Investor & Employee) and Emirates ID

With your business license, you can apply for a residence visa for yourself and your employees. This process involves applying for an Establishment Card, an e-Channel registration, and then the visa application, medical tests, and biometric scanning for the Emirates ID.

Step 8: Open Your Corporate Bank Account

The final step is to open a corporate bank account with a local or international bank in the UAE. Your business license and company documents will be required for the bank's due diligence process.

Standard processing time for business setup in Ajman FreeZone is 3–7 business days, depending on documentation completeness and activity complexity.

The cost of setting up a business in Ajman Free Zone (AFZ) is one of the most competitive in the UAE, making it a popular choice for startups, SMEs, and foreign investors. The total fees vary depending on the type of license, business activity, visa requirements, and facility options you choose.

1. Basic Company Setup Cost

Ajman Free Zone company formation typically starts from AED 6,500 for a Zero-Visa Package with a Flexi-desk facility. This is the most affordable option for businesses that do not require visas.

2. License Fees

The annual license fee depends on your chosen business activity:

• Trading License – Starting from AED 6,500
• Service License – Starting from AED 6,500
• Industrial License – Starting from AED 11,500
• E-commerce License – Starting from AED 6,500

3. Visa-Related Costs

If you need visas for you or your employees, the cost will increase based on your visa quota:

• 1 Visa Package – Starting from AED 11,000
• 2 Visa Package – Starting from AED 14,000
• 3+ Visa Packages – Starting from AED 17,000+

These costs include Emirates ID, medical tests, and residence visa stamping.

4. Facility Costs

Ajman Free Zone offers several facility options, each with different costs:

• Flexi-desk – Included in most packages
• Shared Office – From AED 10,000/year
• Executive Office – From AED 15,000/year
• Warehouse / Industrial Space – From AED 25,000/year (depending on size)

5. Other Costs to Consider

• Name Reservation & Initial Approval – Usually included in setup packages
• Document Attestation & Translation – AED 500–1,500 (if applicable)
• Bank Account Opening Assistance – May have service charges depending on the provider

Tip: Ajman Free Zone often runs promotional discounts on company setup packages. Checking during offer periods can help you save significantly.

Setting up a business in Ajman Free Zone is straightforward, but staying compliant requires careful planning and awareness of ongoing obligations. Here are the key factors you must consider to ensure your business operates smoothly and meets all legal requirements.

• Visa Quota and Eligibility

The number of visas you are eligible for depends on your chosen package and facility. A flexi-desk may come with a limited visa quota, while a larger executive office or warehouse will allow for a higher number of visas for employees and investors.

• Corporate Bank Account Requirements

Opening a corporate bank account in the UAE has become a more stringent process. Banks require detailed documentation and proof of a legitimate business model. Be prepared to provide your business license, company documents, and a clear and comprehensive business plan.

• Annual License Renewal and Compliance

Your business license must be renewed annually to maintain good standing. The renewal process is typically a simple submission of documents and payment of the renewal fee.

• Accounting, Auditing, and VAT Regulations

While an audit report is not required for AFZ renewal for most businesses, maintaining proper accounting records is a legal requirement. Furthermore, if your company's turnover exceeds the mandatory threshold, you will be required to register for VAT and comply with all VAT regulations.