Ajman, the smallest Emirate in the UAE, offers several advantages to businesses. The Emirate provides low set up and maintenance costs for companies established there and its geographical position at the entrance of the Arabian Gulf offers unique advantages to industries.
Ajman is close to both Sharjah and Dubai and its the location is particularly attractive to foreign investors from the maritime industry. The Ajman port serves over 1000 vessels every year and has emerged as an important maritime focal point
Another attractive aspect about Ajman’s economy is the booming real estate sector which makes the Emirate very appealing to both local and foreign investors.
History of the Ajman Free Zone
The Ajman free zone was established in 1988 and was granted autonomous status in 1996 by Sheikh Humaid Bin Rashid Al Nuaimi, the ruler of Ajman.
The Ajman Free Zone Authority is the sole regulatory agency responsible for all operations in the Ajman Free Zone. Since the formation of the Free Zone Authority in 1996 industrial activity in the free zone has undergone massive growth and the number of companies in the free zone has quadrupled during the last few years.
Types of companies that can be established in Ajman
One of the features that make the free zones in UAE attractive investment destinations is that business in the free trade zone can be fully controlled by foreign owners. This is also true for the Ajman Free Zone. But setting up a company in the Ajman Free Zone is a complex procedure and involves multiple steps so it is recommended to take the help of a reliable company formation expert like Worldwide Formation Limited.
The types of companies that can be registered in the Ajman Free Zone are:
- Joint Liability Companies
- Simple Commanding Companies
- Limited Liability Companies
- Service Agents
Foreign companies may also set up subsidiaries and branch offices in Ajman. The types of businesses in the free zone are classified as professional, commercial and industrial, depending on the type of license that is needed for their operation.
Steps to company formation in Ajman Free Zone
Unless you are starting a service firm you will have to deposit some share capital with the Ajman free zone authority to register your company in the free zone. For a limited liability company, the minimum share capital required in Ajman is 150,000 Dirhams. After paying the share capital, the next step is to submit the following documents to the Trade Register of the Ajman Free Zone:
- The company’s articles of association
- The certificate of incorporation (in case of subsidiaries & branch offices)
- A notarized power of attorney for the local representative
- A copy of the local representative’s passport.
The applicant is also required to submit all the documents associated to the feasibility study of the business, a scheme of the project and the expected completion time for the project.
Before submitting the documents you must also ensure that they have been certified by the Ajman Chamber of Commerce.
Once the certificate of incorporation for the company in the Ajman Free Zone is released, the Inspection Unit will confirm the location of the company behalf of the Emirate’s municipal authority.
If you are a company/business that is looking for some guidance and support in setting up offices in Ajman Free Zone, get in touch with a registered company formation expert today.