Business Setup in Ajman: Complete Guide


The United Arab Emirates is a popular destination for travel and tourism, vacations, employment, and business opportunities in the Middle East. Ajman is one the best places in UAE for a new start-up company. The government offers a quick and easy process for a Business Setup in Ajman. However, the business owner must abide by the law of the state for the rules and regulations to prevent any obligations and penalties while operating a business in Ajman.

We share all the relevant information for business setup, Ajman Media City free zone, company bank account opening in UAE, and VAT in UAE.

We will provide you with all the required information, including registering a business, required documents, and further processes for different types of business. You can use this blog article to help set up a new small business or large organization in Ajman.

Things to Know Before You Start a Business in Ajman

The Ajman government launched attractive policies for individuals and entrepreneurs to start businesses and organizations in the UAE. Business professionals and entrepreneurs must create an effective business plan and strategies to acquire the permit, various licenses, approval from the authorities, and other essential steps to follow the rules for establishing a business in the state. You must know a few points about a new business establishment in Ajman.

  • You must register your trademark and company name, acquire all the permits and licenses from the authorities, and renew them periodically.
  • You must comply with the legal and ethical policies of the state.
  • You must pay the taxes and other fees to various regular authorities.

Choosing Your Business Path in Ajman

Start a Business in Ajman 

A business setup in Ajman is not so difficult but quick and easy. You will find various business consultants in UAE who will guide you throughout the process if you have the proper guidelines and an effective business plan for the startup. The first step is to choose your business path in Ajman. What type of business do you want to start and register? Three types of companies can be registered in Ajman;

  • Sole Proprietor Ship (Single Owner)
  • Limited Liability Company (LLC.)
  • Partnership.

The LLC is the most popular type of company because this type of business has limited liability protection and divides its equity among various shareholders. Sole proprietors and partners do not have this facility and are liable for all debts and total losses from the business.

Mainland vs. Free Zone in Ajman: Understanding the Landscape;

New business startups need to understand the landscape of the Ajman state and the difference between the mainland and free zones in the state.

Mainland: The commercial area in Ajman is known as the mainland and is registered by the Emirates government authorities. The companies registered to operate in this area are known as businesses on the mainland. Business Setups in Dubai Mainland and Ajman are more effective for wide organizations.

The mainland offers the most developed and modern structure and the highest economy, which follows the government’s legal structure and policies for modern business. The LLC companies, branch companies, large firms, and organizations are usually set up in mainland Ajman.

Free Zones: The free zones are jurisdiction locations in the United Arab Emirates that allow businesses and individuals to operate their business activities in these zones with some particular rules and regulations. The Free Zone Authorities handle the legal acts, and every business owner must comply with the regulative authorities to meet the requirements for law and order. The free zone company formation AMCFZ in Dubai is almost similar to the free zone in Ajman.

Free Zone Business Setup in UAE is the easiest way to start a new business, and its location is accessible from the four seaports and international airports and the best location for managing international trade, import, and export. The free zone business registration is easy and quick and offers multiple benefits with various licenses.

Difference between the Mainland and Free Zone in the UAE;

Here, we define the difference between the mainland and free zones in the United Arab Emirates. Both locations have distinctive jurisdictions and corporate structures for businesses. There are a few points to define the major difference between these two locations in the UAE;

Ownership with Sponsors:

Foreign companies can start the business on the mainland with Emirati sponsorship in the UAE. The government does not allow foreign companies to start a business with a hundred percent ownership in the mainland. The foreign businesses can own the business for only forty-nine percent, and the Emirati sponsors will own the rest.

Business start-ups in the free zones are free from this restriction. They can have a hundred percent ownership while operating the business in the free zones without Emirati sponsors in the UAE.

New Business Setup Approvals:

Foreign companies must acquire the NOC and clearance certificates from multiple government authorities such as Municipality, Labor Ministry, and Economic Development authorities in the UAE to start their business in the mainland.

The Free Zones have different laws, and the new business start-ups don’t need to acquire the NOC or clearance from the mainland authorities in the UAE.

Wide Scope of Business:

The major difference between a free-zone business owner and a mainland company is the wide business scope. The free zone businesses are restricted from operating their businesses within the specific zone. However, the companies operating on the mainland are free from this restriction and can operate anywhere in the UAE.

Business Visa Restrictions for UAE Visa Services:

The companies operating on the mainland have no visa restrictions. They can acquire multiple visas depending on their business and workspace. The free zones do not allow their business owners to acquire multiple visas. They can apply for a maximum of six visas according to their business needs. There are multiple visa policies in UAE such as the Golden Visa in UAE, freelance visa UAE,  and work permit UAE for various terms and conditions.

Office Space for Business:

Companies can acquire large areas for their office space and a minimum of two hundred square feet on the mainland in the UAE. However, the business owners in the free zones do not abide by the law to ensure a minimum workspace area, and they can also have virtual offices to operate their businesses in the UAE.

Benefits of Mainland Vs. Benefits of Free Zone

Mainland and Free zones both have their own perspectives, laws, regulations, and benefits in the United Arab Emirates. The business owners have to choose the relevant locations according to the size, type, and activities of the business. Here, we discuss the benefits of establishing a company on the mainland and in the free zones in the United Arab Emirates;

Mainland Benefits in the UAE:

  1. The companies established on the mainland are free to operate their business anywhere in the United Arab Emirates.
  2. These companies are exempt from all corporate and personal taxes in the UAE mainland.
  3. These companies on the mainland are allowed to repatriate a hundred percent of equity and profits.
  4. They can easily bid on UAE government business contracts and work with government bodies.
  5. They are free to acquire a maximum number of visas for business.
  6. These companies can register and establish branch offices anywhere in the UAE with a strong presence in the market.
  7. The companies on the mainland are free to access the global markets.

Free Zone Benefits in the UAE:

  1. The business owners in the free zones have complete ownership without Emirati sponsorship.
  2. Free zones in the UAE allow quick and simple business start-up procedures.
  3. The business owners in the free zones are allowed to repatriate a hundred percent of equity and profits.
  4. The businesses in the free zones are entirely exempt from the import and export duty charges.
  5. All the shareholder’s information of the company in the free zones will not be disclosed to the public.
  6. The free zones in the UAE offer a simple and easy recruitment policy for start-up businesses.
  7. Business owners can seek advice and network support from the free zone authorities.

Finding Your Niche: Selecting Your Business Activity

Finding the niche and trade name for the new business is the key point for future business growth and success. You can find the niche according to your expertise, experiences, financial stability, equity, and strength. You can find various business ideas, and here we discuss a few of them;

  1. Tourism and Travel
  2. Food and Restaurants
  3. Health and Fitness
  4. Beauty and Skin Care
  5. Property and Real Estate
  6. Art and Craft
  7. E-commerce and Online Business
  8. Educational Institutions
  9. Environment-friendly and sustainability
  10. Information Technology and Software.

Pre-Registration Steps for Having Business Setup in Ajman

  • Choosing the niche and trade name for the business.
  • Register the business name and trademark.
  • Apply for and acquire licenses from the authorities.
  • Opening a bank account in Ajman.

Trade Name Selection: Standing Out from the Crowd

Choosing a trade or a company name is the first step and the most essential part of company formation. The owners must follow the rules of the authorities when choosing the trade name. However, it’s crucial to discover a unique trade name for a new business. The trade name makes you stand out in the crowd and attract potential customers to the business. You can contact the Department of Economic Development Authority in Ajman to register the trade name. You will receive approval to proceed with the business registration process.

Legal Structure: Choosing Your Business Model

The new start-up businesses and companies in Ajman must choose the legal structures applicable in the state;

  • Sole Proprietorship
  • Limited Liability Company
  • Public and Shareholding Company
  • Private and Professional Firm
  • Company Branch Offices

Business in Free Zones;

  1. Free Zone Company
  2. Free Zone Establishment
  3. Branch Office of Another Company

Registration Process for Business Setup in Ajman

  1. Choose the company name or trade name and apply for the registration process
  2. Apply for the business registration after the trade name approval.
  3. Submit the approvals for the registration process
  4. Acquire the essential licenses from the authorities
  5. Apply and acquire a visa
  6. Opening a bank account.

Department of Economic Development (DED): Your Gateway to Registration

The Department of Economic Development in Ajman handles all the company’s registration process for startups. Businesses need to comply with the rules and regulations according to the authorities for company formation.

Essential Documents for Registration

  1. The essential documents required for the registration of a new business in Ajman are;
  2. Filled out the application form with relevant and correct details
  3. Notarized Memorandum of Association of Business
  4. Notarized Article of Association
  5. Shareholder’s passport copies
  6. Proof of rental property or residence
  7. Bank Statements and references
  8. Effective Business Plan

Fees & Payment: Understanding the Costs Involved

The companies are liable to pay the required fee for the trade names and business registration and acquire multiple licenses from the authorities. These fee charges may vary depending on the size, type, location, and business activities in Ajman.

Post-Registration Procedures for Having Business Setup in Ajman

Procedures for Having Business Setup in Ajman 

These are a few points for a post-registration process for a new business startup in Ajman.

Obtaining a Business License: The Key to Operation

To obtain a business license, the owners must submit the Memorandum and Article of Association with the application and required charges to acquire the license. The license fee is required such as business license cost in Dubai. After the approval, you will receive the license to start the business. The owner can obtain various licenses according to their business type such as UAE Commercial License, UAE General Trade License, manufacturing license in UAE and professional license in Dubai.

Visa Sponsorship & Work Permits: Bringing Your Team Onboard

After acquiring the license, you can show the sponsorship if required and obtain a visa, and work permits for the family or workforce. The number of visa permits depends on the type, size, and location of your business.

Opening a Corporate Bank Account: Managing Your Finances

The owner can move forward to opening a bank account. The local or international bank accounts and their facilities depend on the business criteria.

Additional Considerations for Business Setup in Ajman

The business owners must consider these additional points for business startup;

Taxation in Ajman: Understanding Your Obligations

Ajman offers a tax-free status to businesses and companies. The businesses are exempt from corporate taxes, income taxes, value-added taxes, or VAT.

Compliance & Regulations: Staying on the Right Side of the Law

The business owners in Ajman must comply with the regulative authorities for the laws for business in the state.

Seeking Professional Help: Streamlining the Process

The business owners seek professional help from legal advisors and lawyers for the registration process, licensing, and other legal requirements for a new business set up in Ajman.


The new business startup can be differentiated according to the type and size of the business, whether you are establishing a company on the mainland, in free zones, or in an offshore business setup. You must comply with the legitimate authorities and regulations implied by the Ajman government.

However, the state of Ajman in UAE offers a tax-free status and attractive policies for new business setups. It allows you to generate passive income and grow rapidly in the global market.



Kate Williams

Avatar photoKate WilliamsSkills in Communication, Interpersonal Skills, Time Management, Teamwork, and Customer Experience. She is an enthusiastic self-starter with a passion for building relationships with people.

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