AFZA

Company formation in Ajman free zone

Ajman Free Zone is one of the best cost effective free zones within the UAE. It’s location is in the Emirate of Ajman about 45 minutes drive from Dubai. Ajman free zone company is one of the best idea for those investors who want to start business with the minimum possible cost.

Ajman Free Zone UAE
AFZA

Additionally, it’s location is adjacent to the Ajman sea port which is best for any businesses: starting from freelancers, ending with light manufacturing cum production and trading companies. As opposed to business setup in Dubai, Ajman Free Zone company setup is attractive to those who start a new business from scratch due to its competitive fees for young entrepreneurs and multiple instalment payment plans.

Offices and warehouses in the Ajman free zone
Authority

AFZA offers the following facilities on the list:

  • Flexi desks are available without monthly time limits
  • Offices.
  • Warehouses

Moreover, there are different options for Flexi desks and offices which can be either located within the free zone headquarters or in a separate building. The warehouses complex has significantly grown and covers all the area around Ajman Sea Port. Customs authority and Immigration office are just opposite to Ajman Free Zone.

Activities

Ajman Free Zone company formation can be divided into traditional 3 groups:

  • Trading
  • Service
  • Industrial

On top of that, in 2019 AFZA introduce a category of Freelance permit, which allows having a license and a 3 year visa for the most reasonable costs.

AFZA allows having either 1 service activity or 3 trading activities in the licence. Ajman Free Zone Company Setup Cost
Company setup in Ajman starts from as low as AED 5,000 only per license. This package is design for young businessmen from 20 to 30 years old. It is a low cost license to explore the UAE market. Other packages’ fees depend on visa allocations and business activities. The lowest price is AED 13,250 for the license from trading category eligible for 1 visa. Best business setup cost in Ajman, per license (in AED):   Type of license Price in AED

  • Pioneer package: AED 5,000
  • Freelance package : AED 6,000
  • Trading License with 1 visa: AED 13,250
    Service License with 1 visa: AED 15,135

If you are planning to get resident visas under the company, extra fees for immigration will apply:

  • E channel deposit 5,000 AED
  • E channel registration fee 2,100 AED
    Visa, Medical checkup and
  • Emirates ID 2,800 AED

Multiple Payments Plan In Ajman Free Zone Authority (AFZA) Ajman free zone is the only free zone in the UAE which officially offers instalments payment plan. You may pay for the company by 2, 3 or 6 instalments. However, there are some conditions set by AFZA authority to be met. Most important one – the payment should be provided by post-dated checks from a UAE bank. So if you go for 3 instalments for Ajman free zone license, you can pay the initial one by cash and provide the remaining payments by 2 checks on the day of application for the company. If you come from abroad, of course you won’t have any checks from a UAE bank. In this case you can use the checks of a friend or a relative, for example. But AFZA will ask him to sign a no objection letter to use his check book. Apart from that, you need to provide past 3 months.

Ajman company formation can be possible within 1 working day.

The following documents and information will be needed:

  • Passport copy
  • Passport size photo
  • Residential address,
  • phone number and email
  • Company name
  • Business activity

You can hire business setup professionals for your Ajman free zone company registration. It can be done without your visit to the free zone.  After the company is registered you will receive your set of corporate documents:

  • License
  • Chamber of commerce
  • registration certificate
  • Lease agreement
  • Memorandum (for companies with multiple partners)

These documents will enable you to apply for corporate bank account in Dubai.

The procedure of getting a resident visa under your own free zone company is almost the same in all the free zones:

  1. Business registration 1 day
  2. Establishment card (immigration card) 05 days
  3. Entry visa 5 day
  4. Medical check-up, Emirates ID and visa stamping 5 days
  5. Emirates ID – 7 days from the date of visa stamping

But if you process your resident visa while being in the UAE as a tourist, you will need to change your status from tourist to resident after the approval of entry visa.

Ajman investor visa costs AED 2,750 including Medical checkup and Emirates identity card registration. But they need to be done only in the Emirate of Ajman. Health Insurance is not mandatory in the emirate of Ajman, but it is better to have medical insurance to avoid unexpected medical cost.

Company renewal fee will be exactly the same as registration fees.

Renewal can be done without the personal visit of the owner. Upon renewal you will receive:

  • New license
  • Renewed lease agreement
  • Renewed Chamber of commerce certificate
    Audit report is not required.

Amendments usually need to be done personally by company owners, but there is an option to authorise their representative too.

AFZA has very reasonable fees for any amendments, ranging around 500 AED to 2000 AED.

Company cancellation in AFZA is also low cost and simple to perform. Also you will need to get a few clearances first:

  • From closing a bank account
  • From Ajman maintenance department of you rented a facility.
    You also have to close all resident visas in the company prior to its cancellation.

Company Liquidation can be process by the owner or his representative holding a Power of Attorney. However, all the company documents need to be return back to Ajman free zone. And if you lose them, you need to go to Police and get a report about that.

Since company liquidation takes about 1 month, after which you receive official de registration letter.

If any deposits were made under the company, you will get a refund after the liquidation is complete.

 

Ajman Free Zone is suitable to any business indeed and there is no reason not to go for it.

It’s a great hub for small start ups due to the lowest registration costs for them.

Moreover, larger businesses will enjoy the facilities and close distance to Dubai.

Also if you are checking any alternative solutions, have a look at Sharjah Free Zone or RAK Economic Zone in Ras al Khaimah.

Ajman is located on the western coast of United Arab Emirates and was formed by the ruler Al Nuaimi.

Ajman Free Zone (AFZ) was establish in 1988 and has led to a huge industrial development in the emirate by attracting various number of companies, offering competitive privileges and facilities which strengthen the industry, trade and the financial sectors. Thus, by benefiting from investment privileges, many companies have thrived with considerable return on their investment

“AFZA provide appropriate climate for business investment, by way of contributing in drawing up the general policies and providing information, preparing studies, executing projects, organizing expositions and conferences, and other constructive activities, and thus by the help of national efforts and qualified human cadres, who contribute in achieving the economic growth and the welfare of the United Arab Emirates”

  • 100% ownership of establishment/company.
  • 100% foreign ownership.
  • Easy transfer of capital and profits.
  • Exemption from personal income tax.
  • Exemption from import and export duties.
  • No other taxes.
  • Competitive prices on facility usage.
  • Competitive prices for power/electricity.
  • Low prices on leasing.
  • Easy access to low cost labour.
  • Well developed infrastructure.
  • One stop counter service for effecting transactions (residency, visa, etc.).
  • Fast and easy procedures and in most cases, license within 24 hours.
  1. Business Licenses
  2. E-Commerce Licenses: electronic trading activities.
  3. Service Licenses: service activities within the free zone such as management, marketing, IT consultancies etc
  4. Industrial Licenses:

The organisation should be register with GCC countries’ nationals owning minimum of 51%.

Minimum 40% of the manufacturing process should be within the Free Zone.

Organisations having national license qualified to get the license are exempt from customs fees on exports from GCC countries

      5. Offshore Licenses: the company should run its business outside the UAE.

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