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 — 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 for VAT – favourable goods VAT treatment between zones.
- Adjacent to Ajman Port – relevant for trading and logistics businesses.
- Approximately 45 minutes from Dubai by road; 30 minutes from Sharjah.
- Range of facilities from virtual office to full warehouse.
- Streamlined setup; licences typically issued in 3–5 business days.
Entrepreneurs comparing different UAE jurisdictions should also read our detailed guide on Free Zone vs Mainland UAE to understand 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, training. Starting from approximately AED 6,500–10,000/year. Supports employee visa sponsorship.
Commercial / Trading Licence
Covers import/export, wholesale, ecommerce, and trading of physical goods. Starting from approximately AED 9,000–15,000/year. Custom import/export code available.
Industrial Licence
For manufacturing, processing, and assembly. Starting from approximately AED 12,000+/year plus facility costs.
E-commerce Licence
For purely online businesses. Starting from approximately AED 5,500–8,000/year.
Freelance / Individual Professional
Solo professionals — designers, developers, consultants, creators. Starting from approximately AED 5,500/year.
Office Options in Ajman Free Zone
- Smart / virtual office: ~AED 5,000–8,000/year.
- Flexi-desk: ~AED 8,000–12,000/year.
- Executive office (typical in AFZ business-centre buildings): ~AED 15,000–25,000/year.
- Standard office: ~AED 25,000+/year.
- Warehouse / industrial unit: ~AED 50,000+/year.
Indicative First-Year Setup Costs (2026)
| Configuration | Indicative Total (AED) | Notes |
| Freelancer permit + 1 visa | ~16,000–20,000 | Smart / virtual office |
| Service licence + flexi-desk + 1 visa | ~22,000–26,000 | |
| Trading licence + executive office + 2 visas | ~36,000–44,000 | |
| Industrial / warehouse + 4 visas | ~95,000–130,000+ | Warehouse + facility costs |
Includes establishment + immigration cards, per-visa costs, and basic health insurance. Confirm 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% 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.
AFZ’s designated-zone status applies to goods movements between designated zones, not to services or real estate inside the zone.
VAT registration is mandatory above AED 375,000 in taxable supplies; voluntary above AED 187,500.
Step-by-Step Setup Process
- Choose licence type and activities (service, commercial, industrial, e-commerce, freelance).
- Choose office configuration (virtual, flexi-desk, executive office, standard office, warehouse).
- Reserve company name through the AFZ portal.
- 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).
- Apply for establishment card, immigration card, and visas.
- Open corporate bank account (2–6 weeks).
- 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 treat Ajman-based entities more conservatively than DMCC or DIFC entities. Many AFZ setups start with a digital bank (Wio, Mashreq Neo) and migrate to a tier-1 bank after 6 months of operating history.
Corporate-tax registration on EmaraTax catches most clients out. It applies to every AFZ entity regardless of revenue, with a flat AED 10,000 late-registration penalty. Complete 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, 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 (freelance permit, e-commerce) to AED 15,000+ (trading). Total first-year cost including office, cards, and one visa typically lands at AED 16,000–44,000 depending on 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 (~AED 1,500) and immigration card (~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 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.
Reach out to us at info@bcl.ae.
