# Ajman Free Zone: 2026 Complete Guide for Entrepreneurs

Ajman Free Zone (AFZ) is one of the UAE’s most cost-competitive free zones. Adjacent to Ajman Port, approximately 45 minutes from Dubai and 30 minutes from Sharjah, it offers 100% foreign ownership, designated-zone status for VAT on goods movements, and starting licence costs from approximately AED 5,500–6,000 — among the lowest in the country.

This guide covers what AFZ is, why entrepreneurs choose it, the licence and office options available in 2026, indicative costs, the step-by-step setup process, and the corporate-tax obligations that apply from day one.

## What Is Ajman Free Zone?

Ajman Free Zone was established in 1988, making it one of the UAE’s oldest free zones. It hosts thousands of businesses across trading, services, manufacturing, and e-commerce.

AFZ operates under its own free-zone authority, separate from the Ajman Department of Economic Development, which handles mainland Ajman companies.

AFZ is a designated zone for VAT purposes under the original Cabinet Decision No. 59 of 2017 and subsequent amendments, with favourable treatment on goods movements between designated zones.

## Why Choose Ajman Free Zone?

- Among the lowest starting licence fees in the UAE, from approximately AED 5,500–6,000.
- 100% foreign ownership across all entity types.
- Designated-zone status for VAT, with favourable goods VAT treatment between zones.
- Adjacent to Ajman Port, which is relevant for trading and logistics businesses.
- Approximately 45 minutes from Dubai by road and 30 minutes from Sharjah.
- Range of facilities from virtual office to full warehouse.
- Streamlined setup, with licences typically issued in 3–5 business days.

Entrepreneurs comparing different UAE jurisdictions should assess free zone versus mainland licensing, ownership, taxation, and operational differences before choosing AFZ.

## Licence Types in Ajman Free Zone

### Service / Professional Licence

Covers consulting, IT services, marketing, management advisory, education, and training.

Starting from approximately AED 6,500–10,000 per year. Supports employee visa sponsorship.

### Commercial / Trading Licence

Covers import/export, wholesale, e-commerce, and trading of physical goods.

Starting from approximately AED 9,000–15,000 per year. Custom import/export code is available.

### Industrial Licence

For manufacturing, processing, and assembly.

Starting from approximately AED 12,000+ per year plus facility costs.

### E-commerce Licence

For purely online businesses.

Starting from approximately AED 5,500–8,000 per year.

### Freelance / Individual Professional

For solo professionals such as designers, developers, consultants, and creators.

Starting from approximately AED 5,500 per year.

## Office Options in Ajman Free Zone

- Smart / virtual office: approximately AED 5,000–8,000 per year.
- Flexi-desk: approximately AED 8,000–12,000 per year.
- Executive office, typically in AFZ business-centre buildings: approximately AED 15,000–25,000 per year.
- Standard office: approximately AED 25,000+ per year.
- Warehouse / industrial unit: approximately AED 50,000+ per year.

## Indicative First-Year Setup Costs in 2026

| Configuration | Indicative Total | Notes |
| --- | ---: | --- |
| Freelancer permit + 1 visa | AED 16,000–20,000 | Smart / virtual office |
| Service licence + flexi-desk + 1 visa | AED 22,000–26,000 |  |
| Trading licence + executive office + 2 visas | AED 36,000–44,000 |  |
| Industrial / warehouse + 4 visas | AED 95,000–130,000+ | Warehouse + facility costs |

These estimates include establishment and immigration cards, per-visa costs, and basic health insurance. Costs should be confirmed against the current AFZ quote.

## Tax Position

AFZ entities are subject to UAE corporate tax under Federal Decree-Law No. 47 of 2022.

They can qualify for 0% corporate tax on qualifying income under the Qualifying Free Zone Person regime, based on Cabinet Decision No. 100 of 2023 and Ministerial Decision No. 265 of 2023. Non-qualifying income is taxed at 9% above AED 375,000.

AFZ’s designated-zone status applies to goods movements between designated zones. It does not apply to services or real estate inside the zone.

VAT registration is mandatory above AED 375,000 in taxable supplies and voluntary above AED 187,500.

## Step-by-Step Setup Process

1. Choose licence type and activities: service, commercial, industrial, e-commerce, or freelance.
2. Choose office configuration: virtual, flexi-desk, executive office, standard office, or warehouse.
3. Reserve the company name through the AFZ portal.
4. Submit the document pack, including passport copies, photographs, business plan or activity description, and proof of address.
5. Sign the MOA / AOA, pay licence and office fees, and receive the trade licence, typically within 3–5 business days.
6. Apply for the establishment card, immigration card, and visas.
7. Open a corporate bank account, which may take 2–6 weeks.
8. Register for VAT and corporate tax on EmaraTax.

## What BCL Globiz Sees Most Often

AFZ’s strength is cost. The trade-off many clients underestimate is banking. Tier-one UAE banks often treat Ajman-based entities more conservatively than DMCC or DIFC entities.

Many AFZ setups begin with a digital bank such as Wio or Mashreq Neo, then migrate to a tier-one bank after six months of operating history.

Corporate tax registration on EmaraTax also catches many clients out. It applies to every AFZ entity regardless of revenue, with a flat AED 10,000 late-registration penalty. BCL Globiz recommends completing this within 30 days of receiving the trade licence.

## Frequently Asked Questions

### What is Ajman Free Zone?

Ajman Free Zone is a UAE free zone established in 1988 and located adjacent to Ajman Port. It is a designated zone for VAT and offers 100% foreign ownership, a range of licence types, and some of the lowest starting fees in the UAE.

### How much does an Ajman Free Zone licence cost?

Starting licence fees range from approximately AED 5,500 for freelance permits and e-commerce licences to AED 15,000+ for trading licences.

Total first-year cost including office, cards, and one visa typically falls between AED 16,000 and AED 44,000, depending on the package.

### Is Ajman Free Zone a designated zone for VAT?

Yes. Ajman Free Zone holds designated-zone status under the VAT law. 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 Ajman Free Zone?

Yes. AFZ supports residence-visa sponsorship.

Each visa costs approximately AED 4,000–5,000, plus the establishment card at approximately AED 1,500 and the immigration card at approximately AED 1,500.

### Do Ajman Free Zone companies 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 Qualifying Free Zone Person regime, based on Cabinet Decision No. 100 of 2023 and Ministerial Decision No. 265 of 2023. Non-qualifying income is taxed at 9% above AED 375,000.