Business Setup in Ajman
ABH Associate: Your trusted partner for hassle-free business setup in Abu Dhabi.
We provide professional guidance, streamlined processes, and complete solutions to help you establish and grow your business in the UAE market.
Why Choose Ajman for Your Business?
Ajman, the smallest emirate in the United Arab Emirates, is home to one of the country’s most densely populated cities. Over 90% of Ajman’s residents live in the city itself, which is surrounded by Sharjah. Located close to Dubai, the Dubai-Sharjah-Ajman area forms a dynamic tri-city zone. For all your business setup needs in Ajman, ABH Associate is here to assist.
Situated just 35 minutes from Dubai, Ajman boasts its own port, handling around 1,000 vessels annually. The emirate has an impressive GDP of over $4.23 billion, with investments growing approximately 5% each year. Key sectors, including transport, storage, and communications, are expanding at a rate of 5.1% annually. Ajman is conveniently served by both Dubai International Airport and Sharjah International Airport, located just a few kilometers away.
Ajman is also developing its own international airport, which, once completed, will handle 400,000 tonnes of cargo and one million passengers annually, offering significant opportunities for businesses. Real estate has attracted substantial interest following the emirate’s announcement of 100% freehold ownership for foreign investors.
With the guidance of the right business setup consultants, establishing your company in Ajman is a seamless process.
Establish Your Company in Ajman
The first step in setting up your business in Ajman is to clearly define the nature of your business. This could involve a single business activity or multiple activities under the same company. In some cases, related activities can be covered under a single business license, so it’s important to determine your business scope carefully.
Once this is established, the next step is to decide whether a mainland or free zone setup is more suitable for your company. Certain business activities, particularly those that involve direct interaction with consumers, are often better suited for the mainland, as it allows customers easy access to your business location.
Ajman Free Zone
Established in 1988, the Ajman Free Zone is strategically positioned within the emirate of Ajman, with easy access to two international airports and four seaports. Setting up your business in Ajman Free Zone offers several key advantages:
- 100% foreign ownership permitted
- No corporate or personal income taxes
- Full repatriation of capital and profits
- Business license issued within 24 hours
- Multiple business activities allowed under a single license
- Exemption from import and export duties
- Affordable office and commercial space
These benefits make Ajman Free Zone an attractive destination for entrepreneurs and investors looking to establish a presence in the UAE.
Ajman Media City Free Zone
The Ajman Media City Free Zone is a modern free zone located just 30 minutes from Dubai International Airport and a 45-minute drive from Business Bay, Dubai’s central business district. It also maintains an office in Business Bay, Dubai.
This free zone offers a variety of opportunities for entrepreneurs in sectors such as digital media, video production, photography, web design, sound recording, audio production, copyright management, audio-visual production, post-production, sound mixing, movie promotions, business consultancy, human resources, legal consulting, publishing, event management, sports management, and more.
Trade License for Business Setup in Ajman
In the United Arab Emirates, every company requires a Trade License to operate legally. In Ajman, the main types of business licenses include:
1. Industrial License
To obtain an Industrial License in Ajman, the company must be registered in any GCC country (Oman, Bahrain, Saudi Arabia, Kuwait, Qatar, or the UAE). If the Ajman-based company is owned by another company, a GCC company must hold at least 51% of the shareholding.
2. Trading License
This license allows a company to export, import, or re-export goods and services, provided they have added value to these products or services within the UAE.
3. Professional or Service License
A Professional License is intended for individuals or groups who offer specialized services to consumers or businesses. Examples include auditors providing financial auditing, chartered accountants offering accounting services, engineers delivering technical consulting, or a team of lawyers forming a law firm to provide legal services.
4. E-Commerce License
With 42% of UAE residents engaging in online transactions, e-commerce is a rapidly growing sector. Ajman has seen a surge in E-Commerce License applications, thanks in part to its strategic location near Dubai and Sharjah.
5. General Maintenance License
This license covers companies offering general maintenance services, such as painting, plumbing, and electrical work. These services are in high demand due to regular inspections ensuring the safety and integrity of buildings in the UAE.
Key sectors driving Ajman’s economy include Construction, Automotive, Agriculture, Education, Food & Beverage, and Health & Beauty.
Advantages of Company Setup in Ajman
The Ajman Free Zone is among the most cost-effective locations in the UAE to launch a business. Even if you opt for a mainland setup, there are numerous benefits, including single-window clearance for all government services, covering licensing and visas. Companies can lease land for 20 years, with the option to extend for an additional 20 years, allowing up to 40 years of tax-exempt operations. Additionally, all businesses in Ajman are exempt from import and export duties, making it an attractive destination for investors.
Process of Company Registration in Ajman
The first step in setting up your business is to choose the appropriate company structure. Common types of company structures include:
- Sole Establishment (equivalent to a Sole Proprietorship)
- Limited Liability Company (LLC)
- Private Joint Stock Company
- Public Joint Stock Company
- Professional or Civil Company
- Branch Office of a Foreign Company
- Representative Office of a Foreign Company
How to SetUp a Company in Ajman Mainland
The process to obtain a business license in Ajman involves the following steps:
- Submit a completed application form at a Customer Service Centre of Ajman Municipality.
- Coordinate with the Inspection Unit to verify the selected business location.
- Obtain approvals from the relevant government departments and agencies.
- Submit all approvals for company registration.
- Make the required payment and receive your Business License the next day.
Documents Required for Company Formation in Ajman
The following documents are required for each business owner in the company, to facilitate the issuance of investor visas for all partners:
- Copy of Passport
- Two recent passport-sized photographs with a white background
- Proof of residential address in the owner’s home country
- Copy of Emirates ID, if already residing in the UAE
- Copy of Visa, if already in the UAE
Choosing a free zone location for your business offers several advantages. Businesses in free zones are exempt from the 5% Value Added Tax when trading with companies within the same or other free zones. They are also exempt from the 9% corporate tax applicable on mainland businesses with profits exceeding AED 375,000 annually.
However, mainland locations provide easier accessibility to clients, which can be crucial for companies operating in the B2C sector.
There is no universally “best” location for a business; the optimal choice depends on the specific needs and goals of your company.
Why Choose an Experienced Consultant for Business Setup in Ajman?
A skilled business setup specialist can guide you in choosing the most suitable company structure for your business. Depending on your activity, you may establish your company as a Sole Establishment (equivalent to a Proprietorship), a Limited Liability Partnership, a Limited Liability Company, or a Private Limited Company. Certain business activities are better suited to specific structures, and in a free zone, only the Limited Liability Company structure is permitted.
Professionals such as doctors opening consulting clinics, lawyers establishing law firms or branch offices, and engineers launching consultancy firms require a Professional License. While no Local Sponsor is needed, a Local Service Agent is mandatory. An experienced company formation expert in Dubai, familiar with Ajman mainland business setup, can connect you with the right Local Service Agent.
At ABH Associate, this is exactly what we do — we connect you with the right people and handle all paperwork related to business setup in Ajman, ensuring your Business License is issued smoothly. In Ajman, a business license can be obtained within 24 hours, and we make certain that all documentation is correctly prepared. This allows you to focus on what you do best — running and growing your business.