Company formation in Ajman free zone offers are number of business opportunities. This has led to an extensive demand among overseas investors and budding entrepreneurs. One of the important reasons to register a company in Ajman is the lesser cost of setting a business in comparison to Ajman mainland business setup. The affordable free zone license cost and the possibilities of growth and profitability in Ajman Free Zone have created a huge difference for investors.
To establish your business presence in the local market, here are the stages you need to go through:
Stage 1: Determine the type of company to set up
All the rules and regulations regarding ownership are different for different business establishments or legal business entities. To start a company, you first have to decide on the legal entity. Investors are given a couple of ownership options to choose from. Those options are as follows:
- Free Zone Establishment or FZE
- Free Zone Company or FZCo
- Branch of a local company or a foreign company
Stage 2: Decide on a trade name
While deciding upon the type of legal entity for your business, you should also choose a trade name.
It is important to check with the free zone authority about the permitted trade names and whether your chosen name has already been registered or not. The key points to know and follow when naming a business include the following:
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- The name of the business must not be similar to the name or abbreviation of the name of a government agency;
- It must not violate the public morals of the country;
- It must be followed by the legal form of the company;
- The name must not be one that has already been registered by another business;
- It is compatible with the type of activity the business is to perform and the legal status of the business.
Stage 3: Apply for a business license
The type of license to acquire will depend on the business activity to be carried out by the investor. The Ajman Free Zone Authority has listed the commercial activities that are allowed in its jurisdiction.
Stage 4: Submit documents for approvals and visa processing
To set up a business, it is necessary to get the approvals of relevant authorities by submitting the required documents. The list of documents needed varies on the type of business activity and the type of company to be registered.
An initial approval certificate will be issued upon approval of company registration. This is an approval certificate that allows the business owners to perform the approved business activity in Ajman free zone. For Initial Approval, the investor is required to provide some documents such as:
- Completed application form
- Business plan
- Copy of passport with six-month validity
- Entry stamp or visa copy
- One Color Photograph
After the initial approval, business owners can register the business name and pay the required fees for registration.
If all the documents are submitted and verified, the regulatory bodies will then issue the license and start the visa processing.
Cost for setting up a business in Ajman Free Zone
Some of the expenses involved for business setup in Ajman free zone are:
- Licensing fee: Each activity of your company may require you to acquire a specific type of license, so the cost may vary depending on the types and number of licenses that you need.
- Company registration: Cost of company registration depends on the proposed structure of the company.
- Type of facility: Cost may vary depending upon the facility you plan or renting or acquiring.
- Visa cost: Cost of each visa varies depending on the status of each applicant and the number of visas to be acquired for company management.
Requirements for Ajman Free Zone Company Formation
- Tradename reservation proof
- Proof of initial approval for business activities
- Shareholders’ passport copies
- Passport copy and CV of the manager
- Personal information of each shareholder and manager
- Lease agreement (having a physical address for your business/office is mandatory in the UAE)
- Notarized and attested Power of Attorney appointing a firm as your legal representative and act on your behalf or on behalf of the shareholders.
- Any other documents as requested by the free zone authority
Also read: All You Need to Know About Business Setup in Ajman Free Zone
Business setup services in UAE
Business setup in AFZ is simple. The process may not be difficult, but it does require an expert eye. Any errors in your application could lead it to being delayed or rejected. That’s why it’s a good idea to work with a company setup specialist to help you establish your business. When you work with a company formation expert, all you need to provide is some basic documentation and a little information about the nature of your business. At FAR Consulting Middle East, our business setup team in AFZ will take care of all business set up requirements and other legal formalities. Contact us today to avail our business setup services, and we will be glad to assist you.