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AJMAN
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AJMAN COMPANY REGISTRATION
Company registration Ajman is straightforward if you meet all the requirements. Ajman is one of the seven emirates that make up the United Arab Emirates (UAE), and it offers a highly conducive business environment for entrepreneurs seeking to establish their companies in the Middle East. Its strategic location, well-developed infrastructure, and investor-friendly policies have turned it into a thriving hub for businesses across a wide range of sectors.
One of the major advantages of Ajman is its streamlined company registration process, which is both straightforward and efficient. This, coupled with its affordable business setup costs and tax benefits, has made it a highly attractive option for foreign investors looking to start or expand their businesses in the region.
As a coastal city, Ajman has become increasingly popular as a preferred destination for company incorporation, and its business-friendly ecosystem has contributed significantly to its growth as a commercial and trading centre in the Middle East. With its highly supportive business environment, Ajman offers a unique opportunity for entrepreneurs and investors to tap into the immense potential of the UAE’s economy and the wider region.
KEY REQUIREMENTS FOR INCORPORATING A COMPANY IN AJMAN

Shareholder/Shares
A minimum of one shareholder is required to incorporate a company in Ajman. The share capital must be at least AED 185,000, as per the Articles of Association. There are no specific requirements for the distribution of shares.
Director
At least one director or manager is required to register a company in Ajman. Anyone can become a director or manager, including foreigners.
Share Capital
As mentioned above, the minimum share capital for a company in Ajman is AED 185,000. The payment of the share capital must be made into a bank account in the company’s name.
Registered Office Address
A registered office address in Ajman is mandatory for company registration. The address will be used for all official correspondence, including government and legal communication. The registered office address must be a physical address and cannot be a PO Box.
TIMELINE OF AJMAN COMPANY INCORPORATION
TYPES OF BUSINESS ENTITIES IN AJMAN
- Joint Liability Company – This type of business can be established by two or more UAE national partners, who are jointly and severally liable for the company’s debts and obligations.
- Limited Liability Company – To set up an LLC in Ajman, there must be at least two partners, but no more than 50. The partners are not liable for the company’s debts, other than their capital shares. An LLC’s capital must be at least DHS 150,000.
- Simple Commanding Company – This type of company can be formed by two or more partners, with at least one partner being jointly liable for the company’s debts (the “commandite”) and the others being liable only to the extent of their capital investment. All partners must be UAE nationals, and the “commandite” partner must hold at least 51% ownership.
- Branch Office – Foreign companies can establish a branch office in Ajman, which can engage in commercial activities, subject to obtaining the necessary licences. A local service agent, who is an Emirati national, must be appointed to represent the branch office.
Ajman Free Zones
Ajman Free Zone (AFZ) is a rapidly growing free zone in the UAE that offers a range of business advantages to investors and entrepreneurs. Established in 1988, AFZ is strategically located on the Arabian Gulf Coast and is accessible to two international airports and four seaports, making it an ideal location for businesses to reach customers in both the eastern and western markets.
AFZ is home to a diverse range of businesses, including industrial, commercial, and service-oriented companies. Currently, it is the third-largest free zone in the UAE, accounting for 20% of the country’s total industrial units.
One of the key advantages of AFZ is its streamlined and efficient business setup process, which allows for quick and hassle-free company registration. The AFZ Authority is responsible for issuing business licences and managing the businesses established within the free zone. The authority provides a range of services and support to businesses, including legal and administrative assistance, access to networking and business development opportunities, and access to world-class infrastructure and facilities.
Some of the other benefits of setting up a business in AFZ include:
- 100% foreign ownership
- 100% repatriation of capital and profits
- No personal or corporate income tax
- No customs duties on imports or exports
- Modern and efficient infrastructure
- Easy access to global markets
Overall, Ajman Free Zone offers an attractive business environment for entrepreneurs and investors looking to establish their presence in the UAE and tap into the region’s growing business opportunities.
PROCESS OF REGISTERING A BUSINESS IN AJMAN
Choosing Business Structure
To register a business in Ajman, the business owner must choose a suitable business structure, such as a sole proprietorship, partnership, limited liability company, or branch of a foreign company. It’s important to note that different business structures have different requirements and procedures for registration.
Initial approval
After choosing the suitable business structure, the business owner must submit the Ajman company registration application form at the Customer Services Centre in the municipality for initial approval. The application must include details about the business structure, business activities, shareholders or partners, and proposed business name.
Choosing a location
The business owner must choose a suitable location for the business activities and should follow up with the Inspection Unit in the municipality of Ajman to verify the chosen business location. The location must be zoned for the intended business activities.
Approval for Trade name
The applicant must obtain approval for the trade name from the Department of Economic Development in Ajman. The name must be unique and not already registered by another business in the UAE.
Obtaining other approvals
Depending on the type of business, the applicant may need to obtain additional approvals from other government agencies, such as the Ministry of Economy, Ministry of Human Resources and Emiratisation, and the Chamber of Commerce and Industry.
Obtaining the Licence
To obtain a business licence, the applicant must pay all fees and submit the required documents, including the application form, approvals, and lease agreement for the business location, to the Customer Service Centre in the municipality. The process to obtain the license for your business can take up to a week or more, depending on the business structure and other requirements.
Refer to our page, Ajman trade license, for more information.
PROS AND CONS OF REGISTERING COMPANY IN AJMAN
PROS

Quick and simple immigration laws
The immigration process for workers in Ajman is straightforward and efficient, making it easy for businesses to recruit and retain employees.

100% repatriation of capital and profits
Businesses operating in AFZ have the freedom to repatriate their capital and profits without any restrictions or limitations, which can be a significant advantage for foreign investors.

Access to infrastructure and resources
Ajman has modern infrastructure and resources, including ports, airports, and a highly developed transport network.

Tax exemptions
Companies operating in AFZ are completely exempt from corporate tax, which can significantly reduce the overall cost of doing business in the region.

Business-friendly laws
Ajman has a business-friendly environment and offers a wide range of support services for companies, including business incubation and mentoring programs.
CONS

Lack of local talent
There may be a lack of local talent in certain industries, which could make it difficult for businesses to find the necessary personnel to grow and expand.

Cultural differences
There may be cultural differences that could make it challenging for businesses to operate effectively in Ajman, particularly for companies from Western countries.

Limited market size
The market size in Ajman is limited, which may limit the potential for growth for certain businesses.
WHY CHOOSE RELIN CONSULTANTS FOR AJMAN COMPANY INCORPORATION?
Relin Consultants helps business owners with company setup in Ajman with our legal consulting services. Our team of experts has complete knowledge of UAE laws and will take care of banking, visa, legal, and licensing formalities.
Our team will handle all the paperwork and documents enabling you to conduct the business activities smoothly.
Contact us at Relin Consultants to learn more about our business setup services in Ajman.
FAQs
Is it easy to set up a business in Ajman?
Yes, setting up a business in Ajman Free Zone (AFZ) is relatively easy, compared to other jurisdictions. AFZ has streamlined the process of incorporating a business and offers a variety of support services to help companies establish a presence in the region.
How much does it cost to register a company in Ajman?
The cost of registering a company in Ajman Free Zone (AFZ) can vary depending on several factors, including the type of business activity, the number of shareholders, and the size of the company. The cost to register a company in Ajman can vary depending on the types of entity and can range between US$6,500 to US$10,000.
How can I check if a company is legal in Ajman?
You can check the company’s registration status and details on the Ajman Free Zone Authority’s (AFZA) website. The website offers a “Company Search” feature, where you can look up a company by its name or trade licence number and verify its registration status.
Is Ajman tax-free for business?
Yes, Ajman Free Zone (AFZ) is tax-free for businesses. Companies operating in AFZ are completely exempt from corporate tax, which means that they do not have to pay any taxes on their profits, capital gains or income. This makes AFZ an attractive location for businesses looking to establish a presence in the United Arab Emirates (UAE) and the wider Middle East region.
It’s important to note that, even though AFZ is tax-free, companies operating in the free zone may still be subject to other taxes or fees such as Value-Added Tax (VAT) or customs duties, depending on the nature of their business activities and the products or services they provide.
How long will it take to incorporate a company in Ajman?
It will take approximately 5 to 6 working days for company incorporation in Ajman.
What is the cost of company formation in the Ajman free zone?
The cost of company formation in Ajman Free Zone can vary depending on the type of company and the package chosen. Some general costs that may be incurred include the cost of registering the company, obtaining a trade licence, and obtaining any necessary permits and approvals. Additionally, there may be fees for office space and other amenities. The Ajman free zone company registration cost is approximately AED 6,500.
What are the business licences available in Ajman?
Business licences available in Ajman are Trading licence, Industrial licence, Professional licence, National Industrial licence, and E-commerce licence
Is it mandatory to have a physical office in Ajman for company incorporation?
Some companies may require a physical office to be maintained in the free zone, while others may not. Ajman Free Zone Authority (AFZA) offers the option to have a virtual office, where the company is registered with the free zone but doesn’t require a physical office space.
What documents are required to register an offshore company in Ajman?
Documents needed for Ajman offshore company registration are: A copy of the shareholders’ passports, Proof of the business owner’s residence, Memorandum of Association, Articles of Association, a reference letter from a bank, and Cost-benefit analysis with a business plan.
What is the tax levied in Ajman?
Ajman Free Zone is a tax-free zone, which means that there are no corporate or personal income taxes imposed on businesses operating within the free zone. This can be an attractive feature for companies looking to establish a presence in the region, as it allows them to keep more of their profits. Additionally, there are no import or export taxes, and no restrictions on the repatriation of profits or capital.
What kind of companies are eligible to be part of the Ajman Free Zone?
Ajman Free Zone offers a wide range of options for businesses of all types and sizes, and companies from various sectors are eligible to establish a presence in the free zone. Some examples of the types of companies that are eligible to operate in Ajman Free Zone include:
- Trading companies
- Manufacturing companies
- Service providers
- Consulting firms
- IT companies
- Freight and logistics companies
- Media and advertising companies
- Construction and engineering companies
- Medical and healthcare companies
What is the minimum capital requirement for business setup in Ajman?
Ajman Free Zone Authority (AFZA) does not have any minimum capital requirement for the formation of a company, but the Authority may require a certain amount as a security deposit for the issuance of licences.