07 Jul Establishing a company in the free zone, Ajman Free Zone
Establishing a company in the Ajman Free Zone is considered a strategic and smart step for any entrepreneur seeking to achieve success and growth in the growing UAE business market. Ajman Free Zone is one of the prominent destinations for foreign investments, as it provides an integrated work environment and multiple advantages that contribute to enhancing innovation and development. In cooperation with Itqan Company, you can benefit from specialized consulting services and full support to facilitate all steps of establishing your company. From legal procedures to providing basic facilities, cooperation with Itqan ensures that you establish a company in the free zone in the best ways and at the lowest costs, allowing you to focus on developing your business and achieving your business goals efficiently and effectively.
Establishing a company in the Ajman Free Zone
Establishing a company in the Ajman Free Zone
Establishing a company in the Ajman Free Zone is considered a successful strategic step given the distinguished investment environment that the region provides. Ajman Free Zone has many competitive advantages that make it a preferred destination for companies seeking growth and expansion, including generous government incentives, advanced infrastructure, simple procedures for establishing companies, in addition to political and economic stability in the emirate. Establishing a company in the Ajman Free Zone can be a gateway to accessing new markets and distinct investment opportunities, which contributes to enhancing the company’s growth and achieving its business goals efficiently and successfully.
Rather, setting up a business in the Ajman Free Zone provides you with a wide range of advantages such as low investment costs and the availability of raw materials, which makes the process of obtaining suppliers easier. Another benefit is the possibility of renting offices and warehouses fully equipped with the latest technology at reasonable prices. As the local ports are easily accessible, logistics and transportation of goods both locally and internationally are easier, faster and more economical which increases the company’s returns. Of course, all these conditions make establishing your company in Ajman a smart choice.
Documents necessary to establish a company in the free zone
To establish a company in a free zone, you must submit a set of basic documents proving the identity of the founders and company details. Among these documents:
- Commercial license application form: This form is filled out by the investor to obtain the commercial license.
- Copy of passport: for the investor and any other partners.
- A copy of the ID card: for the investor and any other partners.
- A copy of the birth certificate: for the investor and any other partners.
- Certificate of absence from a party: from government agencies in the emirate.
- Proof of ownership or lease contract: for the office or headquarters from which the company will operate.
- Certified letter of intent: stating the purpose of establishing the company.
- Establishment fees: The prescribed fees for issuing a commercial license are paid.
After submitting these necessary documents and approvals, the company’s commercial license will be issued by the Ajman Free Zone Administration. If additional licenses are required, more required papers and documents will be submitted.
Conditions for establishing a company in the free zone
The conditions for establishing a company in a free zone vary from one country to another and from one free zone to another, but there are some general conditions that may be common to them, including the following:
- Type of company: You must specify the type of company to be established, whether it is a sole proprietorship, a limited liability company, or a joint stock company.
- Capital: The capital required to establish the company must be determined, which can be high or low depending on the type of activity and local laws.
- Commercial activity: The company’s commercial activity must be determined and its compliance with local laws and the free zone policy must be ensured.
- Headquarters: A main headquarters must be provided for the company in the free zone, and this can be through renting an office or work space.
- Licenses and Permits: All necessary licenses and permits must be obtained from local and federal authorities before starting work.
- Compliance with Laws: You must comply with all local and federal laws and regulations regulating the operation of companies in the free zone.
- Government Permits: Some free zones may require additional government approvals before establishing a company, such as a foreign investment permit.
These terms are general and their details may vary according to local laws and legislation in each free zone. Therefore, it is preferable to refer to the relevant bodies in the specific free zone to obtain accurate and detailed information about the conditions for establishing companies.
Procedures for establishing a company in the free zone
Free zones in the region are considered centers of attraction for foreign and local investment, and offer a range of incentives and tax exemptions to companies that wish to invest in them. To establish a company in one of these zones, you must first obtain a license from the competent authorities in the free zone. In order to obtain the establishment of a company in the Ajman Free Zone, you must follow the following steps:
- Choosing the type of company: Before starting, you must determine the type of company you want to establish, whether it is a sole proprietorship, a limited liability company, or a subsidiary.
- Determine the commercial activity: The company’s commercial activity must be determined and the necessary licenses to practice it must be ensured.
- Choosing a company name: You must choose a unique name for the company and ensure that it is not already used by another company.
- Determine the partners and shareholders: If the company is a partnership, the partners and their contribution percentage must be determined.
- Specifying the main headquarters: The address of the company’s main headquarters in Ajman Free Zone must be provided.
- Submitting the application: After completing the previous steps, an application must be submitted to register the company with the Ajman Free Development Authority.
- Obtaining the necessary approvals: After submitting the application, the necessary approvals must be obtained from the relevant authorities such as the Department of Economic Development and the Ministry of Economy.
- Signing contracts: After obtaining approvals, the necessary contracts must be signed and the required guarantee must be provided.
- Completing the legal procedures: The rest of the legal and administrative procedures required to establish the company must be completed.
- Receiving the license: After all procedures are completed, you can receive the work license and officially start working in the Ajman Free Zone.
Advantages of establishing a company in the Ajman Free Zone
There are many advantages that you can get when starting to establish a company in the Ajman Free Zone, and you can communicate with the experts of Itqan Company, which is considered one of the best companies in the field of establishing companies in the Emirates. The advantages include the following points:
- Tax exemption: Companies in the Ajman Free Zone enjoy complete exemption from income tax and customs on imports and exports for a renewable period of 50 years.
- 100% foreign ownership: Foreign investors are allowed to fully own their companies in the Ajman Free Zone without the need for an Emirati partner.
- Advanced Infrastructure: The region provides high-quality infrastructure including road networks, electricity, communications, and logistical facilities.
- Ease of procedures: The process of establishing companies in the Ajman Free Zone is characterized by speed and simplicity of procedures compared to other regions.
- Strategic Location: Ajman is strategically located on the northern coast of the UAE, providing easy access to regional and global markets.
- Incentives and support: The free zone provides additional incentives to companies, such as assistance in finding suitable headquarters and facilitating licensing procedures.
In general, Ajman Free Zone is an attractive environment for foreign investment thanks to these distinctive advantages.
Types of companies in the free zone
Here is a table showing the types of companies that can be established in the Ajman Free Zone:
| Type of Company | the description |
|---|---|
| Sole proprietorship (SOLE EST.) | – Owned and managed by one person. – Liability is unlimited. – The person can be a UAE citizen or resident. |
| Limited Liability Company (LLC) | – It consists of partners who share capital, profits and losses. – Liability is limited to the size of the investment. – Partners must be residents or citizens. – Requires a partnership with an Emirati citizen who owns 51% of the partners’ share. |
| Joint Stock Company (PJSC) | – Listed on the stock exchange and generally owned. – Shareholders are not individually responsible for debts. – It must consist of at least 10 shareholders. – Requires a partnership with an Emirati citizen who owns 51% of the shareholders’ share. |
| Subsidiary company | – Subsidiary to a parent company with 100% ownership. – Retains its own legal responsibilities. – Follow the same conditions as the main company type. |
| Joint venture (JV) | – Formation is when two or more companies come together to form a new entity. – Responsibilities, profits and losses are defined in a joint agreement. The company must follow local laws and obtain the necessary approvals. |
| Private Joint Stock Company (PRIVATE JSC) | – Consists of a maximum of shareholders. – Shareholders are not individually responsible for debts. – Requires a partnership with an Emirati citizen who owns 51% of the shareholders’ share. The company cannot undergo a public offering or enter the stock exchange. |
| Subsidiary company (BRANCH) | – It is considered a branch of a parent company outside the country. – It is not a separate legal entity from the parent company. The parent company must be active and licensed by the competent authorities. – You need a special license from the local authorities. |
Please note that these forms are not completely comprehensive and that additional terms and conditions may apply depending on local laws and regulations. Therefore, it is preferable to check with Itqan experts to obtain accurate and updated information.
Free zones in Ajman
Ajman is one of the most prominent emirates in the United Arab Emirates, characterized by the presence of many successful free zones that attract local and foreign investments. The most important of these zones is the Ajman Free Zone, which was established in 1988 to become the first free zone in the emirate. The Ajman Free Zone provides an ideal investment environment for companies wishing to take advantage of the benefits it offers, including full tax exemptions, 100% freedom of foreign ownership, and ease of administrative procedures.
In addition to the Ajman Free Zone, there is the Ajman Technology and Innovation Zone, which was established in 2018 to focus on attracting companies working in the field of technology and innovation. This zone offers special incentives and facilities to companies in these fields. There is also the Ajman Light Industries Zone, which focuses on attracting industrial investments in light sectors.
All of these free zones in Ajman are distinguished by their strategic location close to ports and airports, as well as the advanced infrastructure and integrated logistics services they provide. This makes them attractive options for companies wishing to invest in the emirate and benefit from its competitive advantages.
Conditions for establishing a company in the free zone
Licenses to establish in the free zone
It is known that the establishment procedures in the Ajman Free Zone are characterized by simplicity and speed compared to other regions in the country, which makes them attractive to investors who wish to establish their companies easily and efficiently. To establish in the Ajman Free Zone, the investor needs to obtain the following license:
- Commercial license: This is the basic license required to practice any commercial activity in the free zone. This license is issued by the Ajman Free Zone Administration.
- Residence Permit: If the investor is a foreigner, he will also need to obtain a residence permit to work in the free zone. This license is issued by the Community Development Authority in Ajman.
- License to practice the activity: If the company’s commercial activity requires an additional license, the investor will have to obtain a license to practice the activity from the competent authorities in the emirate.
To find out more information and the precise steps about establishing companies in the Ajman Free Zone, you must contact and consult our experts in this field. Itqan is a name with a history full of achievements.
In conclusion, establishing a company in the Ajman Free Zone in cooperation with Itqan is a strategic and successful step towards achieving success and sustainability in the thriving UAE business market. This cooperative allows us to benefit from Itqan’s experience and specialization in the field of establishing companies and provide the necessary advisory support to achieve the company’s goals efficiently and effectively. Thanks to the advanced infrastructure and government incentives available in the Ajman Free Zone, companies can benefit from an ideal business environment that contributes to their growth and expansion of their business in a sustainable manner. Therefore, establishing a company in this region in cooperation with Itqan represents a real opportunity for those wishing to build a successful business and a prosperous future in the Emirate of Ajman.
Frequently asked questions about establishing a company in the free zone
What are the basic steps to establish a company in Ajman Free Zone?
- Choose the company type and define the business activity.
- Determine the business name and choose a unique name.
- Determine the company’s headquarters.
- Submit the application and complete the necessary procedures at the Ajman Department of Economic Development.
What types of companies can be established in Ajman Free Zone?
- Sole proprietorship, limited liability company.
- Joint stock company, subsidiary, joint venture company.
What are the main requirements for establishing a company in Ajman Free Zone?
- Providing the required capital.
- Obtaining licenses and approvals from the relevant authorities.
- Submit all necessary documents such as the application form, rental contract, etc.
Can foreigners establish a company in Ajman Free Zone?
Yes, foreigners can establish a company in the Ajman Free Zone, but there may be some restrictions in some sectors that require a partnership with an Emirati citizen.
What are the main benefits of establishing a company in Ajman Free Zone?
- Government incentives are available such as reductions in fees and taxes.
- Advanced infrastructure and strategic location.
- Easy access to the UAE and regional market.