Ajman, located on the Arabian Gulf coast, is the smallest of the seven emirates in the United Arab Emirates, covering around 260 square kilometres. H.H. Sheikh Humaid Bin Rashid Al Nuaimi, Ruler of Ajman, established and gave autonomous status to Ajman Free Zone in 1988 via Amiri order No. 3 of 1996.
Ajman is strategically located at the entrance to the Arabian Gulf, close to Sharjah and Dubai, and has easy access to four ports and two international airports. As a result, Ajman Free Zone is well-positioned to service both the eastern and western markets. Furthermore, Ajman Free Zone is the only free zone in Ajman and has played an important part in the city’s expanding commercial development over the previous 20 years. The Ajman Free Zone Authority (AFZA) oversees awarding business licenses and company registration in the free zone.
Understanding about Ajman E-Commerce License
E-commerce license is a new license category for e-commerce firms that would simplify online company entrepreneurs’ relationships with the free zone to tap into the region’s and the GCC’s burgeoning e-commerce segment. Furthermore, the new license category will enable businesses to capitalise on the development potential of e-commerce across B2C and B2B markets.
Previously, entrepreneurs who wanted to engage in e-commerce operations had to select a standard trading license category with specialised e-commerce activity. This created a great deal of uncertainty for both investors and authorities.
The UAE and the GCC have enormous e-commerce potential, with over 42% of the population apparently conducting online transactions. The Ajman Free Zone also revealed a 35% increase in the number of e-commerce licenses granted to a wide range of regional and global digital enterprises in 2016. Convenience drove this surge in demand for e-commerce licenses, which enabled it to register new firms through its e-services platform and provide the ability to conduct online transactions from anywhere in the world.
List of Activities Covered by an E-Commerce License
- E-commerce for Industrial Equipment.
- E-Commerce for Food and Beverage.
- Fashion Retail E-Commerce.
- E-Commerce for Home, Office, and Personal Utilities.
- E-commerce for jewellery and precious stones.
- Automotive e-commerce.
- Media Entertainment E-Commerce.
- E-commerce for event tickets.
Types of Ajman Freezone Business Licenses
A business license is required by Ajman rules for the establishment of a firm in the AFZ. Along with obtaining a license, the company must determine its legal structure and trade name.
In Ajman, the following business license options are available:
- National Industrial License: To obtain a national industrial license entitling duty-free customs in GCC states, a corporation must be at least 51% owned by GCC nationals and perform a minimum of 40% of its manufacturing operations in the free zone.
- Trading License: A trading license is provided to a foreign, UAE, or free zone establishment that wants to engage in trading operations in Ajman Free Zone.
- Industrial Permit: An industrial license is provided to a foreign, UAE, or free zone entity that wishes to engage in manufacturing in Ajman Free Zone.
- Professional/Service Certification: A professional/service license is provided to a foreign, UAE, or free zone entity interested in providing professional/service activities in Ajman Free Zone.
- E-Commerce License: Ajman freezone gives e-commerce licenses to companies to conduct business in electronic trading activities and provides investors with technical and marketing support.
How to Start an E-Commerce Business in Ajman?
1. Market Research & Business Plan
- Identify Your Niche: Begin by determining the specific products or services you will sell online, based on market demand and competition.
- Develop a Business Plan: Create a comprehensive plan that outlines your business goals, target audience, marketing strategy, financial projections, and operational workflow.
2. Jurisdiction & Business Structure
- Choose a Jurisdiction: Decide whether to establish your business on the Ajman mainland or within the Ajman Free Zone (AFZA), which is a popular choice for e-commerce due to its streamlined processes.
- Select a Legal Entity: Based on your jurisdiction, choose an appropriate legal structure. In a free zone, this is typically a Free Zone Establishment (FZE) for a single owner or a Free Zone Company (FZC) for multiple partners.
3. Trade Name & Application
- Reserve a Trade Name: Select a unique name for your business that adheres to the UAE’s naming conventions and is not already in use.
- Submit License Application: formally apply for your e-commerce license by submitting the completed forms and all required documents to the relevant authority (e.g., the Department of Economic Development for mainland or AFZA for free zone).
4. Required Documents
- Prepare Personal Documents: This includes copies of shareholders’ and manager’s passports and proof of address.
- Complete KYC Forms: You will likely need to provide a personal profile and a Know Your Customer (KYC) application form as part of the regulatory process.
5. Obtain Licenses and Approvals
- Receive Your E-Commerce License: Once approved, the issuing authority will process and grant your official business license.
- Secure Additional Approvals (If Applicable): Depending on your products or services, you may need to get further clearances from other government bodies.
6. Set Up Operations
- Build Your Digital Storefront: Develop a professional, user-friendly e-commerce website or mobile application to conduct sales.
- Open a Corporate Bank Account: Approach a bank in the UAE to open a business bank account for your company’s financial transactions.
- Fulfill Office Requirements: Secure a physical office space, warehouse, or a cost-effective Flexi-desk option as required by your license.
7. Marketing & Compliance
- Execute a Digital Marketing Strategy: Use SEO, social media, email marketing, and online advertising to reach and engage your target customers.
- Ensure Legal Compliance: Make sure your website complies with all UAE e-commerce, consumer protection, and cybersecurity laws to avoid legal issues.
Let Shuraa Business Setup handle the paperwork and legalities. By appointing them as your setup partner, you can simplify the entire journey and free up valuable time to concentrate on your products, strategy, and market entry.
Why Establish an E-Commerce Business in Ajman Free Zone?
- Quick and Easily Setup: Expats can open a business in Ajman Free Zone in as little as two days. You simply need to visit the free zone authorities once to sign the documentation. Our experts can complete the remaining steps remotely.
- Business Opportunities: You can establish a company or a commercial entity in any industry. The types of enterprises that can operate in the AFZ are subject to few regulations. Expats can establish industrial, professional, or commercial firms.
- Low-Cost Business Establishment: Ajman Free Zone would be suitable for people looking to start a small business. Create a modest entity in AFZ and expand it via your work, planning, and strategy. Furthermore, this jurisdiction welcomes businesses of all sizes.
- Multiple Shareholders: The company can have up to five shareholders under AFZ. If you lack the finances to set up a limited liability business on your own, form one with partners.
- Labour Costs: The lower labour costs would help to keep operating costs under control. Both blue-collar and white-collar workers can be employed at incredibly low costs. This will eventually increase your profits.
- Family Residence Visa: Entrepreneurs and their families that have a business in the AFZ are eligible for a residence visa. Furthermore, employees of the organisation might obtain a residence visa for themselves and their families. Another advantage provided by AFZ is the ability to get multiple visas.
- Broad Global Reach: Airports and seaports are carefully placed so that you can investigate them for extended global reach. Ajman Free Zone’s strategic location facilitates the export and import of products, raw materials, and equipment. With the connectivity provided by the zone, businesses can thrive substantially.
- Simple Corporate Bank Account Opening: In many jurisdictions, opening a corporate bank account is a complicated process. Nonetheless, in the case of Ajman Free Zone, it is simple and straightforward. Expats can open a corporate bank account by following the simplest steps. Such a simple approach is not possible in practically all of the UAE’s other free zones.
- Capital Repatriation: Expats are also permitted to repatriate their entire capital. They can send the money back to their native nation without paying any fees to the authorities. This would allow businesses to recoup their whole investment if their business plans or investment locations changed due to changes in geopolitical conditions.
Get Your E-Commerce Business License with Shuraa!
The UAE is a developing market for e-commerce firms, but if you do not establish your company in the UAE now, you may miss out on a profitable opportunity. Ajman free zone provides one of the most cost-effective e-commerce licenses in the UAE, which could be the key to your company’s success. If you apply for the license through the top business setup consultants in Ajman, such as Shuraa Business Setup, you won’t have to worry about the free zone restrictions or other requirements.
With years of expertise and hundreds of delighted customers from all over the world, we are one of the leading suppliers of company establishment services in Dubai. Shuraa offers bespoke company registration services in Dubai, such as opening bank accounts, processing visas, drafting MoA and LSA agreements, and so on. By working with us, you will gain access to strategic business formation insights as well as value-added services such as corporate tax, AML-CFT, UBO, ESR, and so on. Hire us to launch a business in Dubai with no hassles or headaches.
Call our business setup consultants at +971 4 4081900 right away to learn how they can help you realize your full company potential. Additionally, you can reach us by WhatsApp at +971 50 7775554 and email at info@shuraa.com.
