Everything you need to know about the business license in Ajman

In the United Arab Emirates, the emirate of Ajman is among the most popular business hubs. Many entrepreneurs, investors, and startups have unlimited opportunities to set up their businesses in Ajman and reach success. However, it’s important to know about the business license in Ajman before start building a company in this emirate.

In this article, you will learn everything you need to know about this document in Ajman. Firstly, we will provide you basic information about it. It includes benefits, types, costs, and more details. Secondly, you’ll learn how to complete the application process to obtain your license and set up your company. Let’s observe:

1. What is a Business License in the Emirate of Ajman?

All investors who choose to form a company in the UAE must obtain a business license. The business license in Ajman will allow you to operate your business legally and efficiently. However, all of the available licenses are different. Therefore, you need to determine your business activities before applying for any of them.

1.1. Why should you invest in Ajman?

There are several reasons why Ajman can be a good option for you. For instance, its strategic location between Dubai and Sharjah could be an advantage. Also, it provides significant investment opportunities and access to many useful facilities. Besides, the cost for obtaining your license is more affordable than other emirates.

2. How many types of Business Licenses are available in Ajman?

Depending on the nature of your business, you will need at least one business license in Ajman. There’s a variety of business licenses available from which you can choose the ones you need. However, remember each of them has different costs and covers different activities. Therefore, you must select carefully the one that suits your business better. Let’s take a look at some of the most common licenses in Ajman.

2.1. Commercial or trade license.

This is the most common license in the emirate of Ajman. The Ajman trade license activities list covers several activities, including importing, exporting, and distributing entertainment products. You can legally carry out these activities throughout the country with this license. However, your license will specify your activities, so you must make up your mind before applying for it.

2.2. Services license.

In this case, you can carry out different services with this business license in Ajman. Similarly, the contract clause of this license will list the services you can provide. For instance, with the service license, you can offer business consultancy services, accounting services, and many more.

2.3. E-commerce license.

On the other hand, investors can carry out electronic trading activities in Ajman if they have this license. Some of the electronic business activities that this license covers are the following ones:

  • Media entertainment e-trading.
  • Industrial equipment e-trading.
  • Home, office, and personal utility e-trading.
  • Events ticketing e-trading.
  • Automotive e-trading.
  • Fashion retail e-trading.

2.4. Industrial or manufacture license.

Multiple industrial activities can be carried out with this license. For example, companies can import raw materials to manufacture, process, package, assemble, and export finished products. Besides, it allows companies to export their products abroad. However, just like the previously mentioned licenses, this one will specify the manufacture of listed goods.

2.5. Freelance license.

This is the best option for professionals who want to carry out their activities individually. With its economic renewal rates, Ajman promotes and guarantees successful business growth for freelancers. Besides, it helps them grow professionally in a highly competitive market. This business license in Ajman only requires a few documents, which are:

  • A valid passport.
  • A visa copy.
  • NOC from the sponsor (for UAE residents only).
  • Passport-sized color photography.

2.6. General maintenance license.

The general maintenance license in Ajman is also available. Only those who want to provide maintenance services can apply for this license. For instance, some maintenance-related activities you can do with this license are these:

  • Repair and sanitation work.
  • Repair and maintenance of A/C works.
  • Wallpaper decoration.
  • Electrical works.
  • Flooring and roofing work.

3. How can you apply for a Business License in Ajman?

business license in Ajman

There’s a process you must complete to obtain your business license in Ajman. Therefore, here we will explain how to register your company and get your license. Now, let’s take a look at the steps you need to follow:

  • Firstly, you need to submit your application form for initial approval.
  • Secondly, the authorities (the Inspection Unit in the municipality of Ajman) will verify the business location you chose. After that, you will obtain the approval of specialized departments if it is necessary.
  • Thirdly, you have to obtain the required approval for the trade name. Also, you need to get your issued membership certificate.
  • Once you submit the approvals and obtain the registration receipts, you must pay the fees to get your license.

4. Cost of the different business licenses available in Ajman.

Before we show you the cost of each license, you must remember that these could vary. All prices may vary depending on several facts. For instance, it could vary depending on the location, the package you choose, among other details. Let’s take a look at the approximate costs of each of the business licenses in Ajman:

  • Commercial license: its cost starts from AED 3,200.
  • Services license: you can obtain this license for AED 6,500 approximately.
  • E-commerce license: the cost for this license starts from AED 10,000.
  • Industrial license: this license can be obtained for AED 9,100.
  • Freelancer license: any freelancer can get this license for AED 6,000.
  • Pioneers license: young investors can obtain this document for AED 5,000 approximately.

5. The documents and other requirements to obtain a business license in Ajman.

In order to form your company and get your business license in Ajman, you’ll need to provide some documents. Here you can check on a list of the requirements to register your business and obtain your license:

  • Passports copies of each of the shareholders of the company.
  • The Memorandum and Articles of Association.
  • Proof of residence of the business owner.
  • Bank reference letter.
  • Duly filled application for incorporation.
  • A business plan with a cost-effective analysis.
  • Resume of the owner.

However, it is important to remember that some additional documents might be necessary. You can find more information on the web or with your business partner.

6. What is the process to Renew your Business License in Ajman?

The business license in Ajman is only valid for a year, which means you need to renew it. The renewal process is quite simple and does not require too much time or money. All you have to do is following these steps:

  • Firstly, you must gather the required documentation and submit it to a service center.
  • Secondly, submit the external approvals if it is necessary. After this, you’ll be able to pay the fees.
  • In case you renew your license online, you must enter the required data. After that, you must download the certified lease statements and possibly some external approvals. If there are some fees left, you must do the payment.
  • Lastly, you will receive your renewed business license. It will be valid for a year only. Therefore, you must repeat this process within a year.

6.1. What documents do you need to renew your business license?

The documents you must submit to renew your business license are the following ones:

  • Your license application.
  • A valid lease contract.
  • External approvals (in some cases).

If you complete the renewal process online, it is necessary to activate the investor’s account of the license owner.

7. How many options do you have regarding the company formation in Ajman?

All investors can choose between the three main available company formation options in Ajman. Each of these options provides several advantages you can use to boost your business. Besides, they also offer the business license you need. Therefore, you will need some information about these options first. Take your time and choose the most suitable alternative for you.

7.1. Free zones in Ajman.

The free zone company formation is the most popular option among investors. With this type of company, you can receive several benefits, including exemption from taxes and 100% ownership. If you want to set up a free zone company in Ajman, you can choose between two locations. Let’s take a look at them:

  • Ajman Free Zone: since it dedicates its services to a variety of industries, it’s an ideal place for all businesses. Besides, it is strategically located on the Arabian Gulf and near 2 international airports. Also, it provides a lot of benefits to boost any kind of company and help investors like you.
  • Ajman Media City Free Zone: if you want to build a media-related business, this location is perfect for you. AMCFZ is a newer free zone compared to Ajman Free Zone, but it has earned a good reputation too. It has high-tech telecom, top-notch digital customer service, incentives for investors, and more resources. These were all designed to provide a good service to all new investors.

7.2. Mainland Ajman.

Most times, mainland companies are LLC companies (Limited Liability Company). This type of company requires a local sponsor, which will have 51% of shares. The owner will hold the remaining 49% of the shares. However, it is also possible to set up other types of entities in Ajman Mainland. For example, you can register any of these types of companies in this location:

  • Public Shareholding Company.
  • Professional Firm.
  • Branch office.
  • Representative Office.

7.3. Offshore Ajman.

On the other hand, this location is regulated by the Ajman Free Zone Authority. And like other offshore jurisdictions, there are no taxes here for investors. Besides, the confidentially of each company is kept intact. However, this option is only recommendable for those who desire to engage in offshoring businesses in the country. Here you can develop many activities, such as:

  • Professional services.
  • General trading.
  • Consultancy services.
  • Stake holding.
  • Commission agents/brokers.
  • Investment and joint investment companies.

8. How can Connectfz help you obtain your license in Ajman?

You can find many opportunities in all available locations in Ajman. Besides, you can count on a reliable business partner like Connectfz. Our team will provide you with the high-quality services you need to build and improve your business. For instance, we offer several packages that include the business license you require.

Moreover, you can find other available services to make improvements in your company. For example, hiring employees is easier with our recruitment or staff outsourcing services. Or in case you need visas, you can request our visa and government services. Feel free to discover all of our services and request the ones you need.

Would you like to contact Connectfz to know more about the different types of available Business Licenses in Ajman free zones? If you have any questions, regarding different type of license like UAE General trade license, Professional license and industrial License in Dubai, call us on +97143316688. You can email us at info@connectfz.ae, and you will talk to one of our representatives who will answer your questions.

Neelisha Khandhway

Neelisha-Khandhway-imgNeelisha KhandhwayAn Associate member of institute of company Secretaries of India with around 6 years of experience in india and uae in providing Company Secretarial, Legal and Corporate Governance services including Compliance, Risk Management, Due Diligence, Anti-Money Laundering (AML), Drafting and vetting of Agreements.

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