Establishing a Freezone company in Ajman, UAE, is an excellent option for online entrepreneurs looking to benefit from a tax-friendly environment, complete foreign ownership, and a strategic location. This guide walks you through the steps to set up an Ajman Freezone company and leverage its advantages for your online business.
Why Choose Ajman Freezone for Your Online Business?
- 100% Foreign Ownership: No need for a local partner.
- Tax Advantages: Enjoy zero corporate and personal income tax.
- Strategic Location: Proximity to Dubai and other Emirates.
- Affordable Setup Costs: Lower fees compared to other UAE free zones.
- E-Commerce Friendly: Tailored solutions for online businesses.
Step-by-Step Guide to Setting Up an Ajman Freezone Company
1. Choose Your Business Activity
Ajman Freezone offers various business activities, including e-commerce, trading, and consulting. Ensure your chosen activity aligns with your online business operations.
2. Select the Right License Type
Depending on your business model, you can choose from:
- E-Commerce License: Ideal for online businesses.
- Trading License: For importing/exporting physical products.
- Service License: For offering consultancy or digital services.
3. Decide on a Company Structure
Ajman Freezone allows multiple company structures, including:
- Freezone Establishment (FZE): For single shareholders.
- Freezone Company (FZC): For multiple shareholders.
- Branch Office: For existing businesses expanding to the UAE.
4. Choose Your Facility
Ajman Freezone provides flexible workspace options such as:
- Shared desks or offices.
- Private offices.
- Warehousing solutions for inventory storage.
Select a facility that suits your business needs and budget.
5. Submit Required Documents
Prepare and submit the following documents:
- Passport copies of shareholders and directors.
- Proof of residence.
- Recent photographs.
- Business plan (if required for specific activities).
The exact requirements may vary based on the business activity and license type.
6. Register Your Company
Submit your application to the Ajman Freezone Authority. Once approved, you’ll receive:
- Certificate of Incorporation.
- Business License.
- Lease Agreement (for office or warehouse space).
7. Open a UAE Bank Account
A UAE bank account is essential for handling transactions. To open an account, you’ll need:
- Company formation documents.
- Shareholder’s passport.
- Proof of UAE address.
Several banks in the UAE cater to Freezone companies with tailored packages.
8. Obtain a UAE Residence Visa (Optional)
As a Freezone company owner, you’re eligible for a UAE residence visa. The visa process includes:
- Medical tests.
- Emirates ID application.
- Visa stamping in your passport.
The number of visas you can apply for depends on your license and facility type.
Additional Tips for Online Businesses in Ajman Freezone
- Set Up a Payment Gateway: Choose a payment gateway like PayTabs or Payfort to handle online transactions.
- Comply with UAE Laws: Ensure your business activities comply with UAE e-commerce regulations.
- Leverage Digital Marketing: Use SEO and social media to target UAE and global customers effectively.
Benefits of an Ajman Freezone Company for Online Entrepreneurs
- Fast and straightforward company formation process.
- Cost-effective compared to other Freezones in the UAE.
- Access to the UAE’s robust digital infrastructure.
- Ability to scale with additional visas and facilities as your business grows.
Formation Costs:
- License Fees:
- Trading License (1 Activity): Approximately AED 11,900 per year.
- General Trading License: Approximately AED 17,100 per year.
- Consultancy License: Approximately AED 14,500 per year.
- E-Commerce License: Approximately AED 18,000 per year.
- Note: These fees include the cost of the license and may cover other administrative expenses. Ajman Business Setup
- Registration Fees:
- Company Registration: Ranges from AED 8,500 to AED 15,000, depending on the license type and business activity. Airzone
- Facility Costs:
- Smart Desk (Flexi-Desk): Suitable for startups; costs vary based on the package and facilities provided.
- Executive Offices: Costs depend on size and location within the free zone.
- Warehouses: Starting from AED 250 per square meter; suitable for industrial activities. Ajman Business Setup
- Visa Fees:
- E-Channel Registration: AED 2,100 (one-time).
- E-Channel Deposit: AED 5,100 (refundable).
- Visa (including medical and Emirates ID): Approximately AED 3,600 per visa.
- Note: Visa eligibility depends on the chosen facility and license type. Ajman Business Setup
Annual Maintenance Costs:
- License Renewal:
- Equivalent to the initial license fee; varies based on license type and business activities.
- Establishment Card Renewal:
- Approximately AED 535 per year.
- E-Channel Renewal:
- AED 1,200 per year.
- Office or Facility Rent:
- Depends on the chosen facility; costs may increase upon renewal.
Optional Costs:
- Additional Shareholders:
- Adding shareholders may incur extra fees; approximately AED 600 per additional shareholder.
- Bank Account Setup:
- No direct cost from AFZ, but maintaining a minimum balance as required by the bank is necessary.
- Professional Services:
- Hiring consultants or legal advisors will incur additional costs, varying based on services provided.
- Insurance:
- Depending on business activities, obtaining insurance may be mandatory, with costs varying accordingly.
Payment Options:
- Installment Plans:
- AFZ offers installment payment options (2, 3, or 6 installments) for license fees, subject to conditions such as providing post-dated checks from a UAE bank
Conclusion
Setting up an Ajman Freezone company is an excellent opportunity for online entrepreneurs looking to establish a presence in the UAE. The process is streamlined, affordable, and tailored for businesses aiming to target local and global markets. With the right setup, you can unlock the full potential of your online business in one of the most business-friendly environments in the world.