Ajman company registration

DOING BUSINESS IN AJMAN IN 2018

Since 2003, Healy Consultants Group PLC has been efficiently and effectively assisting our Clients with i) Ajman business registration ii) business licensing iii) Ajman business banking solutions iv) visa options and staff recruitment strategies and v) workspace rental solutions.

Summary table of Ajman company registration

SummaryLimited Liability CompanyFree zone LLCInternational Business CompanyJoint ventureCommercial AgencyBranch office
Also known asOnshore LLCFree zone companyOffshore companyJVLocal agent/distributorBO
Best use of company?Professional servicesAll products and servicesInternational financial servicesManufacturing and tradingManufacturing and export tradingSpecific projects
How soon can you invoice Clients\sign sales contracts with local customers?2 months2 monthsCannot trade locally2 months1 month3 months
How soon can you invoice Clients\sign sales contracts with international customers?2 months2 months2 weeks2 months1 month3 months
How soon can you hire staff?2 months2 months2 weeks2 months1 month3 months
How soon can you sign a lease agreement?1 month1 monthCannot rent office premises1 month1 month2 months
How long to supply corporate bank account numbers?1 month1 month1 month1 month2 months1 month
How long to supply company registration \ tax numbers?2 months2 months2 weeks2 months1 month3 months
Limited liability entity?YesYesYesYesNoNo
Government approval required for foreign owners?NoNoNoNoNoNo
Resident director/partner/manager/ legal representative required?YesNoNoYesYesYes
Minimum paid up share capital?US$1US$1US$1US$1US$1US$1
Can bid for Government contracts?YesNoNoYesNoYes
Can do business with UAE customers without appointing local agent?YesNoNoYesNoYes
Can do business with UAE customers by appointing local agent?YesYesNoYesYesYes
Corporate bank account location?ADCBADIBAjman BankEmirates NBDFirst Abu Dhabi BankUnion National Bank
VAT payable on sales to local customers?5%5%Cannot trade locally5%5%5%
Average total business set up engagement costs?US$28,075US$23,125US$11,870US$28,075Request a proposalUS$28,075
Average total engagement period?3 months3 months6 weeks3 months2 months4 months

Ajman company registration summary

Press the link headings below to read detailed, relevant, up to date information.

  • Advantages and disadvantages

    Advantages of Ajman company registration

    Business registration in Ajman

    1. Foreign investors enjoy lower set up costs than equivalent free zones elsewhere in the UAE. For example, Ajman Free Zone Authority levies no business registration fees (although it does levy license fees), making business registration a cost-effective solution for international entrepreneurs. Furthermore, office and land lease rates in Ajman are lower than in the free zones elsewhere in the UAE;
    2. Goods produced by the companies having national industrial license in the Ajman with 51% shareholding with GCC nationals are eligible for “UAE Certificate of Origin” from the Ministry of Economy and Commerce, UAE, qualifying them for a customs duty exemption in member states of the GCC, provided the value addition in Ajman FZ has been at least 40% of the total final value of the relevant product;
    3. Companies in Ajman FZ enjoy low energy costs. Consequently, Ajman is popular for energy intensive businesses such as manufacturing. International entrepreneurs choosing to set up a manufacturing business entity in Ajman obtain an industrial license. Healy Consultants will arrange all required licenses without our Client needing to travel;
    4. A company located in Ajman enjoys 100% legal exemption from all import and export duties;
    5. Foreign investors obtain a 20-year land lease, renewable for another 20 years and thereby guaranteeing 40 years’ legitimate tax-exempt operations;
    6. 100% foreign ownership is permitted. A free zone enterprise (FZE) requires a minimum of one shareholder. Furthermore, there are no restrictions on the repatriation of capital or profits from the UAE for any entity in Ajman;
    7. Registering an Ajman business is easier and cheaper than incorporating a regular LLC. For example, it is possible to set up a ‘hot desk’ facility in an office, a fully equipped space with desk, internet connection etc. which is available for rent by the hour or day subject to availability. This shared facility removes the cost of renting a fixed office, and is especially attractive to new business startups;
    8. International entrepreneurs obtain one of 4 different license types for their Ajman business: i) trading license ii) industrial license iii) professional services license and iv) national industrial license. A trading license is issued to foreign/UAE companies/free zone business entities who wish to carry out activities in Ajman;
    9. As part of the UAE, a respected international trading jurisdiction, an Ajman business is not perceived as an offshore company in an international tax haven. The UAE is positively ranked as the 21st least corrupt country in the 2017 Corruption Perceptions Index by Transparency International, a global measure of corruption amongst public officials and politicians;
    10. Healy Consultants can open global corporate bank account to support Ajman company. Healy Consultants works with internationally recognised banks such as HSBC, Standard Chartered and Citibank to provide corporate bank account services;
    11. Following business registration, our Clients obtain UAE residence and employment visas. For more information, visit our migration and relocation services page;
    12. The repatriation of capital and profits is very easy given that there are no taxes levied on personal and corporate income;
    13. The unemployment rate of the economy is as low as 1.7% of the workforce, making Ajman a preferred destination for workers from round the world.

    Disadvantages of Ajman company registration

    1. Ajman has a high minimum capital requirement of DHS183,500 (US$50,000), which must be paid up during incorporation;
    2. Ajman business registration is slow, taking up to five weeks to obtain the business registration certificate and operating license;
    3. A free zone company (FZC) requires at least two shareholders, who can be of any nationality and need not be resident in Ajman or the UAE;
    4. Ajman is a small emirate which does not enjoy the global image and reputation of Dubai. Consequently, Ajman is not a good solution for international entrepreneurs for whom corporate image is important;
    5. While Ajman is strategically located close to major communication and transport links, Ajman only has a limited range of good quality accommodation, services, and schools for expatriate staff. Most expatriate managers choose to live in Dubai or Sharjah, with commuting times from Dubai at peak hours taking up to one hour;
    6. Because it is under developed, Ajman is experiencing construction work and utilities development which is disruptive to the operations of some companies. Furthermore, because it is under developed, Ajman is not yet an established community of businesses requiring services;
    7. Ajman’s GDP per-capita in PPP terms is US$68,895 which is one of the highest in the world, well above many developed nations other than Norway and Luxembourg. This implies that the wages of workers would be relatively higher in Ajman.
  • Best uses for an Ajman company

    Connecting East and West

    1. Strategically situated at the entrance of the Arabian Gulf, Ajman is well placed to serve the eastern and western markets. Ajman’s proximity to Sharjah and Dubai provides easy accessibility to the two international airports and four ports;

    A tax-exempt vehicle in the Middle East

    1. If properly structured, Ajman FZ business is the perfect way to legitimately book international profits without paying local corporation tax. There is neither any corporate tax nor personal income tax levied. Furthermore, there are no requirements for an Ajman business to prepare annual financial statements or tax returns to any authorities, making Ajman company easy to manage.

Company registration

  • Time to incorporate: Eight weeks
  • Cost to set up: US$23,125
  • Minimum capital: US$50,000
  • Physical office required: No

Required appointments

  • Shareholders: 2
  • Directors: 1
  • Company secretary: No
  • Resident director: Yes

Key facts

  • Corporate tax rate: 0%
  • Corporate tax base: Territorial
  • Shelf companies: No
  • Main company type: FZ Company

Compare Middle East manufacturing companies
Business set up guide
Agents and sponsors
Business set up strategy
Frequently asked questions
Compare similar open Middle East countries
Trademark registration

Frequently asked questions

Contact us

For additional information on our company registration services in Ajman, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Ms. Chrissi Zamora, directly: