Company Setup in Ajman Free Zone: A Completed Guide

Setting up an affordable company with many business benefits is easier than ever in the Ajman Free Zone.

It offers low operational costs that attract startups and SMEs, along with VAT exemptions on specific goods transactions. Above all, it provides key access to trade gateways that help you reach a wider market.

If you've decided to set up your company in the AFZ after reading about Free Zones in the UAE, this guide will help you understand the license types and legal structures available, so you can navigate the setup process smoothly. Then, we’ll walk through the key post-license steps you need to complete to remain compliant.

What is Ajman Free Zone and where is it located?

Ajman Free Zone is an affordable Free Zone option with low setup and operating costs. As a result, it has attracted more than 9,000 businesses across several sectors. It’s also a designated zone because it allows companies to claim VAT exemption on certain goods transactions. 

It’s located in the Emirate of Ajman near Ajman Port, a major sea trading route. It also has strategic access to Dubai International Airport and Sharjah International Airport, giving companies wider market access.

Who is Ajman Free Zone best for?

First, you need to understand that the setup process doesn’t depend only on the advantages AFZ offers. It’s about whether this Free Zone fits your business needs, so check the conditions below to see whether AFZ suits your company.

• Businesses involved in import and export activities will benefit from the trading gateways available at AFZ.
• Industrial businesses engaged in manufacturing use modern infrastructure to conduct their operations.
• Manufacturing businesses use the modern infrastructure available to run their operations.
• Freelancers can choose from a wide range of business activities, allowing them to offer several services in the Ajman Free Zone.
• Businesses that need 100% foreign ownership, along with special tax exemptions for setting up the company in AFZ.

You can also explore Umm Al Quwain Free Zone, as it offers similar business conditions and affordable setup costs.

What licenses are available in Ajman Free Zone?

The business license you’ll select shapes the kind of business operations you can conduct within the Free Zone. AFZ offers more than 3,500 business activities, giving startups and SMEs plenty of flexibility to choose from a wide range of options. Below are the available license types at AFZ.

• A Business license for companies involved in trading activities, including import and export.
• An industrial license for businesses that process raw materials into finished products, such as gold jewelry.
• A service license for any service-based companies, such as consulting and marketing businesses.
• A sole professional license for freelancers offering professional services to clients in the Ajman Free Zone.

You can view all 3,500+ business activities available at AFZ on their official website and select the activities that suit your company.

If you're looking for a Free Zone with a wide range of business activities and a strategic location, consider Meydan Free Zone company formation.

What company structures can you register in the Ajman Free Zone?

Your legal structure choice determines the management structure and responsibilities among shareholders. Check the legal structure types below to choose what suits your business model.

• FZE structure: A limited liability company formed by a single shareholder, separating their personal name from the business legal entity to reduce risk.
• FZC structure: A company with more than one shareholder, and shareholders’ liability is limited to the amount they have invested in the company.
• Branch of a local company: It allows existing UAE businesses to establish another branch in the AFZ, using the same business name and identity. 
• Branch of a foreign company: It’s designed for foreign companies that want to expand their presence into the Ajman Free Zone while using the parent company's business identity.

You can learn more about the branch structures by reading this guide on how to set up a branch office in Dubai.

What facilities and package options does Ajman Free Zone offer?

AFZ offers plenty of facility types that affect not only your operational requirements but also the number of visas you’re eligible for. Below are the facility types that you can choose from based on your business needs.

Alternatively, you can explore offshore company formation because it allows you to reduce office leasing costs.

What documents are usually required for an Ajman Free Zone setup?

To ensure a smooth setup process without delays, make sure you have all the documents required by AFZ. Below are the documents you’ll need to prepare during the setup process.

• Passport copies of shareholders.
• Colored photographs of shareholders.
• No Objection Letter from the sponsor (if you’re a UAE resident).
• Visa copy or UID.

You’ll need to upload these additional documents for the branch structure:

• Passport copy of the manager.
• Colored photograph of the manager.
• Visa copy of the company manager
• Parent company’s trade license copy.
• Copy of memorandum of association.
• Board resolution copy.

If you want to explore other Free Zones that complete the setup process within days, you can check the Sharjah Free Zones company setup.

Step-by-step: how to set up a company in Ajman Free Zone

AFZ offers a 3-step digital setup process, which is easier to navigate if you understand the sections explained above, as it covers in detail the exact procedures you need to complete for a smooth setup.

Step 1: Choose your trade license and facility 

First, identify all the business activities you’ll conduct within the Free Zone, as this determines the trade license type. To do that, review the license types we mentioned and their business activities so you can choose the one that best suits your operations.

Then, you need to lease a facility to operate from, and fortunately, Ajman Free Zone offers several facility options to choose from. But before making any rushed decision, you also need to identify your visa requirements because the facility affects your visa quota.

Step 2: Submit your application and documents 

At this stage, the Free Zone team will contact you to complete the registration form, which includes your personal and business information. You’ll also be asked to upload the documents we listed earlier, so make sure you don't miss any.

Step 3: Receive your trade license

Finally, the Ajman Free Zone authority will send you the fees required to obtain your license. After you receive your license, you’ll be able to conduct any business operation listed within your trade license.

Once you start operating, you’ll face many tasks you might do manually to maintain accuracy, such as invoicing and analyzing inventory for detailed reports.

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

The exact setup costs the authority will ask you to pay depend on several factors, which are mainly determined by your business needs. This includes the license type and facility you choose to operate in AFZ, as well as your visa requirements.

For example, a company operating under the FZE structure will require one visa and a flexi-desk; this could result in a lower setup cost than a company with many shareholders and employees.

Although exact setup costs depend on the factors we’ve mentioned, you can still use the AFZ cost calculator to estimate setup prices for your business.

How do visas work in Ajman Free Zone?

To get your visa at Ajman Free Zone, you’ll need to make two important decisions: the setup package and the facility option.

As we’ve mentioned before, the facility option determines your visa eligibility, which can affect your operations at AFZ later on. You also need to consider which setup package you’ll select, as it includes a specific number of visas for your company, especially since setting up in Ajman with an inclusive package is more affordable. 

You can choose the setup package and facility option that suits your budget and operational needs from the AFZ website. For instance, if you’re a sole entrepreneur, you can choose the one-visa package. If you have multiple shareholders, you can choose a package with multiple visas.

To get a higher visa quota, you can explore Dubai mainland company formation, because mainland setups offer more facility options and higher visa eligibility.

What happens after you get the Ajman Free Zone license?

After receiving the license, you might feel overwhelmed by all the information telling you what to do next. To avoid these hassles, follow these key post-license steps to support your business operations later on.

• Opening a corporate bank account helps you pay company expenses and run payroll; it also helps you keep clean financial records for regulatory checks.
• Register for taxes, including VAT and corporate tax, once you reach the UAE’s threshold.
• Set up an operational system that supports managing different business workflows, depending on your daily operational needs. For example, trading businesses will need a structured system to manage invoicing and inventory.

Common mistakes businesses make when choosing Ajman Free Zone

You may get confused by all the processes you need to get right in your first year, which could easily overwhelm you. To make this easier, we’ve gathered the most common mistakes companies make so you can avoid them.

How Daftra Helps Ajman Companies

Avoid setting up different tools for each department, from tax filing to inventory management. You can use Daftra E-Invoicing Software for UAE to help you manage all these business workflows from one tool, such as:

• Handling VAT and corporate tax filing.
• Generating detailed financial reports for FTA checks.
• Managing inventory levels to generate stock reports.
• Tracking employees’ work in different departments.

FAQs About Ajman Free Zone Company Setup

What kind of activities can I do in Ajman Free Zone?

Ajman Free Zone offers more than 3,500 activities to choose from, depending on your business model and requirements. AFZ offers specific license types; each one covers a range of business activities, including commercial, industrial, and service activities.

Is Ajman a designated free zone?

Yes, AFZ is qualified as a designated zone that enjoys VAT exemptions on certain goods transactions between designated zones or internationally, but this doesn’t apply to services.

Is corporate tax applicable in Ajman Free Zone? 

Yes, every business in AFZ must register for corporate tax and is subject to 9% CT. However, they can still have 0% CT if they qualify as QFZP by meeting the FTA’s obligations.

Do I need an office to set up a company in Ajman Free Zone?

Yes, you’ll need to register an office to confirm that you have a real presence in Ajman Free Zone. So, you should choose one of the Office options available at AFZ, depending on your operational and visa requirements.

How long does it take to set up a company in Ajman Free Zone? 

AFZ offers a digital, smooth setup process that takes only 2 hours to complete. However, this mainly depends on your document preparation, which helps you avoid potential setup delays.