Business Setup in Ajman: Mainland or Free Zone?
You can set up a company in Ajman on the mainland through the Ajman Department of Economic Development (DED) or inside a free zone. Ajman is one of the lowest-cost emirates in the UAE, and it sits next to Sharjah and a short drive from Dubai. This guide explains how the two routes compare, what each costs and how to choose.
Key takeaways
- Ajman DED issues mainland trade licences, and its own service page describes a local service agent for some civil business companies with foreign partners.
- Ajman Free Zone has operated since 1988 beside Ajman’s port and allows 100% foreign ownership.
- A free zone company trades inside the zone and abroad, and it needs a distributor or a mainland branch to sell locally.
- Our starting price for the Ajman Free Zone is AED 5,555, one of the lowest on our list.
- Free zone companies still fall under UAE Corporate Tax, and the 0% rate applies only to qualifying income.
Mainland or Free Zone in Ajman
Ajman has two licensing systems. The Department of Economic Development licenses mainland companies, and each free zone authority licenses its own companies. The authority that issues your licence decides where you can trade, what you pay and how you renew.
Start with your customers. Customers in the UAE point to the mainland, while exporters, online sellers and consultants usually fit a free zone.
| Mainland (Ajman DED) | Ajman Free Zone | |
|---|---|---|
| Licence authority | Ajman Department of Economic Development | The free zone authority |
| Foreign ownership | Depends on the activity and legal form; confirm with DED | 100% |
| Where you can trade | Across the UAE | Inside the zone and abroad; local sales need a route |
| Premises | A leased commercial premises with an authenticated lease | Zone office, warehouse or flexi desk |
| EZONE starting price | Ask for a quote | AED 5,555 |
Setting Up a Mainland Company in Ajman
A mainland licence lets you trade anywhere in the UAE and work with local customers directly. It suits shops, contractors, restaurants and service companies that serve Ajman and the northern emirates. Ajman DED describes its licence process on its own service page.
The steps DED lists
- Reserve the trade name through the e-service or a Customer Happiness Center.
- Get approval for the foreign partners from the Federal Authority for Identity and Nationality.
- Get activity approvals. Some activities need approval from other government entities first.
- Authenticate the lease contract with the Municipality and Planning Department.
- Pay the fees and sign the memorandum of association for a company.
- Receive the licence. It is valid for one year and renews annually.
DED lists the delivery time as 10 minutes once the steps are complete, and you can apply through service centres, the e-service or the mobile app. The approvals before that point are what take the time.
Government fees DED publishes
DED’s service page lists the main charges below. Fees vary by activity and capital, so use the DED fee estimator before you pay.
| Charge | Fee |
|---|---|
| Economic licence issuance or renewal | AED 600 |
| Commercial register entry | AED 200 |
| Unified economic activities register | AED 200 |
| Commercial name banner permit | AED 350 |
| CSR UAE Fund community contribution | AED 1,500 |
| Publishing an LLC’s official document | AED 3,000 |
Contract documentation is charged by capital, and Ajman Chamber of Commerce and Industry fees also apply. Visas, an office lease and sector approvals are separate.
Ownership and the local service agent
Federal Decree-Law No. 26 of 2020 removed the old 51% Emirati ownership rule for most mainland activities across the UAE. Ajman DED’s own page still describes a local service agent from among UAE citizens for a civil business company with non-GCC partners. A civil company is a professional partnership, so this matters mostly for consultants and professionals.
The rule that applies to you depends on your activity and legal form. Ask DED for the current requirement in writing before you plan around 100% ownership on the mainland.
Ajman Free Zone
Ajman Free Zone was established in 1988 and sits beside Ajman’s marine port. It offers trading, service, industrial and e-commerce licences under one authority, and it allows 100% foreign ownership with full repatriation of capital and profits. Our starting price is AED 5,555.
Read our Ajman Free Zone licence page and our guide to the Ajman Free Zone licence cost for the packages and what drives the price.
Company structures
The zone offers the usual free zone structures. Pick the one that matches your shareholders.
- Free Zone Establishment (FZE): a single-owner company, owned by a person or a company.
- Free Zone Company (FZC): a company with several shareholders.
- Branch of a foreign company: keeps the parent’s full ownership and extends its business into the UAE.
- Branch of a UAE company: extends a local company into the zone.
Our sister site explains the choice in FZCO versus FZE, and its home page lists its other UAE guides.
Why founders pick Ajman
- Low entry cost. It is one of the cheapest zones on our price list.
- Port access. Trading and light-industrial businesses get a logistics edge beside the port.
- Broad activities. Trading, service, industrial and e-commerce licences sit under one authority.
- Staged payment. Our Ajman page lists multiple instalment payments as a benefit.
Ajman Media City Free Zone
Ajman also has a media-focused free zone, Ajman Media City Free Zone. Its governing authority has changed over time, and published sources disagree on whether it now sits under the Ajman free zones authority. Ask us to confirm its current status and licence terms before you choose it.
Selling Locally From an Ajman Free Zone
A free zone company can sell inside its zone and abroad. UAE government guidance says it must work through a licensed mainland distributor, or set up a mainland branch or company, to sell locally.
That is why exporters, online sellers and consultants fit a free zone well. A shop or a contractor that serves local customers usually fits the mainland.
What an Ajman Company Really Costs
The licence fee is only the first line. Compare quotes on the same basis, because a low licence price with no visa can cost more than a package that includes one.
- Licence and registration: the annual fee, plus the fees in the DED table on the mainland.
- Premises: a leased office, shop, warehouse or flexi desk.
- Establishment card and visas: each residence visa adds an entry permit, a medical test and Emirates ID fees.
- Approvals: sector approvals for regulated or industrial activities.
- Renewal: the licence renews every year, and renewal prices can differ from the first year.
Documents You Will Need
The list depends on the route and the legal form. Ajman DED asks for the Emirates ID of UAE nationals and residents, or a passport copy where a partner is a visitor. A branch also needs the parent company’s commercial registration certificate and licence.
- Passport copies of every shareholder and manager.
- A trade name reservation and a completed licence application form.
- The memorandum of association or articles, attested where a shareholder is a company.
- For a branch of a foreign company, a board resolution and the parent’s certificate of incorporation, notarised and attested.
- Any sector approval, environmental approval or municipality NOC your activity needs.
Visas, Banking and Next Steps After the Licence
The licence is only the start. After it is issued you open an establishment card, apply for investor and employee visas, complete medical tests and Emirates ID applications and open a corporate bank account.
Banks will ask about your business model, your customers and your source of funds, whichever route you choose. Prepare a clear description of your activity and your expected income before you apply.
Corporate Tax in Ajman
The emirate does not change the tax rules. Every UAE company is a taxable person, and Corporate Tax applies at 9% on taxable income above the threshold. A free zone company can pay 0% on qualifying income only if it meets the conditions of a qualifying free zone person.
Those conditions include adequate substance in the zone, audited financial statements and keeping non-qualifying revenue within the de minimis limit. Our guide to free zone tax and QFZP status explains them. Both mainland and free zone companies must register and file a return.
How Ajman Compares
Ajman competes with other cost-conscious emirates, not with Dubai’s premium zones. See how it stacks up in our guide to business setup in the UAE by emirate, the cheapest free zones in the UAE and our Sharjah business setup guide. Our Ajman free zone business setup page lists the services we provide.
Common Mistakes
- Choosing a free zone, then selling locally. A free zone company needs a distributor or a mainland branch for local sales.
- Assuming 100% ownership on the mainland. Check your activity and legal form with DED first.
- Comparing licence prices only. Visas, premises and renewals change the real cost.
- Skipping approvals. Regulated and industrial activities need sector approvals.
- Ignoring Corporate Tax. Every company must register, and a free zone company that fails the conditions loses the 0% rate.
Next Steps
Tell us what you sell, where your customers are and how many people you plan to hire. We will recommend a route, give you a written quote that shows the licence, visas and premises and manage the application with the authority. Fees and rules change, so confirm every figure with the authority before you pay.
Frequently Asked Questions
In Ajman Free Zone, yes. On the mainland it depends on the activity and legal form, because Ajman DED's service page still describes a local service agent for some civil companies with non-GCC partners. Confirm the rule for your activity with DED.
Our Ajman Free Zone starting price is AED 5,555. On the mainland, DED lists AED 600 for licence issuance and renewal, plus register, contribution and publication fees, and visas and premises are extra.
Not directly. It must work through a licensed mainland distributor or set up a mainland branch or company, according to UAE government guidance.
You reserve a trade name, get approval for foreign partners, collect any activity approvals, authenticate the lease, pay the fees, sign the memorandum of association and receive the licence, which is valid for one year.
An FZE for one owner, an FZC for several shareholders, and branches of foreign or UAE companies.
Our Ajman Free Zone starting price of AED 5,555 is below Meydan at AED 12,500 and close to SPC at AED 5,750. Compare full quotes, because visas and premises change the total.
Yes. They pay 0% only on qualifying income and only if they are a qualifying free zone person. Other income is taxed at 9%, and they must register and file a return.
DED lists the delivery time as 10 minutes once the steps are complete, but name reservation and approvals come first. Free zone timing depends on the zone, and bank accounts and visas add time.
