Question 1

What are the steps to set up a company in Ajman?

Accepted Answer

Steps include defining your business activity, selecting a company structure (Mainland LLC, Free Zone, Offshore), reserving a trade name, obtaining initial approvals from Ajman DED or Ajman Free Zone Authority, drafting and notarizing required documents, securing office space, submitting paperwork, obtaining your trade license, registering with the Chamber of Commerce, opening a corporate bank account, and applying for visas.

Question 2

How long does company formation in Ajman take?

Accepted Answer

Free Zone setups typically take 2–5 working days; Mainland approvals generally take 5–10 working days with full license issuance within 2–3 weeks; Offshore setups may take around 7–10 working days.

Question 3

Are there capital requirements?

Accepted Answer

Most Mainland licenses in Ajman do not require minimum capital; some Free Zones may have paid-up capital requirements depending on the business activity or company type.

Question 4

Do I need a local sponsor in Ajman?

Accepted Answer

Mainland companies often require a UAE national sponsor owning at least 51%, while Free Zone and Offshore companies allow 100% foreign ownership without a local sponsor.

Question 5

What legal structures are available for business setup?

Accepted Answer

Options include Mainland LLCs, Sole Establishments, Civil Companies, Branches of Foreign or GCC companies, Joint Stock Companies, and Free Zone or Offshore entities.

Question 6

What types of business licenses are issued in Ajman?

Accepted Answer

Ajman issues Commercial, Professional, Industrial, and Tourism licenses. Free Zones also offer specialized licenses catering to various sectors such as manufacturing, logistics, media, and technology startups.

Question 7

Is office space required to register?

Accepted Answer

Yes, Mainland companies must have a physical office (Ejari/Tawtheeq). Free Zones offer flexi-desk, virtual office, or co-working space options. Offshore companies generally do not require local office space.

Question 8

What documents are needed for company registration in Ajman?

Accepted Answer

Required documents typically include passport copies, trade name reservation, business plan, initial approvals, MOA/AOA or LSA agreements, tenancy contracts, bank reference letters, and any specific industry approvals.

Question 9

What taxes and ongoing compliance apply?

Accepted Answer

Corporate tax at 9% applies on profits exceeding AED 375,000; VAT at 5% applies if turnover exceeds AED 375,000; companies must renew licenses annually, submit audits, and comply with applicable local regulations.

Question 10

Can a Free Zone company do business on the mainland in Ajman?

Accepted Answer

Yes, through dual licensing options offered in Ajman Free Zone or by opening a mainland branch or appointing a local agent. Dual license fees vary depending on business activities and license types.

Ajman Company Formation

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