Ajman Free Zone
EMIRATE OF AJMAN
The Emirate of Ajman, located on the western coast of United Arab Emirates was formed by the Al Nuaim tribe, well known for their bravery, courage and wisdom who migrated to this region from Oman around 1775. The economy of Ajman in the past was mainly based on its strong maritime tradition - fishing and trade, though the wise Rulers always encouraged various other allied activities such as shipbuilding, pearl diving and trading. Its dhow building yard is the largest in the Emirates and continues to operate despite being dwarfed by modern developments such as the major dockyard.
The modern era in Ajman began with H.H. Late Sheikh Rashid Bin Humaid Al Nuaimi who initiated various structural changes in the administrative network introducing scientific methodology. He played a pivotal role in the formation of the Federation of the Emirates.
The implementation of all his ideas were left to the then Crown Prince H.H. Sheikh Humaid Bin Rashid Al Nuaimi who succeeded his father in 1981 assuming full charge of the transformation of Ajman to a modern emirate, well equipped with all the necessary facilities and services.
Today, Ajman is witnessing a flurry of construction activities in the industrial areas, the port and Al Zawra, which is an indication and reflection of spectacular economic growth in the emirate. Despite the absence of oil, Ajman continues to develop its infrastructure and broaden its economic base.
BEGINNING OF A NEW ERA
Ajman Free Zone, established in 1988, was granted autonomous status under the Amiri decree no. 3 of 1996 issued by H.H. Sheikh Humaid Bin Rashid Al Nuaimi, Ruler of Ajman. Ajman Free Zone Authority has been named as the sole regulatory agency for Free Zone in the Emirate.
The formation of the Free Zone Authority in 1996 has given great impetus to industrial activity in the Free Zone which has resulted in quadruple growth in the number of companies during the last few years.
Ajman Free Zone with its package of unbeatable advantages is widely recognised as entrepreneurs’ haven today.
A massive multi-million Dirhams development plan on over a million square metre area is under progress at the Free Zone, which on completion will be able to accommodate 1500 companies.
Strategically situated at the entrance of the Arabian Gulf, Ajman Free Zone is well placed to serve the eastern and western markets. Ajman’s proximity to Sharjah and Dubai provides easy accessibility to the two international airports and four ports. Ajman Port, serving over 1000 vessels in a year, has emerged as an important maritime focal point today. It has twelve berths. A massive development plan for Ajman Ports, under progress, seeks to enhance its facilities to world level in the near future.
ECONOMIC FACTORS PROVIDING DECISIVE EDGE
The main economic factors of Ajman projecting itself as the Investors’ haven are
• Strategic and central location
• Free Zone advantage
• Ready/easy availability of raw material
• Competitive handling charges
• Lower prices of land and office rents
• Low cost of living
• Conducive business environment
• Modern infrastructure
IMPRESSIVE INDUSTRIAL GROWTH
Ajman today has approximately 256 industrial firms which constitute 20 percent of the total number of industrial units in the UAE and ranks third among all the Emirates. Goods from Ajman are being exported to over 65 countries. These firms are
classified as follows:
1. Textile, readymade garments and leather industries.
2. Food, beverages and tobacco industries.
3. Timber, furniture and wood product industries.
4. Paper, paper products, printing and publishing industries.
5. Chemicals and plastic products industries.
6. Non metal mineral products.
7. Basic metal industries.
8. Metal products, machinery and equipment industries.
9. Other conversion industries.
COST ADVANTAGE: THE CUTTING EDGE
– A CRITICAL COMPONENT
• Cheap energy
• The most economical wage structure and easy access to vast work force
• Total exemption from all import and export duties
• Total elimination of all service charges and hidden fees
• Exceptionally low handling charges
• This 20 years land contract is renewable for another 20 years guaranteeing 40 years tax and customs free operations
• Low lease prices
• World class infrastructure
• Lowest tariffs in the region
Ownership, Taxation, Repatriation Advantage
• 100% foreign ownership
• 100% repatriation of capital and profits
• No personal income tax
• No corporate tax
CUSTOMS DUTY EXEMPTION IN GCC COUNTRIES
Goods produced by the companies having National Industrial Licence in the Ajman Free Zone with 51% share holding with GCC nationals are eligible for “UAE Certificate of Origin” from the Ministry of Economy and Commerce, UAE, qualifying them for a customs duty exemption in member states of the GCC, provided the value addition in Ajman Free Zone has been at least 40% of the total final value of the relevant product.
TRANSPORT: Global Connection
AIR: Two international Airports, within 25 minutes drive from the Ajman Free Zone.
SEA: Ajman Free Zone is adjacent to the Ajman Port. Sharjah’s Khorfakkan Port, Port Khalid and Dubai’s Port Rashid are within 35 minutes drive from Ajman Free Zone.
ROAD: Extremely efficient international road network connects the Ajman Free Zone to Oman, Qatar, Bahrain, Saudi Arabia, Iran, Kuwait and beyond to Europe.
Distance of the other Emirates from Ajman
Sharjah 2 km.
Dubai 12 km.
Umm–Al–Quwain 21 km.
Ras–Al–Khaimah 70 km.
Fujairah 120 km.
Abu Dhabi 180 km.
TYPES OF LICENCE
Ajman Free Zone, in its endeavour to eliminate bureaucratic procedures, has produced 4 types of licences namely:
• National Industrial Licence
This licence is issued to foreign/UAE companies/Free Zone Entities who wish to carry out trading activities in the Free Zone.
This licence is issued to foreign/UAE companies/Free Zone Entities who wish to carry out manufacturing activities in the Free Zone.
This licence is issued to foreign/UAE companies/Free Zone Entities who wish to carry out the business of providing professional/services in the Free Zone.
NATIONAL INDUSTRIAL LICENCE:
This licence is issued to a registered company operating in the Free Zone who meets the following eligibility criteria:
1. The company should be registered within GCC with a GCC national/s owing majority share holding of 51% or above.
2. At least 40% of the manufacturing process should be accomplished in the Free Zone. Companies holding a National Industrial Licence are eligible for duty free exports to the member states of the Arab Gulf Cooperation Council.
(1) FREE ZONE ENTITY FZE:
FZE is an entity formed and registered in Ajman Free Zone and regulated by the Free Zone Authority, in accordance to the Amiri Decree No. 3 of 1988 as amended by the Amiri Decree No. 3 of 1996. FZE enjoys a separate legal entity and is owned (100%) by either a person or a corporate body. Such an entity must have a capital equivalent to US $50,000. The liability of the owner is limited to the amount of the share capital.
FORMATION AND REGISTRATION OF THE FZE BY A CORPORATE ENTITY
A. Any corporate entity wishing to establish an FZE must complete an application form provided by the Authority and attach the following documents:
1. The feasibility study of the project and the anticipated schedule for its completion together with relevant plans and drawings (for industrial project).
2. The memorandum and/or Articles of Association of the Corporate entity.
3. Incorporation or Registration Certificate from the competent authority in the country where the Corporate entity is formed.
4. Decision or Board resolution of the competent authority of the corporate entity authorising a representative or manager with Power of Attorney duly notarised and legalised.
5. Passport copy of the representative or manager.
6. The above documents should be certified by the Chamber of Commerce and the UAE Embassy in the Country of origin.
B. The Free Zone Authority being satisfied that the relevant documents are submitted, shall register the FZE and issue a Certificate of Registration and a Free Zone Licence.
(2) FREE ZONE COMPANY FZC:
Licences under this category are issued to Free Zone Companies incorporates within the Free Zone in accordance with the Amiri Decree. Such company enjoys a separate legal identity and the liability of its owner is limited to the value of the paid up shared capital.
(3) BRANCH OF A LOCAL COMPANY BLC/ BRANCH OF A FOREIGN COMPANY BFC:
BRANCH OF A LOCAL COMPANY BLC:
Licences under this category are issued to companies holding a valid licence from any UAE licensing authority except from other Free Zones.
BRANCH OF A FOREIGN COMPANY BFC:
Licences under this category are issued to companies established outside the UAE. The ownership of the company should be 100% foreign. However, sales can be made through a UAE registered agent or a distributor only. The activity may be commercial, industrial or professional/services.
|Offshore incorporation||Startup Packages|
UAE offshore incorporation helps you to run your business or to have asset ownership in the Middle East in the most profitable manner. Read More
|Company Formation in the UAE|