Ajman Free Zone: Ajman Free Zone (AFZA) is a well-established free trade zone located in Ajman, United Arab Emirates. Founded in 1988, it ranks among the oldest and most reputable free zones in the UAE. AFZA offers a plethora of advantages to businesses, making it an attractive destination for both local and foreign entrepreneurs. In this comprehensive guide, we will explore the benefits of setting up a business in Ajman Free Zone, the types of businesses allowed, and the step-by-step procedure for establishing your enterprise.
Benefits of Setting up a Business in Ajman Free Zone:
100% Foreign Ownership: One of the standout features of AFZA is that foreign investors can wholly own their businesses without the need for a local partner, providing full control over their operations.
No Corporate Tax: AFZA does not impose corporate tax, translating into significant cost savings for businesses operating within the zone.
No Customs Duties: Import and export activities within AFZA are exempt from customs duties, making it an ideal hub for international trade.
Easy Company Formation: The process of incorporating a company in Ajman Free Zone is efficient and straightforward, with businesses able to complete the setup within a few days.
Business-Friendly Environment: AFZA boasts a business-friendly environment with state-of-the-art infrastructure and world-class facilities, fostering an atmosphere conducive to growth and innovation.
Types of Businesses Allowed in Ajman Free Zone:
Ajman Free Zone have a wide range of business activities, including:
Trading: AFZA is a preferred destination for trading companies dealing in diverse goods and services, such as food and beverages, electronics, textiles, and machinery.
Manufacturing: The zone provides an excellent environment for manufacturing companies, enabling the production of a variety of products, including food and beverages, pharmaceuticals, and textiles.
Services: AFZA is home to numerous service companies, including IT firms, consulting companies, and accounting firms, making it an ideal place for a diverse range of service-based enterprises.
How to Start a Business in Ajman Free Zone:
To establish your business in Ajman Free Zone, you need to follow these essential steps:
Step 1: Choose a Business Activity
Begin by selecting the type of business activity you intend to pursue. AFZA offers a broad spectrum of options, including trading, manufacturing, and services. Ensure that your chosen activity is permitted within the zone.
Step 2: Register Your Company Name
After deciding on your business activity, register your company name by submitting a company name reservation application to Ajman Free Zone. The application fee for this step is AED 100.
Step 3: Submit the Required Documentation
Once your company name is approved, gather and submit the necessary documentation to Ajman Free Zone. The required documents typically include:
- A completed company incorporation form
- A copy of your passport
- A copy of your visa (if applicable)
- A detailed business plan
- A bank reference letter
- A copy of your trade license (if applicable)
- A power of attorney (if applicable)
Step 4: Pay the Registration Fees
Following the submission of your documentation, you will be required to pay the registration fees, which can vary based on the type of company you are establishing.
Step 5: Obtain a Business License
Upon successful payment of the registration fees, you will receive a business license, granting you the authority to commence your operations within Ajman Free Zone.
Documents Required to Open a Company in Ajman Free Zone
To open a company in Ajman Free Zone, you will need to provide the following documents:
- A completed company incorporation form
- A copy of your passport
- A copy of your visa (if applicable)
- A comprehensive business plan
- A bank reference letter
- A copy of your trade license (if applicable)
- A power of attorney (if applicable)
Fees Required to Open a Company in Ajman Free Zone
The fees required to open a company in Ajman Free Zone vary depending on the type of company you are setting up. The following table shows the approximate fees for the different types of companies:
| Company type | Registration fee | Annual license fee |
|---|---|---|
| Free Zone Company (FZC) | AED 10,850 | AED 15,850 |
| Free Zone Limited Liability Company (FZ-LLC) | AED 14,850 | AED 20,850 |
| Free Zone Establishment (FZE) | AED 21,850 | AED 27,850 |
| Free Zone Branch of a Foreign Company | AED 31,850 | AED 37,850 |
In addition to the registration and annual license fees, there are also other fees that may apply, such as:
- Company name reservation fee: AED 100
- Memorandum of Association (MOA) and Articles of Association (AOA) fee: AED 2,000
- Power of attorney fee: AED 1,000
- Visa processing fee: AED 1,000 per visa
- Office space rental fee: The cost of office space rental varies depending on the size and location of the office
Please note that these fees are approximate and may change at any time. It is always best to contact Ajman Free Zone directly to get the most up-to-date information on fees and requirements.
Tips for saving money on company formation fees in Ajman Free Zone
- Take advantage of early payment discounts. Ajman Free Zone often offers early payment discounts on registration and annual license fees.
- Choose a smaller office space. The cost of office space rental is one of the biggest expenses associated with setting up a company in Ajman Free Zone. You can save money by choosing a smaller office space or by sharing an office with another company.
- Negotiate with service providers. There are a number of service providers that can help you with the process of setting up a company in Ajman Free Zone. Be sure to negotiate with different service providers to get the best possible price.
Ajman Free Zone Official Website, Contact Information, and Address
For more information or to get in touch with Ajman Free Zone, you can visit their official website, contact them via phone, or pay them a visit at their address:
Website: https://www.afz.ae/en/
Contact Number: +971 6 707 7555
Address: Ajman Free Zone, PO Box 11001, Ajman, United Arab Emirates
Conclusion
Ajman Free Zone presents an attractive opportunity for businesses to thrive, with its investor-friendly policies, diverse business activities, and streamlined setup procedures. Whether you are a local entrepreneur or a foreign investor, AFZA offers an ideal environment to foster business growth and success.
Ajman Free Zone
FAQ
Q1. What is the Ajman Free Zone?
A: A free trade zone in the emirate of Ajman in the UAE.
Q2: What are the benefits of setting up a business in the Ajman Free Zone?
A: 100% foreign ownership, no corporate tax, no customs duties, easy company formation, and business-friendly environment.
Q3: What types of businesses are allowed in the Ajman Free Zone?
A: Trading, manufacturing, and services.
Q4: How to set up a business in the Ajman Free Zone?
A: Choose a business activity, register your company name, submit the required documentation, pay the registration fees, and obtain a business license.
Q5: What are the documents required to open a company in the Ajman Free Zone?
A: Completed company incorporation form, copy of passport, copy of visa (if applicable), business plan, bank reference letter, copy of trade license (if applicable), and power of attorney (if applicable).