Ajman Free Zone: Affordable Business Setup Without Compromises
For entrepreneurs and small business owners seeking the most cost-effective way to establish a company in the UAE, Ajman Free Zone (AFZ) stands out as the clear winner. Offering trade licenses starting from as low as AED 5,500 per year, AFZ has become the go-to destination for startups, freelancers, and SMEs that want a legitimate UAE business presence without the premium price tags of Dubai and Abu Dhabi free zones. Despite its affordability, AFZ does not compromise on the essentials — it provides visa allocation, dedicated office options, and a strategic location just 25 minutes from Dubai.
Why Choose Ajman Free Zone?
Several compelling factors make AFZ attractive beyond just price. The setup process is remarkably fast — licenses can be issued within 24 to 48 hours with all documents in order. The zone offers 100 percent foreign ownership with no need for a local partner. Profits can be repatriated fully without restrictions. There is no personal or corporate income tax (the 9 percent corporate tax applies only if profits exceed AED 375,000). The free zone authority provides responsive customer service in multiple languages including English, Arabic, Hindi, and Urdu.
License Types and Costs
E-Commerce License: Starting from AED 5,500 per year, this is the cheapest option and is ideal for online businesses, dropshipping, social media selling, and digital services. It allows you to operate an online business and includes one visa allocation.
Service License: Starting from AED 7,500 per year, suitable for consultancies, marketing agencies, IT services, and professional services. Includes flexi-desk facility and up to three visa allocations.
Trading License: Starting from AED 9,500 per year, this license permits import, export, and re-export of specified goods. Ideal for trading companies dealing in electronics, textiles, food products, and general merchandise.
Industrial License: Starting from AED 12,000 per year, for manufacturing and light industrial operations. AFZ offers warehouse and factory spaces from 1,000 square feet within the zone.
All licenses include a digital trade license certificate, access to AFZ business services, and the ability to open a corporate bank account in the UAE.
Step-by-Step Setup Process
Step 1: Choose Your Activity. Select from over 2,000 business activities available in the AFZ activity list. You can include up to 5 activities on a single license. Consult with the AFZ business setup team if you are unsure which activities best describe your business.
Step 2: Select Your Package. Choose between a flexi-desk (virtual office), dedicated desk, or physical office space depending on your needs and budget. The flexi-desk option is the most affordable and is sufficient for most service-based and online businesses.
Step 3: Submit Documents. Required documents include passport copies of all shareholders, passport-sized photographs, a completed application form, and a business plan summary. For certain activities, additional approvals from relevant UAE authorities may be required.
Step 4: Pay and Receive License. Once documents are approved, pay the license fee and receive your trade license within 1 to 2 business days. The entire process from initial inquiry to license issuance can be completed in as little as 3 working days.
Step 5: Apply for Visas. With your license issued, apply for residence visas for yourself and employees. Each visa costs approximately AED 3,500 to AED 5,000 including the Emirates ID, medical test, and residence stamp. The number of visas available depends on your package — flexi-desk packages typically include 1 to 3 visas, while office packages offer 4 to 10 or more based on office size.
Office Space Options
AFZ offers a range of workspace solutions. Flexi-desk packages start from AED 3,000 per year and provide a registered business address, mail handling, and access to shared meeting rooms. Dedicated desks in co-working spaces start from AED 6,000 per year. Private offices within the free zone range from AED 12,000 to AED 35,000 per year depending on size and location. Warehouses for trading and industrial companies are available from AED 25,000 per year for 1,000 square feet.
Banking and Financial Services
Opening a corporate bank account is one of the challenges new free zone companies face. AFZ has partnerships with several UAE banks including RAK Bank, Ajman Bank, and National Bank of Fujairah that streamline the account opening process for AFZ companies. Alternatively, digital banking solutions like Wio Business and Mashreq NeoBiz offer faster account opening with less documentation. Expect the bank account opening process to take 2 to 6 weeks depending on the bank and your business profile.
Comparing AFZ with Other Budget Free Zones
While AFZ offers the lowest starting prices, other budget-friendly free zones include IFZA in Dubai (starting from AED 11,750), SHAMS in Sharjah (starting from AED 8,000), and RAKEZ in Ras Al Khaimah (starting from AED 5,750). AFZ wins on pure price for most license types, while IFZA offers a Dubai address at a premium. SHAMS is competitive for media and creative businesses, and RAKEZ offers excellent industrial and manufacturing facilities. Your choice should balance cost, location preference, visa requirements, and the specific nature of your business.
Limitations to Consider
Free zone companies, including those in AFZ, cannot directly sell goods or services to customers within the UAE mainland without a distribution agreement or mainland trade license. This is an important consideration for businesses targeting the local UAE market. Free zone companies can freely sell internationally and to other free zone entities. The physical distance from Dubai may be a minor inconvenience for businesses that need frequent face-to-face meetings in the city, though the 25-minute drive via Sheikh Mohammed Bin Zayed Road is manageable.