AFZA – Business Set-up Guide

Ajman Free Zone Authority (AFZA) is a rapidly growing free zone in the United Arab Emirates (UAE). The zone was established in 1988 and was granted autonomous status under the Amiri decree No. 3 of 1996 issued by His Highness Sheikh Humaid Bin Rashid Al Nuaimi, Ruler of Ajman. Ajman Free Zone Authority has been named as the sole regulatory agency for Free Zone in the Ajman.
AFZA is one among the most preferred & recommended investor friendly free zone in the UAE. It is just 7.5 miles from Dubai and 1.2 miles from Sharjah. Ajman’s proximity to Sharjah and Dubai provides easy accessibility to the two international airports and four ports. Ajman port serves over 1000 vessels per year, with twelve berths.
AFZA is a government body authorized to incorporate and license companies to conduct their businesses in UAE & internationally. These companies enjoy the same legal status inside the UAE as any other Free Zone company in the matters of trade, contracts, imports, exports, visa, and banking.

What makes AFZA be the 1st choice of Entrepreneurs

  • AFZA’s investor friendly atmosphere keeps Entrepreneur’s sole interest of conducting business in UAE untouched by facilitating them timely services to incorporate their business in no-time.
  • Individual / Entity is allowed to have 100% Stakes of the company incorporated in AFZA.
  • Businesses are liable to pay tax only if they falls under new VAT’s brackets which is in practice since January 2018
  • Customs Duty is not applicable for goods which are re-exported.
  • Preserves initial business set-up expenses minimal and also avail Dubai seaport & airport facilities for all of your shipments.
  • Visa holders (Investor/Employee) of Ajman Free Zone are free to live, avail banking services in Dubai
  • Local Traders/ Mainland Businesses can help you boost your revenue by selling your products inside UAE
  • Warehouses are available to store your goods in free zone area which are duty-free.
  • Companies are eligible to conduct business all across the globe.

Business Activities offered in Ajman Free Zone

Trading license

The action or activity of buying and selling of tangible goods/ products. Trading companies buy a specialized range of products, maintain a stock or a shop, and deliver products to customers.

A)  One Activity Trading: Businesses engaged in trading are dedicated to a single category of products/goods, for example, trading in textiles allows businesses to trade all kind of textile-related goods but limited to textiles only.

B)   Two Activity Trading: Businesses engaged in trading are dedicated to trading two category of products/goods, for example,  trading in textiles & trading in electronics allows businesses to trade all kind of textile-related goods & electronic appliances but limited to these two categories only.

C)  Three Activity Trading: Businesses engaged in trading are dedicated to trading three category of products/goods, for example,  trading in textiles, trading in electronics & trading in gold & precious metals allows businesses to trade all kind of textile related goods, electronic appliances & gold/silver/platinum but limited to these products only.

General Trading License

General Trading activity allows businesses to trade with different categories of tangible goods/ products which are sold for consumer, business or government purposes.
Limitation: Pharmaceutical products, Oil & Gas, Flammable Chemicals, Gold & Precious metals, Explosives, Liquor etc. are such products which are falling under the separate licensing procedure.

E-commerce license

As the license name itself defines, commercial transactions conducted electronically on the Internet.
Limitations: Fresh Food, Pharmaceutical Products or Medicines, Airline Tickets or Hotel Bookings, Cosmetics or Vitamins or Health Supplements, Cosmetics or any other product, which requires approval from Ministry of Health., Financial services, online brokerages, speculation of currencies, stocks, bonds, etc…, Groceries, Direct Car Rental Services, Tobacco products and alcoholic beverages, Massage or any other services that require special approvals.

Service license

AFZ issues Service Licenses for investors carrying out service activities within the free zone such as management, marketing, IT consultancies etc.

Industrial License

AFZ issues Industrial licenses to investors specialized in manufacturing in UAE, as per the environmental standards and manufacturing policies in Ajman. Ajman Free Zone provides smart stores and warehouses supporting this activity, where all the investor’s requirements can be obtained in one place.

National Industrial License

AFZ issues National industrial licenses to industrial organizations that match the following criteria:

1.The organization should be registered with GCC countries’ nationals owning minimum of 51%
2.Minimum 40% of the manufacturing process should be within the Free Zone
3.Organizations having national license qualified to get the license are exempt from customs fees on exports from GCC countries

Offshore License

AFZ issues offshore licenses to those desiring to establish an ongoing company. The license allows them to run the business only outside UAE Jurisdiction and also cant apply for any residence visa neither for investors nor employees

Leave a Reply

Your email address will not be published. Required fields are marked *