Ajman has quietly become one of the UAE’s most affordable business hubs. Ajman Free Zone (AFZ) sits adjacent to Ajman Port, approximately 45 minutes from Dubai and 30 minutes from Sharjah. It is a designated zone for VAT, and it consistently lands among the cheapest free zones in the UAE.
Within AFZ, several commercial buildings host business centres, offices, and warehouses. The C1 building is one of these commercial blocks — frequently referenced by founders evaluating cost-effective office options in AFZ. This guide covers the practical question: what office options does Ajman Free Zone offer, how do they fit different business sizes, and what does the total setup look like in 2026?
Note: building names and configurations inside Ajman Free Zone change over time. Confirm specific room availability, current rates, and exact location with the AFZ admin or your business-setup consultant before signing a contract.
What Is Ajman Free Zone?
Ajman Free Zone, established in 1988, is one of the UAE’s oldest free zones. It hosts thousands of businesses across trading, services, manufacturing, and e-commerce. AFZ is a designated zone for VAT — favourable treatment on goods movements between designated zones.
Key advantages of AFZ:
- 100% foreign ownership.
- Some of the lowest starting licence fees in the UAE (from approximately AED 5,500–6,000).
- Designated-zone status for VAT (on goods).
- Adjacent to Ajman Port; ~45 minutes from Dubai.
- Range of office and warehouse facilities from small private offices to large industrial units.
Entrepreneurs comparing AFZ with other jurisdictions can also explore our detailed guide on the list of free zones in UAE to understand cost differences, visa options, and industry-specific advantages across the Emirates.
Office Options Inside Ajman Free Zone
Smart / Virtual Office
Cheapest option — for visa-eligible licences without physical workspace needs. Starting from approximately AED 5,000–8,000/year. Best for service businesses, consultants, and freelancers.
Shared / Flexi-Desk
Hot-desk in a shared business centre. From approximately AED 8,000–12,000/year. Supports 1–3 visas. Best for early-stage SMEs.
Executive / Smart Office
Dedicated furnished private office within a business centre (typically what buildings like C1 offer). Starting from approximately AED 15,000–25,000/year depending on size and configuration. Supports more visas and provides a fixed business address.
Standard Office
Larger private office leased from AFZ. Starting from approximately AED 25,000+/year. Best for SMEs with multiple employees needing dedicated space.
Warehouse / Industrial Unit
For trading, manufacturing, and assembly. Highly variable by size and configuration; pricing starts from approximately AED 50,000+/year for small units.
About the C1 Building
“C1” is one of several commercial building references inside Ajman Free Zone. Buildings of this type typically host:
- Business centres offering smart and executive offices.
- Meeting-room facilities.
- AFZ administrative offices and visa-services counters in nearby buildings.
- Reception, parking, and shared facilities for tenants.
Indicative rates for an executive office inside an AFZ business-centre building range from AED 15,000–25,000/year depending on office size, number of visas required, and whether it’s a smart office or larger configuration. AFZ’s commercial buildings are typically used by:
- New startups and SMEs.
- Consultancy firms.
- Freelancers requiring a private office.
- International branch offices.
- Trading companies needing a Dubai-adjacent presence at lower cost.
Confirm the current configuration, available offices, and price with AFZ or your consultant before signing.
Why Entrepreneurs Choose Ajman Free Zone
- Lower licence and office costs than most Dubai zones.
- Designated-zone status (favourable goods VAT).
- Adjacency to Ajman Port; quick highway access to Dubai and Sharjah.
- Range of office options from virtual through to warehouse — easy to scale.
- Established free-zone authority (since 1988).
Indicative First-Year Setup Costs in AFZ (2026)
| Configuration | Licence + Office (AED) | Total First-Year (1 visa) |
| Smart office + service licence + 1 visa | ~14,000–17,000 | ~20,000–24,000 |
| Executive office + service / trading licence + 2 visas | ~24,000–32,000 | ~36,000–44,000 |
| Standard office + 4 visas | ~35,000+ | ~55,000+ |
| Warehouse + trading licence + 4–6 visas | ~70,000+ | ~95,000–130,000+ |
Includes establishment + immigration cards, visa cost, and basic health insurance. Confirm with the current AFZ quote.
Tax Position
Ajman Free Zone is a designated zone for VAT — favourable treatment on movements of goods between designated zones. Services and real estate inside AFZ follow normal VAT rules.
AFZ entities are subject to UAE corporate tax under Federal Decree-Law No. 47 of 2022. They can qualify for 0% on qualifying income under the QFZP regime (Cabinet Decision No. 100 of 2023; Ministerial Decision No. 265 of 2023). Non-qualifying income is taxed at 9% above AED 375,000.
Setup Process in AFZ (Including Office in C1 or Similar Building)
- Choose licence type and activities (service, commercial / trading, industrial, e-commerce, freelance, professional).
- Choose office configuration (smart, flexi-desk, executive office, standard office, warehouse).
- Reserve company name.
- Submit document pack — passport copies, photographs, business plan or activity description, proof of address.
- Sign MOA / AOA, pay licence and office fees, receive trade licence (typically 3–5 business days).
- Establishment card, immigration card, and visa stamping.
- Open corporate bank account.
- Register for VAT and corporate tax on EmaraTax.
What We See Most Often (BCL Globiz Experience)
AFZ’s strength is cost. The trade-off most clients underestimate is banking: tier-1 UAE banks (Emirates NBD, ADCB, HSBC) are more conservative with Ajman-based entities than with DMCC or DIFC entities. Many setups start with a digital bank (Wio, Mashreq Neo) as a first account, then migrate to a tier-1 bank after 6 months of operating history.
Office-name traps: building names and numbers inside AFZ are sometimes updated or re-allocated. Always confirm with AFZ admin (or your consultant) which specific office you’re being quoted on, what’s included (signage, meeting-room hours, parking), and whether the building has had any address changes.
Many Ajman Free Zone startups initially choose digital banking solutions for faster onboarding — here’s our practical guide to Wio bank account opening Dubai for UAE entrepreneurs and free-zone businesses.
Frequently Asked Questions
What is the Ajman Free Zone C1 building?
“C1” is one of the commercial building references inside Ajman Free Zone, typically hosting business-centre offices, executive offices, and shared facilities. Building names and configurations are updated periodically; confirm current availability with AFZ admin before signing.
How much does an office in Ajman Free Zone cost?
Indicative rates in 2026: smart / virtual office from approximately AED 5,000–8,000/year; flexi-desk from approximately AED 8,000–12,000/year; executive office from approximately AED 15,000–25,000/year; standard office from approximately AED 25,000+/year; warehouse from approximately AED 50,000+/year.
Is Ajman Free Zone a designated zone for VAT?
Yes. Ajman Free Zone is a designated zone for VAT. The benefit applies to movements of goods between designated zones, not to services or real estate inside the zone.
Can I get a UAE residence visa through an Ajman Free Zone company?
Yes. AFZ supports residence-visa sponsorship. Each visa requires the establishment card (~AED 1,500/year) and immigration card (~AED 1,500/year) to be in place, and the office package must support the number of visas you need.
Does an Ajman Free Zone company pay UAE corporate tax?
Yes. AFZ entities are subject to UAE corporate tax under Federal Decree-Law No. 47 of 2022. They may qualify for 0% on qualifying income under the QFZP regime; non-qualifying income is taxed at 9% above AED 375,000. Corporate-tax registration on EmaraTax is mandatory regardless of revenue.
Reach out to our experts at info@bcl.ae.
