Ajman Free Zone Trade License Cost and Renewal

Although Ajman Free Zone company setup is considered very affordable, it’s still worth understanding the cost drivers that determine how much you pay during the formation process. This helps you with your budget planning for a smooth setup.

After the setup, you’ll come across other costs required by the Free Zone authority that you must consider, which are the renewal costs. In fact, renewals are an essential part of the formation process that you must keep in mind while budgeting your first-year setup.

This guide will clarify the key things you need to understand to avoid financial surprises, including the factors that affect both setup and renewal costs, a clear roadmap on renewing your trade license, and the best practices to reduce these costs. 

What affects the Ajman Free Zone trade license cost?

You probably have noticed that each business gets a different quotation because several variables control these quotes depending on each company’s needs. 

One of the important components that affects the quotation is the trade license costs. You may be wondering what makes the trade license costs go higher or lower; here are the key factors:

• The license category: You’ll find that specific license types' costs could be higher than others. For example, the industrial license price is usually higher than the business license.
• The number of business activities: If you want to conduct several business activities that are related to your chosen license type, you’ll need to pay additional fees that will make the license costs even higher.

Let’s put that into practice: If you have a business involved in industrial activities, and you want to conduct more than one business activity, your trade license costs will be higher compared to a trading business that conducts a small number of business activities in Ajman Free Zone.

What is usually included in the initial Ajman Free Zone setup cost?

There are several factors that determine your final setup costs, which vary depending on what you actually need during business operations. Below are the main factors that affect your final business quotation in Ajman Free Zone company setup.

It will also be worth exploring Sharjah Free Zones, as they offer competitive setup costs and low operational costs, helping you reduce the amount of costs needed during the setup process.

How much does it cost to set up a business in Ajman Free Zone?

As we’ve mentioned earlier, Ajman business setup costs are not fixed prices for each company because costs vary depending on each business's needs. Although each component required in the setup process has a specific price you must pay separately, you can still use the inclusive packages that Ajman Free Zone offers.

Ajman Free Zone is known for its affordable packages that can start from AED 5,555 and AED 7,777 for businesses. These packages include what any company needs to conduct its operations seamlessly, including the trade license, the facility type, and the visas. All what you have to do is choose the best package option for your company’s needs.

If you’re interested in comparing different setup costs before setting up your company in AFZ, you can read this guide about Company setup costs in Dubai.

After your first-year setup, you’ll need to renew some of the setup components to keep your company legally active within the Free Zone. This can be considered an additional cost that you must prepare for financially, which we’ll cover in detail in the upcoming sections.

What does Ajman Free Zone license renewal usually include?

It will be mandatory to renew specific components to keep the company legally authorised, as it indicates that your company has ongoing operations within the Ajman Free Zone. Below are the key components that you have to renew to keep your company active.

• The license type and the number of business activities included in that license.
• The facility type you’ve chosen to operate from.
• The visa renewals that include procedures such as the medical tests and Emirates ID renewals.

In the upcoming section, we’ll explain in detail how these factors contribute to making your renewal bill higher or lower, so you can understand the bigger picture in business renewals.

What affects Ajman Free Zone renewal cost?

Some investors don’t plan for their business renewal requirements, so they become surprised once they realize how much they have to pay to keep the company legally active. 

Also, they could find differences between companies’ renewals; some could have higher renewal bills and others not. So, we’ll explain how each renewal factor can increase or reduce your renewal costs.

• The license type: The license category you’ve chosen directly affects how much you’ll pay for it, as some license types are generally lower priced than others. For example, you’ll find that usually the services license is lower in price than the industrial license due to the business activities conducted in each one of them.
• The number of business activities: Generally, you’re allowed to conduct specific business activities under your license type, which could vary depending on the Free Zone authority. If you want to add more business activities to your license, you’ll have to pay even higher renewal license costs.
• The facility type: The renewal costs for facilities vary depending on the type you’ve chosen, as it doesn’t only affect your operational requirements; it also determines your visa quota. For this reason, facility types that offer large space and more visas generally have higher renewal costs.
• The visa requirements: The number of visas that need to be renewed for investors and employees will add extra cost to your renewal bills, especially since this includes other procedures, such as applying for permits and having medical tests.

As you’ve noticed, the facility and hiring several local employees will result in a higher renewal bill. But you can explore offshore company formation, which reduces these costs during the setup process.

How do you renew a trade license in Ajman Free Zone?

The trade license renewal has simple steps that you can do remotely through the Ajman Free Zone website. You’ll find below a clear step-by-step roadmap that includes the required documents to have a smooth renewal process.

Step 1: Review your license and lease validity

First, you’ll need to check the expiry date on your license and also the office tenancy. This will clarify the timeline you have to renew the license and the office, as the authority gives you a little period of time to prepare everything you need to start the renewal process.

Step 2: Prepare the required documents for renewal

If you have prepared all required documents, this will support a fast renewal process, as delays usually occur because of missing documents. Below are the documents you’ll need during the renewal.

• Completed renewal application.
• Trade license copy.
• Passport copies of shareholders.
• Emirates ID copies (If applicable).
• Visa copies (If applicable).
• Office tenancy.

Step 3: Submit the renewal application

After you prepare all required documents, you’ll need to submit the renewal application and upload these documents to the Ajman Free Zone Authority to review them. Then, they will send you the required fees to renew the license.

Step 4: Pay the renewal fees to receive the license

Once you pay the fees the authority asked you to pay, you’ll obtain your renewed license, which will give you permission to continue conducting your operations within AFZ.

Read Also: How to File Corporate Tax in UAE: Step-by-Step Guide

Can you renew an Ajman Free Zone license online, and how long does it take?

You can renew your license remotely through the Ajman customer portal by following the steps and the required documents we’ve listed before for a smooth renewal process.

The timeline for renewals varies from business to business, as it depends on document preparation and whether you need additional approvals. In most cases, the license renewal in AFZ takes about one working day to complete.

If you’re interested in a fast licensing process, you can check the Hamriyah Free Zone because it offers a remote setup that takes less than one hour.

What happens if an Ajman Free Zone license expires or renewal is delayed?

How can businesses reduce Ajman Free Zone setup and renewal costs without choosing the wrong package?

AFZ makes it easier for startups and SMEs to establish their businesses with its affordable setup packages, which could be a great start for them, as these packages include everything they might need during operations. 

But investors usually raise an important question: What should we do to reduce costs?

The short answer is to cut any unnecessary components and stick to what your business actually needs, but at the same time you must keep in mind your company’s growth plan. We’ll explain below how you can do that.

1. Choose the right license: Each setup package includes a specific license type that allows you to conduct certain business activities, so you must select the one that matches the business operations you're willing to conduct within the Free Zone. You must also make sure you don’t fall into the trap of choosing the cheapest package without considering the license type.
2. Keep business activities focused: Although the setup packages offer you a certain number of business activities under your license, you can still add more activities with extra fees. In this case, you must clearly identify the business activities you intend to conduct because the more focused, the better.
3. Match facility type to your visa needs: Choose the package that complies with 2 factors, which are your operational requirements and the visa quota. The facility type is linked to your visa eligibility; the larger your facility type, the higher your visa eligibility. But keep in mind that you must evaluate the facility type based on your growth plan for operations and employees, not on your current needs.
4. Renew before the expiry date: This will help you avoid financial penalties and late renewal charges, which will result in higher renewal fees. Also, it will help you avoid risks that could affect your business operations within the Free Zone.

FAQs about Ajman Free Zone trade license cost and renewal

When Should You Renew Your Ajman Trade License? 

AFZ provides a grace period that is usually one month after the expiry date, which helps businesses have time to start the renewal process and prepare their documents. If businesses delay after this grace period, they will receive financial penalties.

How much does it cost to renew an Ajman trade license? 

The license renewal cost depends on the setup packages you choose, which include the license type and the number of business activities under it. In general, the license renewal costs could range from AED 5,555 to AED 35,000.

Can I upgrade or change activities during renewal? 

Yes, you can add or change the business activities under your license within the renewal process, and in this case, the authority will apply additional fees to your company.

Is renewing an Ajman Free Zone licence cheaper than applying for a new one?

In this case, no one answer applies to all businesses, as it depends on the setup package you’ve selected and whether you’ve applied for additional services. For example, businesses could add more business activities under their license, which will make renewal costs higher than their first year.