Starting a business in Ajman offers entrepreneurs and investors a strategic advantage in the UAE. Known for its business-friendly policies, low operational costs, and swift government procedures, Ajman has become one of the top destinations for startups and SMEs. Whether you’re a local resident or an international investor, this comprehensive guide will walk you through every step of Ajman company formation in 2025, ensuring your business setup process is smooth and compliant.
Why Choose Ajman for Business Setup?
Ajman, the smallest emirate in the UAE, is strategically located between Sharjah and Umm Al Quwain. Despite its size, it boasts a growing economy, investor-friendly environment, and a thriving industrial sector.
Top benefits of starting a business in Ajman:
- Low setup and operating costs compared to Dubai or Abu Dhabi
- Easy access to other emirates and the GCC region
- Well-established free zone and mainland options
- Streamlined licensing and documentation process
- No corporate tax for most business types
- 100% foreign ownership available in many sectors
Step-by-Step Guide to Start a Business in Ajman (2025)
Let’s explore the key steps involved in business setup in Ajman, whether you’re setting up a small trading company or a service-based business.
Step 1: Choose Your Business Activity
Before anything else, determine what type of business activity you want to conduct. This could be:
- Trading (e.g., electronics, garments, food)
- Service (e.g., consultancy, marketing, logistics)
- Industrial (e.g., manufacturing, assembly)
💡 Tip: Ajman’s Department of Economic Development (DED) provides a detailed list of permitted activities for both free zone and mainland companies.
Step 2: Select a Legal Structure
Your business structure defines how your company will operate legally. Common types in Ajman include:
- Sole Proprietorship
- Limited Liability Company (LLC)
- Civil Company (for professionals)
- Branch of a Foreign Company
- Free Zone Company (FZC or FZE)
Each structure has its pros and cons regarding ownership, taxation, and documentation. For example, LLCs allow local and foreign partnerships, while Free Zone entities offer 100% foreign ownership and tax benefits.
Step 3: Choose Between Mainland or Free Zone
Ajman Mainland: Licensed by the DED, suitable for companies planning to operate within the UAE market or with government entities.
Ajman Free Zone (AFZ): Ideal for international trading, eCommerce, consultancy, and companies that do not require a local physical office.
| Feature | Mainland | Free Zone (AFZ) |
|---|---|---|
| Ownership | Up to 100% (in most sectors) | 100% Foreign Ownership |
| Market Access | UAE-wide | Limited to Free Zone & exports |
| Office Requirement | Mandatory physical office | Virtual office options available |
| Government Deals | Allowed | Not allowed |
Step 4: Reserve Your Trade Name
Your trade name should reflect your business activity and comply with Ajman DED’s naming guidelines. Avoid names that are religious, political, or similar to well-known trademarks.
This step includes:
- Submitting 3–5 name options
- Paying the trade name reservation fee
- Receiving the approval certificate (valid for 6 months)
Step 5: Apply for Initial Approval
Initial approval from DED or AFZ confirms that the government has no objection to your business. This is not a license, but a green light to proceed with the remaining setup steps.
Required documents typically include:
- Passport copies of all shareholders
- Visa copy and Emirates ID (if applicable)
- Business activity details
- NOC from current sponsor (if on employment visa)
Step 6: Prepare the MOA & Local Service Agreement
For LLCs or partnerships, you must draft and notarize the Memorandum of Association (MOA). This document outlines shareholding details, capital structure, and responsibilities of each partner.
For sole proprietors or foreign-owned businesses, a Local Service Agent Agreement may be required.
📌 Al Dhabi Businessmen Services provides legal drafting, notarization, and PRO assistance to make this step easy and compliant.
Step 7: Choose Office Space or Flexi Desk
Depending on your business type and license requirements, you can choose:
- Traditional office space (mandatory for mainland licenses)
- Smart office or flexi-desk (ideal for Free Zone startups)
- Virtual office solutions for cost-effective presence
Ajman Free Zone offers tailored office packages for small and mid-sized businesses, including co-working spaces and warehouses.
Step 8: Get Final License & Approvals
Once all documents are verified and payments made, you will receive your:
- Trade License
- Chamber of Commerce registration
- Company Establishment Card (for visa processing)
You can now officially start your operations in Ajman!
Step 9: Apply for Visas (Owner, Employees, Family)
You can now apply for:
- Investor/Partner Visa
- Employee Visa
- Family Visa (for dependents)
Al Dhabi offers end-to-end UAE visa services, including medical tests, Emirates ID processing, and stamping.
Cost of Business Setup in Ajman
The cost depends on your business type, office space, and license category. On average:
- Free Zone license: Starts from AED 5,500
- Mainland license (LLC): From AED 10,000 onwards
- Office space rental: AED 5,000 to AED 25,000 annually
💡 Tip: Ajman Free Zone offers attractive packages for freelancers and small businesses, with zero visa or one-visa options.
How Al Dhabi Businessmen Services Can Help
At Al Dhabi Businessmen Services, we simplify your entire Ajman company formation journey:
✅ Business consultation and activity selection
✅ Trade name reservation and approvals
✅ MOA drafting and notarization
✅ Office space assistance (Mainland & Free Zone)
✅ License issuance and renewals
✅ Visa application and PRO services
✅ Corporate bank account guidance
✅ End-to-end support—fast, affordable, transparent
Start Your Business in Ajman Today!
Whether you’re launching a trading company, IT consultancy, or industrial unit, Ajman is a smart and strategic choice in 2025. With its cost-effective setup, simplified regulations, and full ownership benefits, your business can thrive with minimal hassle.
Contact Al Dhabi Businessmen Services today for a free consultation. Let us handle the paperwork while you focus on building your dream business!
