Ajman free zones is one of the important free zones that conduct industrial activity within UAE. Under this free zone has a lot of business man carrying out company formation and continue to develop their infrastructure. Ajman Free Zone is a vital location, which gives it the advantage of serving both the western and the eastern markets. All the rules and regulations in Ajman Free Zone are governed under the management of the Ajman free zone authority. The entire business setup in Ajman Free Zone procedure and issuance of the business license to companies is streamlined in this article.
Advantages of Setting Up Business in Ajman Free Zone:
The strategic and cost-effective location of this free zone attracts many investors in the world to invest in different sectors. Ajman free zones companies provides few advantages mentioned below
- Exemption from customs duty for goods and services
- 100% foreign ownership
- Liberal economic policies
- Low labor cost
- Corporate tax is fully exempted for companies
- Personal income tax is also exempted
- Business friendly laws for companies
- Cost efficient business setup
- Simplified immigration process for workers
- Energy supply is abundant and cheap
- No hidden charges
- Prebuilt offices, smart offices, warehouses to facilitate companies.
Also Read: How to Start a Company in Ajman Free Zone
Stages of Business Setup in Ajman Free Zone
Ajman free zone is the most important destination for setting up business which provides all necessary requirements for a business. Following are the stages of Setting up of a business in Ajman
- Stage 1: Determining the type of legal entity: Rules and regulations are different for different ownership types and business establishments. Selecting a legal entity type to run the business under is considered important.
- Stage 2: Deciding the trade name: While deciding upon the type of legal entity the business should take, you should choose a trade name.
It is important to check with the respective free zone authority about the permitted trade names and whether the intended name has already been registered or not. The key requires mints to approve a trade name are:
- Must not violate the public morals or the public policy of the country
- Must be followed by the legal form of the company
- It has not been previously registered
- It is compatible with the required type of activity and legal status.
- Stage 3: Apply for business license: the type of license will depend on the business activity carried out by investor. Free zone authorities have listed number of activities as per the nature of business.
- Stage 4: Choosing an office type: Office requirements can be chosen depending on the number of employees and type of business activity a company wants to undertake.
- Stage 5: Pre approvals and registrations: To set up a business it is necessary to get the necessary approvals, and need to submit relevant documents. The list of documents varies on the type of business activity, the type of company and the requirements of the free zone authority. Below is a general guideline of steps and approvals needed for business set up.
- Initial approval: an initial approval certificate is required to continue with the business licensing formalities that permit foreign nationals to practice their desired business activity in Abu Dhabi. The Initial approval entitles the investor to proceed ahead with legal procedures for obtaining the business license, and apply for obtaining required approvals of relevant authorities to practice economic activities.
- Registration: After the initial approval register the business name and pay the required fees for registration.
- Licensing and visa process: If all the documents are submitted and verified the required authority will issue the license and start the visa processing
Costs involved for business setup in Ajman Free Zone
List of estimated cost involved for setting up business in Ajman free zone:
- One activity trading license fee
- Two activity trading license fees
- Three activity trading license fees
- Ecommerce license fees
- Professional license fees
- General trading license fees
Ajman free zone is one of the most cost effective and developed free zones in UAE.If you want to set a business in UAE, Farahat and co is the one stop solution and service provider for entrepreneurs. Our team will take care of all business set up requirements and other legal formalities. Contact us to avail our business setup services.