Ajman is one of the most popular places in the UAE to set up a business. The process of Business setup in Ajman is not too difficult, but there are some rules that you will need to abide by in order for your company to be recognized by the authorities. In this article, we will provide you with all the information you need to know about setting up a business in Ajman. We will discuss the different types of businesses that can be registered in Ajman, as well as the procedures and requirements for each type. So whether you’re interested in starting a small business or establishing a large corporation, read on for everything you need to get started!
Choose Your Company
The first step in Business setup in Ajman is to choose the type of company that you want to register with. There are three types of companies that can be registered in Ajman: limited liability company (LLC), partnership, and sole proprietorship. The most common type of company is the LLC, which offers limited liability protection for its shareholders. Partnerships and sole proprietorships do not offer this protection, so if something goes wrong with the business, the partners or owners are personally liable for any debts or losses incurred.
Procedures For LLC
If you decide to set up an LLC, there are a few procedures and requirements that you will need to follow. First, you will need to obtain a trade license from the Department of Economic Development (DED). The trade license is a document that confirms that your company is registered and authorized to conduct business in Ajman. You will also need to register for value-added tax (VAT) with the Federal Tax Authority (FTA). The VAT is a tax on goods and services that is levied by the government. Businesses in Ajman are required to charge VAT at the rate of 17%, so make sure you factor this into your prices when setting up your business.
Trade License And VAT Registration
In addition to the trade license and VAT registration, you will also need to have a memorandum of association (MOA) prepared. The MOA is a document that sets out the terms and conditions of your company, including its name, registered address, shareholders, and directors. The MOA must be signed by all of the shareholders and directors of the company, and it must be notarized and registered with the Ajman Chamber of Commerce and Industry (ACCI).
If you are setting up a partnership or sole proprietorship, you will not need to obtain a trade license or register for VAT. However, you still need to have a memorandum of association prepared and registered with the ACCI. The memorandum of association should include information about the business name, partners/owner, registered address, and type of business activity.
Get An Office Space
Once your company is registered, you will need to get an office space in order to conduct business. Businesses in Ajman are required to have a physical office space, so you will not be able to operate your company from home. The office space does not have to be large, but it must meet the requirements of the DED and the FTA.
Benefits to set up your business in Ajman
There are many benefits to Business setup in Ajman. One of the most appealing aspects is the low cost of living. Businesses in Ajman can operate with lower overhead than businesses in other parts of the UAE, which makes it an attractive option for start-ups and small businesses.
Foreign Ownership
Businesses in Ajman can be 100% foreign-owned. This is possible because Ajman is home to a number of free zones, which offer 100% foreign ownership and a variety of other benefits such as exemption from customs duties and streamlined company formation procedures.
Tax-Free Status
Businesses in Ajman enjoy tax-free status. There is no corporate tax, income tax, or value-added tax (VAT) in Ajman. This makes it an attractive destination for businesses looking to minimize their tax liability.
Low Cost Of Living
The cost of living in Ajman is relatively low compared to other places in the UAE. This can be helpful for businesses that are trying to keep costs down.
Safe And Secure
Ajman is a safe and secure place to do business, with a low crime rate and excellent infrastructure.
Government Supportive Of Businesses
The government of Ajman is supportive of businesses and is keen to attract foreign investment. There are a number of incentives available if you do a Business setup in Ajman, including 100% ownership, exemption from customs duties, no income tax or corporate tax, and simplified company formation procedures. These factors make Ajman an attractive destination for businesses looking to set up shop in the UAE.
Final Thoughts: Ajman is a great place to do business, with plenty of benefits for both local and foreign entrepreneurs. With its supportive government and low cost of living, the Business setup in Ajman is a wise decision that can lead to long-term success. If you’re thinking of starting or expanding your business, Ajman should be at the top of your list!
