What is the cost to set up a company in the UAE?

Costs vary by structure. Mainland companies start from AED 12,000-20,000 (including trade licence, office lease, and visa processing). Freezone packages range from AED 7,500-25,000 depending on the zone and number of visas. Additional costs include document attestation (AED 1,000-3,000) and annual renewals.

Can a foreigner own 100% of a UAE company?

Yes. Since the 2021 Companies Law reform, foreign nationals can own 100% of mainland companies in most business activities. Freezone companies have always allowed full foreign ownership.

How long does it take to set up a UAE company?

Mainland companies typically take 2-3 weeks (trade licence approval, office lease, visa processing). Freezone companies can be set up in 3-5 working days with virtual office options available.

Do I need a physical office to set up a UAE company?

Mainland companies require a physical office lease (Ejari). Freezone companies can use flexi-desks or virtual office packages, which are significantly cheaper.

Ajman Free Zone Setup Guide 2026: Costs, Process, and What to Expect

Quick Answer: Setting up in Ajman Free Zone. This guide covers real costs, timelines, visa quotas, and who AFZA actually suits in 2026.

Ajman Free Zone is one of the most affordable places to set up a company in the UAE. If your budget is tight and you need a legitimate UAE trade licence with visa eligibility, Ajman Free Zone (AFZA) is worth a serious look.

It’s not the flashiest address. But for solo consultants, freelancers, and small trading companies who don’t need a Dubai postcode, it does the job at a fraction of the cost.

What Is Ajman Free Zone?

Ajman Free Zone Authority (AFZA) was established in 1988, making it one of the oldest free zones in the country. It sits in Ajman emirate, the smallest of the seven UAE emirates, about 25 kilometres north of Dubai.

Thousands of companies from across the world are registered there across a wide range of activities: trading, consulting, manufacturing, e-commerce, media, and professional services.

The main draw is cost. An AFZA licence can come in well under AED 10,000 for the first year, depending on the package. That compares favourably to AED 18,000+ at DMCC or AED 11,500+ at IFZA.

You get the same core benefits as any UAE free zone: 100% foreign ownership, zero personal income tax, no corporate tax on qualifying income, and the ability to sponsor residence visas.

Ajman Free Zone vs Other Free Zones

Before deciding, here’s how AFZA stacks up:

Free Zone	Best For	Approx. Annual Cost (AED)
Ajman Free Zone	Budget setup, light manufacturing, trading	7,500-12,000
IFZA	Consultancy, tech, online business	11,500-16,000
RAKEZ	Manufacturing, Ras Al Khaimah	8,500-14,000
Shams	Media, creative, content	11,000-15,000
DMCC	Commodities, trading, prestige	18,000-30,000+

Ajman Free Zone is competitive on price but lacks the brand recognition of DMCC or DIFC. For client-facing businesses where your registered address matters to counterparties, this is worth weighing up.

For a full picture, see Best UAE Free Zones Compared.

Business Activities Available

AFZA covers a broad list of activities:

Trading: General trading, specific commodity trade, e-commerce, import/export

Professional services: Management consulting, IT consultancy, marketing, HR, accounting

Industrial and manufacturing: Light manufacturing, assembly, packaging, food production (subject to facility requirements)

Media and creative: Publishing, production, design, digital content

Other: Education, healthcare consultancy, logistics

You select your activities at registration. Most standard licences cover 1-3 activities. Additional activities can be added for a fee.

One practical note: Ajman Free Zone has actual warehouse and light industrial units available at reasonable rates, which makes it popular with small manufacturers and importers who need physical storage.

Company Structures

FZE (Free Zone Establishment): Single shareholder. The most common structure for solo founders.

FZCO (Free Zone Company): Two or more shareholders.

Branch office: An extension of an existing foreign company.

Share capital requirements vary by activity and structure — AFZA will confirm the specific amount during your application. Most activities require a declared minimum in your Memorandum of Association rather than a physical cash deposit. Some banks may ask for evidence of capitalisation when opening accounts, so confirm the exact figure with AFZA directly.

Setup Costs: The Real Numbers

AFZA packages vary. Here’s a realistic breakdown for 2026:

Year One (Trading or Consulting Licence)

Item	Approx. Cost (AED)
Trade licence fee	5,750-8,000
Registration / establishment fee	1,500
Share capital (declared, not deposited)	Confirm with AFZA - varies by activity
Flexi-desk or virtual office	2,500-5,000
Year one total (excl. visas)	~9,750-14,500

AFZA periodically offers promotional packages bundling the licence and a flexi-desk for AED 7,500-9,000. These promotions tend to run around the start of the year or major UAE business events. It’s worth checking the current offer on the AFZA portal before you apply.

Ongoing Annual Costs

Item	Approx. Cost (AED)
Licence renewal	5,750-8,000
Office/flexi-desk renewal	2,500-5,000
Annual total	~8,250-13,000

This is where Ajman Free Zone stays competitive. Renewal costs remain low year-on-year compared to the Dubai-based free zones.

Visa Costs

Item	Approx. Cost (AED)
Investor visa (per person)	3,500-5,000
Medical fitness test	350-600
Emirates ID	370
Dependent visa (spouse or child)	3,000-4,500

Visa quota: The number of visas you can sponsor depends on your office type. A virtual office or flexi-desk typically allows 1-3 visas. If you need more, you’ll need a dedicated office or warehouse unit.

The Setup Process Step by Step

Step 1: Choose Your Activity and Structure

Decide what your company will do and how many shareholders there are. This determines whether you need an FZE or FZCO.

Step 2: Apply Online

AFZA accepts applications through its online portal. You fill in the application form, select activities, and submit documents. The process is straightforward and AFZA staff are accessible if you have questions.

Documents required:

Passport copy of all shareholders and managers
Passport photos (white background)
Completed application forms
For corporate shareholders: Certificate of Incorporation, Memorandum and Articles, board resolution

Step 3: Pay the Fees

Once your application is reviewed, you receive a payment invoice. Payment is by bank transfer or card. Fees are confirmed at this stage — no surprises.

Step 4: Receive Your Licence

After payment, AFZA issues your trade licence, Certificate of Incorporation, and Memorandum of Association.

Timeline: Typically 3-7 working days for straightforward applications. It’s one of the faster UAE free zone setups.

Step 5: Open a Bank Account

With your documents in hand, you can begin the bank account process. Most UAE banks accept AFZA-registered companies, though some premium banks (ADCB, Emirates NBD) can be selective.

Wio Bank, RAK Bank, and Mashreq are among the more accessible options for free zone companies. See How to Open a UAE Business Bank Account for the full process.

Step 6: Apply for Residence Visas

Use your AFZA establishment card to apply for investor or employee visas. AFZA processes visa applications in coordination with the ICP (Federal Authority for Identity, Citizenship, Customs and Port Security).

Visa processing takes 2-4 weeks typically.

Flexi-Desk vs Physical Office

Most AFZA clients opt for a flexi-desk or shared office arrangement. Here’s the breakdown:

Option	What You Get	Annual Cost (AED)
Virtual address	Registered address only, no desk	2,500-3,500
Flexi-desk	Hot desk access + address	4,000-5,000
Dedicated desk	Your desk, shared office	6,000-9,000
Private office	Enclosed office unit	15,000-35,000
Warehouse unit	Physical storage + office	25,000-60,000

If you’re running a consultancy or digital business, a flexi-desk covers your needs. If you’re importing goods or running any kind of physical operation, the warehouse units are a significant advantage over Dubai-based free zones where warehousing is much pricier.

Corporate Tax and AFZA

Like all UAE free zones, AFZA companies can qualify for 0% corporate tax on qualifying income under the UAE Corporate Tax Law (effective June 2023). The main conditions:

Your company meets the substance requirements
You earn qualifying income (broadly: transactions with foreign clients or other free zone companies)

UAE mainland clients create taxable income at 9% above the AED 375,000 threshold. For most AFZA companies with primarily international or free zone business, the 0% rate applies.

Read the UAE Corporate Tax Guide for the full rules.

Who Should Set Up in Ajman Free Zone?

Good fit:

Solo founders who want a lean, cost-effective UAE company
E-commerce and dropshipping businesses
Consultants who don’t need a Dubai address for client credibility
Small manufacturers or importers who need affordable warehousing
People testing the UAE market before committing to a larger setup

Not ideal if:

Your clients or investors will judge you by your registered address
You need to do significant business directly with UAE mainland companies (this is possible, but you’ll need to understand the corporate tax implications)
You’re in commodities or financial services (sector-specific free zones like DMCC or DIFC offer better ecosystems)
You need premium banking relationships that require a Dubai or Abu Dhabi address

Practical Tips Before You Apply

Check the current promotions. AFZA regularly offers discounted packages. The published rates are not always the live rates. Call or email before applying.

Confirm your activity code carefully. AFZA’s activity codes are specific. If your description doesn’t match, you may need an amendment later, which costs time and money.

Start banking in parallel. As soon as you receive your initial approval, start the bank account process. UAE business banking can take 4-8 weeks regardless of free zone.

Consider the commute. Ajman is 30-40 minutes from central Dubai by car. If you’ll be meeting UAE-based clients regularly, factor in the travel time.

Get proper accounting from day one. Even with low costs, UAE companies need proper bookkeeping for corporate tax compliance. See UAE Accounting Basics for Small Businesses for what’s required.

Comparing Free Zones

If you’re not yet decided on Ajman, the most comparable options are IFZA (slightly pricier but more internationally recognised), RAKEZ (similar price point, based in Ras Al Khaimah), and Shams (better for media and creative businesses).

The Best UAE Free Zones Compared guide runs through each option systematically so you can match your business type to the right structure.

For a full look at whether a free zone is right for your situation versus a mainland licence, start with Mainland vs Freezone UAE.

If you’re setting up your business and need a brand identity, product design, or website built for the UAE market, Wire Designs works with founders and growing companies across the region.