AFZA is quite a well-known zone, which has some unique features that are not available elsewhere. Even if you are planning to start a business in UAE free zone, it is worth checking Ajman free trade zone.
The most attractive offer from AFZA is a so-called multiple installment payment plan for the company registration. It means that you can get your company registered by paying only part of the government fees for it - you can opt for 2, 3 or 6 installments. It is really convenient for those who are looking for a low budget startup. AFZA is the only free zone which has such a payment plan.
Keep in mind that there are certain conditions set by Ajman free zone authority to be met. Most important one – the payment should be provided by post-dated checks from a UAE bank. So if you go for 3 installments for Ajman free zone license, you can pay the initial one by cash and provide the remaining payments by 2 checks on the day of application for the company. If you come from abroad, of course you won’t have any checks from a UAE bank. In this case you can use the checks of a friend or a relative, for example, but AFZA will ask him to sign a no objection letter to use his checkbook. Apart from that, you need to provide past 3 months bank statement as a proof of having substantial funds.
Company can be formed in 1 day. Personal visit of the owners is required for company setup. Ajman free zone smart office always comes as a part of company setup package.
Ajman provides Chamber of commerce membership together with company registration, so in case you need it, Ajman is the fastest way to get it.
Company renewal is done annually as usual. The cost will be exactly the same as the cost of incorporation. Trading companies need to provide audit report. Renewal can be also paid by multiple installments.
AFZA has non-visa and visa packages. Ajman free zone visa packages without physical office limit you to a maximum of 2 resident visas per company. If you need more than that, you need to rent an office in Ajman. Non-visa General Trading license is one of the cheapest in UAE.
The free zone has a port and offers brand-new warehouses, but the number is quite limited, so most of the times you’ll need to wait until a warehouse becomes available.
If you are a woman who is planning to setup a company and sponsor children or other dependents, you might find a cheaper option, because Ajman immigration will require 20 000 AED as a deposit, which is almost as much as the company setup will cost you.
The set of documents you get after company formation is quite small - you receive only a trade license, chamber of commerce membership certificate and a lease agreement of your flexi-desk, which by the way has unlimited usage. If you have more than 1 owner in the company, you will also get Articles of Association, however, there is an additional fee of 1000 AED for this document. If you need any extra documents such as Shares Certificate or MoA, they need to be ordered separately.
Overall, we extremely recommend Ajman to those who want to get a company formed with low initial budget, who need Chamber of commerce membership or want a very quick UAE company setup on the same day.
More information about Ajman Free Zone:
TRADING LICENSE COSTS IN AJMAN FREE ZONE
UP TO 2 VISAS COMPANY
SERVICE LICENSE COSTS IN AJMAN FREE ZONE
UP TO 2 VISAS COMPANY
GENERAL TRADING LICENSE COSTS IN AJMAN FREE ZONE
UP TO 2 VISAS COMPANY
DOCUMENTS FOR AJMAN FREE ZONE COMPANY SETUP
Ajman free zone just like the rest of the UAE is exempted from any income or corporate tax. The only taxes which may occur are:
There are no other taxes, which may apply to your Ajman free zone company.
Yes, you can have a company registered outside Dubai, but reside in Dubai or any other Emirate. You do not have to live in the same Emirate where your visa belongs to. You can also have a bank account in a Dubai branch of any UAE bank of your choice.
If you found a company which you want to buy, first of all you need to agree about terms and conditions of the sale-purchase deal with the current shareholder(s).
After that both of you need to come to AFZA with the original documents of the company and apply for the procedure "Shares transfer". It usually takes about 3 weeks. Upon completion, you will get amended company documents with new shareholding details. You will also need to change the Establishment card of the company after the shares transfer if the company is eligible for resident visas.
Yes, Ajman free zone is a designated one from the point of view of VAT. It means that if a company registered in such a free zone sells the goods to a company in another designated free zone, such transaction is going to be free of VAT.
If your visa status is Investor, you are allowed to stay out of UAE 12 months and enter UAE every 365 days in order to maintain your visa.
If your visa status is other than Investor, you have to enter UAE every 6 months to keep the visa valid.
In case you fail to come or overstay abroad, your visa will be cancelled automatically and you will need to apply for a new one.
Ajman free zone company liquidation can be done only after a personal application of a shareholder or a person having power of attorney from company owners.
The process takes about 3 weeks. It consists of these major steps:
Visa cancellation (7-10 working days) - if there was a visa in the company.
Establishment card cancellation (7-10 working days) - if it was a visa eligible company
The original documents of the company need to be returned to AFZA when you apply for company liquidation. They include:
If you had a corporate bank account, it should be closed before applying for company liquidation. You should obtain a letter proof from the bank confirming that.
After the company is dissolved, you will get an official deregistration letter from the free zone as a formal confirmation of the liquidation.
The official office of the free zone company must be located within the premises of AFZA. You will not be able to rent a Dubai office under the license issued in Ajman.
If you need to have a workspace or a meeting facility in Dubai, the best way would be to use a business center. You will be able to have flexible options starting from meeting room usage ending with executive serviced office of any required size.
The company in Ajman needs to be renewed annually. The cost of the renewal is exactly the same as the cost of license registration.
If your company is eligible for visas, you will also need to renew E-channel.
Renewal can be done without the presence of the shareholder, but you have to authorize someone to come to the free zone on your behalf to make the application. Original trade license will be required.
Time-frame of the renewal is 1-2 days.
Visa renewal is similar to the new visa process, but costs cheaper and processing is slightly easier. In order to renew the visa you need to do new Medical check and re-apply for new Emirates ID. It should be done with your original passport and copy of the old visa, which should still be valid. Once the medical report is issued, just apply for new visa to the free zone counter and pay the fees for visa stamping only.
It’s recommended to start visa renewal about 2 weeks before the old visa expires.
The visa validity is written on the visa itself. If you are a company owner, your visa would be valid for 3 years. If you are an employee, the validity is 2 years.
Flexi-desk always comes as a part of company setup package even if you are not planning to use it. It is mandatory that any company has at least a small physical space from where it can conduct the activities. The free zone is obliged to provide such a space regardless of your intentions of using it or not.
If you are processing your resident visa and want to check the status, you may either call AFZA customer care line or check the updates on the free zone portal.
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