About Ajman Free Zone (AFZ)
Established in 1988, Ajman Free Zone is one of the oldest free zones in the United Arab Emirates (UAE). The zone is open to a wide range of sectors, including trade, professional services, manufacturing and e-commerce.
AFZ’s cost-effective and flexible office suite, along with its quick and easy licensing process, makes it popular with businesses of all sizes.
A key selling point for the free trade zone is its strategic location near two international airports and four major ports.
Prices from AED 11,000
Average time to start a business: 5–7 days
Benefits Of Starting A Business In: Ajman Free Zone
100% Ownership And Capital Return
As an expatriate, you can own 100% of the company and transfer all profits to your home country.
LOW OPERATING COSTS
Ajman Free Zone offers very competitive prices for use of facilities, electricity and rent.
FAST INSTALLATION PROCESS
At AFZ, business permits can be issued within just two working days.
STRATEGIC LOCATION
The Emirate of Ajman is an important hub for international travel and trade.
OPEN TO ALL
AFZ welcomes almost all business activities, from industry to e-commerce.
EVERYTHING FROM ONE SOURCE
AFZ offers a single point of contact for visa processing and many other business services.
Business Activity
Ajman Free Zone welcomes a variety of financial and professional companies. Here are some of the most popular options:
- Consulting Company
- Delivery Services
- Project Management
- Training
- Hospitality
- Translation Services
- Trade
- E-Commerce
- It Infrastructure
- Advertising
- Marketing
- Accounting And Reporting
- Waste Disposal
- Transport
- Industry
- Web Design
Mandatory Physical Presence
You do not need to be physically present to complete the process of forming your company.
Starting A Business In Ajman Free Zone
Are you considering starting a business in Ajman Free Zone?
If so, there are a few things you should know before starting your business. In this blog post, we provide an overview of how to do business in the Ajman Free Zone, offer tips for start-ups, and compare the free zones with other free zones in the UAE.
We will also introduce our company formation service, which greatly simplifies the process. Are you ready to take the plunge and start your own business in Ajman Free Zone, United Arab Emirates? Then read on!
What Is A Free Zone?
A free trade zone is a designated area where business activity is encouraged and foreign investment is welcomed.
There are several types of free zones in the UAE. Each offers certain benefits to companies that establish themselves within its borders. These include tax breaks, exemptions from certain regulations, and greater freedom to operate a business.
Free trade zones are located all over the world, many of them in Dubai. One of them is Ajman, just outside the gates of Dubai. This zone offers many advantages to anyone who wants to do business there.
What is the Ajman Free Zone?
Ajman Free Zone (AFZ) was established in 1988 to promote the UAE’s industrial development and attract a large number of companies seeking investment opportunities. As an independent and dynamic ecosystem, AFZ provides businesses and investors with a sustainable environment to accelerate their growth plans.
Located just minutes from Ajman Port, the AFZ is one of the region’s leading investment destinations. It plays a crucial role in the economic sector. The free trade zone offers high-quality services to over 9,000 companies, investors and entrepreneurs from more than 160 countries.
Strategic Location
With its strategic location at the entrance to the Arabian Gulf, AFZ is ideally suited for both Eastern and Western trade. Its proximity to Dubai and Sharjah international airports, as well as easy access to Ajman Port, make it an ideal choice for companies seeking better connectivity to some of the world’s most popular business hubs.
Approximately 256 industrial companies have established themselves in the free zone, representing 20% of the UAE’s total industrial companies and ranking third among all emirates.
Types of companies in Ajman Free Zone
Various types of businesses can be established in the Ajman Free Zone, including:
- The establishment of a Free Trade Zone (FZE)
- Free Trade Zone Company (FZC)
- Branch of a foreign company
- Branch of a local company
Starting a business in the AFZ involves identifying and formulating business operations, registering a trade name, applying for a business license, opening a business bank account, and applying for an employment visa.
The free zone is diversifying its portfolio and welcoming companies from various industries including food and beverage, automotive, health and beauty, construction, education, agriculture, oil and gas, paper and packaging, jewelry (gold and diamonds), shipping, textiles, high-tech, sports, petrochemicals and trade. This offers companies from various sectors many opportunities to flourish within the free zone.
Permits Available In Ajman Free Zone
Ajman Free Zone offers a range of permits for different business needs, including business permits, industrial permits, e-commerce permits and trade permits. Each permit is tailored to specific business types and activities, ensuring a smooth setup process and compliance with local regulations.
Whether you are looking to establish a food and beverage business, an automotive company, a health and beauty business, a construction company or an educational institution, Ajman Free Zone offers the necessary permits, infrastructure and support services for your business to succeed. Given these diverse opportunities, it is easy to see why the AFZ is becoming increasingly popular for companies looking to grow and expand in the UAE.
Benefits Of Starting A Business In Ajman
Free zone
Investor-Friendly Regulations
Ajman Free Zone (AFZA) is considered one of the most reliable and investor-friendly platforms in the UAE and the Middle East. The platform covers a wide range of business profiles, including trade, services and light manufacturing. In addition, AFZA issues offshore licenses to investors who wish to conduct their business exclusively outside the UAE.
Five different permit types are available to international entrepreneurs, including commercial, e-commerce, professional, industrial and offshore permits, catering to a variety of business needs. This flexibility, combined with the fast and easy company registration process, makes Ajman Free Zone an excellent choice for investors.
Economic Benefits
One of the key economic benefits of registering a company in the Ajman Free Zone is the lower costs associated with various aspects of doing business. These include affordable rents, competitive prices for land and office space, minimal import/export duties and low energy costs. In addition, the average profitability of industrial companies in Ajman is higher thanks to lower rental and operating costs.
Ajman Free Zone is also strategically located, offering easy access to two international airports and four ports, including Ajman Marine Port. This port can handle over a thousand vessels daily, making it one of the region’s most reliable and convenient transportation hubs.
100% Ownership And Tax Exemptions
Expatriates in the Ajman Free Zone own 100% of their businesses, eliminating the need for a local partner. They also benefit from full repatriation of capital and profits. There are no income or corporate taxes in the Ajman Free Zone, creating a favorable business climate.
Companies operating in Ajman Free Zone and Ajman Media City enjoy exemption from import and export duties, making them more attractive to international trading partners. In addition, the UAE government only imposes corporate tax on oil companies and foreign banks. This means that companies registered in Ajman Free Zone are exempt from corporate tax for a certain period, which can be extended.
Ajman Free Zone also offers the option to pay start-up costs in multiple installments. Investors can pay in two, three or six installments. This is especially beneficial for those who want to start a business on a limited budget and need a more convenient payment plan.
Ajman Free Zone Authority is the only free zone that offers such a payment plan.
Investors also benefit from additional benefits such as residence or work visas for themselves and their employees, as well as support for their families. Thanks to investment-friendly regulations, economic benefits, the possibility of 100 percent ownership and tax exemptions, the Ajman Free Zone remains an attractive destination for companies looking to establish themselves in the UAE.
Steps To Start A Business In Ajman Free Zone
Completion Of Business Operations
Before you start setting up a business, it is important to decide what type of business you will be running. The Ajman Free Zone (AFZA) offers space for a variety of business activities, including trade, services and industry.
In 2019, AFZA introduced a category of freelance permits for businesses operating in the e-commerce sector. Be aware of the specific activities or industries offered in certain locations within the free trade zone, as this may affect where you are permitted to operate your business.
However, some sector-specific free trade zones have begun to allow general business activities beyond their intended focus.
Registration Of The Trade Name
The United Arab Emirates has strict naming conventions that you should be aware of before choosing a business name. Avoid offensive language and references to religious or political groups. If you are naming your business after a person, use the full name without abbreviations or initials.
Apply For A Business License
Once you have established your business activity and trading name, the next step is to apply for a business license. Available licenses in Ajman Free Zone include a trading license, an industrial/manufacturing license, a service license, and an e-commerce license.
Depending on the location you choose, most applications require a completed application form, copies of your shareholder passport and, if applicable, a business plan. Once your application has been processed, the authorities will issue your business license, which you can use to establish your business.
Open A Business Bank Account
Before you can start trading in the UAE, you need to open a business account. With your business license, you can contact banks to open an account.
The UAE is home to a number of local and international banks, including Emirates NBD, Abu Dhabi Commercial Bank, Commercial Bank of Dubai, Noor Bank, Emirates Islamic Bank, Mashreq, RAKBANK and Ajman Bank. International brands such as HSBC, Citibank and Barclays are also based there.
Opening a bank account in the UAE usually takes two to four weeks. During this time, the bank will need information about your main business activities, expected foreign exchange volume, total deposits, sales levels, and your main customers and suppliers.
Once you have completed all these steps, you can start your business in this thriving region.
Offices And Warehouses In Ajman Free Zone
Affordable Smart Offices
If you are starting a business in Ajman Free Zone, you will appreciate the affordable and stylish office space. These offices are an excellent option for start-ups and entrepreneurs, offering a cost-effective investment opportunity for anyone looking to start a business.
Smart Office packages offer two work visas for proactive business operations. In addition, both flexible workspaces and offices can be located at the headquarters in the free zone or in a separate tower nearby.
Management Offices For Large Companies
Ajman Free Zone is also suitable for larger companies and offers office space. The office package includes up to five work visas and is characterized by excellent facilities, good parking and high security.
These offices are strategically located in the Ajman Free Zone, enabling businesses to operate from this optimal location.
Storage Facilities
Warehouse facilities are a crucial part of any successful business, and Ajman Free Zone excels in this regard. The warehouses in Ajman Free Zone are new, modern and equipped with electricity and water connections. Their sizes range from 100 to 1,000 square meters, ensuring that businesses in Ajman Free Zone have access to warehouses that meet their needs.
Ajman Free Zone is one of the few free zones in the UAE that offers its customers industrial premises for rent. The warehouse premises are conveniently located close to Ajman Port and Customs, providing quick and easy access to Dubai.
Each warehouse has an integrated bathroom and office space, allowing companies to move their equipment and employees in immediately and start working. Staff accommodation is available nearby, providing additional convenience for companies looking to house their employees close to their production facility.
Before renting a warehouse in Ajman Free Zone, companies must submit a detailed business plan. This plan must describe the activities and processes to be carried out in the warehouse, the electricity and water supply, and the number of employees there. Companies must also submit a drawing if they plan to make any changes to the warehouse.
Ajman Free Zone offers many advantages, especially in terms of affordable smart offices, executive offices and storage options. Whether you are a startup or a large, expanding company, Ajman Free Zone offers a prime location, modern facilities and flexible payment options, making it the perfect choice for your business.
Other Free Trade Zones In The United Arab Emirates
While the AFZ is a good option for many new entrepreneurs, there are other free zones in the UAE that you may want to consider.
- Dubai Airport Free Zone (DAFZA)
- Jebel Ali Free Zone Authority (JAFZA)
- Fujairah Free Zone Authority (FFZA)
- Ras Al Khaimah Economic Zone (RAKEZ)
- Sharjah Airport International Free Zone (SAIF Zone)
These are just a few. There are more than 50 free trade zones in the UAE!
Differences Between Ajman Free Zone And Other Free Zones
A key difference between Ajman Free Zone and other free zones is that there are no restrictions on the type of business you can establish. This means you can start any business you want without having to worry about the industry.
This is different from, for example, Dubai Media City, which is designed for media companies, or Dubai Internet City, which is intended for technology companies.
No Quotas
Another difference is that there are no quotas on how many companies can be established in the AFZ. In other words, you can have as many companies as you want.
Flexible Offices
Ajman Free Zone also offers a wide range of office options. You can rent a fully furnished office, use office services with comprehensive IT support, or simply rent a virtual office space.
The best part about this flexibility is that it is incredibly easy for entrepreneurs to do business in the free trade zone. There are no restrictions on working from home or using virtual offices. However, some other free zones require a physical office.
Cheap
Ajman is one of the most affordable free zones to start a business, especially for freelancers. The Freelance package costs only AED 6,000. If you are between 20 and 30 years old, you can get the Pioneers package for only AED 5,000.
Living in Ajman Free Zone
As one of the more traditional free zones with fewer expatriates and more locals, Ajman Free Zone is more affordable. For example, you can rent an apartment in Ajman for 25% of the price of a comparable apartment in Dubai.
Eating in Ajman
Ajman’s restaurants offer a wide range of international cuisine, as well as affordable local dishes. If you’re looking for authentic Emirati food, you’ve come to the right place!
Nightlife in Ajman
Ajman’s nightlife is mainly concentrated in the hotels, but there are also some places worth visiting outside the hotels. For example, there are popular clubs at the Hilton and Marriott.
Ajman Corniche is a lovely place for an evening stroll, with several charming cafes overlooking the Dubai skyline.
Ajman Real Estate
With more and more businesses setting up shop in Ajman Free Zone, it’s no surprise that the property market is also booming. Choosing where to live in the area can be a daunting task, as there are so many fantastic options.
Looking for a budget option? Beachfront apartments in Ajman are cheaper than in most other free zones and often have a gym and communal pools. Looking for a bit of luxury? There are many fully furnished apartments and villas to choose from.
Schools
There are several English language schools in and around Ajman. Some of them include:
- Ajman Academy
- Ajman American Private School
- Kronans private school
Bloomington Academy
The whole family can easily move to Ajman. It is close enough to Dubai to offer all the pleasures of a cosmopolitan city, yet is much more traditional and peaceful.
Leisure in Ajman
Ajman offers many leisure activities. The beaches and the many shops are a big attraction. Ajman also has a museum and a cultural center – a great place to learn more about Emirati culture.
Ajman also has many mosques, so if you are interested in learning more about Islam, this is the place to be! Ajman is not as Westernized as some free zones, but it offers a real insight into the historical culture of the emirate.
Company Formation Service in Ajman Free Zone
Ajman Free Zone has a lot to offer new businesses. It is no surprise that many companies choose this location to obtain their business licenses. In addition to the company formation services we offer at G12, we offer many other services.
G12 can help with:
- Visa applications
- Company formation
- Office space
- Acquisition of permits and licenses
- Open a business bank account
The first step is to consider which free trade zone is best for you. All zones have their advantages and disadvantages, and the right zone for your business may be different from the one you originally planned.
By speaking with G12 experts, we can ensure you choose the best free zone for your business needs.
Increase Your Business Success In Ajman For Free Zone
In short, Ajman Free Zone (AFZ) is a one-stop shop for businesses of all sizes and industries, offering numerous benefits and growth opportunities. Its strategic location, diverse business models, investment-friendly regulations and modern facilities undoubtedly make AFZ an excellent candidate for the UAE’s free trade zone.
Whether you are a budding entrepreneur looking to start with low costs or an established company looking to expand, Ajman Free Zone offers fertile ground for your business. Two attractive airports and four ports near the AFZ make it a central hub for global trade.
By establishing your business in Ajman Free Zone, you are not only paving the way for business excellence in the UAE, but you are also positioning your company for long-term success in the ever-growing international market. Join the successful companies in Ajman Free Zone and watch your business reach new heights!