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Business Setup in Ajman Free Zone

Ajman Free Zone Authority - AFZA

Ajman Free Zone Authority (AFZA) is strategically located right at the entrance of the Arabian Gulf. The Oman Free Zone site was established in 1998 and has its own identity bestowed by the Ruler of Ajman. AFZA was granted Amiri Decree No. 3 of 1996 and has since been the sole regulatory authority for the emirate’s free zone.

AFZA’s strategic positioning benefits both Western and Eastern markets in business creation. The Port of Ajman handles 1000 vessels annually, and the port is currently known as an important center for maritime activities. AFZA is located half an hour outside Dubai and 10 minutes from Sharjah, which enhances business opportunities in AFZA as access to two international airports and four ports is even more effortless. Like any other free zone in a UAE city, the Ajman Free Zone was established with the main objective of attracting foreign investment to the emirate in order to attract commercial and industrial enterprises, which in turn helps boost the economy. Compared to other free zones in the UAE, the AFZA offers cost-effective benefits to entrepreneurs. Prices in the Ajman Free Zone are as good as other zones, combined with excellent infrastructure that also comes without service fees or hidden costs.

Benefits of Company Formation in AFZA

  • Ajman Free Zone company setup is only downtown free zone in UAE
  • 100% foreign ownership and complete repatriation of capital and profits for businesses
  • Access to major sea and airports of country due to its proximity to Dubai and Sharjah
  • 100% exemption from income tax, personal corporate tax and import & export duties
  • Fast track license processing for company formation
  • Land for large industries at reasonable rates
  • Availability of uninterrupted energy and skilled workforce
  • Provide robust infrastructure including strong connectivity through federal network of highways O Offers lease period up to 20 years and renewable to 20 more years


Types Of Business Allowed In AFZA

  • Ajman Free Zone Entity
  • Ajman Free Zone Company
  • Branch of a Foreign Company
  • Branch of a Local Company

Types of Licenses in Ajman Free Zone

Entrepreneurs landing from a foreign land in AFZA to establish companies are allowed to obtain five types of licenses in the region, which are:

1. Trading Licenses

Business owners who opt to conduct trading activities in AFZA are required to obtain a trading license. One trading license can permit up to three business activities to be carried out in a business. The trading business could be anything, like garments trading business.


2. E-commerce Licenses

Online companies or businesses involved with trading through electronic means are required to obtain an e-commerce license in Ajman Free Zone. The e-commerce license will also provide marketing and technical support to the business owners.


3. Professional Services Licenses

Local companies or even international companies that are involved in business activities related to providing professional services are required to obtain professional services licenses in Ajman Free Zone. Professional services could include management consultancy, IT consultancy, marketing, and various other services.


4. Industrial License

Industrial licenses are issued to the local UAE or international businesses that opt for manufacturing activities in AFZA. given they comply with the manufacturing policies and environmental standards set by the government of Ajman. The authority of the Ajman Free Zone provides the facility of warehouses and smart stores to bring ease into conducting this activity. These facilities are provided to make sure that all the requirements of a manufacturing company business owner can be taken advantage of under one roof.


5. National Industrial Licenses

National Industrial Licenses are issued to those companies in AFZA that match the following criteria:-

  • The company is registered with a GCC national or the GCC national holds the majority of the company’s shares of 51 % or more.
  • At least 405 of the process of manufacturing is conducted by the company in the Free Zone.
  • Companies holding a national industrial license are entitled to duty-free exports to the member states of the Arab Gulf Cooperation Council.


Facilities In Ajman Free Zone

Ajman Free Zone facilitates business investors setting up a business in the free zone with world-class infrastructure and equipment, which is a part of their business set up an agreement. Some of these facilities are as follows:

Smart offices

For entrepreneurs and startups, smart offices are well-suited as a creative investment. The smart office packages allow the costs to be kept low and it offers two employment visas to support and facilitate proactive business operations.


Executive Offices

The location of executive offices is a strategic one in Ajman Free Zone. The executive office package offers up to five employment visas. As well as, business activities can start right off in an executive office package. The facilities in executive offices are excellent with easy parking and high security.



Ajman Free Zone greatly emphasizes on meeting the invertor’s requirements by providing and designing high-quality warehouses, with all the specifications and facilities. Rented warehouses start from 100 square meters.



Trade zones are more suited to industrial investment as these are areas for investment. prepared upon on-point research according to the needs of the investors.

Business Setup in Ajman Free Zone

Registering a Company in Ajman Free Zone

Basic requirements of the Ajman Free Zone:

  • Required to decide on a precise business activity before applying for an operating license
  • A decision needs to be taken on how many visas are required
  • It is also required to determine the size of the office. Which in turn determines the number of visas the business owner is eligible for. Two visas are provided on the smallest office size. However, in need of more than 2 visas, the office space needs to be bigger.

Decision points in Ajman Free Zone:

  • Required to apply for and receive a trade license to conduct business activities
  • Physical office space is required inside the free zone, regardless of its size. The office space can be rented in an Ajman Free Zone nominated eligible building. There are various options for an office, such as desk spaces, warehouses or small offices.
  • There is no requirement of appointing a resident manager or a director. As well as, there is no requirement of the business owner to be a resident of the United Arab Emirates.


Other requirements of registration in AFZA

  • A single shareholder company is required to have a suffix of FZE
  • Multiple shareholder company is required to have a suffix of FZC
  • Branches of foreign businesses and local mainland businesses, as well as partly or fully owned subsidiaries, are allowed
  • The minimum share capital is $50,000, which is required to be shown in the bank account at the time the company is being registered


Documents Required for AFZA Company Formation

There are various types of documents required for the formation of any of the above-mentioned business structures in the Ajman Free Zone. The following are important documents required for the formation of a business entity in AFZA.


  • Three proposed names (for FZE and FZC)
  • Passport copy of applicant/manager (minimum 6 months’ validity)
  • NOC (no objection certificate) from sponsor (if applicant has valid residence in UAE)
  • Entry stamp/visa copy (if the applicant is on visit visa)
  • 6 or 8 passport-sized photographs (colored) with white background
  • A small business plan (in case of professional or e-commerce license)
  • Certificate of incorporation of parent company (in case of branch of a foreign company)
  • Trade license copy (for branch of a local company)


How to form single-owner companies in AFZA?

  • The business owner’s passport copy is all that is needed to start the process of establishing a company
  • To obtain a service or consulting license, submitting a business plan is required of the business owner. This must include finances, products, markets, and special services if there are any
  • To obtain an industrial license, it is required to provide a detailed process description along with safety and environmental data
  • The business owner or the manager or director of the company must make sure beforehand if the desired activity is permitted can be added to the obtained license or if there is a need for special approvals
  • An application for approval of the name of the business is required to be filled and submitted to the relevant authorities
  • It is also required to hire a legal manager for the business during the process of registration
  • Once the name of the business is approved and acquired, the initial approval will be granted
  • It is also required of the legal manager and owner of the business to visit AFZA once to sign all the documents, along with passport-sized photographs and passports
  • At the time of registration, it is also required to clear all the payments of all the costs
  • Once all of that is dine, the legal documents of the company are made and handed over to the business owners the next day


How to form Corporate Owner Companies in AFZA?

  • Certificate of Incorporation of the parent company
  • Memorandum and Article of Association
  • A board resolution or a shareholder to establish the new company
  • The documents must be attested from the UAE consulate in the home country of that company
  • Power of Attorney addressed to the person authorized by the parent company to undertake the company registration in AFZA


Multiple Payments Plan in AFZA

Ajman Free Zone is known to be the only free zone in the United Arab Emirates that offers the possibility of payment in several installments. The payment to the company can be made in 2, 3, or even 6 installments.

However, in AFZA, certain conditions must be met to pay the company in installments. The first and most important condition is that the payments must be made with postdated checks from a bank in the UAE. Thus, if the installments for a company license for Ajman Free Zone are paid in three steps, the first installment can be paid in cash, while the remaining two installments can be submitted in the form of checks on the day of registration. Foreign investors who do not have a bank account in the UAE can also submit a check from a relative or friend. However, the Ajman Free Zone requires a NOC from a local friend or relative to use their checkbook. In addition, a bank statement from the last 3 months must be submitted as proof of funds.

Frequently Asked Questions for AFZA

What types of licenses available in Ajman Free Zone?
  • Commercial license
  • Industrial license
  • E-commerce license
  • Trading license
Is a local Emirati sponsor required for starting a company in Ajman Free Zone?

No, any ex-pat can have 100% ownership in the company set up in Ajman Free Zone.

What are the taxes applicable to Free Zone companies in Ajman?
    Ajman Free Zone companies are exempted from personal and corporate taxes. Neither there are any export or import duties.


Talk To Our Business Setup Expert

Are you excited to learn more about AFZA Company Formation? The Ajman Free Zone Authority is a great location to Setup your business in Dubai. For more information on company formation at the AFZA Free Zone please CONTACT MARKEF today!