The UAE is one of the fastest growing economies in the world. Featuring sprawling waterfronts, breathtaking landscapes, lavish entertainment spots, and one of the highest standards of living, the country is a businessman’s dream. Right in the heart of the desert oasis is Ajman – a city traditionally known for its natural beauty and serenity. The city is also home to a myriad of small and medium sized enterprises. These entities operate with the utmost autonomy and generate considerable revenue. In this blog, we explore the different options you have for a business setup in Ajman.
Ajman is the Cheapest Emirate
Of the 7 emirates, Ajman is without question the least expensive. Take the example of annual rent: a typical shop or apartment in Ajman costs around 25000 AED. Whereas in Abu Dhabi or Sharjah, it is near impossible to have a tenancy agreement without an upfront deposit payment separate from the annual rent, which goes as high as 50,000 a year.
All the essential goods are dirt cheap: clothes, food, public transport, schools, and healthcare are all affordable. Besides, there are beautiful beaches to be found everywhere (the Ajman Corniche stretches all the way from Sharjah to the Ajman Free Zone).
Taking the First Steps towards Setting up Your Business in Ajman
Before anything else, you first need to study your business plan and the target audience. Ajman is a beautifully diverse Emirate. People of all religions, nationalities, and races live and work here harmoniously.
Given that you first arrive on a visit visa, you will soon need to purchase a visa, which comes when you select an activity for your business. In Ajman, there are a plethora of activities a business can partake in. From service to manufacturing, the Ajman government is always at hand to support enterprises. Incentives are regularly splashed out to entrepreneurs to promote their businesses.
Before you hit the ground, here are some important factors to ponder upon:
- How much capital do you have?
- What’s your plan B?
- Do you have a network of contacts?
- What is your strategy going forward?
Once you have a clear picture of your goals, you can then proceed with choosing the region where you want to set up your company.
In Ajman, there are two options for setting up a business. You can either choose the mainland or the free zone.
Mainland Business Setup in Ajman
When you set up a company on the Ajman Peninsula, you need a local sponsor who would own 51% of your enterprise. This policy is in line with the UAE government’s ambition to vest authority with the locals. However, do not let this put you off, because Ajman’s marketplace is thriving like never before. Consider a local sponsor as your gate pass to accessing the market.
The main features and benefits of a mainland business in Ajman are as follows:
- Access to a large, heterogeneous market.
- The potential to trade with other mainland traders opens up opportunities to scale up.
- There is no custom duty on goods, and can invest in other businesses (of the same activity).
- There are no currency restrictions whatsoever
- As an incorporated entity (mainland business), you can apply for government tenders and projects and expand your business portfolio.
To sum it all up, if you want to capture a large chunk of the UAE market and operate without restrictions, then a mainland company set up in Ajman is the way to go.
Free Zone Business in Ajman
Free zones are dedicated regions throughout the Emirates with the aim of giving complete autonomy to investors. In spite of covering less area than the mainland, the free zones are still excellent avenues to do business. Following are the free zones in Ajman:
- Ajman Free Zone
- Ajman Media City Free Zone
While most activities permitted are the same throughout, there are dedicated activities for the 2 as well. For instance, Ajman free zone is ideal for manufacturers, small restaurants and general traders due to the presence of various small offices and workers.
Ajman Media City free Zone, on the other hand, caters to technological enterprises such as software houses, marketing and PR agencies, etc. So, you need to look in all tangents as to which one is best suited to your business needs.
Here are the benefits of setting up a free zone establishment in Ajman: –
- Complete ownership of your enterprise without having to partner with a local
- Extremely low set-up and operating costs
- No personal income or capital gain tax
- Repatriation of capital and gains from business
- One window operation for all paperwork.
Types of Activities Available in Ajman
Almost every business activity you can think of is permitted in Ajman. With the exception of certain alcoholic beverages (not all), finished products containing pork as an ingredient, gambling, illegal drugs, and all other business activities are available.
Types of Packages
Ajman provides certain packages aimed at entrepreneurs to kick-start their business. This includes the freelancer package and the business center, among others. All of them have a mix of product- and service-based activities.
Popular options include the Business package, the executive office package, the freelancer package, the bronze, silver, and gold packages, etc. All the packages come with visa for the e-channel, trade license, establishment card, and office accommodation (in some packages).
The Verdict
Ajman is not only splendid in its scenery and natural landscapes; the city is also a fertile land for businesses to grow. Whether you want to opt for the mainland or free zone is entirely up to you, as both have their own merits.
However, you should gauge your business plan and make wise decisions. For any queries related to a business set up in Ajman, don’t hesitate to reach out to us.