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Business Setup in Ajman
Discover how to establish your business setup in Ajman with our comprehensive guide on mainland company setup, starting from 10,500 AED. Start your Company journey today!
Ajman, the smallest of the United Arab Emirates’ seven emirates, has emerged as an affordable and strategic destination for entrepreneurs and foreign investors. Its proximity to Sharjah and Umm Al Quwain, along with its modern infrastructure and simplified regulations, makes it an ideal place for establishing a new business. We provide a comprehensive overview of the process, legal structures, license types, and more to help you establish your business in Ajman Mainland with confidence.
Legal Entities Permitted in Ajman Mainland Company Formation
Foreign investors in the Ajman Mainland are empowered to choose a suitable legal structure for their business setup, based on the number of shareholders and the nature of the proposed entity. With the guidance of business setup consultants, entrepreneurs can feel confident in determining the appropriate legal structure for their mainland company, including the following types:
Sole Proprietorship
A sole proprietorship in Ajman is a company run by a single shareholder with unlimited liability. The owner is directly liable for all liabilities and profits. UAE nationals and foreigners can set up a sole proprietorship in Ajman. Still, foreigners must appoint a UAE national as LSA for approval. Foreign investors can conduct professional or service activities through a sole proprietorship business in Ajman.
(LLC) Limited Liability Company Company Formation in Ajman
Foreign investors can start a Limited Liability Company (LLC) in Ajman with 2–50 shareholders, reducing the requirement for a UAE national partner as a Local Sponsor. Beginning in June 2021, nearly 1,000 commercial activities were listed by the Ajman Department of Economic Development (DED). An LLC can carry out commercial and industrial activities, but it is prohibited from engaging in consultancy activities. Shareholder liability is limited to the capital invested, and third parties can only sue the company, not the shareholders. Debts incurred by the company are the company responsibility, not the shareholders’.
Civil Company
Starting a civil company on the mainland of Ajman requires two individuals, a UAE national service agent or partner, and consultation with business setup experts.
Branch Companies
Business setup advisers can assist registered companies, including UAE-based, foreign, and GCC-based entities, in establishing branches in Ajman mainland for quick establishment.
Public/Private Shareholding Company
The Ajman mainland requires at least 51% UAE national ownership, allowing foreign investors to conduct commercial, industrial, and professional activities. Business setup consultants in Ajman can assist investors in establishing a mainland company in Ajman without hassle.
Types of Business Licenses in Ajman Mainland Company Formation
Obtaining trade licenses in the Ajman Mainland is not only necessary but also a challenging process. Operating a business without one can lead to penalties. Business setup consultants can guide foreign investors through the process of applying for a trade license, which is dependent on the business’s economic activities.
Professional License
Allows 100% foreign ownership for service-based activities, such as consulting, IT, and accounting. Requires appointment of a UAE national as a Local Service Agent.
Trading License
A trading license in Ajman allows license holders to sell goods specified in the permit, including import, export, and re-export of goods. At the same time, total foreign ownership is available for thousands of commercial activities listed by the Department of Economic Development (DED). Foreign investors can consult business setup consultants for more information on eligible activities.
Industrial License
An Ajman industrial license allows license holders to engage in logistics and manufacturing activities, which can be obtained quickly by consulting business setup advisers.
Tourism License
Unlock the potential of the Ajman tourism sector with a Tourism License, which allows you to operate travel agencies, tour operators, and related services. Enjoy the benefits of a growing market, professional support, and a strategic location.
Agricultural License
Establishing your agribusiness in Ajman with an agricultural license enables you to farm, cultivate, and distribute agricultural products. Benefit from Ajman supportive regulatory environment and access to local markets.
E-commerce License
Launch your online business with an E-commerce License in Ajman, which enables you to sell products and services online, capitalising on a rapidly growing digital market. Enjoy streamlined processes and fast support.
Branch License
Launch your online business with an E-commerce License in Ajman! A license enables you to sell products and services online, capitalising on a rapidly growing digital market. Enjoy fast processes and support. Contact us today to assist with the licensing steps and start your e-commerce journey!
Business Setup Process in Ajman Mainland
Investors must follow a highly streamlined process to register a company on the mainland of Ajman. Entrepreneurs with access to bespoke business setup services in Ajman can easily navigate the steps for company incorporation. The steps associated with the process of business setup in the Ajman mainland are given below:
- Select your business activity
- Choose a legal structure
- Submit the application form via the business setup consultants
- Reserve trade name
- Get necessary government approvals (for regulated sectors)
- Sign the lease agreement for office space
- Obtain a trade license
- Apply for residence visas
- Open a corporate bank account
Benefits of Business Setup in Ajman Mainland
Foreign investors can avail themselves of the following benefits by registering a company in Ajman mainland:
- 100% foreign ownership in specific activities
- Zero corporate tax
- Zero personal tax
- Modern infrastructure
- Excellent connectivity through sea, air and land
- Perfect location
- Low-cost living
- Ability to hire foreign labours at a low cost
- Availability of office spaces and warehouses at low rentals
Additionally, Ajman offers multiple free zone options that provide tailored benefits to specific business sectors. Entrepreneurs looking for cost-effective and flexible setups can explore Ajman Free Zone for general trading and industrial activity, or consider Ajman Media City Free Zone for media, digital, and creative enterprises. For traders and logistics companies, ANCFZ, located in the China Mall area, provides a ready-made ecosystem. Investors and employees also benefit from streamlined Visa Services in Ajman to secure residency, investor visas, and dependent permits.
Expert Business Setup Services in Ajman, UAE
Silver Oak Biz Business Consultants provides comprehensive support for establishing a business in Ajman. From legal documentation to visa processing and bank account opening, our expert consultants streamline the process, ensuring compliance with UAE regulations.
Estimated Costs for Mainland Business Setup in Ajman
The Ajman Mainland business setup cost includes license fees, office space, local sponsor fees, visa and permit costs, as well as other associated expenses. Office space varies based on location, size, and facility type. Local sponsor fees may apply for businesses requiring a local sponsor. Visa and permit expenses for shareholders and employees are also essential considerations. The mainland license fee ranges from 10500 to 18000 AED.
- Mainland License Fee: AED 10,500 – AED 18,000
- Office Space Rent: AED 8,000 – AED 20,000
- Local Sponsor Fees: Varies by agreement (if required)
- Visa & Immigration: AED 3,000 – AED 5,000 per employee
- Consultancy & Admin Fees: AED 2,000 – AED 5,000
- Total Estimated Cost: AED 30,000 – AED 55,000
- Corporate Bank Account UAE
Documents Required for Business Setup in Ajman Mainland
The required documents for a business vary based on its legal structure, such as a Limited Liability Company (LLC), a Sole Proprietorship, and a Branch Office.
Limited Liability Company (LLC)
Sole Proprietorship
Branch Office
Answer of mostly asked questions to us
What are the first steps to setting up a business in Ajman mainland?
To set up a business in Ajman mainland, follow these steps:
- Decide on your business activity.
- Choose your business structure (e.g., sole proprietorship, LLC).
- Obtain initial approval from the Ajman Department of Economic Development (DED).
- Reserve a trade name.
- Rent an office space that meets local regulations.
- Complete the licensing process and pay the fees.
What types of business licenses are available in Ajman mainland?
Ajman offers various types of licenses, including:
- Commercial License: For trading activities.
- Industrial License: For manufacturing businesses.
- Professional License: For service providers (e.g., consultancy).
- Tourism License: For travel agencies and related services.
Is a local sponsor required for businesses in Ajman mainland?
Yes, for most types of companies, a local sponsor (UAE national) is required to hold 51% of the shares. However, certain business activities allow 100% foreign ownership under specific conditions.
What are the advantages of setting up a business in Ajman mainland?
- Cost-Effective: Lower setup and operational costs compared to other emirates.
- Accessible Market: Ajman is strategically located near major cities, providing access to a wider market.
- Variety of Licenses: A range of licenses is available for different business activities.
- Growing Economy: Ajman's economic growth provides opportunities for various industries.
How long does it take to register a business in Ajman mainland?
The business registration process in Ajman can typically take one to three weeks, depending on the business type, required approvals, and document readiness.
Are there any specific requirements for foreign investors?
Foreign investors may need a local partner for most types of businesses, except for specific activities that allow 100% foreign ownership. They must also comply with local laws and regulations.
What is the minimum capital requirement to start a business in Ajman mainland?
The minimum capital requirement varies based on the business activity and structure. For LLCs, the minimum is typically AED 300,000. Always check with the DED for specific requirements.
Can I hire foreign employees for my Ajman mainland business?
Yes, you can hire foreign employees. You'll need to obtain the necessary work permits and visas, and comply with the UAE's labor laws regarding employment.
What are the main compliance requirements for businesses in Ajman?
Ongoing compliance includes:
- Annual renewal of your trade license.
- Filing necessary tax returns (if applicable).
- Maintaining up-to-date financial records.
- Adhering to labor regulations regarding employee welfare.
How can Silver Oak Business Consultancy help with business setup in Ajman?
At Silver Oak, we provide comprehensive support throughout the business setup process in Ajman. Our services include:
- Guidance on legal requirements and licenses.
- Assistance with documentation and applications.
- Local sponsorship solutions.
- Advice on market entry and business strategy.
