Setting up a company in Ajman can bring in prosperous opportunities and success for overseas investors and entrepreneurs. It is one of the most popular business hubs in the United Arab Emirates. However, to start a business effectively in the region, it is vital to procure a trade license in accordance with the law. This article will explain everything you need to know about obtaining a license in Ajman city including the legal procedure, advantages, and the trade license cost in Ajman.
Reasons to choose Ajman for business setup
There are several reasons why Ajman can be a smart choice for a business setup. Starting from its strategic location between Dubai and Sharjah it provides significant trade opportunities and access to many useful facilities. Additionally, the cost of an Ajman trade license is more affordable than any other emirate in the UAE.
Apart from the above, there are many other reasons why company registration in Ajman can be a preferable option.
- Low-cost business setup
- Scalable business platform
- Freezone and offshore locations
- Easy access to transportation hubs
- Affordable and excellent infrastructure system
Categories of license in Ajman
The license you require for your company in Ajman will depend on the nature of your business. Luckily, there are a variety of business licenses available to choose from. The owner can select the one that suits their business better.
The available categories of licenses in Ajman are as follows:-
It is the most common license that allows companies to engage in import, export, and distribution activities throughout the country. In addition, the trade license will specify the number and type of activities you would carry out. So, reach a decision before applying for it.
The manufacturing license, also known as the industrial license, allows its holder to set up manufacturing units and facilities to perform industrial activities like importing raw materials and producing finished goods for export and distribution. However, a license issued in the Ajman free zone is subject to certain prerequisites, such as –
- Businesses must be registered with the GCC (Gulf Cooperation Council)
- The license holder must own 51% of the company shares
- A minimum of 40% of goods have to be processed in the free zone
Individuals or companies who want to provide professional services including services such as legal, accounting and auditing, engineering and technical, marketing and advertising, management, and business services within the country can obtain a Service license, also known as a Professional License.
This form of license is specifically designed for young aspirants and college students who want to fulfill their dream of being an entrepreneur. It is a low-cost startup option with offers fewer limitations and long-term overheads, appropriate for postgraduates and new businesses.
Individuals who want to work independently and legally in Ajman can get this license. Not only does it cover a wide range of business activities, but also encourages and supports the freelance community in the country.
With the rapid expansion of the e-commerce industry in the UAE, the Ajman authorities have introduced a new method to encourage electronic trade through B2B and B2C opportunities. The E-commerce license allows business owners to leverage the growth potential of their online businesses across the UAE in various activities, such as – Fashion retail trading, Food and beverages trading, Home, Office and personal utility trading, Automotive trading, Jewellery and precious Stones trading, Industrial Equipment trading, and many other online activities.
Step-by-step guide to obtaining a Trade license in Ajman
The license application process in Ajman is quite easy, only if you follow the process in the right way. The experienced consultants of UAE Expansion can guide you through this and also get it done successfully on your behalf.
Here are the steps to obtain a trade license in Ajman:-
- Market research – If you want to gain a competitive advantage, it is better to study the changing climate of Ajman. Furthermore, conduct research and understand your target audience, competitors, and the current trends in the industry.
- Legal structure and business activity – Specify the business activities you want to perform and select an appropriate legal structure to operate it. The business specialists of UAE Expansion will ensure that your choices align with the goals of your business.
- Company name – Choose a distinctive and impressive name for your company and get it registered at the Department of Economic Development, Ajman to secure its availability.
- Application and documents – Gather the set of documents requested by the Ajman licensing authorities for the license application process. It includes passport copies, residence proof, business plan, fee payment receipt, and the trade name reservation letter issued by the authorities. Further, submit the application along with the documents and applicable fee.
- Review and approval – Once you have submitted your application, the authorities will review and verify the information through document authentication, background checks, and compliance assessments.
- Business License – If your application passes the clearance process, you will receive your trade license including details about the approved activities, validity period, and other additional terms and conditions.
- Renewal and observance – Trade licenses in the UAE are usually valid for one year. To comply with Ajman’s laws and regulatory standards, make sure to renew your license timely and methodically.
Documents required for trade license acquisition in Ajman:-
- Passport copy and Curriculum Vitae of the business owner/s and the manager
- Official company address
- A well-drafted Business plan
- Evidence of financial resources (Bank statement or certificate of deposit)
- Description of the business activities
- Memorandum of Association(MOA)
- Articles of Association(AOA)
- Trade name reservation certificate
- License application form
- No Objection Certificate
Trade license cost in Ajman
The trade license cost in Ajman may vary depending on the type of license you apply for, the nature of business activities, the size of the company, etc. However, there are some fundamental expenses that you have to incur in the license acquisition process. For instance,
- License fee – It is a one-time fee paid during the licensing process. The amount varies according to the size of the business and the type of license applied for.
- Rent of office – A recurring expense incurred on office space leased for business purposes.
- Company registration fee – Just like the license fee, the registration fee is also a one-time fee paid during the company formation process.
- Bank deposit – The business owners have to make a deposit in the bank as a guarantee for business activities in Ajman.
Additionally, the trade license cost in Ajman may change according to forms and legal procedures. Getting in touch with the experienced consultants of UAE Expansion can help you get full information on the cost and other administrative charges.
Trade license renewal in Ajman
Here is how the process of trade license renewal in Ajman goes –
- Arrange the essential documents such as insurance, financial statements, and others.
- Submit the renewal application to the authorities along with the requisite renewal fee.
- Receive the renewed license after processing.
Get your Ajman trade license with UAE Expansion!
Connect with the professional company formation experts of UAE Expansion and get comprehensive solutions for all your trade license and business registration requirements, including critical procedures like bank account opening, documentation, etc.
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