The establishment of AFZ is to enable substantial Industrial development in the region. Over the years it has attracted many global entrepreneurs and thereby strengthens the financial and Industrial sector in the UAE.
Business Setup in Ajman Free zone.
Ajman Free Zone Authority (AFZA) is responsible for licensing activities in the zone. The Authority allows the following entities to operate in the Zone.
1) FZCO- This stands for Free Zone Company wherein there are more than one shareholder(s)
2) FZE – This stands for Free Zone Establishment wherein there is only one shareholder who can either be Natural Person or Corporate Person.
3) BFC – This stands for Branch of a Foreign Company wherein foreign enterprises can establish a branch or representative office in the Zone.
4) BLC – This stands for Branch of a Local Company wherein existing UAE entities can register their branches in the Zone.
Related to above the authorities allows the following types of licenses,
1) Commercial / Business Licenses – These licenses are issued for Trade(limited activities) and General Trading
2) Service Licenses – These licenses are issued to service industry basically to consultancies (marketing, management, IT etc.)
3) Industrial License – These licenses are issued to Manufacturing units
4) National Industrial License – These licenses are issued to Manufacturing units which are registered in GCC countries and their nationals own a minimum of 51 % share in the company.
5) E-Commerce License – These licenses are issued to those organisations which are engaged in electronic trading activities and provide marketing and technical support to the region.
6) Offshore Licenses – These licenses are issued to those enterprises which are already registered in the Zone but also required to operate their business outside the zone.
Steps to setup a company in AFZ
A) Free Zone Entity (FZE)
The following documents are required to establish FZE
1) Application Form
2) Proposed Names
3) Passport copy of the Natural person as shareholder and if a Corporate person as shareholder, passport copies of the existing companies shareholder(s) / partner(s)
4) NOC for the natural person as shareholder form local sponsor if having UAE residence status.
5) Business plan of 2 pages especially applicable for professional and e-commerce license and for commercial and general trading it should contain the nature of business activities.
B) Free Zone Company (FZCO)
The following documents are required to establish FZCO,
1) Application Form
2) Proposed Names for the company
3) Passport copies of Shareholder(s) Director(s) and Manager
4) NOC from Local sponsor if the above are UAE residence
5) Business plan as stated above
C) Branch of Local Company (BLC)
The following documents are required to establish BLC
1) Application Form
2) Passport copies of the shareholder(s) of the parent company
3) Business plan as stated above
4) Passport copy of the proposed Manager
5) NOC from the sponsor if the Manager is UAE residence
6) Passport copy of the legal representative if appointed
7) Attested POA issued to legal representative
8) Original Trade license of the parent license
9) Commercial Registration Certificate in original of the parent company
10) Membership certificate in original issued from respective Chamber of Commerce.
11) Letter of continuity from bank as a proof that the parent company is in operation for more than a year.
D) Branch of Foreign Company (BFC)
The following documents are required to establish BFC
1) Application Form
2) Business Plan as stated above.
3) Passport copy of the appointed Manager(s)
4) Passport copy of the legal representative if appointed
5) Attested POA issued to Manager / Legal representative
6) Contract of Association of the parent company
7) Attested copy of Incorporation certificate of the parent company issued by a competent authority in the country of origin
8) Attested copy of resolution issued by a competent authority to parent company to open a branch in the free zone.
The authorities will assess the said documents for their legality and issue license accordingly
Note: For certain activities NOC from relevant authorities will be required by the authorities in order to process the license.