A Comprehensive Guide to Ajman Mainland License
Ajman, the smallest of the seven emirates in the United Arab Emirates (UAE), has emerged as a preferred investment destination for foreign entrepreneurs. Despite its size, Ajman offers a cost-effective and strategic location for business setup. This article provides a detailed guide on obtaining various licenses and setting up a business in Ajman mainland.
Why Choose Ajman Mainland?
Ajman’s strategic location on the Arabian Gulf Coast, close to Umm Al Quwain and Sharjah, makes it an attractive destination for various business activities, including real estate, construction, consultancy services, and trading. Moreover, the process of business setup in Ajman mainland is one of the most cost-effective options in the UAE.
Understanding Ajman Mainland Licenses
A trade license is a mandatory document for starting and running a business in Ajman. Operating without a trade license can lead to severe penalties. The type of license required depends on the nature of the business. Here are the major business licenses in Ajman mainland:
Professional License
Trading License
Industrial License
Legal Entities in Ajman Mainland
Choosing the right legal structure is crucial for business setup in Ajman. The type of legal entity is determined based on the number of shareholders and the nature of the proposed entity. Here are the legal entities permitted in Ajman mainland:
Sole Proprietorship
Limited Liability Company (LLC)
Private Joint Stock Company (PJSC)
Civil Company
Business Setup Process in Ajman Mainland
The process of business setup in Ajman mainland involves several steps:
- Select a business activity
- Identify a legal structure
- Fill out and submit the business application form
- 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
Setting up a business in Ajman mainland comes with numerous benefits:
- 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, including Ultimate Beneficial Ownership (UBO), Economic Substance Regulation (ESR), and Anti-Money Laundering and Combatting Financing of Terrorism (AML-CFT). Non-compliance can lead to severe consequences, including administrative penalties and suspension of trade license.
Need Assistance?
PW offers comprehensive services covering essential requirements such as visa processing, document drafting, government liaising, bank account opening, and more. Their team of business setup consultants, PRO service executives, and compliance advisers ensures a hassle-free company incorporation process in Ajman