How to Start a Business in Ajman: A 2025 Step-by-Step Guide
Learn how to start a business in Ajman, covering essential steps for company formation, business licenses, costs, and more in 2025.
Ajman, the smallest emirate in the UAE, offers immense opportunities for entrepreneurs and businesses. Known for its competitive setup costs, strategic location, and diverse business environment, Ajman has become a popular choice for those looking to establish their company in the UAE. Whether you’re a startup or an established business expanding into the UAE market, Ajman’s business-friendly policies and infrastructure can provide the perfect foundation for your venture.
In this comprehensive guide, we’ll walk you through the process of starting a business in Ajman, including the benefits, types of licenses, and the essential steps involved. Whether you're opting for an Ajman Free Zone setup or choosing to form your company on the mainland, this guide will cover everything you need to know.
Why Start a Business in Ajman?
Ajman presents several compelling reasons for businesses to set up in the emirate. Here are some of the key advantages:
1. Strategic Location
Ajman is conveniently located near major trading hubs like Dubai and Sharjah, offering easy access to sea, air, and land routes. This proximity allows businesses to connect with regional and global markets seamlessly.
2. Affordable Setup Costs
Ajman is known for its competitive pricing when it comes to business setup costs. Compared to other Emirates like Dubai, Ajman offers more affordable licensing fees, office spaces, and other setup-related costs, making it an attractive option for small to medium-sized enterprises (SMEs).
3. Business-Friendly Regulations
Ajman has a streamlined process for business setup, ensuring that entrepreneurs can get their operations running without unnecessary delays. With minimal bureaucratic red tape, the regulatory environment fosters an ease of doing business.
4. No Personal Income Taxes
For businesses set up in Ajman Free Zone, there are no corporate or personal income taxes, making it a highly tax-efficient jurisdiction. This provides significant savings for investors and allows businesses to reinvest profits.
Types of Business Structures in Ajman
When considering starting a business in Ajman, understanding the available business structures is crucial. The two main options for business formation are setting up in the Ajman Free Zone or on the Mainland.
1. Ajman Free Zone Setup
Ajman Free Zone (AFZ) provides several benefits to entrepreneurs, including 100% foreign ownership, no import/export duties, and simplified visa processes. Businesses set up here can operate across a range of sectors, such as manufacturing, trading, services, and e-commerce.
Advantages of Ajman Free Zone:
100% foreign ownership
Full repatriation of profits and capital
No corporate tax for 50 years
Quick and easy visa process
2. Mainland Setup in Ajman
For companies looking to cater to the local UAE market, a mainland setup may be more suitable. This option allows you to operate freely within the UAE, but it requires a local sponsor who holds at least 51% of the company’s shares (with some exceptions). While more complex than the free zone, a mainland business provides greater flexibility for business operations.
Advantages of Mainland Setup:
Ability to trade directly with the UAE market
No restrictions on the number of visas you can sponsor
Ability to lease commercial properties anywhere in the UAE
Steps to Start a Business in Ajman
Starting a business in Ajman, whether in the free zone or on the mainland, requires following a structured process. Here’s a step-by-step guide:
Step 1: Choose Your Business Activity
The first step in setting up a business in Ajman is choosing your business activity. Whether you plan to trade goods, provide services, or set up a manufacturing unit, Ajman Free Zone and the mainland offer flexibility in business activities. Ensure that the activity aligns with the type of license you want to obtain.
Step 2: Select the Business Structure
Next, decide whether to set up in the Ajman Free Zone or on the Mainland. As mentioned earlier, the decision will depend on your target market, business goals, and financial considerations. A free zone setup may be ideal for startups with international aspirations, while a mainland setup is better suited for businesses targeting the local market.
Step 3: Choose a Company Name
Your business name must comply with the UAE’s naming regulations, which prohibit names that are offensive or religiously sensitive. Once you have decided on a name, you can apply to register it with the Department of Economic Development (DED) for mainland companies or the relevant authority for free zones.
Step 4: Prepare the Required Documents
For both free zone and mainland setups, you will need to submit various documents, including:
Copies of the shareholders' passports
Proof of address
Application form
A business plan (if required)
No Objection Certificate (if applicable)
Step 5: Obtain Initial Approval
Submit your application and documentation to the relevant authorities in Ajman. Upon review, the authorities will issue an initial approval allowing you to proceed with the next steps in the business setup process.
Step 6: Lease Office Space
After receiving initial approval, the next step is to secure office space. For a mainland setup, you will need to lease commercial space in Ajman. For a free zone setup, you can opt for office spaces or flexi-desk options available within the free zone.
Step 7: Pay Fees and Collect Your Business License
Once your office space is secured, you will need to pay the relevant fees, including license registration, office rent, and visa fees. Once the payment is made, you will receive your business license and be authorized to start operations.
Cost of Starting a Business in Ajman
The cost of setting up a business in Ajman depends on several factors, including the type of business, office space requirements, and the license you need. Here is a breakdown of the costs involved:
1. Ajman Free Zone Setup
License Fees: From AED 5,000 to AED 10,000
Office Rent: Flexi-desk packages start at AED 8,000 per year; dedicated office spaces range from AED 15,000 to AED 50,000
Visa Fees: AED 3,000 to AED 5,000 per visa
Miscellaneous Fees: Additional fees for services like document attestation, legal translations, and PRO services
2. Ajman Mainland Setup
License Fees: Depending on the business activity, costs can range from AED 10,000 to AED 20,000
Office Rent: Typically AED 20,000 to AED 60,000 per year, depending on location and space size
Local Sponsor Fees: Sponsor fees can range from AED 10,000 to AED 15,000 annually
Visa Fees: AED 3,000 to AED 5,000 per visa
Note: Costs are indicative and can vary. It’s important to consult with a business setup consultant to get accurate pricing based on your specific requirements.
Conclusion
Ajman is an excellent location for businesses looking to establish a presence in the UAE. Whether you’re setting up in the Ajman Free Zone or on the mainland, the emirate offers a business-friendly environment with competitive costs and numerous incentives. By following the steps outlined in this guide, you can successfully navigate the business setup process in Ajman and take advantage of the region’s economic potential.
If you need assistance with your business setup or would like more details on Ajman’s free zone or mainland options, consider working with a professional business setup consultant.
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