A lot of people believe that only USA, UK, or other developed countries can incorporate a company. But that is a misconception. Present-day life in UAE cannot be imagined without the concepts and the idea of Free Zones and Free Trade Zones. Especially when it comes to Ajman free zone company formation, there are a lot of benefits. You have probably asked yourself this question before. Is it really worth starting up a business in Ajman? There are several excellent reasons why you should at least start thinking about opening a business in Ajman.
The main advantage is that you can easily establish your business here without any hassle or problems because of its tax-free status. This is what makes it attractive for foreign investors who are seeking new opportunities outside their own countries. There is also no need to pay any taxes on profits from your business activities in Ajman as well is no requirement for an annual audit report after registration with the Ministry of Economy & Commerce. Additionally, there is no need for obtaining local residence visas for foreign employees who work for your company, since they can stay here on a visitor visa only.in this blog, you are going to find an answer to whether is it really worth establishing a company in Ajman or not.
Ajman Free zone Overview:
Ajman Free Zone (AFZ), a free-trade zone, is one of the fastest-growing zones in the UAE. It is located in Ajman, one of seven emirates that make up the United Arab Emirates. The AFZA’s main objectives are to create an attractive business environment, attract foreign investments, and support regional economic development through trade facilitation and promotion.
Ajman Free zone Company Formation benefits:
- Ease of Doing Business in Ajman Free Zone: The Ajman Free Zone Authority (AFZA) was established to create a business-friendly environment for foreign investors, offering a variety of incentives including tax exemption, customs duty exemptions, and other facilities such as freehold land ownership rights. The AFZA also provides several services including visa processing and commercial registration services to foreign companies operating within the Free Zone. the registration process takes only three days for companies to register their business with Ajman Free Zone Authority (AFZA). This makes it easier for entrepreneurs who want to start their own businesses quickly without wasting too much time going through lengthy registration procedures like those found.
- Exemption from Income Tax -100% Foreign Ownership: Foreign nationals who own 100% shares or hold board positions in their companies are exempt from income tax on their earnings as long as they do not reside in Ajman full-time. In addition, corporations registered in Ajman can benefit from a corporate tax exemption equal to 50%.
- Flexible Working Environment: You can set up businesses and workspaces according to your needs and requirements without having any restrictions from government authorities or other legal entities such as banks or other financial institutions.
- You can operate your business throughout the UAE without having to obtain separate licenses or permits from each emirate. You only need one license from AFZA.
- Your company will be registered under a government agency rather than a private company that could be sold at any time or go bankrupt without warning.
- No Minimum Capital Requirement.
- There are no Restrictions on the Nature of Business Activities.
- Freely convertible currency (AED) for transactions within the UAE and with other GCC countries. and there are no foreign exchange restrictions.
What are the different types of Ajman free zone trade licenses ?
Ajman Free Zone offers a wide variety of licenses that are suitable for all types of businesses.
The commercial license is the most popular license and is used by companies that want to establish a presence in the free zone. This type of license allows you to operate as a retailer, wholesaler, or distributor in any industry except the services and manufacturing industries. You can also open a showroom for your products so that people can visit your store and buy from you directly instead of buying online.
The industrial manufacturing license is license allows you to manufacture any product or service within Ajman Free Zone. You can even use the premises provided by Ajman Free Zone Authority (AFZA) to set up your factory but you will need other licenses as well if you want to get into any other category such as commercial or services. also, this license allows you to import raw materials, manufacture products, and then sell them locally or export them abroad. You can also hire workers from outside of the country and train them to work on your premises.
A services license is perfect for companies offering services such as consultancy, accounting, HR management, and more from within your company’s premises at Ajman Free Zone.
The pioneer’s license gives investors who have made significant investments in Ajman Free Zone preferential treatment when applying for other licenses available in the free zone such as commercial, industrial manufacture, and services licenses among others.
The freelancer license helps individuals work independently without any sponsor.
Ajman free zone business setup process:
the Ajman free zone company formation process or business setup process involves the following steps.
- Choose the business activity and business type:
The first step is to choose the business activity you want to operate in the Free Zone. There is a wide range of activities available, including trading and logistics, manufacturing, processing and assembly, food and beverage production, and services.
second is to select the business legal type you want to incorporate a business in Ajman. whether it is LLC, partnership, or sole establishment.
- Trademark registration: this is also called Ajman company registration, once you have decided on your business activity, it’s time to register your company name. You can do this by applying for a trademark with the Intellectual Property Authority (IPA). You will need to provide details about how you want your name to be used in order to obtain a trademark registration.
- Documents Submission: Once you have completed all necessary paperwork, submit your application at any of our offices across the UAE (Dubai or Abu Dhabi). We will review your application and if everything is in order we will issue you with an approval letter within 3 days of submitting it.
- Obtain License: Once you got initial approval, you will get a relevant license.
The Ajman Freezone company formation, Ajman mainland company formation, and the Ajman offshore company formation are similar, the only difference is the matter of ownership, business activity, and office space facilities.
What are the documents required to get an Ajman trade license:
- Passport copy of both owner and shareholder.
- No objection letter from the sponsor
- Visa copy
- paperwork documents such as a Memorandum of association, power of attorney, and local service agent agreements are required depending on the legal entity type.
The Ajman free zone company formation cost depends on various factors such as application fee, attestation notary public cost, Trdaelicense cost(general trading license, professional license, freelance license), approval cost, trademark registration cost(Trade name, registration), shareholder agreements cost, and the consulting charges required.
At Business Setup Dubai We are a leading business consultant in Ajman who helps our clients to complete all the required procedures and obtain the necessary documents to start their businesses in Ajman.. we also do the Ajman trade license renewal, and cancellations, visa assistance, free legal advice and many more. if you are planning to start Ajman Freezone company formation then get in touch with us. we are happy to help you.!!