Ajman Freezone (AFZ) is one of the UAE’s most attractive business hubs, offering cost-effective and hassle-free company formation. If you’re an entrepreneur or investor considering setting up your business in Ajman Freezone, understanding the costs involved in obtaining a Freezone license is crucial. This blog breaks down the expenses, benefits, and factors that influence the total cost of securing a Freezone license in Ajman Freezone, making it easy to navigate your business setup process.
Why Choose Ajman Freezone?
Ajman Freezone is a preferred choice for startups, SMEs, and large corporations due to its affordability and strategic location. Some key benefits include:
- 100% Foreign Ownership: Unlike mainland businesses, Ajman Freezone companies allow complete ownership to foreign investors.
- Tax Benefits: Zero corporate and personal income tax.
- Full Repatriation of Profits: Business owners can repatriate 100% of their capital and profits.
- Quick Setup: Business registration in Ajman Freezone is streamlined and can be completed in a matter of days.
- Access to Global Markets: Ajman Freezone’s location provides easy access to trade routes across the Middle East, Asia, and Africa.
Types of Freezone Licenses in Ajman Freezone
Before diving into costs, let’s look at the different types of Ajman Freezone licenses available:
- Trading License – For businesses involved in import, export, and distribution of goods.
- E-commerce License – For online businesses and digital trade.
- Professional/Service License – For consultancy firms, IT services, and professional activities.
- Industrial License – For businesses engaged in manufacturing and production.
- Freelance Permit – Ideal for solo entrepreneurs, freelancers, and creative professionals.
Breakdown of Ajman Freezone License Costs
The cost of an Ajman Freezone license depends on several factors, including the business activity, office space, visa requirements, and additional services. Here’s a general breakdown:
- License Fees
- The basic cost of an Ajman Freezone license starts from AED 5,000 to AED 15,000 per year, depending on the type of license and business category.
- Business Setup Packages
- Ajman Freezone offers flexible packages to suit different business needs:
- Freelancer Package – Starts from AED 6,000 per year, ideal for solo entrepreneurs.
- Smart Office Package – Ranges between AED 11,000 to AED 16,000 per year, including a shared office facility.
- Executive Office Package – Costs AED 20,000+ per year, offering a dedicated office space.
- Visa Costs
- Visa costs vary based on the number of visas required:
- Investor/Partner Visa – AED 3,000 to AED 5,000 per visa (valid for 2-3 years).
- Employee Visa – AED 3,500 to AED 6,000 per visa (valid for 2-3 years).
- Dependent Visa – AED 3,000 to AED 4,500 per visa (for family sponsorships).
- Office Space Requirements
- Unlike mainland companies, Ajman Freezone businesses require office space within the Freezone itself. The cost depends on the size and type of space:
- Flexi-desk (Shared Office) – AED 5,000 to AED 10,000 per year.
- Dedicated Office – AED 15,000 to AED 30,000 per year.
- Warehouse Space – AED 50,000+ per year, depending on size and location.
- Additional Costs
- Some extra charges may apply based on business needs:
- Bank Account Opening Assistance – AED 2,000 to AED 5,000.
- Legal Translations & Documentation – AED 500 to AED 2,000.
- PRO Services & Government Approvals – AED 1,500 to AED 5,000.
- Customs Registration (for trading businesses) – AED 1,000 to AED 5,000.
Factors That Influence Ajman Freezone License Costs
Several factors can affect the total cost of your Ajman Freezone license:
- Business Activity: High-risk industries may have higher licensing fees.
- Number of Visas: More visas mean higher overall expenses.
- Office Space: The type of workspace you choose impacts the cost significantly.
- Duration of License: Some packages offer discounts for multi-year registrations.
- Additional Services: If you opt for PRO services, sponsorship, or bank assistance, costs will increase.
How to Save on Your Ajman Freezone License
If you want to reduce your business setup costs in Ajman Freezone, consider these tips:
- Choose a Budget-Friendly Package: Opt for a freelancer or smart office package if you don’t require a large office space.
- Apply for Fewer Visas Initially: Start with the essential visas and add more as your business grows.
- Leverage Promotions & Discounts: Ajman Freezone often has seasonal discounts—keep an eye out for deals.
- Opt for a Multi-Year License: Some Freezones offer lower fees if you pay for multiple years upfront.
- Bundle Services Together: If you require multiple services (e.g., visa processing and office space), look for bundled packages to save costs.
Setting up a business in Ajman Freezone is one of the most cost-effective options in the UAE. By understanding the different expenses involved—from licensing fees to office space—you can make informed decisions and optimize your investment. Whether you’re a startup, freelancer, or established business, Ajman Freezone offers a variety of affordable packages to suit your needs.