Ajman Free Zone (AFZ) Company Formation– 10 Steps Guide
The UAE is a lucrative place for anyone wanting to do Business. The Ajman Free Zone, in particular, is a great place for establishing your business. If you’re thinking of starting a company in the free zone then you should start off by learning more about it. Our 10-step guide is going to take you through the process of establishing a company in the Ajman Free Zone. By the end of this article, you will have all the information that you need to start reaping the benefits of the Ajman Free Zone.
Before we take you through the company setup process, let’s go through a quick crash course about the Ajman Free Zone.
Why Ajman Free Zone (AFZ)?
Setting up a company in the free zone lets you enjoy a number of advantages. All of these can help you lower costs and accelerate your business’s growth.
Direct Advantages of the AFZ
Multiple Visa Options: the AFZ attracts foreign investors by providing them with a variety of visa options. People who are setting up a business in the UAE for the first time can worry less about visa applications and focus more on their business.
The various visa packages include the Smart Office Package, which lets you get up to 3 visas, then there is the Executive Office that lets you get up to 5 visas. Businesses that don’t want to establish a physical presence can even opt for flexi-desk packages.
Cost-Effectiveness: The AFZ is known for being the most cost-effective trading zone in the UAE. This is why it is particularly popular amongst medium and small businesses. License packages start at as low as AED 11,000 and you get access to benefits that really help lower costs.
Simple Registration: setting up your own company in the Free Zone is really easy. You can register online on the AFZ’s official website and you’ll only have to visit the free zone once for signing documents. The quick and easy process lowers barriers and saves time as well.
No Local Sponsor NOC Needed: you can establish your company in the NFZ without a NOC (No Objection Certificate) from a current employer. This gives a greater number of people access to the free zone. You can be self-employed and still reap all the benefits of the AFZ.
Home to All Business Types: the AFZ doesn’t have any restrictions on what kind of businesses can be set up there. You can get industrial, professional, general, and even e-commerce licenses in the AFZ. Being open to so many business types is uncommon for Free Trade Zones in the UAE. This gives the AFZ an edge.
Low Entry Barriers: the AFZ tries to lower barriers to entry as much as possible. meaning entrepreneurs can set up their businesses with ease in there.
Easy Access to Corporate Bank Accounts: you can apply for a corporate bank account with very little hassle in the AFZ. The AFZ has dedicated personnel to help business owners find the right bank and apply for corporate accounts with them.
Dependent Sponsorship is Easy: sponsoring dependents is really easy in the AFZ because of its flexible visa options. As long as you meet the salary requirements and have enough space to accommodate your dependent. The sponsorship process is really simple as well.
Multiple Shareholders: the AFZ offers attractive benefits for larger businesses as well. Limited Liability partnerships (new companies) in the AFZ can have up to 5 shareholders.
Strategic Location: the AFZ’s location is easily one of its best attributes. It is in close proximity with 4 seaports and 2 international airports. This, combined with the fact that the AFZ can easily trade with the East and West, make it ideal for businesses that are into import/export. The AFZ even has offices in various countries across the world.
Setting Up a Company in the AFZ
We’ve now gone through all the benefits of going to the AFZ. It is a superb location for businesses of all shapes and sizes. Now, if you’re interested in starting a company in the free zone, you can do so by following the steps below.
Step-1: Register Your Interest
One of the best things about setting up in the AFZ is that it’s so easy. You can start the process by heading over to AFZ’s official website (https://www.afz.ae/en). Once there, click on the “Register Your Interest” button.
Step-2: Determining Your Business Type
Before you begin business, you need to determine the legal identity of your business. in the AFZ, you either set up a Free Zone Limited Liability Company (FZ LLC) or a Free Zone Establishment (FZE). Other options include Branch of a Local Company or Branch of a Foreign Company.
Step-3: Decide a Trade Name
After determining the legal status of your business, you should select a trade name. This will be your company’s name. Every Free Zone in the UAE has its own laws regarding company names.
Step-4: Business License Application
You must have a business license in order to do business in the AFZ. The list for business licenses is quite long in the AFZ since it accepts pretty much all kinds of business. You can find the complete list of business licenses listed on the AFZ’s website.
Step-5: Application Submission
After you have sorted out the legalities of your business name and type, you can submit your application. The application consists of a form and relevant documentation for your business.
After your final submission, you can move onto making your payment. You can pay through a variety of ways, including cash and online bank transfers.
Step-7: Getting Your Business License
Once your payment has been accepted, you will receive your business license and other relevant documents. You can then move onto your visa application process.
Step-8: Applying for Visas
Visa application is really convenient in the AFZ. Like we mentioned before, there are a number of different visa packages available to you. You can find the one you like and go with it.
Step-9: Getting Your Office Space
If you’re planning on having a business presence in the AFZ, you’ll need to have your own office space. You can buy office space for your business or you can lease it. Office space and desk space leasing are quite common in the AFZ and it’s a great way to have a physical presence without spending too much money.
Step-10: Start Going Business
You’ve set up your company in the AFZ, one of the best FTZs that the UAE has to offer. You can begin doing business now and let your entrepreneurial spirit shine.
The AFZ certainly makes starting your own company really easy. However, despite the lowered barriers to entry, starting a business venture in a foreign land can be tough. You will need time to get used to new people and the environment. Having experienced local help can really make things easier for you. This is where Push Digits comes in, a UAE accounting and tax firm that is an expert at setting up companies in FTZs.
Why Push Digits Chartered Accountants?
The UAE has many companies that offer a variety of services. Push Digits has been helping local and foreign companies establish and grow their business in the UAE for quite some time. With years of experience and the ability to stay updated with the latest market trends, Push Digits can help you make the most out of your business in the AFZ.
Here’s what Push Digits can help you with:
- Thoroughly reviewing your business’s essential requirements in order to guide you on which FTZ is best suited for your business.
- Provide you with support as you develop and refine your business plan.
- Help you throughout the application form, making sure that you get everything right the first time.
- Help you obtain your security approval, trade name approval, and initial approval.
- Assist you in obtaining attested legal departments for your clientele.
- Guide you through the drafting process of your company MOA.
- Help you get the best warehouses and offices for your business.
- Close support in establishing your e-channels.
- Help you find the best bank for your personal and corporate accounts and help you set them up.
- Guide you through the visa process and help you reach the best solution.
- Help you find local human resource for operating your business.
- Provide you with financial guidance and assign an auditor to help you out. Free zone companies are required to have an auditor.
- Advisory support and guidance on all VAT related matters.
- Resources and expertise for accounting and bookkeeping services.
- Assistance in company liquidation.
- The addition or removal of directors and shareholders.
- Guidance on changing your trade name.
- Production of additional documentation for your company.
- Decrease or increase your company’s share capital.
Having local help can make doing business easier for you. It can also give you an edge over everyone else.