Ajman is the smallest of the seven emirates in the UAE, but it enjoys the status of being one of the most preferred investment destinations among foreign entrepreneurs. The process of business setup in Ajman mainland offers the investors one of the most cost-effective options available in the country. Business set up consultants in Ajman can help foreign investors take advantage of the emirate’s cost-effective business offerings.
Foreign investors favour the process of Ajman mainland company formation mainly because of the emirate’s strategic location. Ajman is strategically located in the Arabian Gulf Coast close to Umm Al Quwain and Sharjah. All kinds of lucrative business activities are permitted in Ajman including real estate, construction, consultancy services, trading etc. Read ahead to know further about Ajman mainland company formation.
Licenses in Ajman Mainland
A trade license is a primary and most important document mandatory for starting and running a business in Ajman. Conducting business activities without obtaining a trade license in Ajman is a violation severe enough to attract penalties and other major consequences. Business set up consultants in Ajman can help foreign investors apply for a trade license in Ajman mainland. Based on the economic activities, the following are the major business licenses in Ajman mainland:
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A professional license in Ajman authorises the conduct of professional or services-related activities. Ajman DED issues professional licenses to skilled professionals who practice their craft. Accounting services, management consultancy services, technical services etc are some of the professional activities permitted in Ajman mainland.
A professional license allows 100% foreign ownership, provided a Local Service Agent (LSA) is appointed. An LSA must be a UAE national, but he is not entitled to any percentage of ownership in the company. Consult with the best business setup consultants in UAE to get a professional license quickly or appoint an LSA.
A trading license is a commercial license that permits the license holders to sell goods specified in the license. The activities permitted under a trading license in Ajman include import, export and re-export of almost all kinds of goods. A general trading license in Ajman permits the selling of a diverse range of goods while a regular trading license allows the trading of a limited set of similar goods.
Foreign investors can enjoy 100% foreign ownership by obtaining a trading license in Ajman mainland for specific activities listed by the DED. More than thousands of commercial activities are eligible for total foreign ownership. Consult with business setup consultants in Ajman to get more information on the list of activities eligible for 100% foreign ownership.
The industrial license in Ajman permits the license holders to conduct activities such as logistics and manufacturing. Consult with business setup advisers in Ajman to quickly obtain an industrial license.
Legal Entities Permitted in Ajman Mainland
Investors must identify an appropriate legal structure or legal form to initiate the process of business setup in Ajman. The type of legal entity or legal structure is determined based on the number of shareholders and the nature of the proposed entity. Business setup consultants in Ajman can guide entrepreneurs in identifying an appropriate legal structure for their mainland company. The following type of legal entities are permitted in Ajman mainland:
A sole proprietorship or sole establishment in Ajman is run by a single shareholder who is the owner of the company. The owner’s liability towards the company will be unlimited. It means the owner of a sole proprietorship will be directly liable for all the liabilities and profits made by the company. In case a dispute arises, other parties can directly sue the owner and not the company.
Both UAE nationals and foreigners are allowed to set up a sole proprietorship in Ajman mainland. However, foreigners must appoint a UAE national as LSA to get Ajman DED’s approval. Foreign investors are allowed to carry out professional or service activities through a sole proprietorship business in Ajman mainland. Avail of business setup services in Ajman to easily start a sole establishment company.
Limited Liability Company
Foreign investors are allowed to start a Limited Liability Company (LLC) in Ajman with 2-50 shareholders. Earlier, the process of LLC business setup in Ajman required the foreign investors to grant 51% of ownership to a UAE national partner who acts as the Local Sponsor. However, from June 2021, the Local Sponsorship requirement has been scrapped for nearly a thousand commercial activities listed by the Ajman DED. LLCs can carry out commercial and industrial activities, but consultancy activities are not permitted.
Unlike a sole establishment, the liability of each shareholder toward the entity is limited to the extent of capital they have invested in the company. No one can file a lawsuit in the name of any of the shareholders in an LLC in Ajman mainland. Third parties can sue only the company and not the shareholders. Similarly, debts incurred by the company will be that of the company and shareholders are not personally responsible for the debts. Enlist the best business setup services in Ajman to start a mainland LLC.
Private Joint Stock Company
A Private Joint Stock Company (PJSC) in Ajman mainland requires at least 51% of the paid-up capital to be owned by one or more UAE nationals. Foreign investors can carry out most commercial, industrial and some specific professional activities in PJSC in Ajman mainland. Business set up consultants in Ajman can help investors establish a PJSC without any hassle.
Any two persons can set up a Civil Company in Ajman mainland. However, investors must appoint a UAE national service agent or include as a partner. Consult with business setup experts in Ajman to start a mainland Civil Company.
Process of Business Setup in Ajman Mainland
Investors need to follow a set of highly streamlined steps to register a company in Ajman mainland. Entrepreneurs with access to bespoke business setup services in Ajman can easily navigate the company incorporation steps. The steps associated with the process of business setup in Ajman mainland are given below:
- Select an activity
- Identify a legal structure
- Fill out and submit the business application form (business setup consultants in Ajman can provide this)
- Reserve the trade name
- Obtain approval of government bodies for high-risk activities
- Sign a lease agreement for office space
- Receive trade license
- Apply for a Residence visa
- Open a corporate bank account
Benefits of Business Setup in Ajman Mainland
Foreign investors can avail themselves of the following benefits by registering a company in Ajman mainland:
- 100% foreign ownership in specific activities
- Zero corporate tax
- Zero personal tax
- Robust infrastructure
- Excellent connectivity through sea, air and land
- Strategic location
- Low-cost living
- Ability to hire foreign labourers at a low cost
- Availability of office spaces and warehouses at low rentals
Compliance Requirements in Ajman Mainland
Foreign investors need to comply with certain critical regulatory requirements associated with the process of business setup in Ajman mainland. They are Ultimate Beneficial Ownership (UBO), Economic Substance Regulation (ESR) and Anti-Money Laundering and Combatting Financing of Terrorism (AML-CFT). Investors need to assess their compliance even when they undertake company liquidation in Ajman mainland. Failing to comply with these regulations will lead to severe consequences including administrative penalties, suspension of trade license etc. Seek advice from business setup consultants in Ajman to avoid none-compliance.
Enlist the Best Business Setup Services in Ajman Mainland
The process of business setup in Ajman mainland is the most efficient and cost-effective way for foreign investors to ensure entry into the lucrative Middle East markets. Moreover, Ajman DED offers a slew of business activities, world-class facilities and progressive licensing regulation. However, foreign investors often require the assistance of business setup consultants in Ajman such as Jitendra Business Consultants (JBC) to navigate the complex licensing procedures.
JBC is the leading provider of business setup services in Ajman, offering a one-stop solution for company registration requirements. Our highly qualified business setup advisers can help investors navigate the complexities of UAE immigration and labour laws. We offer advice on visa processing, bank account opening, UAE golden visa, retirement visa etc. JBC also provides solutions for compliance requirements such as Value Added Tax (VAT), ESR, UBO, and AML-CFT. Connect with our advisers today to find the best mainland business setup solutions.