Ajman Free Zone

Introduction to Ajman Free Zone

Introduction to Ajman Free Zone (AFZA) is one of the leading free trade zones in the United Arab Emirates, designed to attract local and international businesses looking for a competitive business hub in the Middle East market. Launched in 1988, AFZ has become a business hub for many industries, including trading, manufacturing, logistics, and services.

Ajman Free Zone, located in the Arabian Gulf, is ideal for businesses entering regional and global markets. With minimal regulatory hurdles, 100% foreign ownership, and numerous tax incentives, it offers flexible office space, robust infrastructure, and comprehensive support services. AFZ caters to startups, entrepreneurs, and established companies, providing a framework for growth. Silver Oak Auditing Consultancy, an authorized agent, offers expert guidance throughout the business formation introduction to the Ajman Free Zone and aims to highlight its unique advantages and opportunities for businesses in the UAE.

Key Benefits of Business Activities in Ajman Free Zone

Flexible Licensing Options: Companies can choose many license types based on business activities.

Single-Member LLC Formation: Many business activities allow for establishing a single-member limited liability company, enabling greater ownership control.
Comprehensive Business Support: The free Zone provides administrative services to help businesses meet regulatory requirements and succeed in their operations.
100% Ownership: Investors completely own their establishment or company.
Foreign Ownership: 100% foreign ownership is permitted.
Capital and Profit Transfer: Easy transfer of capital and profits.
Tax Exemptions: Exemptions from personal income tax, import and export duties, and other taxes.
Competitive Pricing: competitive prices on facility usage, electricity, and leasing.
Skilled Workforce: Access to a pool of low-cost labour.
Infrastructure: well-developed infrastructure to support business operations.
Efficiency: streamlined processes, with most licenses issued within 24 hours.

Strategic Advantages of Ajman Free Zone

Ajman Free Zone (AFZ) offers many advantages, making it an attractive destination for businesses looking to establish or expand their operations in the United Arab Emirates. Here are some key benefits:

1. Prime Location

Nestled along the Arabian Gulf, the Ajman Free Zone is ideally situated near major highways, Dubai International Airport and Sharjah International Airport. Strategic location facilitates easy access to regional and international markets, making logistics and transportation significantly more efficient.

2. 100% Foreign Ownership

One of the standout features of the Ajman Free Zone is the allowance for 100% foreign ownership of businesses. Entrepreneurs and investors can retain complete control over their ventures without any requirement to partner with local nationals, which promotes greater autonomy and flexibility in operations.

3. Tax Advantages

Ajman Free Zone offers an attractive tax regime, including:

0% corporate tax
0% personal income tax
Exemption from import and export duties
These favourable tax conditions help businesses optimize profits and reinvest in growth without the burden of high taxation.

4. Streamlined Business Setup Process

AFZ is known for its efficient and time-saving business registration process. Free Zone provides simple procedures and quick approvals, enabling businesses to start operations in a short amount of time, often within a few days.

5. Many Business Activities

Ajman Free Zone supports various business activities, allowing companies from multiple sectors, including trading, manufacturing, e-commerce, technology, and logistics, to set up operations. This diversity encourages collaboration and innovation among businesses within the Zone.

6. Flexible Office Solutions

AFZ offers many office space options, from virtual offices to fully equipped commercial spaces, catering to different needs and budgets. This flexibility allows businesses to choose the most suitable setup for their operations, whether startups or larger enterprises.

7. World-Class Infrastructure

Ajman Free Zone has modern infrastructure, including advanced telecommunications, reliable utilities, and well-planned logistics services. This infrastructure supports business operations and provides the necessary resources for growth and expansion.

8. Supportive Ecosystem

AFZ provides businesses with a supportive, eco-friendly system, including access to legal, financial, and consulting assistance services. The presence of industry experts and professional service providers enhances the support for companies operating in the Free Zone.

9. Networking Opportunities

Ajman Free Zone business community allows companies to network, collaborate, and share resources in a collaborative environment, leading to partnerships, joint ventures, and long-term business relationships.

10. Quality of Life

Ajman offers a high quality of life with modern amenities, affordable housing, educational institutions, and healthcare facilities. The friendly and multicultural environment attracts a modern workforce, adding to the talent that businesses can utilize.

Types of Activities Allowed in Ajman Free Zone

Ajman Free Zone, located near Ajman Airport, offers a prime location and efficient business opportunities. It provides flexible workspaces, warehouses, and housing for workers, making it a hub for health, food, and drink companies. The cost of setting up a business in the Ajman Free Zone is from AED 11,000 to AED 23,000. The fees depend on licenses, E-channel deposits, registration, visas, medical checkups, Emirates ID, and specific business needs.

Ajman Free Zone (AFZ) supports a wide range of business activities and needs of entrepreneurs and businesses looking to establish their presence in the UAE. Below are the primary categories of business activities allowed in the Ajman Free Zone:

Trading Activities
General Trading: Companies can engage in the import, export, and distribution of goods, including electronics, textiles, machinery, and consumer products.
Retail Trading: Establishments can set up retail outlets to sell products directly to consumers.
Manufacturing Activities: Businesses can manufacture Many products, such as textiles, food and beverages, packaging materials, electronics, and industrial goods. The manufacturing facilities within the free Zone are designed to accommodate different scales of production.
Consultancy Services:Companies offering professional services in business consultancy, financial advisory, marketing, IT consulting, and management can efficiently operate within AFZ.
Information Technology (IT): Businesses in software development, IT services, e-commerce, and digital marketing can operate under designated licenses, promoting innovation in this rapidly growing sector.
Logistics and Warehousing: Activities related to logistics, freight forwarding, customs clearance, and warehousing are supported in AFZ, making it an ideal hub for supply chain management and distribution.
Media and Advertising: Creative agencies, media companies, and advertising firms can operate within the Free Zone, leveraging the global reach of the UAE market for their campaigns.
Healthcare and Pharmaceuticals: Companies in the healthcare sector, including medical services, pharmaceuticals, and wellness products, are welcome to establish operations in AFZA.
Import and Export Activities: Businesses can import and export goods across borders, benefiting from the location’s logistical advantages and trade agreements.
Real Estate: Companies involved in property development, real estate management, and related services can also operate within the framework of AFZ.
E-commerce: E-commerce businesses are actively encouraged in the Ajman Free Zone, with specialized provisions to facilitate online retail and digital transactions. An e-commerce license lets you enter the rapidly growing online business world, leveraging B2C and B2B channels.
Telecommunications: Businesses that provide telecommunications and internet services can operate within the Free Zone.
Art and Entertainment: Creative industries such as arts, music, and Entertainment are also recognized, allowing companies to explore and develop many forms of creative expression.
Service License: A services license allows you to provide consulting services such as marketing, accounting, and legal expertise across industries.
Offshore License: Foreign businesses or individuals can operate globally with AFZ tax benefits for legal purposes and company registration.
Freelancer License: The Freelancer License allows individuals to independently showcase their skills and offer professional services, promoting freedom and flexibility in the work environment.

Office Space Options in Ajman Free Zone

Ajman Free Zone (AFZ) offers office space options designed for businesses, from startups to established enterprises. Here are the primary types of office space available in the Ajman Free Zone:

Virtual Office

A virtual office gives businesses a professional address and access to administrative services without needing physical office space. This option is ideal for freelancers or companies looking to minimize operational costs while establishing a presence in the UAE.
Services Included: Business address, mail handling, phone answering services, and meeting room access on demand.

Flexi Desk/Shared Office

Flexi desks are shared office spaces that allow businesses to use desk space as needed. This option is suitable for startups and small companies looking for cost-effective solutions.

Features: Access to high-speed internet, meeting facilities, and essential office amenities. These spaces are best for networking and collaboration.

Standard Office Spaces

AFZA provides conventional office units of different sizes that can accommodate larger teams or specific operational needs. These can be customized based on the requirements of the business.

Customization: Standard offices often suit the company’s specific layout and functionality preferences.

Steps for Company Formation in Ajman Free Zone

Find Below the steps need to complete.

Always conduct comprehensive research or consult with a business advisor to understand the complete scope of costs and the best options available for your business setup in the Ajman Free Zone.

Muhammad Ali

About Silver Oak Auditing

Silver Oak Auditing Consultancy: Your Authorized Agent for Ajman Free Zone

Silver Oak Auditing Consultancy is an authorized agent who provides vital support and services for businesses looking to establish or expand operations in the Ajman Free Zone. With a deep understanding of local regulations and an extensive network, Silver Oak stands out as a trusted partner for companies aiming to enter the UAE market.

Our Services

Company Registration: Streamlining the process to ensure your business is registered efficiently, including selecting the appropriate license type (commercial, industrial, or service).
Documentation Support: Assisting with all necessary documentation, ensuring Ajman Free Zone Authority requirements.
Local Sponsorship: Providing local sponsor services for foreign investors needing a UAE national partner.
Compliance and Regulatory Services:
Regulatory Advisory: Keeping clients informed about the latest laws and regulations affecting businesses in the Ajman Free Zone and helping them maintain compliance.
Licensing Renewals: Managing business license and permit renewal to ensure uninterrupted operations.

Auditing and Assurance Services

Financial Audits: Conduct comprehensive financial audits to assess the accuracy of financial statements and ensure compliance with regulatory standards.
Internal Audits: internal controls and risk management processes to enhance efficiency and effectiveness.
Taxation Services: VAT Registration and Compliance: Assisting businesses in understanding and complying with local VAT regulations, including registration and return filing.
Tax Planning: Developing effective tax strategies to minimize liabilities while ensuring compliance with UAE tax laws.
Accounting and Bookkeeping: Full-Service Accounting: Offering complete accounting solutions that include bookkeeping, financial reporting, and fiscal management tailored to your business needs.
Payroll Services: Manage payroll processing, ensure compliance with labour laws, and provide timely employee compensation. Advisory and Consultancy Services:
Strategic Business Advisory: Providing strategies to enhance business performance and support decision-making.
Market Research & Analysis: Delivering insights into market trends, helping businesses make informed choices about expansion and investment opportunities.
Visa Services: Visa Processing: Managing all aspects of visa applications for employees and family members, ensuring a smooth immigration process.
Residency Services: Assisting investors and their families with residency visas and compliance with local residency regulations.

Why Choose Silver Oak Auditing Consultancy? Cost-Effective Solutions for Your Business Needs.

Authorized Agent Status: As an authorized agent for the Ajman Free Zone, Silver Oak has established strong connections with local authorities, ensuring a smoother and more efficient client experience.
Expert Team: Our team, composed of experienced professionals who are well-versed in the UAE legal and business hub, provides exceptional service and support. You can trust our expertise to guide you through the complexities of business operations in the Ajman Free Zone.
Customize Solutions: We understand that each business is unique. Our approach is not one-size-fits-all but focuses on customizing services to meet the specific needs of our clients. You can be assured that your business will receive the attention and solutions it deserves.
End-to-End Support: Silver Oak is a service provider and reliable partner throughout your business journey in the Ajman Free Zone. From business setup to ongoing compliance, we support you every step of the way, giving you peace of mind to focus on your business.

Cost of Ajman Free Zone Company Formation

The cost of forming a company in the Ajman Free Zone can vary based on several factors, including the type of business setup, the type of license required, the facilities needed, and any additional services you may opt for. Below is a general breakdown of the costs associated with company formation in the Ajman Free Zone:

1. License Fees:

Commercial License: Generally, it ranges from AED 8,000 to AED 15,000, depending on the specifics of the business.

Service License: Typically ranges from AED 5,000 to AED 12,000.

Industrial License: Usually falls between AED 10,000 and AED 20,000.

2. Registration Fees:

Initial registration fee: AED 1,000 – AED 3,000.

Name reservation fee: AED 1,000 – AED 2,000.

3. Office Space:

Flexi-Desk Office or Virtual Office: Approximately AED 5,000 to AED 10,000 annually.

Physical Office Space: Costs can range from AED 12,000 to AED 30,000 or more annually, depending on size and location.

4. Other Costs:

Local Sponsorship Fee (if applicable): Usually around AED 5,000 to AED 10,000 annually.

Share Capital Requirement: The minimum share capital varies but may range from AED 10,000 to AED 100,000 based on business type.

Employee Visa Costs: Approximately AED 3,000 – AED 7,000 per visa, including medical tests and other expenses.

Renewal Fees: Annual renewal of licenses and permits can often be around 50-100% of the initial costs.

5. Professional Services:

Fee fees can vary if you opt for consultancy services to assist with the company formation process. These services may cost anywhere from AED 3,000 to AED 10,000, depending on the extent of support provided.

Total Estimated Cost:

The total cost for setting up a company in the Ajman Free Zone can range from approximately AED 15,000 to AED 100,000 or more, depending on your specific requirements and business model.

FAQ

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Silver Oak Accounting and Bookkeeping, a top accounting firm in Dubai, offers reliable, efficient, and professional services. We can assist startups towards success and be contacted for a consultation to experience the difference they can make.

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