As a corporate lawyer who’s launched companies across the UAE, I built this 2025 small guide to business setup in Ajman—mainland, free zone and offshore. Ajman combines lower setup and operating cost with strategic access to Dubai and Sharjah, two international airports and four ports. In Ajman Free Zone you can secure 100% foreign ownership, form a company in as little as 1 day with a personal visit, and spread government fees in 2, 3 or 6 installments; mainland offers full UAE market access, while off shore structures serve holding and international trading. Typical budgets start around AED 15,000 for mainland (activity dependent), VAT is 5%, and most companies move from name reservation to license in a few weeks; bank accounts often follow in about four weeks. This guide breaks down licenses, entities and the process step by step, with checklists you can use today. We also flag when to use pro services and seasoned consultants so your freezone or mainland setup stays compliant and on timeline.
Business setup in Ajman: the 2025 field guide from a lawyer who’s been there
Ajman may be the smallest emirate, but it plays big in the setup game. Costs are lean, approvals are fast, and logistics are surprisingly strong thanks to proximity to Dubai and Sharjah plus access to ports and airports. If you’re building a trading vehicle, a services boutique, or a light-industrial play, Ajman quietly checks the boxes.
I’ve helped companies set up across the UAE for years. When founders ask where to start small, stay compliant, and scale without breaking the bank, Ajman is on my shortlist. The ecosystem is practical. The authorities are responsive. And the mix of mainland, free zone, and offshore options makes structuring flexible for 2025 realities.
Mainland, free zone, or offshore: which Ajman path fits your company?
Choosing the right lane is the most important strategic decision you’ll make. It defines your target market, tax profile, banking experience, and visa capacity. Ajman gives you three clean paths—mainland, free zone, and offshore (off shore)—and you can layer special zones like Ajman Free Zone and Ajman Media City Free Zone depending on your model.
Mainland companies suit founders who want to trade directly in the UAE market, sign government contracts, or operate without the geographic limits of a free zone. For many commercial and industrial activities, 100% foreign ownership is now possible in the UAE, Ajman included. For professional services on the mainland, you can hold 100% ownership while appointing a local service agent (LSA) with no equity.
Free zone companies are built for speed and export. You get 100% foreign ownership, simplified setup, and bundled packages for visas and flexi-desks. Ajman Free Zone (AFZ) covers a wide range of activities including trading, e-commerce, industrial, and logistics. Ajman Media City Free Zone targets media, digital, tech, and creative services with lightweight licensing and remote-friendly processes. Freezone entities can sell B2B into the mainland using distributors or by opening a mainland branch or commercial agent arrangement.
Offshore (off shore) companies in Ajman—formed under the Ajman Free Zone Authority—are non-resident holding vehicles. Think asset protection, group IP holdings, or owning shares in foreign subsidiaries. No visas, no physical office leases, and no onshore UAE trading. Banking is possible but tougher; many founders pair offshore holding with an operating free zone or mainland company.
Mainland: when local market access is your moat
Mainland Ajman gives you UAE-wide market access under the Department of Economic Development (DED). You can lease proper offices or warehouses and hire staff based on usable space. It’s a fit for retail distribution, construction, consultancy, and regulated services where a presence outside a free zone is important. Licensing, lease approvals, and municipal touches are slightly more involved than free zones, but still streamlined by UAE standards.
Free zone: operational agility with export focus
Ajman’s free zones keep admin light and options broad. AFZ is strong for trading, e-commerce, F&B production, beauty and health manufacturing, IT solutions, education services, textile businesses, and third-party logistics. Ajman Media City Free Zone (AMCFZ) shines for media, content, advertising, design, social, and SaaS-like service providers. Free zone companies can sponsor visas, rent flexi-desks, or scale into dedicated offices and warehouses.
Offshore: hold, protect, and structure
Ajman Offshore works best as a top-co or special purpose vehicle. It is not a trading license for UAE markets. Use it to hold shares in other companies, own IP, or structure cross-border investments. You won’t get visas, and you shouldn’t invoice UAE onshore customers from it. If you need real operations, pair it with a free zone or mainland entity.
Licenses and activities you can pick
Ajman licensing is built around your economic activity. You will choose one of the core license types, then select activity codes that match your business model. If you pick a “general trading” activity, ensure your intended product categories are covered; if not, a specific trading license targeting your product line may be better.
Commercial/trading licenses cover import, export, re-export, wholesale, and retail. A general trading license lets you handle a broad basket of goods; specific trading is narrower but can be cheaper. Professional/service licenses authorize consultancy, IT, marketing, education, beauty services, and other service-centric work. Industrial licenses cover manufacturing, packaging, light assembly, and logistics. E-commerce options exist both in mainland and free zone form and work well for online-first companies that need clarity on customs and last-mile.
In regulated sectors—healthcare, education, food, or environmental activities—you may need external approvals. Build that into your timeline. Ajman’s authorities are used to cross-emirate standards, so expect familiar processes if you’ve seen Dubai or Sharjah before.
The 2025 process, step by step, without the jargon
The process is clean if you map it before you move. The key is picking the right structure first, then letting the paperwork follow. I tell founders to treat it like product shipping: define, design, then deploy.
In Ajman’s free zones, straightforward setups can license in days. Mainland timelines vary by activity and premises readiness. Visas are an extra phase: plan for n visa slots tied to office size, medicals, and Emirates ID issuance.
- Name and activity selection: Reserve a compliant trade name and match activities to your model.
- Initial approvals: Get DED (mainland) or free zone pre-approvals; secure any external approvals if your industry requires them.
- Documents: Passports, current UAE visas, NOCs (if sponsored), shareholder resolutions, and where needed, a Memorandum of Association (MOA).
- Office/lease: Flexi-desk or dedicated space (free zone), or a municipality-approved lease (mainland).
- Final license issuance: Pay fees; receive your trade license.
- Establishment card and visas: Open immigration files; process residence visas for owners and staff.
- Banking: Open a corporate bank account; expect enhanced KYC if you are new-to-UAE or trading multiple geographies.
Realistic cost guide: from small setups to growing companies
Costs are why Ajman is popular. The base license fees are typically lower than the big-ticket emirates. But budget for the full picture: license, establishment card, visa costs, medical/Emirates ID, office rent, and bank minimum balance. Freezone packages often bundle elements, which helps cash flow.
As a directional guide for 2025, small service setups in Ajman free zones can start from low five figures in AED, especially for zero-visa packages. Add visas and dedicated offices, and your annual operating spend rises accordingly. Mainland totals depend on activity and the size/location of your leased space; trading and industrial plays add customs and logistics considerations.
| Setup type | Typical first-year range (AED) | Notes |
|---|---|---|
| Free zone micro service (0–1 visa) | 7,500–18,000 | Flexi-desk packages; add visa costs if needed |
| Free zone trading (1–3 visas) | 15,000–35,000 | Add customs code, warehouse if required |
| Mainland LLC (services/trading) | 15,000–50,000+ | Wide range; rent and activity approvals drive variance |
These are indicative only. Your actual cost will depend on license type, number of activities, visa headcount, and premises. Consultants can scope a precise quote once your activity list and ownership are clear.
Banking, visas, and PRO services: what actually happens
Banking is the first “grown-up” hurdle. UAE banks run robust KYC/AML checks. Expect questions about your supply chain, top customers, source of funds, and projected turnover. Free zone companies do open accounts, but you’ll need a crisp business plan and contracts when available. Minimum balance requirements often sit between AED 25,000 and AED 100,000 depending on the bank and product.
Visas follow your establishment card and are limited by office size and free zone policy. Shareholders, employees, and dependents can be sponsored once your company is live. Processing involves entry permits, medicals, biometrics, and Emirates ID. A solid PRO—public relations officer—keeps this smooth, especially when sequencing multiple visas and renewals.
Taxes and ongoing compliance in the UAE (Ajman edition)
VAT is 5% on most supplies. Register if you cross the mandatory threshold or if your business model and imports warrant voluntary registration. Keep clean tax invoices and maintain proper records; VAT audits do happen.
Corporate tax arrived in the UAE from financial years starting on or after 1 June 2023. The standard rate is 9% on taxable profits above AED 375,000. Free zone companies may benefit from 0% on qualifying income if they meet substance, comply with transfer pricing, and avoid disqualifying mainland revenue, but non-qualifying income is taxed at 9%. Mainland companies are squarely in the 9% regime subject to thresholds and exemptions.
Add two more acronyms to your 2025 checklist: ESR (economic substance regulations) for relevant activities, and UBO (ultimate beneficial owner) filings. If you’re part of a group, prepare for transfer pricing documentation and disclosure forms. Accountants and tax consultants in the UAE can keep you aligned without turning compliance into a second job.
Ajman zones spotlight: AFZ vs Ajman Media City
Ajman Free Zone (AFZ)
AFZ is the workhorse. It blends trading, services, industrial, and logistics in one ecosystem with warehouses, offices, and flexi-desks. It’s popular with F&B processing, health and beauty, IT services, education, textiles, and real estate support services. The authority is responsive, the digital portals are improving, and support teams actively guide first-time founders. Flexible payment options are sometimes available on certain packages, which helps cash flow for small companies.
Ajman Media City Free Zone (AMCFZ)
AMCFZ lives up to its name: media, digital, and creative. Think production, content, marcom, design studios, influencers, and boutique SaaS. It’s a favorite for remote-friendly founders who need quick licensing, lower setup cost, and the ability to operate cross-border. If your revenue comes from services delivered online, AMCFZ is a clean fit. For inventory or manufacturing, AFZ is the better match.
Offshore and off shore holding strategies done right
Ajman Offshore is a practical SPV when you need a cost-effective holding layer. It can own shares in UAE free zone or foreign companies, hold trademarks and software IP, and centralize dividends. It cannot trade in the UAE market, hire staff with visas, or lease regular offices. Banking is possible, but many founders open accounts outside the UAE or rely on the operating company’s account for inflows.
If you plan to invoice customers, import goods, or employ people, build an operating company in the mainland or a free zone and reserve the offshore entity for ownership and risk isolation. That’s the clean, compliant way.
Common mistakes to avoid and my pro tips
Don’t over-license. Founders often add activity codes “just in case.” Extra activities can trigger extra approvals and cost without adding real value. Choose what you’ll actually use in year one.
Don’t buy too much office too soon. In Ajman, your visa quota scales with space, but flexi-desks and small offices exist for a reason. Upgrade when headcount justifies it. And if banks ask for more substance, move to a small dedicated office before you go big.
- Keep your commercial invoices and contracts clean. Banks and tax auditors love clarity.
- Register for VAT early if your contracts require it, even if you’re under the threshold.
- Build a compliance calendar: license renewal, lease renewal, VAT returns, ESR/UBO, and corporate tax filings.
- If your model mixes UAE and global revenue, map which income is “qualifying” in a free zone and design around it. A small legal tweak today can save a 9% headache later.
Mini guide for small companies and startups
If you’re launching solo or with a tiny team, Ajman’s free zone “micro” packages are hard to beat. A service license with a flexi-desk and one visa can get you invoicing in weeks at a sensible cost. Add e-commerce if your sales channel is online and your supply chain is cross-border.
For product-led founders who need to import, store, and re-export, consider AFZ with a small warehouse unit. Customs registration is straightforward, and you’ll be near major logistics corridors. For content creators and agencies, Ajman Media City Free Zone gives you a media-focused license fast and pairs well with remote teams. If you must sell into the UAE mainland directly, either appoint a mainland distributor or open a lean mainland entity as your onshore face.
Think of visas as n slots tied to your leased space: start small, then scale. And when in doubt, talk to experienced consultants who have shipped real companies, not just pitch decks.
Your quick setup checklist, refined for 2025
Start with the “why.” Are you selling in the UAE, exporting, or holding assets? Mainland, free zone, and offshore answer different “whys.” Map taxes early: VAT registration, corporate tax exposure, and any free zone qualifying income opportunities. Choose the free zone that mirrors your sector—AFZ for trading/industrial/logistics and Ajman Media City for media and digital. Budget beyond the license: include bank minimums, visas, and rent. Finally, line up PRO services to choreograph visas and renewals so you can stay focused on customers.
Ajman rewards clarity and momentum. Bring both, and the emirate will meet you halfway.
| Topic | Ajman Mainland | Ajman Free Zone (AFZ) | Ajman Media City Free Zone (AMCFZ) | Ajman Offshore (AFZ off shore) |
|---|---|---|---|---|
| What it is | Onshore jurisdiction regulated by Ajman DED, full access to the UAE market | A major Ajman freezone focused on trade, services, light industry, logistics | Media/creative/tech-focused freezone with simple packages for small companies and freelancers | International business company (IBC) regime under AFZ; holding/structuring vehicle; no UAE onshore trading |
| Legal forms | LLC, Sole establishment, Civil company, Branch (local/foreign) | FZE (single owner), FZC (multi-owner), Branch | FZE, FZC, Freelancer permit, Branch | Offshore company (IBC) via registered agent |
| Key licenses | Commercial/Trading, General trading, Professional/Service, Industrial, Tourism, E‑commerce | Commercial/Trading, General trading, Service, Industrial, E‑commerce, Logistics | Media/Production, E‑commerce, Service/Consultancy, IT, Content/Design, Education-related | Registration only (no operating license in UAE market) |
| Foreign ownership | Up to 100% foreign ownership permitted for most activities; some strategic activities may need approvals | 100% foreign ownership | 100% foreign ownership | 100% foreign ownership |
| Market access | Can trade anywhere in UAE and internationally | Can trade within free zones and internationally; to sell on UAE mainland, use distributor or obtain mainland channel | Same as AFZ; ideal for digital/media exports; mainland sales via distributor/agent | No onshore UAE business; no visas; no physical retail or services in UAE |
| Corporate tax (2025) | 0% up to AED 375,000; 9% above, per UAE CT law (subject to updates) | 0% on qualifying freezone income if conditions met; 9% on non‑qualifying income | Same as AFZ | Generally out of UAE CT scope if non‑resident with no UAE PE; UAE‑sourced income/PE may trigger CT; 0% WHT in UAE |
| VAT | 5% VAT applies if mandatory/voluntary thresholds met | 5% VAT applies per UAE rules | 5% VAT applies per UAE rules | Typically not VAT‑registered; UAE VAT can apply if making taxable supplies in UAE |
| ESR/UBO | ESR if doing relevant activities; UBO filing mandatory | ESR/UBO apply | ESR/UBO apply | UBO applies; ESR may apply if relevant activity conducted |
| Audit and accounts | Maintain books; audited financials often required by banks; DED may request | Annual accounts; AFZ commonly requires annual audit submission | Maintain accounts; audit policy depends on package/activity; banks may require | Maintain registers; no local audit, but banks/foreign jurisdictions may ask |
| Office options | Physical office/warehouse required; lease approved by Municipality | Flexi-desk, shared office, offices, warehouses, land; scalable | Flexi-desk, shared/serviced offices, studios | No office; registered address via agent |
| Visa eligibility | Based on office size and activity; broad quotas possible | Package-based visa eligibility (0–6+); can scale with larger space | Package-based visa eligibility (0–5); freelancer visa options | No visas |
| Typical costs (setup/first year) | AED 15,000–40,000+ (license, name, MoA, office lease, initial approvals) | AED 6,000–18,000+ (package dependent; general trading higher) | AED 8,000–15,000+ (media/service/freelancer packages vary) | AED 10,000–14,000+ (registry + agent); renewals AED 6,000–9,000+ |
| Common add‑ons | Name reservation, initial approval, MoA notarization, lease attestation, immigration card, establishment card, e‑channel, visas, medical/Emirates ID | Establishment card, e‑channel, activity pre‑approvals, visa quotas, warehouse fit‑out permits | Media activity approvals, NMC/content approvals when relevant, establishment card | Registered agent fees, apostille/legalization if used abroad, bank intro |
| Setup time (business days) | 5–10 for license (if documents complete); visas add time | 1–5 for most packages; visas add time | 1–3 for standard packages; visas add time | 1–5 depending on agent/registry workload |
| Banking reality (UAE) | 2–6 weeks typical; stronger approval odds due to onshore footprint | 2–6 weeks; provide substance (lease, contracts) to ease KYC | 2–6 weeks; digital businesses should show real operations | Hardest to open locally; many use foreign accounts; source‑of‑funds and KYC scrutiny high |
| Sectors that fit | Trading, construction, real estate brokerage, consultancy, healthcare, retail, restaurants, logistics, manufacturing | Trading, light manufacturing, F&B trading, health/beauty, IT services, textiles, education services, logistics | Media production, digital marketing, creators, e‑commerce, SaaS, design, education content | Holding IP/shares, invoicing outside UAE, international consulting without UAE presence |
| Industrial notes | Industrial license needs site, environmental/safety approvals; can import raw materials and export | AFZ supports industrial units, storage, and value‑add; proximity to port | Limited industrial; better for content/tech | Not applicable |
| Selling to UAE mainland | Directly, under own license | Via mainland distributor or obtain mainland channel (e.g., branch/dual license if allowed) | Same as AFZ | Not allowed |
| Re‑domiciliation | Possible into UAE via court/approvals (case‑by‑case) | AFZ supports inward re‑domiciliation for some company types | Limited; check case‑by‑case | AFZ off shore supports inbound re‑domiciliation via agents |
| Documents to prepare | Passports, visa/entry pages, photos, trade name options, NOC (if employed), tenancy contract, MoA/AoA, board resolutions for corporate shareholders | Passports, photos, application, activity list, UBO form, specimen signatures; lease/flexi‑desk agreement | Similar to AFZ; portfolio or activity rationale for media licenses may be requested | Passports, application, bank/utility proof of address, UBO, agent KYC; corporate docs if shareholder is a company |
| Simple 6‑step process (2025) | 1) Choose activity and legal form 2) Reserve name 3) Initial approvals 4) Lease office 5) Sign/notarize MoA 6) Pay fees and collect license; then bank and visas | 1) Choose activity/package 2) Reserve name 3) Authority due diligence 4) Issue license and lease 5) Establishment card 6) Bank and visas | 1) Pick media category/package 2) Name + KYC 3) License issued 4) Establishment card 5) Bank 6) Visas/freelancer permit | 1) Engage registered agent 2) KYC/UBO 3) Name approval 4) Incorporation 5) Corporate docs issued 6) Optional bank intro abroad |
| 2025 compliance checklist | CT registration, VAT (if required), UBO filing, ESR (if relevant), payroll/WPS, annual accounts/audit, municipal signage permits | CT (qualifying income tests), VAT, UBO, ESR, annual audit to AFZ, renewals on time | CT (qualifying income), VAT, UBO, ESR (if relevant), renewals; content/NMC approvals when needed | UBO, renewals, maintain registers; assess foreign tax residency; avoid UAE PE |
| Cost‑saving tips | Start small office, add visas later; use professional license if service‑only | Pick 0‑visa package; upgrade space as you hire; combine activities under general trading if justified | Use freelancer or 0‑visa package; bundle media activities to avoid extra permits | Use offshore for holding and invoicing outside UAE; keep substance outside UAE to avoid PE |
| PRO services (what they do) | Name reservation, initial approval, MoA notarization, lease attestation, establishment/immigration cards, visas, medical/Emirates ID, labour file | Package setup, establishment card, visas, customs code, warehouse permits | Package setup, freelancer permits, visas, media approvals | Incorporation via agent, attestations/apostille, bank intros |
| When to choose which | Need full UAE market access, tenders, physical presence | Need low‑cost free zone setup, warehousing or light industry, export focus | Media/digital/e‑commerce focus; lean operations; quick start | Holding/IP/structuring; no need for UAE visas or onshore trading |
| Typical total first‑year cash outlay examples | Service LLC with small office and 2 visas: AED 30k–60k | AFZ service package with 1 visa: AED 9k–14k; general trading: AED 12k–20k | AMCFZ media package with 0–1 visa: AED 8.5k–13k | Offshore IBC with agent + attestations: AED 12k–18k |
| Bank readiness pack | License, MoA/AoA, lease, establishment card, passports/visas, UBO, invoices/contracts, business plan, source‑of‑funds proofs | Same as Mainland; add freezone lease letter | Same as AFZ; media portfolio helps | Incorporation docs, UBO, business plan, external contracts; expect more KYC |
| Pitfalls to avoid | Picking wrong activity; underestimating office and visa costs; ignoring CT/VAT | Assuming all income is 0% CT; missing audit/ESR; selecting a package without needed visas | Using media license for non‑media trading; IP/content approvals ignored | Expecting local UAE bank account easily; attempting UAE onshore business |
| Notable Ajman zones | Entire Ajman mainland under DED | Ajman Free Zone (port‑adjacent); logistics parks | Ajman Media City Free Zone | AFZ Offshore desk (via agents) |
| Who this guide helps | Entrepreneurs, SMEs, exporters/importers, consultants, manufacturers | Traders, SMEs, F&B, health/beauty, IT, textile, logistics companies | Creators, agencies, SaaS, e‑commerce brands, education/content studios | Investors needing a holding/off shore vehicle |
| Role of consultants | Map activity to license, speed filings, keep CT/VAT/ESR/UBO on track, reduce rework; PRO handles the queueing | Optimize freezone package, customs code, warehouse fit‑out, audit cadence | Align media categories, obtain content permits, structure freelancer to company upgrade | Choose the right jurisdiction, agent KYC, cross‑border banking strategy |
| Quick glossary | Mainland = full UAE access; LLC = limited liability company; Freezone/free zone/freezone = special economic zone; Off shore/offshore = IBC with no UAE onshore trading |