Ajman

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Business Licensing

Sections

1. Types of Business Licenses in Ajman

Ajman offers several types of business licenses depending on the nature of your business activity. These licenses are issued by the Ajman Department of Economic Development (Ajman DED) for mainland businesses or by the Ajman Free Zone Authority (AFZA) for businesses operating in the free zone. Here are the main types:

Mainland Licenses (Ajman DED)

  1. Commercial License: For businesses involved in trading activities (e.g., import/export, retail, wholesale).
  2. Professional License: For service-oriented businesses (e.g., consultancy, IT services, legal services).
  3. Industrial License: For manufacturing or industrial activities.
  4. Tourism License: For businesses in the tourism sector (e.g., travel agencies, tour operators, hotels).

Free Zone Licenses (Ajman Free Zone)

  1. Trading License: For trading activities within the free zone or internationally.
  2. E-Commerce License: For online businesses and e-commerce platforms.
  3. Industrial License: For manufacturing and industrial operations within the free zone.
  4. Service License: For service-based businesses.
  5. Freelance License: For individuals offering professional services as freelancers.

2. Costs Associated with Business Licensing in Ajman

The cost of obtaining a business license in Ajman depends on the type of license, the business activity, and whether you are setting up in the mainland or the free zone. Below is a general breakdown:

Mainland Business Setup Costs (Ajman DED)

  • License Fee: AED 5,000–15,000 (varies by activity).
  • Trade Name Registration: AED 500–1,000.
  • Initial Approval Fee: AED 500–1,000.
  • Office Space Rental: AED 10,000–50,000 annually (depending on location and size).
  • Other Fees: May include municipality fees, Chamber of Commerce membership, and other administrative costs.

Free Zone Business Setup Costs (Ajman Free Zone)

  • License Packages: Start from AED 11,000 annually (includes license, office space, and visa eligibility).
  • Freelance License: AED 6,000–9,000 annually.
  • Visa Costs: AED 3,000–5,000 per visa (if required).
  • Office Space: Shared desks, executive offices, or warehouses are available at varying costs.

3. Step-by-Step Procedure for Obtaining a Business License

The process differs slightly for mainland and free zone businesses. Below are the detailed steps for both:

Mainland Business Setup (Ajman DED)

  1. Choose a Business Activity:

    • Select the activity you wish to conduct from the Ajman DED’s approved list of activities.
    • Ensure the activity aligns with the type of license you are applying for.

  2. Reserve a Trade Name:

    • Submit 3–5 proposed names for your business to the Ajman DED.
    • The name must comply with UAE naming conventions (e.g., no offensive terms, no religious references, and must reflect the business activity).

  3. Obtain Initial Approval:

    • Submit an application for initial approval to the Ajman DED.
    • Required documents: Passport copies of shareholders, Emirates ID (if applicable), and a No Objection Certificate (NOC) from the current sponsor (if applicable).

  4. Lease Office Space:

    • Secure a physical office or shop space in Ajman.
    • Obtain a tenancy contract and have it attested by the Ajman Municipality.

  5. Submit Final Application:

    • Submit all required documents, including the tenancy contract, trade name certificate, and initial approval, to the Ajman DED.
    • Pay the applicable fees.

  6. Receive the Business License:

    • Once approved, you will receive your business license, allowing you to legally operate in Ajman.

Free Zone Business Setup (Ajman Free Zone)

  1. Choose a Business Activity and License Type:

    • Select the activity and license type (e.g., trading, e-commerce, freelance).

  2. Select a Business Package:

    • Choose from available packages that include office space, visa quotas, and other services.

  3. Submit Application:

    • Provide the required documents: Passport copies of shareholders, passport-sized photos, and a completed application form.

  4. Sign the Lease Agreement:

    • If your package includes office space, sign the lease agreement with the Ajman Free Zone Authority.

  5. Pay Fees:

    • Pay the license fee and any additional costs (e.g., visa processing).

  6. Receive the Business License:

    • Once approved, you will receive your license and can begin operations.

4. Local Considerations and Requirements

When setting up a business in Ajman, there are several local considerations to keep in mind:

  1. Ownership Rules:

    • For mainland businesses, foreign investors can now own 100% of their business in most sectors, thanks to recent changes in UAE laws.
    • Free zone businesses are 100% owned by the investor.

  2. Office Space Requirements:

    • Mainland businesses must have a physical office or shop space.
    • Free zone businesses can opt for shared desks or virtual offices, depending on the package.

  3. Visas:

    • Mainland businesses can sponsor employee visas based on the size of their office space.
    • Free zone businesses are typically allowed a specific number of visas based on their package.

  4. Bank Account Opening:

    • After obtaining your license, you will need to open a corporate bank account. Requirements vary by bank but generally include your trade license, passport copies, and proof of address.

  5. Compliance with UAE Laws:

    • Ensure your business complies with UAE labor laws, tax regulations (e.g., VAT registration if applicable), and other legal requirements.

  6. Renewal:

    • Business licenses must be renewed annually. Late renewals may incur penalties.

5. Key Contacts and Resources

  • Ajman Department of Economic Development (DED):

  • Ajman Free Zone Authority (AFZA):

  • Ajman Municipality:

    • For tenancy contract attestation and other municipal services.

Conclusion

Ajman offers a straightforward and cost-effective process for obtaining a business license, making it an attractive destination for entrepreneurs and investors. Whether you choose to set up in the mainland or the free zone, understanding the types of licenses, costs, and procedures will help you establish your business efficiently. Be sure to consult with local authorities or a business setup consultant for tailored advice and assistance.