1 AED = 0,27 USD
Being the smallest of the UAE’s seven emirates, Ajman occupies an area of 259 square kilometers (the largest and richest Abu Dhabi Emirate occupies an area of 67,340 square kilometers).
Please note that Ajman is a tax-free zone.
Individuals registering a company in Ajman receive a UAE visa and a certificate of tax residency.
The key sectors of the Ajman economy include:
- textile industry;
- food and tobacco industries;
- woodworking industry.
- paper-processing and publishing industries.
- chemical industry.
Enterprises in Ajman can rent land for 20 years; by extending rent, they get an exemption from taxes for 40 years..
Business organization forms in Ajman include:
Ajman’s key advantages include:
- strategic location;
- benefits of a FZ;
- easy access to raw materials;
- low rent for land and office space;
- modern infrastructure.
Establishing an enterprise in Ajman FZ provides one with the following advantages:
- opportunity to open an office in the UAE;
- opportunity to open an account with a UAE bank;
- opportunity to obtain resident/work visas;
- 100% foreign ownership;
- 100% repatriation of capital;
- no financial reporting required;
- no import/export duties
- no travel tax.
Requirements for company registration in Ajman:
- minimum authorized capital - AED10,000; maximum authorized capital - AED100,000 .
- only registered shares can be used; bearer shares are prohibited.
- shareholders/directors (minimum one) can be individuals or legal entities (residency is unimportant); shareholders can be both directors and secretaries.
- financial reports and an audit are not required.
Issued for 3 years, residence visas are subject to annual renewal. If no fee is paid for extension, a residence visa is canceled.
Certificate of Tax Residency
Requirements for obtaining a certificate (for physical persons):
- availability of a resident visa valid for at least 6 months;
- availability of a bank account in the UAE into which payments are regularly made (wages, etc.);
- confirmation of a place of residence in the UAE.
Requirements for Obtaining a Certificate (legal entities):
- an enterprise must operate for more than one year;
- availability of an office;
- availability of a valid resident visa for shareholders/directors/managers;
- confirmation of doing business (e.g. a bank statement).
Obtaining a License in Ajman: Types of Licenses
- Trading (3000 AED);
- Industrial (7000 AED);
- National industrial (7000 AED);
- Services (5000 AED);
Taxation in Ajman
Starting from January 1, 2018, VAT has been in place:
- a standard tax rate of 5% is levied on imports/exports to UAE residents;
- 0% rate is applied to imports/exports of goods/services in a SEZ, outside Bahrain, Qatar, Oman, the UAE, Saudi Arabia and Kuwait (if international transport is used);
- tax exemption is provided for certain financial services & life insurance.
Mandatory registration by a VAT payer is required for:
- SEZ-registered companies;
- If the annual turnover of a company exceeds 375,000 AED.
You can register as a VAT payer in Ajman on a voluntary basis, if your company’s annual turnover exceeds 187,500 AED.
A reporting (tax) period for each enterprise is established by a tax service. The deadline for filing declarations/paying VAT is the 28th day of a month, following the end of a reporting period.
You can open a “smart office”, an “executive office”, and even a “smart warehouse”. In the first case, you get a well-equipped workplace in the common working area ($7500 a year); you can also hire two employees. In the second case, you get a 16 to 40 sq. m. office and can hire up to five people ($9500).
Warehouses in Ajman
Warehouse area starts from 100 sq.m.; warehouse facilities are equipped with all the necessary facilities. Prices start from 250 AED per square/per year.
Land Plots of Ajman
Prices start from 10 AED per square/per year. The minimum area is 2,000 square meters.
Business Centers in Ajman
Interested in setting up a company in Ajman? Please, have a look at the advantages of local business centers:
- fully connected workstations;
- a hotel;
- free Wi-Fi;
- access cards;
- can be used for 10 hours a week;
- all utilities are already included in the price.
Seeking to open a business in the UAE? Need advice on company registration in Ajman? Why not contact YB Case?