AFZA is quite a well-known zone, which has some unique features that are not available elsewhere. Even if you are planning business setup in Dubai, 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-dsk, 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.
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
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.
No, you have to visit UAE personally. It is a requirement of a UAE Central bank which all local banks have to follow. Personal visit is required to make sure that the client is known by the bank.
Normally you can get a debit card for your newly opened company if there is only one shareholder. You can also have a credit card, but it will be given against a fixed deposit. As for the loan, it is possible to get it, but you need to show company operations and profits to the bank. Upon checking your company's turnovers and profits, a bank may approve a loan. We recommend applying for it at least after one year of company's operations.
Officially an office of a free zone company has to be located only within the free zone where this company was registered. If you need an office in Dubai, you have an option to rent a space in a Business center and use it either a few times per month or daily, depending on the package that you choose. However, the free zone minimum required space (flexi desk) cannot be cancelled.
A flexi desk is an obligatory requirement for any company eligible for resident visas. UAE government obliges to have it because it's the minimum physical office space, that a company who has any individual under its visa must have. Apart from that, flexi desk is helpful for bank account opening. The compliance department of the banks needs to see that a company has some kind of office or at least a small physical seat, where it can be working from.
VAT obligations of the company depend not only on the place of its registration, but on the place where its business takes place. To start with, VAT comes into picture once your taxable turnover reaches 375 000 AED. Taxable turnover means the turnover which was done in the UAE. If your company is registered in a Free Zone, but the trading takes place abroad (for example you sell goods from India to Africa), that turnover is not considered taxable, because the transactions are taking place out of UAE. It means that you do not have to pay VAT. But if you have a free zone company and import goods to UAE, you have to add 5% VAT to your Invoices and pay VAT. If your company is registered in a designated free and sells the goods to another designated free zone or within the same zone, VAT does not appear.
UAE is free from income tax and corporate tax. It has only imported tax 5% for the goods that you bring into the country and VAT 5% for the trading or service transactions that happened in UAE.
Everything depends on your business model and requirements, but a free zone setup is the most suitable for the majority of the business needs. Free Zone company has 100% foreign ownership unlike mainland where you need a local partner or agent, it can be eligible for resident visas, allows doing business both in and out of UAE, more favorable by the banks in comparison to offshore companies, can have a flexi desk space instead of an executive office like in mainland companies. Free Zone is a good way to start a business for reasonable fees and without unwanted obligations.
We do our best when we setup your company in such a way that would make account opening easier for you. Knowing your background and your business model, we can give you our estimation about the chances of successful account opening. The approval of the account fully depends on the bank. Each case goes to a few departments of the bank where it has to be approved before the account gets opened. If the bank has any questions or needs clarifications, it will contact you directly with the inquiries. The more clear picture about your business you give to the bank, the higher your chances of account opening are. Being a consultancy company, we cannot guarantee opening of a bank account, because it depends on the factors which do not depend on us. However, we do our best to prepare you and your company for smooth and fast account opening.
Yes, the company should be renewed annually. The cost of the renewal is usually less than the setup cost. It depends on your company package. You can get the price by downloading the Estimate from this page. Renewal does not require personal presence of the owner and can be done by your agent. After company renewal, the new license has to be shown to the bank in order to extend the bank account. It is always included into our renewal service.
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