Business Setup in Ajman: A Complete Guide for Entrepreneurs in 2025

Ajman, a thriving emirate in the UAE, offers excellent opportunities for entrepreneurs looking to start a business in the Middle East. Whether you are interested in setting up a business on the Ajman mainland or in one of its free zones, this guide will help you navigate the process, providing essential details about costs, procedures, and available business options.

Why Set Up a Business in Ajman?

Ajman has become a popular destination for businesses, particularly those looking to establish themselves in the UAE. Whether you want to start a small business setup in Ajman or explore more significant ventures, the emirate offers a range of benefits:

1. Low Setup Costs: Compared to emirates like Dubai or Abu Dhabi, Ajman's business setup is highly cost-effective, making it an ideal choice for small businesses and startups.
2. Strategic Location: Ajman is close to major commercial hubs such as Dubai and Sharjah, providing access to a large market and transport links.
3. 100% Foreign Ownership: In Ajman Free Zones, foreign investors can own 100% of their business without needing a local partner.
4. Tax Benefits: Ajman offers tax exemptions, including no personal income tax, corporate tax, or VAT for many businesses.
5. Access to Talent: Ajman provides a skilled workforce, especially in manufacturing, logistics, and trading.

Business Setup in Ajman: The Process

Setting up a business in Ajman involves several straightforward steps. Here's how the process generally works:

1. Choose Your Business Activity

The first step in business setup in Ajman is deciding on your business activity. Ajman offers opportunities in a variety of sectors, such as:

• Trading: Import, export, or distribution of goods.
• Services: Consultancy, marketing, IT services, and more.
• Manufacturing: Setting up factories or assembly lines.
• E-commerce: Online retail and digital businesses.

Make sure your chosen business activity aligns with Ajman's licensing requirements.

2. Select Between Mainland or Free Zone

If you are interested in setting up a small business in Ajman, you'll have two main options: the Ajman mainland or one of Ajman's free zones.

• Ajman Mainland: Setting up a business in the mainland of Ajman allows you to operate anywhere within the UAE market and offers access to local customers. However, you will need a local sponsor (UAE national) who owns at least 51% of the business.
• Ajman Free Zones: Free zones offer many advantages, including 100% foreign ownership and no requirement for a local sponsor. These zones are designed to support businesses with simplified regulations and facility access.

3. Apply for a License

Once you decide on your business type and location, the next step is obtaining the necessary business license. It could be a:

• Trade License (for trading activities)
• Service License (for professional services)
• Industrial License (for manufacturing businesses)

4. Office Space & Visa Applications

After securing your license, you'll need to rent office space or a warehouse, depending on the nature of your business. Ajman offers various office space options, including:

• Virtual offices for small businesses or those needing a prestigious business address.
• Flexi-desk options and fully serviced offices for growing companies.
• Industrial facilities for manufacturing or distribution businesses.

Once your office space is set up, you can apply for visas for yourself and your employees.

5. Final Approvals & Business Registration

The authorities will approve your business setup after submitting all required documentation and lease agreements. Once registered, you are free to begin your operations.

Ajman Free Zones: A Great Option for Business Setup

Ajman Free Zones are highly popular for business setup in Ajman, especially for foreign entrepreneurs and those looking to start small businesses. The free zones offer a range of benefits, including cost savings, 100% ownership, and tax exemptions.

Ajman Free Zones List

1. Ajman Free Zone (AFZ): One of the most popular and affordable free zones in the UAE, AFZ ajman free zone offers flexible business setup packages and is ideal for trading, services, and manufacturing businesses. It also provides easy access to major ports and airports.
2. Ajman Media City Free Zone: Focused on media, entertainment, and technology, this free zone is perfect for companies in creative industries like marketing, advertising, digital services, and media production.
3. Ajman University Free Zone: This free zone is designed for education, research, and technology businesses. It offers a collaborative environment for educational institutions and tech startups.
4. Ajman Port Free Zone: Tailored for importers and exporters, this free zone provides easy access to Ajman's port for logistics companies, shipping, and trade businesses.

Advantages of Ajman Free Zones for Small Business Setup

• 100% Foreign Ownership: No need for a local sponsor.
• Tax Exemptions: No corporate tax for up to 20 years.
• Fast Processing: Quick approval and registration processes.
• Low Costs: One of the most affordable free zones in the UAE, ideal for small businesses.

Costs Involved in Business Setup in Ajman

The cost of setting up a business in Ajman can vary depending on the type of business, office space, and the number of visas you need. Generally, the costs involved include:

• License Fee: Between AED 8,000 to AED 15,000.
• Office Space Rental: For small office space, from AED 6,000 to AED 12,000 annually.
• Visa Fee: Typically between AED 3,000 to AED 7,000 per visa.
• Miscellaneous Fees: Additional costs for application processing, legal fees, and notary services.

Business Setup in Ajman Mainland vs Free Zones

While business setup in Ajman mainland offers more flexibility regarding market access, the process may involve higher costs, including local sponsor fees and restrictions on foreign ownership. On the other hand, setting up in Ajman Free Zones is more straightforward, with 100% foreign ownership, easier procedures, and tax exemptions.

Which is Better for Small Business Setup in Ajman?

Ajman Free Zones are an excellent choice for small businesses due to their affordable costs, straightforward processes, and additional benefits. They are ideal for entrepreneurs looking to keep overheads low while focusing on business growth.