Company registration in Ajman Free Zone (AFZA)

03.01.2024

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Price

from 5900 USD

Registration period in days: 14

Free trade zones are potent solutions for initiating company registration within the UAE. Ajman Free Zone (AFZA), established in 1988, holds a prominent position among the Emirates' long-standing zones. Its establishment stimulated considerable industrial growth by attracting numerous enterprises that could leverage investment benefits. Consequently, Ajman Free Zone has played a pivotal role in enhancing the industrial, commercial, and financial landscape of the UAE.

The enterprise's unparalleled infrastructure, its strategic vicinity to both Ajman seaport and Dubai and Sharjah airports, coupled with the facility for online registration of legal entities, have propelled its global reputation. Numerous international investors select company enlistment within Ajman Free Zone, driven by the prospect of securing absolute ownership and unrestricted entry into a multitude of sectors.

The article delves further into the prerequisites and characteristics of enterprises functioning within Ajman Free Zone.

Enrollment of an enterprise within Ajman Free Zone

Over 40 Exempt Territories are in operation throughout the UAE, and AFZA distinguishes itself as one of the swiftest expanding zones in the country. All stipulations and methodologies within Ajman Free Zone are subject to the authority of the Ajman Free Zone Authority (AFZA). The all-encompassing procedure of corporate enlistment within Ajman Free Economic Zone, coupled with the allocation of unique permits, is supervised by the Exempt Zone Governance.

Delving into the benefits, it's imperative to emphasize on such:

AFZA is strategically situated at the gateway of the Persian Gulf, offering a favorable vantage point to cater to both the oriental and occidental trade spheres.
Favourable legislative business milieu.
More loyal compliance requirements compared to other FEZs.
Duty-unrestricted movement of capital and earnings.
Immunity from customs levies on imports and exports.
Lack of levies on both corporate and individual incomes.
Entities operating within AFZA enjoy an exemption from the payment of Value Added Tax (VAT) at a rate of 5% for transactions conducted between free zones.
Absolute foreign ownership at 100%.
Competitive registration and maintenance fees.
Enterprises relish land leases spanning 20 years, extendable for an equivalent duration.
Access to cheap labour.
Quality infrastructure.
Multiple visa options.
The immigration procedure is streamlined.

What are the requisite maneuvers for inaugurating the procedure of instituting an enterprise in Ajman via AFZA?

Identifying the nature of enterprise you intend to undertake constitutes the foremost and primary phase of company registration. Subsequently, the progression encompasses:

name selection;
drafting of incorporation documents;
registration for VAT purposes (if necessary);
opening an account with a UAE bank;
submitting an application for a license;
attaining authorization from the relevant governing bodies.

Diverse classifications of permits within Ajman Free Zone:

Mercantile:

facilitating the import, export, and dissemination of recreational goods within the boundaries of the UAE.

Manufacturing:

supplying landowners with indispensable fabrication infrastructure within the liberated region, thereby facilitating manifold operations like basic matter intake, commodities production, and outlandish merchandise exportation.

Services License:

bestowing enterprises the prerogative to execute the amenities itemized within the terms of the license accord.

E-commerce permit:

a grade of license customized for electronic commerce establishments, affording them the capability to leverage the extensive opportunities of digital trade in both the business-to-consumer (B2C) and business-to-business (B2B) domains.

Clearance fee within Ajman Free Zone

Provided below is an inventory detailing the estimated expenses associated with obtaining a business license within Ajman Free Economic Zone:

Type	AED	USD
Trading (for the 1st line of business)	21 950	5975
Commercial (for 2 directions)	23 250	6329
Trading (for 3 directions)	24 550	6683
E-Commerce	28 050	7636
Professional	24 550	6683
General trade	27 150	7391

Company registration in AFZA is authorized using multiple corporate structures:

A firm with one or multiple equity stakeholders. No obligatory minimum capital prerequisites apply to these categories, and the proprietors bear responsibility solely up to the extent of the capital that has been disbursed.
A satellite or offspring corporation instituted by a mainland firm or an overseas entity.

Requisite records for registration

Legal form	Document package
Single-founder free zone company (FZE)	Corporations accredited under this classification will savor the standing of an entirely autonomous legal persona. Documents: Replica of passport for every associate (with a minimum validity of 6 months) Absence of any opposition document by the benefactor in case the applicant holds UAE residency. Replication of visa or UID for every associate.
Free Zone Enterprise (FZE) involving numerous initiators
A division of an indigenous corporation	Documents: Duplication of the passport of the corporate administrator (validity period not less than 6 months). Visa duplicate or UID of the firm's overseer. Trade clearance replica. MOA. The directorial decree.
An affiliate of a indigenous venture	The proprietorship of the firm shall be entirely external, comprising 100 percent. However, transactions can exclusively be carried out through an officially authorized proxy or distributor within the United Arab Emirates. Documents: Replica of the passport of the chief of the enterprise (validity period not less than 6 months). Visa replica of the head corporation, trade licence, MOA, decision of the Directorate.

Conclusion

There exists a multitude of rationales that should prompt global entrepreneurs to contemplate the prospect of initiating a venture within Ajman. As mentioned earlier, this free-zoneenjoys convenient proximity to a duo of global airports and a quartet of principal seaports, rendering it especially appealing to individuals engaged in the domain of import-export commerce. Ajman also offers low start-up costs, favorable business regulations and qualified staff. But the registration process requires an expert eye. Therefore, it is advisable to enlist the support of experts and request support in registering a company in Ajman Free Zone.

FAQ

Monetary facets that confer advantages to overseas investors in the AFZA open exchange region?