1. How do I start an LLC in Ajman?

For a company formation in Ajman, you must be aware that the registration procedures are
divided into several stages, which are described below:

The first and most important step is to obtain the required trade name approval and submit the
Registration & Licensing Application Form [duly completed and signed by all partners] to
DED, Ajman for their initial activity approval for the LLC; along with the following
documents:

• A copy of the UAE national partner's passport and family book.

• A copy of the expatriate partner's passport.

• Letter of authorization for the expatriate partner (in case he has an existing UAE
residence visa).

• A copy of the expatriate manager's passport (if different from the partner).

• A letter of authorization from the manager's sponsor (if he already has a residence
visa in the UAE).

• If a company will be the 49 percent partner in the LLC, corporate documents such
as a Memorandum and Articles of Association, Certificate of Incorporation, Share
Certificate, and a Board Resolution resolving to set up business operations in Ajman and
appointing a representative and power of attorney to sign the documents on the company's
behalf will be required.

• A copy of the Company's representative's passport.

Please keep in mind that the corporate documents listed above, such as the Memorandum of
The UAE embassy in the origin country must notarize and attest association, Certificate of
Incorporation, Board Resolution, and Power of Attorney of the corporate entity.

These documents must also be attested by the Ministry of Foreign Affairs in Ajman. All
corporate documents must be translated into Arabic and attested by the Ajman Ministry of
Justice.

1.1. Memorandum of Association Notarization

Following DED approval of the initial trade name and activity, you must prepare and notarize
the Memorandum of Association. It is important to note that all partners or representatives of
partners must sign the Memorandum in the presence of a Notary Public in Ajman. This is for
having a successful company formation in Ajman.

1.2. Obtaining a tenancy agreement.

Once you have obtained DED approval for the initial trade name and activity, you can search
for an appropriate commercial premise to carry out the activity. Before signing the tenancy
contract and making the payments, it is always a good idea to get preliminary approval from
the Planning Section.

Furthermore, all lease agreements must be registered with EJARI, which stands for the Real
Estate Regulatory Authority (RERA). Typically, the landlord will process the registration
with EJARI at the time of signing the tenancy contract.

2. In Ajman, how many different types of business licenses are there?

You will need at least one business license for your company formation in Ajman,
depending on the nature of your business. You can choose from a variety of business licenses
to get the ones you need.

However, keep in mind that each of them has a different price and covers different activities.
As a result, you must carefully select the one that is best suited to your company. Let's take a
look at some of the most common licenses for company formation in Ajam.

2.1. A business or trade license.

In the emirate of Ajman, this is the most common license for a company formation in
Ajman. The list of Ajman trade license activities includes importing, exporting, and
distributing entertainment products. With this license, you can legally engage in these
activities throughout the country.

However, because your license will specify your activities, you must decide what you want to
do before applying for it.

2.2. Licensing of services.

In this case, you can use this business license in Ajman to provide a variety of services.
Similarly, the contract clause of this license will specify the services you are permitted to
provide. For example, with a service license, you can provide business consulting, accounting
services, and a variety of other services.

2.3. License for e-commerce

Investors, on the other hand, can conduct electronic trading activities in Ajman if they have
this license. The following are some of the electronic business activities covered by this
license:

· E-commerce for media and entertainment and e-commerce for industrial

equipment.

· E-commerce for home, office, and personal utilities.

 · E-trading of event tickets.

· Automobile e-commerce.

· Fashion retail e-commerce.

2.4. Manufacturing or industrial license.

With this license, you can engage in a variety of industrial activities for your company
formation in Ajman. Companies, for example, can import raw materials to manufacture,
process, package, assemble, and export finished products.

Furthermore, it enables businesses to export their products internationally. However, like the
previous licenses, this one will specify the manufacture of listed goods. It is a great option for
your company formation in Ajman.

2.5. Freelance license

This is the best option for professionals who want to carry out their tasks on their own.
Company formation in Ajman promotes and ensures successful business growth for
freelancers through its economic renewal rates. Furthermore, it helps them advance
professionally in a highly competitive market.

This Ajman business license for a company formation in Ajman only requires a few
documents, which are as follows:

· A current passport.

· A duplicate visa.

· The sponsor's NOC (for UAE residents only).

· Color photography in passport size.

2.6. License for general maintenance.

For a company formation in Ajman, a general maintenance license is also available. This
license is only available to those who want to provide maintenance services. For example,
some maintenance-related activities you can perform with this license are as follows:

· Work on repairs and sanitation.

· Repair and maintenance of air conditioning systems.

· Decoration with wallpaper

· Electrician services.
 · Work on the flooring and roof.

3. How can I get a business license in Ajman?

All investors who look for a company formation in Ajman must first obtain a business
license. The Ajman business license will allow you to run your company legally and
efficiently. However, each of the available licenses is unique.

As a result, before applying for any of them, you must first determine your business activities
for your company formation in Ajman.

To obtain your business license in Ajman, you must go through a process. As a result, we will
explain how to register your company and obtain your license in this section. Now, let's go
over the steps you will need to take:

• To begin, you must submit your application form for preliminary approval.

• Second, the authorities (the Inspection Unit in the municipality of Ajman) will
inspect the business location you selected. Following that, if necessary, you will seek
approval from specialized departments.

• Third, you must obtain the necessary approval for the trade name. You must also
obtain your membership certificate.

• After submitting the approvals and receiving the registration receipts, you must pay
the fees to obtain your license.

4. How much does a trade license cost in Ajman?

Before we show you the prices for each license for your company formation in Ajman,
keep in mind that they may vary. It is important to say that all prices can change based on a
variety of factors. For example, it could differ depending on your location, the package you
select, and other factors. Let's look at the approximate costs of each of Ajman's business
licenses for a company formation in Ajman:

• The cost of a commercial license begins at AED 3,200.

• Services license: This license costs approximately AED 6,500.

• E-commerce license: AED 10,000 is the starting price for this license.

• AED 9,100 is required to obtain an industrial license.

• Freelancer license: This license is available to any freelancer for AED 6,000.

• Pioneers license: This document is available to young investors for around AED
5,000.
5. Is Ajman good for business?

Companies that look for a company formation in Ajman benefit from a variety of benefits,
including:

5.1. Import/export customs duty is minimal.

Businesses operating in Ajman Free Zone and Ajman Media City are exempt from paying
duties on imports and exports to and from non-Gulf Cooperation Council countries (GCC).
However, if a company exports to or imports from a country that is not a member of the
GCC, it must pay customs duty.

5.2. Investors can have 100 percent foreign ownership.

As a free-zone entity, a company does not need a local partner to incorporate and own 51
percent of its shares. A foreign investor can fully own the company and keep all profits. This
is an attractive advantage for a company formation in Ajman.

5.3. Capital repatriation is complete.

Both the Ajman free zone and the Dubai free zone allow foreign investors to transfer
corporate funds back to their home country from the UAE.

4.4. Fees for establishing a business can be paid in installments.

The installment payment plan is the most appealing offer for the Ajman free zone. It means
that you can register your company by paying only a portion of the government fees at a time.

It is extremely useful for those who want to start a business but do not have a large budget.
The only free zone with such a payment plan is Ajman Free Zone Authority. Hence, you as
an investor must consider seriously a company formation in Ajman.

5.5. Low-cost labor force.

Business owners can hire skilled workers for a very low cost, including labor cards, by
operating in any of Ajman's free zones. Furthermore, labor laws are extremely beneficial to
both the recruiter and the workforce. Without a doubt, this makes company formation in
Ajman easier.

5.6. Investors and their families can apply for a resident visa.

Ajman free zone and Ajman Media City attract entrepreneurs and investors by allowing
family members of employees to obtain residence visas.

5.7. There are numerous licensing options and business setup packages available.
The licensing options in Ajman's free zones enable investors to conduct a variety of business
activities by their core business objectives and industry requirements. There are also several
low-cost packages available that provide investors with financial feasibility while they
finalize their business plans.

5.8. In only 24 hours, a business can be established.

A company formation in Ajman can take one day. Personal visits by the owners are
required for company setup, but the time required for the exact application process is shorter
than in other emirates' free zones.

Furthermore, business owners are only required to provide certain basic documents, such as
passport copies and business paperwork. For investors, the entire process is quick and simple,
especially with the assistance of business setup consultants.

5.9. Starting a business is less expensive.

Company formation in Ajman free zone is also appealing to investors and entrepreneurs
because company registration and trade license processing is less expensive; especially when
compared to other free zones in other emirates.

5.10. Corporations are exempt from corporate tax.

Only oil companies and foreign banks are subject to corporate taxation in the UAE.
Businesses registered in the Ajman Free Zone and Ajman Media City are exempt from
corporate tax for a set period, which can be extended.

All these advantages are great reasons that prove company formation in Ajman is a good
option for investors.

6. How do I cancel my LLC in Ajman?

To close an LLC in the UAE, you must first ensure that either the company's shareholders or
their Power of Attorney, who has been approved and attested to sign the Shareholder
Resolution to close the company, are present in the UAE.

You must pass a Board Resolution or Shareholder Resolution by all shareholders of the
company at a general meeting to agree on the decision to liquidate the company; and a
liquidator to be appointed (please refer to our article here on engaging a liquidator). a Notary
Public in the UAE must write and notarize a board resolution.

6.1. Steps you must follow.

The company will then be required to apply to the Department of Economic Development for
the cancellation of the trade licenses (DED). Following the filing of a cancellation request
with DED, the following steps must be taken:
· Clearance from the Labor and Immigration Department. You must cancel all work
permits and visas for all employees and partners of the company. After that, the Labor
and Immigration files, as well as the e-Channel (Abu Dhabi) / eDNRD (Dubai) systems,
can be closed for the LLC.

· Third-party clearances. All licenses, including Telecom Authority (DU or Etisalat),

Electricity and Water Departments, as well as the lease agreement with your Landlord
and Municipality clearance for your office space - Ejari (Dubai) or Tawtheeq, must be
closed and final closure letters obtained (Abu Dhabi).

· Bank account closure. You must close all UAE bank accounts, and each bank must
obtain a final closure letter.

· Copy of newspaper report. The liquidation must be advertised in at least two

Arabic newspapers or gazettes. This necessitates a 45-day advertising period in Abu
Dhabi. In both Dubai and Abu Dhabi, the gazette liquidation process is submitted through
the DED system.

· Liquidator report. You must prepare audited accounts with the liquidator during
this period and submitted to the DED as part of the closure. During this time, any
creditors must be dealt with and settled.

· License Cancellation Certificate. You can obtain the Closure Certificate once all
final closure documents have been submitted to the DED and approved.