Complete Guide to Ajman Free Zone Company Formation: Business Benefits, Process, Cost & FAQs

Complete Guide to Ajman Free Zone Company Formation: Business Benefits, Cost, Process, and Mehar Business Solutions LLC

Starting a business in the UAE has always been a lucrative option for entrepreneurs looking to expand their businesses in the Middle East. Ajman Free Zone, a strategic location in the UAE, offers cost-effective, simple company formation processes, providing opportunities for startups and established companies to grow and thrive. Our comprehensive guide will walk you through the company formation process in the Ajman Free Zone, including the business benefits, costs, process steps, and more.

1. What is the Ajman Free Zone?

AFZA Established in 1988, the Ajman Free Zone (AFZ) in UAE offers a robust business ecosystem, tax exemptions, and efficient processes, attracting international businesses for favorable trade, manufacturing, and services.

2. Business Benefits of Ajman Free Zone Company Formation

The Ajman Free Zone provides many advantages to local and international companies.

a. 100% Foreign Ownership

One major advantage of setting up a business in the Ajman Free Zone is that it allows full foreign ownership. Unlike mainland businesses in the UAE, where a local sponsor is required, AFZ businesses can be 100% owned by foreign nationals.

b. 100% Repatriation of Profits and Capital

Businesses set up in the Ajman Free Zone can repatriate 100% of their profits without tax, making it an attractive option for entrepreneurs looking to operate worldwide.

c. Tax Benefits

Ajman Free Zone offers several tax advantages, including:

• 100% corporate tax exemption for up to 25 years.
• No personal income tax.
• There are no customs duties on importing and exporting goods within the free zone.

d. Strategic Location

Located near the Ajman Port and with access to major highways, the Ajman Free Zone offers excellent connectivity to global markets. It's an ideal place for businesses looking to engage in both UAE region and international trade.

e. Cost-Effective Setup

Ajman Free Zone is a prime location for small and medium-sized businesses and offers low setup costs compared to other UAE free zones.

f. Business Support

Ajman Free Zone offers an extraordinary of business support services, including:

• Access to office space and warehouses
• Simplified licensing and visa processes
• Assistance with government procedures and paperwork

3. Cost of Setting Up a Business in Ajman Free Zone

The cost of setting up a business in the Ajman Free Zone depends on several factors, such as the license type, flaxi office space, and number of visas required. Here are some estimated costs for forming a company in the Ajman Free Zone:

a. License Fees

The Ajman Free Zone provides various business licenses starting at AED 5555 annually, depending on the specific license type needed.

b. Office Space

For companies requiring office space, renting an office or virtual office ranges from AED 12,000 to AED 25,000 annually. Warehouse and industrial spaces are typically more expensive.

c. Visa Fees

The cost of visas in the Ajman Free Zone typically starts at AED 3,000 per visa. Depending on your office space and business type, you can obtain 8 to 10 visas.

d. Additional Costs

There may also be additional costs for other services, such as:

• Corporate bank account setup
• Professional services (such as legal and consultancy fees)
• Work permits for employees

4. Process of Setting Up a Company in Ajman Free Zone

Setting up a company in the Ajman Free Zone is relatively straightforward. Here are the steps involved:

Step 1: Choose Your Business Activity

Ajman Free Zone offers a variety of licenses for various business activities, including commercial, industrial, and service-based licenses, allowing businesses to engage in diverse sectors.

Step 2: Select Your Company Type

Choose the type of business entity you want to establish. You can choose from:

• Free Zone Establishment (FZE): A single-owner entity.
• Free Zone Company (FZC): A multi-owner company.
• Ajman Business Setup

Step 3: Apply for a Trade Name

You need to select and register a trade name for your business. The name must comply with the naming conventions of the Ajman Free Zone and the UAE government.

Step 4: Submit Documents

Prepare and submit the required documents to the Ajman Free Zone Authority. Common documents include:

• Passport copies of the company owners/shareholders
• Proof of address
• Business plan (for certain activities)
• Application form

Step 5: Receive Initial Approval

The Ajman Free Zone Authority approves business establishments after submitting necessary documents, allowing final steps to be taken.

Step 6: Sign the Lease Agreement

Sign the lease agreement for office or warehouse space as your business requires.

Step 7: Pay Fees and Get Your License

You will receive your business license after completing all the necessary documentation and paying the required fees. You can legally operate your business in the Ajman Free Zone with this license.

Step 8: Apply for Visas

Finally, you can apply for visas for yourself as an investor visa and your employees. You can apply for multiple visas depending on your office space and business needs.

5. Mehar Business Solutions LLC: Your Trusted Partner for Ajman Free Zone Company Formation

Mehar Business Solutions LLC is a leading consultancy specializing in company formation and licensing services for the Ajman Free Zone businesses. It acts as an agent for the Ajman Free Zone Authority and helps entrepreneurs establish their businesses smoothly and efficiently.

Mehar Business Solutions LLC offers a range of services, including:

• Business setup advisory
• Assistance with document preparation
• License procurement
• Visa services
• Corporate banking assistance

Their expert team helps entrepreneurs by offering customized solutions for their business needs. Whether you are setting up a small business or a large corporation, Mehar Business Solutions LLC ensures a hassle-free experience in the Ajman Free Zone.

6. FAQs About Ajman Free Zone Company Formation

Q1: What are the advantages of establishing a business in Ajman Free Zone?

• Ajman Free Zone offers 100% foreign ownership, tax exemptions, access to strategic locations, and cost-effective setup options.

Q2: How long does setting up a business in the Ajman Free Zone take?

• The process typically takes 1 to 2 weeks, depending on the business activity and required documentation.

Q3: Can I own the business 100% as a foreign national?

• Ajman Free Zone allows 100% foreign ownership for all business entities.

Q4: What types of businesses can be set up in the Ajman Free Zone?

• You can set up various businesses, including trading, manufacturing, consulting, and services.

Q5: Is renting office space in the Ajman Free Zone mandatory?

• To obtain a business license, renting at least a virtual or physical office space in the free zone is mandatory.

Q6: What are the visa requirements for setting up a company in Ajman Free Zone?

• The number of visas you can apply for depends on your office space and business activity. The free zone offers both employee and investor visas.

Q7: How can Mehar Business Solutions LLC help me with the setup process?

• Mehar Business Solutions LLC provides expert guidance on business setup, document preparation, license issuance, and visa applications. They also act as agents for the Ajman Free Zone, making the entire process smooth and efficient.