How to Setup your Business In Ajman | A Guide 2025

Gone are the days when setting up a business was itself a nightmare. Today, it is easier than ever to kick-start your business if you have the proper knowledge. How about starting your business where the profits are going to skyrocket? The United Arab Emirates is top of the list. There are plenty of options if you’re making up your mind for the UAE. However, out of them chose Ajman, one of the seven Emirates of the UAE.

The emirate has become a popular destination for new ventures. It is no surprise that Ajman has garnered attention with its affordable costs and business-friendly environment.

Considering a business setup in Ajman? Don’t worry! This guide will walk you through the entire process. From choosing the right business location to obtaining the necessary licenses, we’ll discover each topic in detail.

Why Choose Ajman for Your Business?

In the UAE, Ajman is one of the most accessible Emirates. It provides many advantages for investors and entrepreneurs alike. We’ve penned down some strong reasons why Ajman is a good choice for your business:

Strategic Location: Ajman is located along the Arabian Gulf coast. The emirate offers easy access to markets in the UAE. Along with GCC countries, and beyond.

Affordable Costs: Ajman offers lower operational costs as compared to other Emirates. This makes it an ideal choice for cost-conscious entrepreneurs.

Business-Friendly Regulations: The UAE local government has created a supportive environment for business owners. The simplified processes and numerous incentives are a few of them.

Well-Developed Infrastructure: Ajman has an excellent transport system. This includes: 

• Seaports
• Airports, and
• Highways, as well as
• Robust industrial zones that support various sectors.

Key Considerations Before Starting Your Business in Ajman

Consider some essential aspects before diving into the process of business setup in Ajman:

Location: Mainland vs. Free Zone

This decision will take more time than other steps, we warn you! Decide whether to establish your business in Ajman’s mainland or free zone. While both options come with their own set of advantages. Select wisely, and choose the right fit for your business.

Legal Structures in Ajman

The right legal structure for your business is another headache. Well, we’ll break down the options available in Ajman:

1. Sole Establishment: A business owned by a single individual, fully responsible for its liabilities.
2. Limited Liability Company (LLC): Suitable for businesses with at least two partners. It offers liability protection based on shareholding.
3. Professional Firm: Ideal for service businesses that require professional expertise. These include consultancy, legal services, etc.
4. Public/Private Shareholding Company: Businesses with shares that can be traded publicly or privately, with liability based on shareholding.
5. Branch Office: A local or foreign company subsidiary.

In Ajman’s free zones, options include:

• Free Zone Establishment: A business with one shareholder.
• Free Zone Company: A business with multiple shareholders.

Types of Business Licenses in Ajman

Ajman offers various licenses based on the nature of your business activity. The major license categories include:

Commercial License: Trading goods, products, and services for businesses

Industrial License: Manufacturing or industrial activities businesses

Service (Professional) License: Companies offering professional services. It could involve:

• Consulting
• Legal, or
• IT services.

E-commerce License: Ideal for businesses operating online through digital platforms.

General Maintenance License: Repair and maintenance activities for companies.

Steps to Start Your Business in Ajman

Starting a business in Ajman involves several key steps. Here’s a breakdown of the process:

1. Decide on Your Business Activity

Determine the business activity type you plan before applying for a business license. Your business activity will directly influence the license. Understand your activity for the next steps, whether you’re in the retail, industrial, or service sector.

2. Choose a Business Location: Mainland or Free Zone

As mentioned earlier, choosing between the mainland and the free zone is essential. Once you make this decision, proceed with securing the necessary approvals from the relevant authorities.

3. Apply for Initial Approval

Submitting an initial application to the local Municipality is the next step. Provide personal and business details. This includes passport copies and business activity descriptions. Take this approval so that you can move forward in the process.

4. Obtain Approvals for Business Location

You must also secure approval for your business location. The Municipality will inspect your office premises to ensure they meet requirements. For free zone businesses, the free zone authority handles the location approval.

5. Register Your Company Name

Choose a company name when your location is approved. Get approval from the Department of Economic Development (DED) in Ajman. Your chosen name must adhere to the local naming regulations. It could not be offensive or prohibited words.

6. Finalize Documentation

Prepare and submit all documentation. It includes the following information:

• Notarized Memorandum of Association
• Notarized Articles of Association
• Passport copies of shareholders and partners
• Proof of residence or rental agreement
• Bank reference letter

7. Pay Fees and Obtain the License

Pay the required fees for your business license after all documents are submitted and verified. Receive your official business license right after processing. It allows you to begin operations.

8. Apply for Employee Visas and Open a Bank Account

Apply for employee visas when your business is set up. It is based on the size of your office. Don’t forget to open a corporate bank account with a local or international bank. Mandatory to so to handle financial transactions.

Documents Required for Business Setup in Ajman

The following documents are needed when submitting your application:

• Application form with business details
• Passport copies of shareholders and partners
• Proof of business address (rental agreement or ownership)
• Notarized MOA and AOA
• Bank reference letter
• Business plan

Benefits of Doing Business in Ajman

Ajman offers a host of advantages for businesses. A quick look at some of the top benefits:

Low Setup Costs: Ajman offers lower costs for business formation and operation than other Emirates.

Accessibility: It is located close to other Emirates and GCC countries. The Emirates offers excellent connectivity.

• Highways
• Seaports, and
• Airports.

Tax Incentives: Freezone businesses are established to benefit from tax exemptions and full repatriation of profits and capital.

Business-Friendly Environment: Ajman is ideal for entrepreneurs due to the hassle-free Ajman business setup. Involved minimal red tape and fast-tracked procedures.

Wrapping Up!

Ajman provides a range of benefits, making it a top choice for entrepreneurs planning their setup in the UAE. Ajman’s favorable tax policies are one of the strong reasons for choosing it. Combined with low costs and robust infrastructure. Creating the perfect environment for new businesses to thrive, whether you choose the mainland or the free zone!

Connect Business Center Assistance to Set up Your Business in Ajman

Ready to start your journey in Ajman? Attach yourself to experienced business setup consultants in Ajman. Take the consultation at Connect Business Center. Their professionals can guide you through the entire process. At Connect Business Center, receive tailored services and ensure a smooth business formation experience. Reach out to expert guidance and take the first step towards building your business in Ajman today