Setting up a business in Ajman, one of the emirates in the United Arab Emirates (UAE), can be an attractive option due to its strategic location, cost-effective setup, and favorable business environment. Here are the key steps and considerations for setting up a business in Ajman:

1. Choose the Business Activity

• Determine the type of business activity you want to engage in, as this will influence the type of license you need.
• Ajman offers licenses for commercial, industrial, professional, and tourism activities.

2. Decide on the Business Structure

• Sole Proprietorship
• Partnership
• Limited Liability Company (LLC)
• Branch of a Foreign Company
• Free Zone Establishment (FZE) or Free Zone Company (FZC) in Ajman Free Zone

3. Select the Location

• You can choose between the mainland (within Ajman city) and Ajman Free Zone.
• Ajman Free Zone offers various facilities, including office spaces, warehouses, and land for development.

4. Register the Trade Name

• Choose a unique trade name that complies with the naming guidelines of the Department of Economic Development (DED) in Ajman.
• Reserve the trade name by submitting an application to the DED.

5. Apply for Initial Approval

• Obtain initial approval from the DED, which allows you to proceed with the rest of the setup process.
• This approval confirms that the business activity and trade name are acceptable.

6. Draft and Notarize the Memorandum of Association (MOA)

• For LLCs and partnerships, draft the MOA outlining the company’s structure and ownership.
• Notarize the MOA at a public notary office in Ajman.

7. Lease Office Space

• Secure a suitable office space that meets the requirements for your business activity.
• Obtain a tenancy contract and Ejari (lease registration) certificate.

8. Submit the License Application

• Submit the necessary documents to the DED or Ajman Free Zone Authority, including:
  • Completed application form
  • Initial approval certificate
  • Notarized MOA
  • Trade name reservation certificate
  • Tenancy contract and Ejari certificate
  • Passport copies of the shareholders and managers

9. Obtain the Business License

• Once the application is approved, pay the required fees to obtain your business license.
• The license type will depend on your business activity (e.g., commercial, industrial, professional).

10. Register for Taxes

• Register your business for VAT with the Federal Tax Authority (FTA) if applicable.

11. Open a Corporate Bank Account

• Choose a bank in Ajman or the UAE to open a corporate bank account for your business.

12. Obtain Additional Permits (if required)

• Depending on your business activity, you might need additional permits or approvals from other government authorities.

Benefits of Setting Up in Ajman

• Strategic Location: Proximity to major cities and ports.
• Cost-Effective: Competitive setup and operational costs.
• Infrastructure: Well-developed infrastructure and facilities.
• Free Zone Advantages: 100% foreign ownership, tax exemptions, and repatriation of profits.

Consulting a Business Setup Expert

• It’s advisable to consult with business setup consultants or legal advisors who are familiar with the regulations and procedures in Ajman to ensure a smooth setup process.