Establishing a company in Ajman is a strategic step towards achieving success in the growing and thriving UAE market. Ajman, one of the seven emirates in the United Arab Emirates, is strategically located to allow businesses to benefit from a distinguished business environment and attractive investment facilities. Ajman offers multiple advantages to investors, including advanced infrastructure, tax facilities in free zones, and flexible incorporation procedures. In this article, we will review the basic and necessary steps to establish a company in Ajman , starting from choosing the type of company and determining its name, all the way to obtaining a commercial license and preparing the required legal documents. We will also highlight the advantages that Ajman offers to investors and how to benefit from them to achieve success in the business world.

 

Requirements for establishing a company in Ajman

To establish a company in Ajman , investors must adhere to a number of legal requirements and procedures. Here is a list of the basic requirements for establishing a company in Ajman:

1. Determine the type of company: Choose the type of company that suits the business activity you want to practice, such as a limited liability company, a joint stock company, or a sole proprietorship.
2. Choosing a Trade Name: Choose a suitable trade name that complies with local laws and regulations, and the name must not be used by other companies.
3. Prepare the Articles of Association: Prepare the Articles of Association in a form appropriate to the type of company, including details such as the company name, capital, and business activity. This agreement requires the signature of all founders.
4. Obtaining a trade license: Apply for a trade license from the Department of Economic Development in Ajman. This requires submitting the necessary documents such as the Articles of Association, proof of identity, and other relevant documents.
5. Secure a business location: Secure a physical business location for the company, whether it is an office or a commercial space. The location must comply with local government requirements.
6. Open a bank account: Open a bank account for the company in a local bank to facilitate financial transactions and provide a certificate from the bank confirming the opening of the account.
7. Preparing legal documents: Provide required legal documents such as passports, residence visas, and certificates of good conduct if required.
8. Register the company with government departments: Register the company with other government departments such as the Ministry of Labor and the Business Regulatory Authority, if the activities require it.
9. Social and Labor Insurance: If you have employees, make sure they are registered with social insurance and follow the labor procedures.
10. Approval of plans and licenses: If your company requires special permits or approvals from certain regulatory bodies, such as building permits or health and safety permits, make sure to obtain them.
    By adhering to these requirements, you can successfully establish your company in Ajman and enjoy the benefits that the emirate offers to investors.

Are there any tax breaks or special benefits for investors in Ajman?

Yes, there are several tax facilities and special benefits for investors in Ajman, especially in the free zones . Here are the most prominent of these benefits:

1. Tax Exemptions: Ajman offers attractive tax benefits to investors, especially in the free zones, where companies are exempted from corporate and profit tax for several years.
2. Customs Duties: Ajman free zones offer customs duty exemption on imports and exports, which helps reduce costs and improve profits.
3. Facilitation of establishment procedures: The establishment system in Ajman is characterised by simple and flexible procedures, which speeds up the process of obtaining a licence and reduces bureaucracy.
4. Full Foreign Ownership: In free zones, foreigners can own 100% of companies without the need for a local partner, giving foreign investors complete control over their business operations.
5. Flexibility in importing and exporting goods: Ajman free zones provide great facilities in importing and exporting goods, including fast clearance procedures.
6. Work and Residence Visas: Ajman provides facilities for obtaining work and residence visas for employees and investors, which contributes to attracting foreign talent.
7. Advanced Infrastructure: Ajman offers an advanced infrastructure that includes modern facilities and business centers, which enhances the efficiency of business operations.
8. Government support and guidance: Government agencies in Ajman provide support to investors, including guidance and advice to facilitate the establishment process and ensure compliance with laws.
   Companies take advantage of these facilities and benefits to make the most of Ajman’s business environment, making it an attractive destination for investment.

How long does it take to establish a company in Ajman?

The time required to establish a company in Ajman depends on several factors, including the type of company, the type of business activity, and the procedures required. In general, the time period can be summarized as follows:

1. Basic incorporation procedures: Basic incorporation procedures, such as obtaining a business license and preparing documents, typically take two to four weeks. This includes submitting applications, reviewing documents, and obtaining necessary approvals.
2. Company Registration: After submitting all required documents, it may take from one week to ten business days to register the company and issue the trade license.
3. Additional Procedures: If there are additional requirements such as obtaining special permits or approvals from other regulatory bodies, the process may take longer. This period can range from two weeks to an additional month, depending on the type of activity and the requirements of the competent authorities.
4. Company formation in the free zones: If the company is established in one of the free zones in Ajman, the procedures may be faster due to the special facilities available in these areas. Investors can usually obtain the license and register the company within a period ranging between two to three weeks.
5. Securing a Business Site: Securing a business site may require additional time, depending on the availability of facilities and the location chosen. This period can range from one to several weeks.
   In general, investors in Ajman can expect the company formation process to be completed in a period ranging from two weeks to two months, depending on the company’s requirements and procedures.

 

 

Types of companies in Ajman

In Ajman, there are a variety of company types that investors can establish, to suit different business activities and investment needs in Dubai . These types include:

• Limited Liability Company (LLC): One of the most common forms, the company has an independent legal personality, and financial liability is limited to the value of the shares owned. It requires a 51% local partner in companies operating outside the free zones.
• Public Joint Stock Company: It consists of a large number of shareholders, and the capital is divided into shares. The shares of these companies can be traded in the financial markets, and they are characterized by the possibility of raising capital from the public.
• Sole Proprietorship: Established by a single individual, the founder is fully responsible for all obligations of the company. It is a suitable option for small businesses run by a single person.
• Free Zone Company: Can be fully owned by foreigners without the need for a local partner. These companies include a variety of commercial and industrial activities, and benefit from tax facilities and customs exemptions.

Each type of these companies provides special advantages that suit the needs of investors and enhance the chances of success in the business market in Ajman.

Concluding our article on how to set up a company in Ajman , it is clear that the emirate offers a supportive business environment and multiple benefits for investors. By understanding the basic requirements, choosing the right type of company, and following the legal procedures carefully, investors can successfully establish their companies and benefit from tax facilities and advanced infrastructure. Ajman, with its diverse investment options and flexible facilities, remains an attractive destination for investors looking to enter the UAE market. It is essential to consult local experts and avail specialized advisory services to ensure compliance with all procedures and make the most of the available opportunities. By investing in Ajman, the horizon opens up to new opportunities for growth and success in the business world.