Business Setup & License in Ajman Mainland

Ajman Mainland:

Ajman is one of the seven emirates of the United Arab Emirates (UAE), located on the Arabian Gulf coast. It is situated between the emirates of Sharjah and Umm Al Quwain. Ajman is known for its strategic location, economic diversification, and business-friendly environment.

Ajman Mainland is a popular choice for investors looking to establish a business in the UAE. It is regulated by the Department of Economic Development (DED) in Ajman, and companies incorporated in Ajman Mainland can operate within the UAE without any restrictions.

One of the advantages of Ajman Mainland Business Setup is that it allows investors to have 100% ownership of their company. This means that they can have complete control over their operations, without the need for a local sponsor or partner.

Another advantage of Ajman Mainland is its favorable tax environment. The UAE does not impose any corporate or personal income tax, making it an attractive destination for investors looking to minimize their tax liabilities.

In addition to the favorable tax environment, Ajman Mainland Business Setup offers a range of incentives and facilities, including world-class infrastructure, modern transportation systems, and advanced telecommunication networks.

Ajman Mainland also offers a skilled and multilingual workforce, with access to a wide range of local and international talent. This makes it an ideal location for companies operating in a range of industries, including manufacturing, trading, and services.

License Types in Ajman Mainland:

There are several types of business licenses available in Ajman Mainland, which are as follows:

1. Commercial license: A commercial license is required for companies engaged in commercial activities such as trading, general contracting, real estate, and other similar businesses.
2. Industrial license: An industrial license is required for companies engaged in industrial activities such as manufacturing, processing, and assembly of goods.
3. Professional license: A professional license is required for companies that offer professional services such as accounting, legal, engineering, consultancy, and other similar businesses.
4. Service license: A service license is required for companies engaged in service-related activities such as hospitality, tourism, healthcare, and other similar businesses.
5. E-commerce license: An e-commerce license is required for companies engaged in e-commerce activities such as online trading, electronic marketing, and other similar businesses.
6. Branch office license: A branch office license is required for companies looking to set up a branch of their existing business in Ajman Mainland.

A Guide for Company Formation in Ajman Mainland:

Company Setup in Ajman Mainland can be a complex process, but by following the right step, it can be made simpler. Here are the steps to set up a business in Ajman Mainland:

1. Choose the business activity: The first step to setting up a business in Ajman Mainland is to select the type of business activity that you want to undertake. This could include trading, manufacturing, service provision or any other business activity.
2. Choose a legal structure: Next, you will need to choose a legal structure for your business. This could be a sole proprietorship, partnership or a company. It is important to choose a legal structure that best suits your business needs.
3. Choose a business name: Once you have decided on the business activity and legal structure, you will need to choose a name for your business. The name must comply with the UAE’s naming conventions and should not contain any offensive or objectionable words.
4. Apply for initial approval: After you have chosen your business activity, legal structure and name, you will need to obtain initial approval from the Department of Economic Development (DED). This involves submitting the necessary documents, such as passport copies, visa copies and a copy of the lease agreement.
5. Draft the Memorandum of Association (MOA): The Memorandum of Association is a legal document that outlines the terms and conditions of your business. You will need to draft this document and have it notarized by a Notary Public in Ajman.
6. Reserve the trade name and get the trade license: After the MOA is notarized, you can proceed to reserve the trade name for your business with the DED. Once the trade name is approved, you can apply for the trade license from the DED.
7. Rent an office space: To obtain the trade license, you will need to provide proof of an office space. You can either rent an office space or a commercial property in Ajman Mainland.
8. Register for social security and other government services: Once you have obtained the trade license, you will need to register for social security with the Ministry of Human Resources and Emiratisation. You may also need to register for other government services, such as VAT, if applicable.
9. Obtain approvals from other government entities: Depending on your business activity, you may need to obtain approvals from other government entities, such as the Ministry of Health or the Municipality.
10. Register for Chamber of Commerce: Finally, you will need to register for the Ajman Chamber of Commerce and Industry to obtain a membership certificate.

The estimated cost of setting up business in Ajman Mainland:

The cost of setting up a business in Ajman Mainland varies depending on the type of license and the size of the company. Here is a breakdown of the costs involved in setting up a business in Ajman Mainland:

1. Trade Name Registration: The cost of registering a trade name in Ajman Mainland is AED 620. This fee is paid to the Department of Economic Development.
2. Initial Approval: Before a business license can be issued, a company must obtain initial approval from the relevant authorities. The cost of initial approval is AED 1,000.
3. Commercial License: The cost of a commercial license in Ajman Mainland depends on the type of business activity. The cost of a general trading license, for example, is AED 7,500, while the cost of a professional license is AED 2,500. Other types of licenses, such as industrial and tourism licenses, have varying costs.
4. Office Rent: A business in Ajman Mainland must have a physical office address. The cost of renting an office depends on the location and size of the office. The rent for a small office can range from AED 25,000 to AED 35,000 per year, while the rent for a larger office can range from AED 40,000 to AED 60,000 per year.
5. Employee Visa: If a company plans to hire employees, it must obtain employee visas. The cost of an employee visa in Ajman Mainland is AED 4,000 per visa, which includes the visa application fee, medical test, and residency permit.
6. Sponsorship Fees: A company in Ajman Mainland must have a local sponsor, who is either an Emirati or a UAE-based company. The cost of sponsorship fees can vary depending on the agreement between the sponsor and the company.
7. Professional Fees: Companies in Ajman Mainland may require the services of lawyers, accountants, and other professionals. The cost of these services can vary depending on the provider.

Overall, the cost of setting up a business in Ajman Mainland can range from AED 20,000 to AED 50,000 or more, depending on the size of the company and the type of business activity. It is important to note that these costs are only estimates and may vary depending on the specific requirements of each company.

Documents Required for Company Formation in Ajman Mainland:

• Passport copies of the shareholders.
• Proof of residence.
• Memorandum of Association & Articles of Association.
• Business plan.
• Bank reference letter.
  

Advantages of Setting Up a Business in Ajman Mainland:

1.100% Foreign Ownership: Businesses in Ajman Mainland enjoy full ownership by foreign investors, providing control and flexibility in operations.

2. Taxation Benefits: Access to favorable taxation policies enhances profitability and financial sustainability.

3. Legal Exemption from Import and Export Duties: Companies are granted complete legal exemption from import and export duties, reducing operational expenses.

4. Low-Cost Business Setup: The setup costs for businesses in Ajman Mainland are comparatively low, enabling entrepreneurs to allocate resources efficiently.

5. Low Cost of Living: The region offers a low cost of living, which is advantageous for business owners and employees alike.

7. Strategic and Central Location: Ajman Mainland’s central location provides easy access to major markets and transportation hubs, facilitating business operations and expansion.

8. Modern Infrastructure: The region boasts modern infrastructure facilities, ensuring smooth business operations and efficient connectivity.

Lower Prices of Land and Office Rentals: Affordable land and office rental prices enable businesses to manage operational costs effectively, enhancing overall profitability and sustainability.

To register a company in Ajman Mainland, follow these steps:

• Submit an application to the Customer Services Center for initial approval.
• Choose a business location and notify the Inspection Unit accordingly.
• Obtain a membership certificate.
• Submit the necessary documents to the Register of Companies.
• Pay the required fees.
• Obtain your business license.