Ajman may be the smallest emirate in the UAE, but when it comes to business opportunities, it punches well above its weight. Over the past few years, Ajman Free Zone (AFZ) has quietly become one of the most attractive destinations for entrepreneurs and international investors looking to tap into the UAE market, without the sky-high costs of Dubai or Abu Dhabi.
From e-commerce startups and consultancy firms to manufacturing units and trading companies, AFZ offers a flexible, affordable, and business-friendly environment for all types of ventures. With benefits like 100% foreign ownership, tax exemptions, fast licensing, and access to key transport links, it’s easy to see why so many are choosing Ajman as their launchpad.
So, let’s understand everything you need to know about Ajman Free Zone company formation.
Why Choose Ajman Free Zone for Business Setup?
Ajman Free Zone (AFZ), established in 1988, is a prominent free trade zone located in the Emirate of Ajman, United Arab Emirates. Strategically situated near Ajman Port and with easy access to major highways, AFZ offers businesses a gateway to regional and international markets.
Here are some key reasons why business setup in Ajman Free Zone is a smart choice:
1. Low-Cost Business Setup
AFZ offers some of the most affordable business packages in the UAE. From startups with tight budgets to SMEs looking for lean expansion, the zone provides flexible pricing and tailored solutions without compromising on infrastructure or services.
2. No Need for Physical Office (for Certain Packages)
If you’re starting an online or service-based business, AFZ offers smart office or flexi-desk options that don’t require you to rent a full office. This saves a lot on yearly costs and is ideal for solo founders or remote teams.
3. 100% Foreign Ownership
You retain full control of your business, no need for a local sponsor. This gives you the freedom to make decisions, manage finances, and scale your business independently.
4. No Corporate or Personal Income Taxes
Ajman Free Zone offers a tax-free environment, no corporate or personal income tax. This makes it easier for your business to stay profitable and reinvest earnings into growth.
5. Modern Facilities and Office Solutions
From smart offices and co-working spaces to warehouses and industrial plots, AFZ offers infrastructure that suits every business model and budget.
6. Quick and Simple Company Registration
AFZ is known for its streamlined business setup process. In many cases, companies can be registered within a single day, with minimal paperwork and hassle.
Popular Business Activities in Ajman Free Zone
Ajman Free Zone offers a wide variety of business activities that cater to startups, SMEs, and large enterprises alike. Here are some of the most popular business activities you can choose from:
- Trading (Import/Export & General Trading)
- E-commerce
- Consultancy Services
- Media and Creative Services
- Technology and IT Services
- Industrial and Manufacturing Activities
- Education and Training
- Health and Wellness
- Logistics and Shipping
- Foodstuff Trading and Packaging
Documents Required for Ajman Free Zone Business Setup
It’s important to have all the necessary documents ready to get your business up and running smoothly in the Ajman Free Zone. Here’s a list of the key documents you’ll need for your company setup.
- Completed Application Form (provided by Ajman Free Zone)
- Copy of the Passports
- Passport-sized Photographs of shareholder(s) and manager(s)
- Business Plan (depending on the business activity and license type)
- Bank Reference Letter or bank statement (sometimes requested)
- Additional Approvals or Licenses (depending on specific business activity, e.g., health or education sectors)
How to Set Up a Company in Ajman Free Zone?
Ajman Free Zone company formation is easier than you might think. Follow these simple steps to get your business registered and ready to operate smoothly.
1. Choose Your Business Activity and License Type
Start by deciding what kind of business activity you want to conduct. Ajman Free Zone offers various license types such as trading, service, industrial, or e-commerce. Selecting the right license ensures your business operates legally and efficiently.
2. Choose a Legal Structure
Select the appropriate legal entity based on your business model:
- Free Zone Establishment (FZE): Suitable for a single shareholder, this entity offers full ownership and limited liability protection for individuals or companies.
- Free Zone Company (FZC): Ideal for 2 to 50 shareholders, allowing joint ownership with liability limited to each shareholder’s investment.
- Branch of a Foreign Company: Enables a foreign parent company to operate in Ajman Free Zone without forming a separate legal entity, maintaining direct control.
- Branch of a UAE Company: Allows a UAE-based company to establish a branch within the free zone, expanding business operations locally under the parent company’s license.
3. Reserve a Trade Name
Choose a unique company name that complies with UAE naming conventions:
- Avoid offensive or religious references.
- Use full names rather than initials.
- Ensure the name reflects your business activities.
4. Submit the Application Form
Complete the Ajman Free Zone company registration application form. You will need to provide details about your business, shareholders, and the proposed business activity.
5. Prepare and Submit Required Documents
Gather all necessary documents such as passport copies, proof of residence, passport-sized photos, and a business plan (if required). Submit these documents along with the application form to the Ajman Free Zone authority.
6. Sign the Lease Agreement and Pay Fees
Choose an office space that suits your business needs. Options include flexi-desk (shared workspace), smart office, warehouse, or land for industrial activities. Sign the lease agreement and pay the applicable license fees and any other charges such as visa fees.
7. Obtain Your Business License and Registration Certificate
After payment and final approval, Ajman Free Zone will issue your business license and registration certificate. This legally allows you to start business operations within the free zone.
8. Apply for Visas (Optional)
If you or your employees need residency visas, apply through Ajman Free Zone’s visa services. The number of visas you can get depends on your office space and license type.
9. Open a Corporate Bank Account
With your business license and company documents, you can open a corporate bank account in the UAE. This will help you manage business finances and receive payments from clients or partners.
How Much Does Ajman Free Zone Company Formation Cost?
The cost of Ajman Free Zone business setup varies based on factors such as the type of license, office space, and number of visas. Basic packages can start as low as AED 5,000, which helps keep costs low by eliminating the need for a full physical office. On average, the total cost ranges from AED 10,000 to AED 30,000.
However, Ajman Free Zone offers a cost-effective solution with flexible payment options, making it easier for entrepreneurs to set up and run their businesses without heavy upfront expenses.
It’s advisable to consult with AFZ or a business setup consultant at AE Setup to obtain a detailed cost breakdown tailored to your specific requirements.
Why Choose AE Setup for Ajman Free Zone Company Formation?
Starting a business in Ajman Free Zone is a smart choice because it’s affordable, easy, and offers many options to suit your needs. Setting up your company here doesn’t have to be complicated. With the help of expert consultants like AE Setup, the whole process becomes much easier.
We have a dedicated team that takes care of everything, from company registration and visas to opening bank accounts and renewing your license. We also help with VAT and other legal requirements, so you don’t have to worry. If you’re ready to start your business journey in Ajman Free Zone, AE Setup is here to guide you every step of the way.
