Ajman is one of the most popular emirates for business in the United Arab Emirates. Last year, the emirate’s GDP reached $10 billion, marking an all-time high. Ajman is continuously diversifying its business sectors, inviting hundreds of new small businesses from around the world.

This guide walks you through everything you need to know about setting up a small business in Ajman. It assists you in avoiding any complications and confusion.

Benefits of Small Business Setup in Ajman, UAE

The following are the major benefits of small business setups in Ajman:

1. Ajman is one of the most affordable places in the UAE to start a company.
2. The setup process is quick and easy compared to many other emirates.
3. Ajman Free Zone offers 100% foreign ownership of the business.
4. You can send back all your profits to your home country without restrictions.
5. There are no taxes on personal income or company earnings.
6. Ajman is in a good location with easy access to Dubai, Sharjah, and the rest of the UAE.
7. The emirate has a modern port, which makes trade and shipping simple.
8. Many types of businesses are allowed, giving flexibility to investors.
9. Office spaces, warehouses, and business centers are available at low cost.
10. The Ajman government gives strong support to entrepreneurs and new businesses.

Types of Business Licenses in Ajman

The following are the licenses available for small businesses in Ajman. You can choose based on your business activities. Here:

1. Commercial / Trading License

This license is for businesses that want to buy, sell, import, or export goods. It is perfect for trading items like electronics, clothing, furniture, or food products.

2. General Trading License

If you want to trade many different products under one license, this option is the best. It gives you more flexibility because you do not need separate licenses for each product.

3. Industrial / Manufacturing License

This license is for factories and companies that make or assemble products. It allows you to bring in raw materials, produce goods, and then export or sell them.

4. National Industrial License

This license is for companies owned mostly by GCC nationals (at least 51%). At least 40% of the work must be done inside the free zone. It also gives special benefits like duty-free trade with GCC countries.

5. Service / Professional License

If you offer services instead of products, this license is the right choice. It is used by consultants, IT firms, marketing agencies, travel companies, and other service providers.

6. E-Commerce License

Online businesses can apply for this license. It allows you to sell products and services through websites, apps, and online marketplaces.

7. Freelancer License

This license is designed for individuals who work on their own, such as writers, designers, programmers, or consultants. It is affordable and does not always require an office.

8. Pioneer License

This special package is for young entrepreneurs between 20 and 30 years old. It includes co-working space, visa options, and business support at a lower cost.

9. Offshore License

This license allows foreign companies to register in Ajman but run their operations outside the UAE. It gives tax benefits and privacy, but does not allow trade within the UAE market.

Legal Structures To Set Up a Business in Ajman

Mainland Legal Structures

Mainland companies are registered with the Ajman Department of Economic Development (DED). They allow you to trade anywhere in the UAE and abroad.

Limited Liability Company (LLC)

The most common structure in Ajman. It can have 2 to 50 owners. Each owner’s liability is limited to the money they invest. Many activities now allow 100% foreign ownership.

Sole Proprietorship

Owned and managed by one person. The owner has full control, but also full responsibility for any debts. If the owner is foreign, a Local Service Agent (LSA) is required.

Private Joint Stock Company (PJSC)

Best for large projects and investors. It requires more capital and usually at least 51% UAE national ownership.

Civil / Professional Company

Made for professionals like doctors, engineers, or consultants. Full foreign ownership is often allowed, but you may still need a Local Service Agent.

Branch or Representative Office

If you already have a company (local or foreign), you can open a branch in Ajman. A branch can do the same activities as the parent company. A representative office cannot trade; it is only for promotion or research.

Free Zone Legal Structures

Ajman has two main free zones: Ajman Free Zone (AFZ) and Ajman Media City Free Zone (AMCFZ). These are popular because they allow 100% foreign ownership, tax benefits, and fast setup.

Free Zone Establishment (FZE)

Owned by one person or one company. Liability is limited to the investment.

Free Zone Company (FZC)

Owned by two or more shareholders. Liability is also limited to the share capital.

Branch of a Local Company

A UAE mainland business can open a branch in Ajman Free Zone. It will operate under the same license.

Branch of a Foreign Company

A foreign company can set up a branch in Ajman. It stays fully owned by the parent company abroad.

Pioneer and Freelance Licenses

Special low-cost options for young entrepreneurs and individuals. They are great for startups, freelancers, and professionals working alone.

Ajman Mainland vs Ajman Free Zone

If you’re confused between mainland and free zone company formation, this table gets you all the characteristics you need to consider before making a choice.

Steps to Start a Small Business in Ajman

Follow this step-by-step method to start your company in Ajman:

1. Choose Your Business Activity

Decide what kind of business you want to start. Ajman allows many activities like trading, services, consultancy, e-commerce, and more. Your activity will decide the type of license you need.

2. Select the Legal Structure

Choose whether you want to set up in the Mainland or in a Free Zone. Then pick the legal form such as LLC, Sole Proprietorship, FZE, or FZC. This step is important because it affects ownership, costs, and where you can trade.

3. Reserve a Trade Name

Pick a unique name for your company. The name should follow Ajman’s rules and must not copy another business. You need to reserve the trade name with the authorities.

4. Apply for Initial Approval

Submit an application to get approval from the Ajman Department of Economic Development (DED) for mainland or the Free Zone Authority for free zone setup. This shows that the government has no objection to your business plan.

Official business setup details:

5. Find Office Space

Choose a location for your company. Mainland companies must have an office or shop. Free zone companies can pick flexible options like shared desks, small offices, or warehouses.

6. Prepare and Submit Documents

Provide the required documents such as passport copies, application forms, trade name approval, and initial approval certificates. Sometimes, additional approvals are needed for special activities like healthcare or education.

7. Pay the Fees

Once your documents are checked, you need to pay the registration and license fees. The cost depends on your activity, structure, and location.

8. Get Your Trade License

After payment and final approval, you will receive your trade license. This is the official document that allows you to run your business in Ajman.

9. Apply for Visas and Bank Account

With your license, you can apply for investor visas, employee visas, and open a company bank account. This helps you hire staff and start operating smoothly.

Required Documents for Company Formation in Ajman

The following documents are required for company formation in Ajman:

1. Passport copies: Valid copies of all shareholders and managers.
2. Visa copy or entry stamp: UAE residence visa or entry stamp of each shareholder.
3. Passport-sized photos: Recent colored photos of shareholders and managers.
4. Trade name reservation certificate: Proof that your company name is approved.
5. Initial approval certificate: Permission from the authority to continue setup.
6. Memorandum of Association (MOA): Legal document stating company activities and ownership.
7. Lease agreement: Proof of office, shop, or warehouse space in Ajman.
8. No Objection Certificate (NOC): Needed if a shareholder already has a UAE visa.
9. Special approvals: Extra permissions for activities like healthcare, education, or media.

Official UAE government business information:

Frequently Asked Questions (FAQs)

1. What should I consider when choosing a business name?

Your business name must follow UAE rules, be unique, and match the activity you plan to do.

2. How do I obtain a trade license to conduct business in the UAE?

You can obtain a license by applying through the local authority according to your business activity, submitting documents, and paying the required fees.

3. Can I open a corporate bank account easily?

Yes, after registering your company, you can open a corporate bank account in the UAE to manage payments and business finances.

4. What business structure options are available?

You can choose a business structure such as a Limited Liability Company (LLC), Free Zone Establishment (FZE), or branch office depending on your goals.

5. Is the business environment good for new investors?

Yes, the UAE offers a supportive business environment with modern infrastructure, tax benefits, and investor-friendly rules.

6. What type of company can I register?

The type of company depends on your needs – options include LLCs, partnerships, branches, or free zone entities.

7. Does my nature of business activity affect approvals?

Yes, the nature of business activity decides which authority gives approval, and some activities may need extra permissions.

8. What are the benefits if Ajman offers a package?

Ajman offers cost-effective setup packages, fast processing, and flexible options for small and large businesses.

9. How does Mainland business setup differ from free zone?

Mainland business setup allows you to trade directly in the UAE market, while free zones give you 100% ownership and easier rules for international trade.

10. Why should I consider company setup in this location?

Company setup here is simple, affordable, and gives access to the UAE market and international opportunities.