What is Ajman Free Zone?
Ajman Free Zone (AFZ) is one of the most popular free zones in the UAE for entrepreneurs, startups, and international investors. Established in 1988, it plays a vital role in driving trade and investment opportunities in the region.
The Ajman Free Zone Authority (AFZA) manages and regulates businesses within the zone. Its goal is to simplify business formation, reduce costs, and create a supportive environment for investors.
With its location close to Dubai and Sharjah ports, Ajman Free Zone offers excellent connectivity to regional and global markets, making it one of the fastest-growing free zones in the UAE.
Key Benefits of Ajman Free Zone Company Setup
Setting up a company in Ajman Free Zone comes with several advantages:
- 100% foreign ownership of your company
- Low setup and renewal costs compared to other free zones
- Strategic location with access to key seaports and airports
- Tax-free environment (no corporate or personal income tax)
- Easy access to GCC and international markets
These benefits make Ajman Free Zone highly attractive for entrepreneurs seeking affordable yet strategic business opportunities.
Types of Business Entities in Ajman Free Zone
When setting up a company in Ajman Free Zone (AFZ), entrepreneurs can choose from several legal structures. Each entity type has its features, requirements, and benefits depending on the nature of the business.
1. Free Zone Establishment (FZE)
- An independent legal entity owned by a single shareholder (either an individual or a corporate body).
- The shareholder is responsible for the company’s activities but enjoys limited liability (liability is limited to the invested capital).
- Suitable for solo entrepreneurs, freelancers, or small businesses looking for full ownership and control.
- Typically requires less paperwork compared to multi-shareholder companies.
2. Free Zone Company (FZC / FZ-LLC)
- An independent legal entity with two or more shareholders (can be individuals, corporates, or a mix of both).
- Functions as a Limited Liability Company (LLC), meaning shareholders’ liability is restricted to their share capital.
- Ideal for partnerships, family businesses, or joint ventures where multiple stakeholders are involved.
- Provides flexibility in structuring ownership and profit-sharing.
3. Branch of a UAE Company
- A branch office of an existing company that is already registered in the UAE mainland or another free zone.
- The branch is not a separate legal entity but operates as an extension of the parent company.
- It can carry out the same activities as the parent company, subject to AFZ approval.
- Beneficial for UAE-based businesses that want to expand operations in Ajman Free Zone without forming a new company.
4. Branch of a Foreign Company
- A branch office of an international company incorporated outside the UAE.
- Like a UAE branch, it is not a separate entity but acts as a representative arm of the parent company.
- The branch can engage in approved business activities in Ajman Free Zone while keeping its parent company’s identity.
- Suitable for global businesses looking to establish a regional presence in the UAE and GCC without full incorporation.
Ajman Free Zone License Options
Ajman Free Zone provides a wide range of licenses to match various business activities:
1. Trading License
The Trading License allows businesses to import, export, and distribute specific goods within the UAE and internationally. It is suitable for companies dealing in a single product line or a limited range of items.
2. General Trading License
A General Trading License is more flexible, as it covers multiple product categories under one license. It is ideal for investors who want to deal in a wide variety of goods without restrictions.
3. Industrial License
The Industrial License is designed for companies engaged in manufacturing, processing, or packaging goods. It also provides access to warehouses and industrial facilities within the Ajman Free Zone.
4. Service License
This license is meant for businesses offering professional or consultancy services such as IT, media, education, and marketing. It allows entrepreneurs to provide expertise-based services without trading physical products.
5. E-commerce License
The E-commerce License is tailored for online businesses that sell products or services through digital platforms. It is perfect for startups, freelancers, and entrepreneurs entering the growing UAE online market.
6. National Industrial License
This license applies to manufacturing companies where at least 51% of ownership belongs to GCC nationals. It offers additional trade privileges, such as customs duty exemptions when exporting goods to GCC countries.
Business Activities Allowed in Ajman Free Zone
AFZ supports diverse business activities, including:
- Trading, manufacturing, and industrial sectors
- IT services, consultancy, and professional activities
- E-commerce and digital businesses
- Logistics, shipping, and distribution
This wide range of activities gives investors flexibility in choosing the right setup.
Documents Required for Ajman Free Zone Company Setup
To establish a company in Ajman Free Zone, you need:
- Passport copies of shareholders and directors
- Business plan (for specific activities)
- Proof of address (utility bill or tenancy contract)
- No Objection Certificate (NOC) if you are a UAE resident
- Additional approvals for setting up branches
Step-by-Step Process of Company Setup in Ajman Free Zone
Setting up a business in AFZ is straightforward. Here’s the process:
Step 1 – Choose Your Business Activity
The first step is deciding what type of business you want to run, such as trading, consultancy, manufacturing, or e-commerce. Your chosen activity will determine the license type and any special approvals required.
Step 2 – Select Legal Structure and License Type
Based on your activity, you need to select a legal entity such as a Free Zone Establishment (FZE), a Free Zone Company (FZC), or a branch office. Along with this, you must choose the correct license type, like trading, service, or industrial.
Step 3 – Reserve a Trade Name
Every company must have a unique trade name that reflects the nature of the business. The name must comply with AFZA naming rules and cannot include offensive or restricted words.
Step 4 – Prepare and Submit Required Documents
You will need to provide documents such as passport copies, proof of address, and business plans for certain activities. These documents are submitted to the Ajman Free Zone Authority for review and verification.
Step 5 – Obtain Initial Approval from AFZA
Once the documents are verified, AFZA issues an initial approval. This step confirms that your business activity and documents meet the requirements, allowing you to move forward with the registration.
Step 6 – Sign the Lease Agreement for Office or Warehouse Space
Every company in AFZ must have a registered office or flexi-desk. Depending on your business type, you may also need a warehouse or industrial space. Signing the lease agreement finalizes your physical presence in the zone.
Step 7 – Receive Business License and Incorporation Documents
After the lease is signed and payment is made, AFZA issues the business license along with the incorporation documents. These confirm the legal existence of your company in the Ajman Free Zone.
Step 8 – Apply for an Establishment Card
The establishment card is issued by AFZA and is required for all visa-related applications. It officially registers your company with the immigration department.
Step 9 – Apply for Entry Permit and Residency Visa
Business owners and employees can apply for entry permits, which allow them to stay in the UAE temporarily. This is the first step toward securing a residency visa.
Step 10 – Complete Medical Checkup, Emirates ID, and Biometrics
Visa applicants must undergo a medical fitness test, apply for an Emirates ID, and complete biometrics. These steps are mandatory for residency in the UAE.
Step 11 – Open a Corporate Bank Account
Once all company and visa documents are ready, you can open a corporate bank account in the UAE. This enables smooth financial transactions and builds credibility with clients and partners.
Cost of Setting Up a Business in Ajman Free Zone
The overall cost of company formation in Ajman Free Zone is flexible and depends on several factors, making it suitable for both startups and established businesses. The main cost components include:
- License and Registration Fees: The cost of your license varies based on the type of activity you choose, such as trading, industrial, service, or e-commerce. Specialized activities may require additional approvals, which can slightly increase the total fee.
- Office or Flexi Desk Rental: Every business in AFZ must have a registered office. Investors can choose from cost-effective flexi desks, shared offices, or dedicated spaces. Larger offices or warehouses are available for businesses that need storage or manufacturing facilities.
- Visa Costs: The number of visas your company can apply for depends on the size of your office or facility. Investors, employees, and dependents each require visas, and additional services like medical tests, Emirates ID, and processing fees add to the cost.
Since Ajman Free Zone offers multiple packages, entrepreneurs can select a setup that fits their budget and business goals. This flexibility makes AFZ one of the most affordable and investor-friendly free zones in the UAE, especially when compared with other free zones that have higher entry requirements.
Visa Options in Ajman Free Zone
Businesses in AFZ can apply for different types of visas:
1. Investor/Partner Visa
This visa is designed for business owners, partners, or shareholders in companies registered in the Ajman Free Zone. It allows investors to legally reside in the UAE, manage their business, and enjoy the benefits of long-term stability. The visa typically has a validity of up to 3 years, depending on the package.
2. Employment Visa
Companies in the Ajman Free Zone can sponsor visas for their employees. The number of visas depends on the office space leased by the company. These visas allow staff members to live and work in the UAE while being sponsored by the employer.
3. Family Sponsorship
Once an investor or employee has a valid UAE residency visa, they can sponsor family members, including spouses, children, and parents. This option makes it easier for business owners and staff to bring their dependents to live with them in the UAE.
4. Visa Quotas
The number of visas a company can obtain is directly linked to the size and type of office or facility it rents in AFZ. For example, a flexi-desk package may allow only 1–2 visas, while larger offices or warehouses provide eligibility for more employee visas.
Why Invest in Ajman Free Zone?
Ajman Free Zone is an excellent choice for entrepreneurs because it offers:
- Affordable setup packages and renewal fees
- Future growth opportunities in trade and industry
- Strong support for startups and SMEs
- Direct access to international trade routes and ports
Its cost-effective solutions make it ideal for both new entrepreneurs and global investors.
Company Setup Support with Ripple
At Ripple, we specialize in business setup services across the UAE, including Ajman Free Zone. Our team provides end-to-end guidance from choosing the right license to handling visa applications and opening your corporate bank account.
We focus on making the process simple, affordable, and hassle-free so you can concentrate on growing your business.
Contact Ripple
- Website: www.ripplellc.ae
- Email: info@ripplellc.ae
- Phone: +971 4 250 0833
Partnering with Ripple LLC ensures your Ajman Free Zone company setup is completed smoothly and in compliance with UAE regulations.
FAQ
1. How long does it take to set up a business?
Company setup in Ajman Free Zone usually takes 3–5 working days, depending on approvals.
2. Can I own 100% of my company in the Ajman Free Zone?
Yes, foreign investors can have full ownership without a local sponsor.
4. What is the minimum capital required?
Most licenses do not require a minimum paid-up capital, making it easier for startups.
5. Can I operate outside the UAE with this license?
Yes, you can trade internationally, but operations in the UAE mainland may require additional approvals.
Conclusion
Ajman Free Zone provides a perfect balance of affordability, strategic location, and business-friendly policies. It is one of the most investor-friendly destinations in the UAE for entrepreneurs, SMEs, and global businesses.
If you are planning to set up a business in Ajman Free Zone, partnering with experts can save time and effort. To get professional guidance and a hassle-free setup, reach out to ripplellc.ae today.