Opening a Free Zone Company in Ajman Free Zones, UAE – Service

Page content

1. Advantages of Registering a Company in Ajman
2. Free Zone Companies and Income Tax
3. Real Estate Ownership
4. Licensing
5. What do you need to open a business in Ajman?
6. FAQ

Our company will help you quickly and easily open a business in Ajman, UAE. In just 3-7 business days, you can register a company in the Ajman Free Zone and begin legally operating under a permitted license, including international operations and operations within the UAE, subject to free zone restrictions.

Advantages of Registering a Company in Ajman

Located near Dubai, in the emirate of Ajman, the Ajman Free Zone (AFZ) was established in 1988 and, until recently, was the newest free zone. However, over the past five years, several new AFZs have emerged, such as Dubai Commercial City.

The Ajman Free Zone enjoys a strategic location and well-developed infrastructure for international and regional business. Although the emirate itself has only one major port (Ajman Port), there are four seaports in the neighboring emirates and the huge Dubai Airport nearby. Businesses registered in this free zone are serviced by leading UAE banks and are trusted worldwide.

Incorporating a company in the Ajman Free Zone offers the following benefits:

• Companies registered in the Ajman Free Zone can apply a 0% corporate tax rate only on qualifying income, subject to strict compliance with the Qualifying Free Zone Person (QFZP) status requirements. Otherwise, a 9% corporate tax applies on taxable income in excess of AED 375,000;
• Exemption from import and export duties applies to transactions within the free zone and is subject to compliance with customs and regulatory requirements; duties and VAT may apply when goods are exported within the mainland emirate.
• Companies in the Ajman Free Zone are required to maintain accounting records in accordance with UAE law. The obligation to conduct an audit depends on the requirements of the Ajman Free Zone, the company's tax status, and the requirements of banks or regulators, especially for compliance with international standards (e.g., AML/CFT).
• 100% foreign ownership of the company without the need for a local sponsor or partner;
• Unhindered withdrawal of received income;
• No restrictions on the amount of foreign exchange transactions;
• Competitive pricing for maintaining a free zone company: the cost of registering, obtaining, and renewing a license for such a company is very attractive.
• Company registration in the Ajman Free Zone takes on average 3 to 7 business days, provided the documents are accurate.
• The level of corporate confidentiality is ensured within the framework of AML/CFT, CRS, and other international standards, eliminating the complete anonymity of beneficiaries.

Furthermore, a company in the Ajman Free Zone can own real estate in certain zones with the approval of the Emirati authorities. This free zone also offers a high degree of protection for copyrights, trademarks, patents, and other intellectual property.

Free Zone Companies and Income Tax

The companies in the Ajman Free Zone can undertake business in the UAE as well and are also considered tax residents of the country. As a result, they are subject to tax registration and must pay corporate income tax under Federal Law-Decree No. 47 of 2022. Under this decree, a person (entity) is deemed to be a tax resident if

• It is based in the UAE (free zone also).
• The company is operated (as in governed, not as in the act of operating) from the UAE — all key management decisions are made here.

Qualifying Income

Qualifying income is the income of free zone companies that enjoy a preferential corporate tax rate of 0%. For income to be considered "qualifying," it must:

• Arise from transactions with other free zone entities (excluding certain "excluded activities").
• Arise from qualifying activities as defined by the Federal Corporate Tax Law and UAE Ministry of Finance regulations, including transactions with non-residents subject to QFZP conditions
• The proportion of non-qualifying income must not exceed the minimum threshold established by law (5% of total income or AED 5 million, whichever is lower).

If a free zone company loses its QFZP status, it is subject to corporate tax at a rate of 9% on all taxable income for the relevant tax period.

Real Estate Ownership

Ajman Free Zone companies may own real estate in permitted zones, subject to compliance with the relevant land departments.

CRS and AML Requirements

The UAE is a member of international AEOI regimes, such as the CRS and FATCA, and is compliant with AML/CFT regulations. This is to say that UAE Free Zone company anonymity is relative, particularly for tax residents of CRS participating countries.

On January 1, 2017, the UAE implemented the CRS, a global agreement developed by the OECD that facilitates both the automatic exchange of information with tax authorities of other countries and the verification of information provided by account holders.

Therefore, when opening accounts, financial institutions must verify their clients' tax residency by obtaining the relevant declarations and documents. The account data of tax residents from other countries is transmitted to the tax administrations in these states. Some elements to keep in mind, then:

• Your Ajman Free Zone company will not be as anonymous due to international treaties like CRS (Common Reporting Standard) and FATCA (Foreign Account Tax Compliance Act).
• Banking institutions would have to detail foreign taxpayer accounts.
• Banks undertake stricter compliance and AML/CFT checks, reviewing the cost/revenue of a company, its source of income, and physical presence.

If you are a resident of a CRS participating nation and you are contemplating the use of a UAE free zone company, seek useful professional advice to ensure that you understand all relevant laws and have mitigated any avoidable risks. Our experts are on hand to help with this issue.

Licensing

Ajman Free Zone companies are required to obtain an appropriate business license, which strictly defines the permitted activities. The best license depends on the nature of the business—trade, service companies, e-commerce entities, industrial projects, and media organizations. After being licensed, the business can contract, open corporate bank accounts, apply for investor and employee residence visas, and rent an office or warehouse in the free zone.

When should you choose to register a company in the Ajman Free Zone?

Registering a company in the Ajman Free Zone is the optimal solution if you:

• plan to conduct commercial, trading, or service activities in the UAE and abroad;
• require a full business license recognized by UAE government agencies and banks;
• desire 100% foreign ownership without the need for a local sponsor;
• plan to open a corporate bank account in the UAE;
• are interested in obtaining residence visas for company owners and employees;
• Consider the UAE as a base for international business, logistics, or a regional hub.

An Ajman Free Zone company is not like a classic offshore—it is an onshore licensed company having a real economic presence and the ability to sign contracts, rent office space, and hire employees based on that license.

What AFZ Company can do / What AFZ Company cannot do?

Businesses operating in the Ajman Free Zone can conduct a variety of licensed activities in the UAE and internationally. The exact list of allowed operations will vary depending on the type of license you apply for and restrictions from the free zone regulator.

Permitted Activities:

Consulting and Services:

• Business consulting;
• Marketing and advertising services;
• Consultancy for management, finance, and IT.

Trade and Distribution:

• Import and export of goods;
• Wholesale and international trade;
• Distribution of goods and logistics.

Holding Activities:

• Holding shares and stocks of other companies;
• Subsidiary and affiliate management.

Intellectual Property:

• Patents, trademarks, and copyrights owned or licensed;
• Intellectual property licensing and transfers.

Investment activities:

• Corporate investment structures;
• Asset and wealth management (where authorized to do so).

Financial and related services (licensed):

• Financial consulting;
• Private wealth management;
• Investment funds and investment projects (subject to specific regulatory conditions).

Manufacturing and industrial activities:

• Light manufacturing;
• Assembly and product packing;
• Warehousing and industrial facilities in the free zone.

Restricted and prohibited activities:

The use of the following are also prohibited or require certain permits and licenses:

• Banking and insurance or similar business to licensed institutions without the necessary license from the relevant authorities;
• Work on oil, gas and other hydrocarbon activities without special licenses;
• Professional services where federal regulation pertains;
• Activities of Ajman Free Zone license not issued.

What do you need to open a business in Ajman?

To become a company owner in Ajman, submit a request on our website. We have extensive experience registering businesses in the United Arab Emirates, particularly in Ajman. Therefore, you can be 100% confident in the legal accuracy of the documents we prepare.

By entrusting us with opening a free zone company, you'll save yourself a ton of hassle and time. Our specialists will provide you with detailed advice on opening and operating a free zone company in Ajman and will also prepare the necessary incorporation documents. All you have to do is sign them, and your company is ready to go.

A company in the Ajman free zone is your key to a successful business!

FAQ

What is the difference between an Ajman offshore company and an onshore (free zone) company in the UAE?

If you're planning to open a company in the UAE, you need to know the key differences between an Ajman offshore company and an onshore (free zone) company to make the right decision. Here's a brief description of the differences:

Can an Ajman Free Zone company conduct business in the UAE mainland?

Yes, an Ajman Free Zone company may be able to conduct business on the UAE mainland, subject to some limitations. Traditionally, these transactions take place through local distributors, agents, or B2B with companies established in the mainland. Serving retail customers in the mainland itself directly would mean securing additional permission or setting up a branch in the mainland. The specific model of interaction is selected depending on the type of activity and business goals of the company.

Is it necessary to rent a physical office to register a company in the Ajman Free Zone?

Office standards depend on the type of license and the number of residence visas required. Flexi-desk/virtual office. In most business areas, the Ajman Free Zone is flexible enough to accommodate a flex desk or virtual office for registering your company and help lower set-up costs compared to other regions. But as the company grows and hires employees or gets more visas, it might have to rent a full office space. Office setup: If a free zone and bank account opening need to be satisfied, it is suggested that the office format should be predetermined.

Can an Ajman Free Zone company issue residence visas for owners and employees?

Yes, Ajman Free Zone companies are allowed to apply and get a UAE residence visa for company owners, managers, or employees. Available visas are usually determined by the type of license, the office selected, and the policies adhered to within the free zone. With its operation license, visa sponsorship will be open to the company, allowing its owners and staff to live and work in the UAE. A residence permit also permits the holding of personal bank accounts, renting accommodation, and access to government services.

Can an Ajman Free Zone company open a corporate bank account?

Can Ajman Free Zone companies open corporate bank accounts in the UAE or overseas? Yes, Ajman free zone companies can and generally do have options to open a company bank account both in Dubai with local banks and with foreign banks. However, the account opening process is subject to due diligence and KYC checks, facilitating verification of business structure, sources of funds, and trade activity. Banks might ask for a business plan, client contracts, details of beneficiaries, and evidence of having passed the economic substance test. Accounts can typically take a few weeks to several months, depending on the complexity of the company’s setup and which bank is being used.

How to register a company in the Ajman Free Zone?

Setting up a company in the Ajman Free Zone is easy and an affordable option as well as fast, especially when being done with the help of professional consultants. We manage the communication with government agencies, document management, and timeframes on your behalf so that you can continue to expand your global enterprise.

Step 1 – Discussion and choosing the right business

In this step we discuss what your business strategies are, proposed activities, shareholding, and residency visa needs are. From these, we choose the best company type (FZE, FZC, or branch), license, and office space.

At this stage, we also help:

• Choose and validate the name of the company;
• Find out the shareholders and directors;
• Select licensed activities;
• Determine the budget to register and maintain annually.

Step 2 — Preparing documents

Once we have agreed on the type of company, we produce a full list of documents required and help you to prepare them.

Typically, the Ajman Free Zone admin asks for the following:

Our experts examine your application as they submit it in order to reduce the possibility of rejection or delays.

Step 3 — Applying to Ajman Free Zone

Once your papers are ready, we file your application with the free zone registration authority. Registration requires:

• Registration form;
• Approved company name;
• Selected types of activities;
• Information on the beneficiaries;
• Registration and licensing fees paid.

We also follow up with the free zone management and keep you informed about your application until you have finally obtained the approval.

Step 4 – Company Formation & Receipt of Corporate Documents

Once your application is approved, your organization becomes a member of Ajman Free Zone. On that note, the process takes 3-7 working days.

After you have registered, you will be emailed the following:

• Certificate of Company Incorporation;
• Memorandum & Articles of Association;
• Operating License;
• Share Certificates;
• Corporate Documents.

Step 5 – Residency Visas and (if required) Office Rental

Once the company is incorporated, we help you with:

• Securing residence visas for owners and employees;
• Choosing a workstation in an office or a flexi-desk;
• Registering the company with immigration authorities and the work permit system.

Step 6 — Opening of Corporate Bank

Account A, a corporate account, is needed to get you operating as soon as possible.

We assist our clients in establishing bank accounts with banks in the UAE or international banks. Our experts support you with building a business plan, compliance documentation, and KYC checks.

Account opening usually takes a few weeks and will vary depending on the business organization and the bank selected.

What is the KYC procedure in the Ajman Free Zone?

The KYC procedure for the Ajman Free Zone is as follows:

• Identity verification. The Ajman Free Zone requires all parties associated with the company to provide identification documents.
• Proof of address. To prove your residency, you will need to provide a recent utility bill, bank statement, or lease agreement.
• Source of funds/wealth declaration.
• Personal information. The Ajman Free Zone may request a business plan, information on the company's previous activities, and any international sanctions/blacklist checks (standard checks).

Typically, the KYC process takes 1-3 business days for simple cases. If there are corporate shareholders or international documentation, it takes 3-7 business days.

What are the recordkeeping requirements in the Ajman Free Zone?

While the scope varies, whether you are opening an offshore company in the Ajman Free Zone or not, you are still expected to adhere to minimum accounting standards.

Free zone companies are required to maintain accounting records. Whether an audit is required depends on the free zone requirements, tax regime, and regulatory or banking conditions.

You must maintain transaction records for at least 7 years. Here are the records you should maintain: income and expense records, any agreements/contracts, and banking transactions. These records are typically maintained or kept by the registered agent or company secretary. 

If you still have questions about company formation in the Ajman Free Zone, contact us today and receive a fast, confidential, and affordable business formation service within 7 days.