The Ajman Free Zone (AFZ) is a premier business destination in the UAE, renowned for its cost-effective and business-friendly ecosystem. As a leading hub for foreign investment, AFZ offers a wide range of licenses and customizable packages designed to support entrepreneurs, from innovative startups to established global corporations. This guide provides a comprehensive and detailed overview of everything you need to know about setting up a business in AFZ, based on official sources and key industry insights.
Overview of Ajman Free Zone
Established in 1988, AFZ is an independent free zone authority that has developed into a dynamic and integrated ecosystem. It provides a strategic location with easy access to major airports in Dubai and Sharjah, as well as the Ajman Port. The core benefits that attract foreign investors include:
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100% Foreign Ownership: Foreign investors can maintain full ownership of their companies without the need for a local sponsor.
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Tax Advantages: Companies in AFZ benefit from a 0% corporate and personal income tax rate, as well as 100% repatriation of capital and profits.
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Cost-Effective Solutions: AFZ is known for offering some of the most competitive license and office packages in the UAE.
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Simplified Processes: A fully digitized system streamlines everything from company registration to visa services.
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World-Class Infrastructure: The free zone provides a diverse range of facilities, including modern offices, warehouses, and industrial land.
Legal Structures for Your Business
AFZ allows foreign investors to establish their companies under several legal forms, each with distinct features:
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Free Zone Establishment (FZE): This legal structure is for a single shareholder, who can be either an individual or a corporate entity. It offers limited liability, protecting the owner's personal assets.
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Free Zone Company (FZC): Designed for multiple shareholders (up to 50), this is the ideal structure for partnerships and collaborative ventures. It also provides limited liability to all shareholders.
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Branch Office: This is for a company that already exists outside of AFZ. A Branch of a Local Company is for a UAE-based entity, while a Branch of a Foreign Company is for a non-UAE entity.
License Types and Business Activities
AFZ offers licenses for over 1,500 business activities, providing a robust framework for nearly every industry. The type of license a company obtains determines the scope of its legal activities.
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Commercial License: This is the most popular license for businesses engaged in trading, import, export, and distribution of a wide range of goods. The General Trading License, which allows for a wider range of unrelated products to be traded under a single license.
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Professional/Service License: Issued to individuals and companies offering professional services based on expertise and skills. This includes consultants, designers, IT service providers, legal advisors, and a wide array of other service-based activities.
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Industrial License: This is a comprehensive license for companies engaged in manufacturing, processing, assembling, and packaging of goods. It requires a physical industrial facility, such as a warehouse or factory, within the free zone.
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E-commerce License: Specifically designed for businesses operating exclusively online, this license facilitates electronic transactions, online sales, and digital services.
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Freelance License: A unique offering for independent professionals in fields like media, education, IT, and more. It allows individuals to work independently and legally, with options for visa eligibility.
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Pioneer License: A specialized license designed for young entrepreneurs aged 20 to 30, offering a cost-effective entry point into business ownership.
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National Industrial License: A special license for industrial companies registered in GCC countries, provided they meet specific ownership and manufacturing criteria.
AFZ Business Setup Packages: Tailored Solutions
AFZ distinguishes itself with its flexible and customizable packages that bundle a license with other essential services. These packages are designed to cater to various business sizes and needs, offering cost-effective solutions for every type of entrepreneur.
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Zero Visa Package: Perfect for entrepreneurs who do not require a UAE residency visa, this package includes a business license and a co-working space. It is a cost-effective solution for businesses operating remotely or as branches of an overseas company.
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All-Inclusive Visa Packages: These are for businesses that require residency visas for owners, partners, and employees. These packages can include multiple visas and cover all administrative steps, from security approval to E-Channel registration, and the full visa application process. These are ideal for founders and employees who need to relocate to the UAE.
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Pioneer's Package: Specifically designed to empower young entrepreneurs aged 20 to 30, this package offers a cost-effective license and flexible co-working spaces, along with visa eligibility and family sponsorship options.
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Office and Facility Packages: AFZ offers a range of physical office solutions, from a basic Flexi Desk (a shared workstation) and Executive Office (a fully equipped private office) to large Warehouses and plots of Land for industrial projects. The number of visas included in a package is often tied to the type of office space, providing scalability as a business grows.
The Company Setup Process in AFZ
The process of forming a company in Ajman Free Zone is simplified and can often be completed within 24 hours to a few working days. The key steps are:
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Choose Business Activity and Legal Structure: Determine the nature of your business and select the appropriate legal entity (FZE, FZC, or Branch).
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Choose a Company Name: Select three potential company names for approval, ensuring they comply with UAE naming conventions.
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Prepare Documents: Gather the necessary documents, including passport copies, passport-sized photos, and a completed application form. For certain activities, a business plan may be required.
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Submit Application and Pay Fees: Submit the application to Jannah Documents Clearing as an authorised agent, and pay the required license and registration fees.
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Obtain License and Corporate Documents: Upon approval, you will receive your business license, Chamber of Commerce registration certificate, and lease agreement.
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Apply for Establishment Card and Visas: An Establishment Card is issued, which allows the company to sponsor residency visas for investors, employees, and their families.
License Renewal and Compliance
To maintain good standing and continue operations, free zone licenses must be renewed annually. The renewal process is typically a straightforward, digital procedure that requires adherence to specific timelines.
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Renewal Timeline: Licenses must be renewed before the expiration date to avoid penalties. A delay can result in fines for each month the license is expired.
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Required Documentation: Renewal requires a valid lease contract for the company's facility. For companies with visa eligibility, the E-Channel registration must also be renewed.
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Remote Renewal: A significant benefit of AFZ is that the license can be renewed remotely, without the physical presence of the shareholder, simplifying the process for international investors.
Visa and Family Sponsorship
AFZ offers a streamlined visa process for investors and employees, with residency visas typically valid for up to three years.
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Employee Visas: Businesses can apply for work visas for their employees. The process involves an entry permit, a medical fitness test, Emirates ID registration, and final visa stamping.
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Family Sponsorship: Visa holders are eligible to sponsor their families (spouse and children). This requires providing attested marriage and birth certificates, a certified lease contract, and meeting a minimum salary requirement for employees.
Conclusion: Your Partner for Growth in the UAE
The Ajman Free Zone is a hub for business diversity, offering an attractive combination of 100% foreign ownership, tax benefits, and flexible business solutions. By understanding the wide variety of licenses and packages available, foreign companies can strategically choose the right option to establish a strong and sustainable presence in the UAE market.
