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AJMAN BUSINESS TRADE LICENSE
A Business trade licence in Ajman is a permit that allows an individual or a company to legally operate a business in the Ajman Free Zone. It provides the necessary legal authorization to carry out business activities in the region and is mandatory for setting up and operating a business in Ajman.
The Ajman trading licence lists the type of business activities that the company is authorised to conduct, and it must be renewed annually to maintain its validity. The application must be sent for the suitable type of licence for the business activities at the time of Company registration Ajman.
HOW TO GET TRADE LICENCE IN AJMAN
Determine the Right Business Entity
Determine the most suitable business entity for your business operations, such as a free zone company, mainland company, sole proprietorship, or limited liability company (LLC).
Register the Business Name
Select a unique and memorable business name and register it with the Ajman Free Zone Authority (AFZA).
Submit Application and Required Documents
Submit the application for a General Trading License in Ajman along with all the required documents to the AFZA.
Wait for Approval
The AFZA will review your application and supporting documents, and may ask for additional information or clarification. Once your application is approved, you will receive a notification of approval.
Obtain the Trading Licence
After approval, you will receive the General Trade License Ajman, which will specify the types of business activities your company is authorised to conduct.
Establish a Payment Method
Establish a corporate bank account in Ajman or choose a payment gateway to handle transactions for your business. This will enable you to manage your finances, receive payments from customers, and make payments to suppliers.
TYPES OF TRADE LICENCE AJMAN
Trading or Commercial Licence
The commercial licence in Ajman allows companies to engage in import, export, and distribution activities within the Ajman Free Zone. It allows businesses to trade goods and services both locally and internationally.
Industrial or Manufacturing licence
Holders of this licence are permitted to set up facilities for manufacturing, processing, and assembling, including importing raw materials, producing the items on the product list, and exporting finished goods. Ajman commercial licence is subject to the following prerequisites:
- It is necessary for businesses to register with the Gulf Cooperation Council (GCC)
- 51% of the shares must belong to the holder.
- A minimum of 40% of manufactured goods must be processed in the free zone.
Service or Professional License
The Service or Professional License in the UAE allows individuals or companies to provide professional services or offer consultancy services within the country such as legal services accounting and auditing services, engineering and technical services, marketing and advertising services, management, and business consulting services.
Pioneers Package
Young business owners can now have professional independence thanks to this form of licence. Without any limitations on long-term overheads, the Pioneers package is appropriate for postgraduates and start-up businesses.
Freelancer Permit Licence
To encourage and grow this industry in the UAE, the Ajman authorities grant freelancer licences. Freelancers who fall within the 40 categories offered by AFZ are entitled to apply for this permit.
E-commerce Licence
The e-commerce industry is expanding quickly in the UAE. Online business owners and entrepreneurs can develop their electronic trade through B2B and B2C opportunities with the use of an e-commerce licence. The following e-commerce activities are allowed in the above license.
- Fashion retail E-Trading
- Industrial equipment, media E-trading
- Automotive E-Trading
- Home, office, and personal utilities E-Trading
AJMAN BUSINESS TRADE LICENSE FEES
The cost of obtaining an Ajman business licence can vary depending on several factors, including the type of licence, the nature of the business activities, and the size of the business. Some of the costs that may be associated with obtaining a trade licence in Ajman include the following.
Licence fee: A one-time fee to obtain the business licence in Ajman, which can range from AED 5,000 to AED 20,000, depending on the type of licence and the size of the business.
Office space rental: If the applicant chooses to rent an office space in Ajman, this will be an ongoing cost. The cost of office space rental in Ajman can vary but typically ranges from AED 10,000 to AED 30,000 per year.
Company formation fee: A one-time fee to set up the company, which can range from AED 10,000 to AED 15,000.
Bank guarantee: A deposit with a bank that acts as a guarantee for business activities in Ajman. The amount of the deposit will vary but typically ranges from AED 10,000 to AED 50,000.
BENEFITS OF GETTING A BUSINESS TRADE LICENSE IN AJMAN
Friendly to the business environment
Ajman is famous for having a business-friendly atmosphere.
The city is home to a wide variety of businesses, from little family-owned companies to big global conglomerates. Finding new possibilities and partners is simple in Ajman because of the wide variety of trade licence options available and it’s simple to get around the city and do business thanks to Ajman’s great infrastructure and accessibility.
Ajman is the ideal location to launch a new business or expand an already established one.
100% foreign ownership
In Ajman, businessmen can own 100% of the business as a foreign national, without the need for a local sponsor. This allows businessmen to retain full control and ownership of their business, without having to share profits or ownership.
Tax benefits
Companies in Ajman are exempt from corporate and personal income taxes, making it an attractive destination for businesses looking to reduce their tax liabilities.
Strategic location
Ajman is strategically located near major regional and international markets, including Dubai and the Northern Emirates. This makes it an ideal location for businesses looking to access the wider GCC region and beyond.
Flexible business options
Ajman offers a range of business options, from freelancer permits to full-fledged commercial licences. This allows businessmen to choose the option that best fits their business needs and goals.
Supportive business environment
The Ajman Free Zone Authority (AFZA) provides a range of support services for businesses, including assistance with business registration, licensing, and more. This helps to ensure that the business is able to start operating smoothly and efficiently.
DOCUMENTS REQUIRED TO GET THE AJMAN TRADE LICENSE
The following documents are typically required to obtain a trade licence in Ajman.
- Passport copy of the owner/s and the manager
- CV of the owner/s and the manager
- Proof of business address in Ajman
- Detailed business plan
- Bank statement or certificate of deposit to prove the availability of financial resources
- Description of the nature of the business activities
- Memorandum of Association and Articles of Association of the company
- Trade name reservation certificate
- Application form for trade licence
- No Objection Certificate from any relevant government departments
Note: The specific requirements may vary based on the type of business and the nature of its activities. It is advisable to check with the Ajman Free Zone Authority (AFZA) for a complete and up-to-date list of the required documents.
RENEWAL OF TRADE LICENSE IN AJMAN
The process of renewing a Trade License in Ajman typically involves the following steps.
- Prepare required documents – Before renewing the licence, the applicant will need to gather the necessary documents, including proof of insurance, financial statements, and other relevant documentation.
- Submit renewal application – Submit the renewal application to the Ajman Free Zone Authority (AFZA) along with the required documents and fees.
- Pay renewal fee – The renewal fee for a Trade License in Ajman can vary but typically ranges from AED 5,000 to AED 20,000, depending on the type of licence and the size of the business.
- Receive renewed licence – Once AFZA has processed the renewal application and fees, the applicant will receive the renewed Trade License.
FAQs
How to apply for a Dubai trade licence?
To apply for a Dubai trade licence, the following steps can be followed.
- Determine the type of business and the activities that will be carried out.
- Choose a legal form for the company
- Select a trade name and check its availability.
- Decide on a location for the business and obtain approval from the relevant authority.
- Submit the application and required documents to the Department of Economic Development (DED).
- Pay the applicable fees.
How much does a business licence cost in Ajman?
The cost of a business licence in Ajman, UAE varies depending on the type of business and legal structure. On average, a trade licence can cost between AED 10,000 to AED 50,000.
Do small businesses need a licence in Ajman?
Yes, small businesses in Ajman, UAE are required to obtain a trade licence. The requirement applies to all types of businesses, regardless of size, and is necessary to legally operate in the emirate. It’s recommended to check with the Department of Economic Development for specific requirements and fees.
How can I get a business licence online in Ajman?
In Ajman, UAE, it’s possible to apply for a trade licence online through the Department of Economic Development’s e-services portal. Here’s how you can do it.
- Register for an account on the e-services portal.
- Choose the type of licence you want to apply for and fill out the online application form.
- Upload the required documents, such as passport copies, trade name approval, and commercial space lease agreement.
- Pay the fees online.
Is a trade licence mandatory in Ajman?
Yes, a trade licence is mandatory in Ajman, UAE in order to legally operate a business in the emirate. The licence is issued by the Department of Economic Development and is necessary to prove that the business is operating within the law. Failure to obtain a trade licence can result in fines and other penalties.
Is it hard to obtain a trade licence in Ajman?
Obtaining a trade licence in Ajman, UAE can be a complex process that involves fulfilling various requirements and navigating government bureaucracy. It can also be time-consuming and require a significant investment of money and effort.
However, the process can be made easier by seeking assistance from a business consultant, who can help guide you through it. Additionally, the government has made efforts to streamline the process and offer online services to simplify the application process.
How long will it take to get a business licence in Ajman?
The time it takes to obtain a business licence in Ajman, UAE can vary depending on various factors such as the type of business, legal structure, and the completeness and accuracy of the application and supporting documents. On average, the process can take anywhere from a few weeks to several months.
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