Company Formation Ajman

Company Formation Ajman

AJMAN COMPANY INCORPORATION

 

 

Incorp International also offers easy and hassle-free company incorporation services in Ajman, including company registration, business licensing, banking services and more. We also provide options for visa, as well as recruitment strategies and advice for employing staff. In addition, Incorp International also provides workspace rental solutions to foreign investors looking to set up offices in Ajman.

 

 

Advantages

 

  • Business incorporation costs are significantly less in Ajman, as compared to other similar free zones in the UAE. For instance, the Free Zone Authority in Ajman does not charge business registration fees, which is a big advantage for foreign investors setting up their businesses there. However, license fees are applicable. In addition, another advantage is that expenses incurred by office and land lease are much lesser in Ajman than those in the other free zones.

 

  • Products manufactured by businesses that have obtained national industrial license in Ajman and have 51% shareholding with GCC nationals are entitled for “UAE Certificate of Origin” (provided by the Ministry of Economy and Commerce in UAE). This enables them to be eligible for customs duty exemption in GCC member states. This is possible if the value addition in Ajman free zone is a minimum of 40% of the total fine value of the appropriate product.

 

  • Expenses related to energy are much less, as well, in Ajman. It is to be noted that Ajman is known for having numerous energy utilizing businesses, like manufacturing. A foreign investor looking to incorporate a manufacturing company in Ajman will have to get an industrial license.

 

  • There is also no need to pay custom duties on import / export goods from the free zone.

 

  • Foreign investors can enjoy 40 years of legal tax exemption for their businesses. The land lease is for 20 years, and is renewable for another 20 years, making it a total of 40 years of tax exemption.

 

  • Foreign investors can have total ownership of their businesses in Ajman. Only one shareholder is required for an Ajman free zone company. Also, there is total repatriation of capitals and profits.

 

  • Incorporating an Ajman business entity is hassle free and costs significantly less in comparison to Limited Liability Company formation. Fully furnished and equipped office facilities with internet access are rented on an hourly or daily basis, depending on availability. This is less expensive than paying for a fixed office space and is an option preferred by many foreign investors setting up new businesses in Ajman.

 

  • Foreign investors can get one out of 4 different available businesses licenses in Ajman, including:

 

  1. Trading license
  2. Industrial license
  3. Professional services license
  4. National Industrial license

 

Out of these four, a trading license is authorized to foreign and national (UAE) businesses or free zone businesses who want to conduct businesses in Ajman.

 

  • Due to the UAE’s reputation as a trusted member of the international trading authority, a company formed in Ajman will not be considered, or treated, as an offshore company.

 

  • Incorp International will help you set up global bank account opening services for your Ajman business entity, as we have affiliations with the most renowned international banks, including Standard Chartered, Citibank, HSBC, etc.

 

 

Disadvantages

 

  • Business incorporation in Ajman will cost a high fee for minimal capital requirement, which is DHS183,500 (or US$50,000). This expense has to be paid during the formation process.

 

  • Ajman business incorporation is a lengthy process and it takes up to a period of five weeks until the business registration certificate and operating license is obtained.

 

  • A minimum of 2 shareholders is required for company formation. The shareholders can be of any nationality and do not have to be nationals of UAE or Ajman.

 

  • Ajman does not have the international reputation of, for e.g. Dubai, as it is a small emirate. For this reason, international investors looking for an reputable and global corporate image for their companies choose not to form an Ajman company.

 

  • The quality of housing for expatriate employees and schooling for their children is not up-to-par in Ajman. For this reason, most expatriates choose to have accommodations in Dubai or Sharjah, the downside being the lengthy commuting required in peak traffic hours, which can take up to an hour or more.

 

  • Ajman is still a developing emirate and there is a lot of construction work and utilities expansion taking place in the city. This can be a hassle and inconvenience to the operations of many businesses. Due to it being a below-developed emirate, Ajman does not qualify as a suitable environment for business requiring services.

 

 

Other advantages provided by Ajman

 

Ajman is placed in a strategic location at the gateway of the Arabian Gulf. This enables it the advantage of catering to both the eastern and western markets. Closeness to Dubai and Sharjah offers easy access to 2 international airports and 4 ports.

 

Tax exemption also enables an Ajman business entity to legally book global profit, while having the luxury of not paying corporate tax. An Ajman business also does not have to make annual financial statements or pay tax returns.

 

Incorp International will handle all of your business incorporation service needs, without you having to be physically present in Ajman.