Ajman Free Zone

Ajman Free Zone Administrative and Office Buildings

Ajman Free Zone (AFZA) (Arabic: منطقه عجمان الحره‎) is a free trade zone in Ajman, United Arab Emirates (UAE). First established in 1988, it is one of a number of unbonded free zones in the UAE offering offshore company setup and operation to investors. As of Q1 2018, 12,362 companies operated out of AFZA.[1]

The UAE's free trade zones are a major economic contributor, with 2017 exports from UAE free zones of Dhs 225.5 billion in 2017 representing some 19.5% of total exports. Of a total of 45 free zones in the UAE, 30 are located in Dubai. A further ten zones are currently under construction in the country.[2]

Business Services

All businesses in the UAE require a trade license, which is renewed annually. Onshore trade licenses are only available with 49% foreign ownership, requiring a local partner or sponsor. Sponsorship fees can range from Dhs20,000-2 million per year.[3] A legislative change announced in May 2018 allowed for 100% foreign ownership of onshore businesses, alongside a 10-year residency visa for certain categories of investor and professionals, but this has yet to be implemented and costs and structures of such businesses remain undefined.[4]

AFZA allows investors to set up companies and trade with 100% foreign ownership and no taxation. Its services include the provision of visas for expatriate workers, land for development or pre-existing warehousing and business premises supporting a range of business types, including 'smart offices' - co-working spaces.[5] Business licenses at AFZA are annually renewable and costs start from UAE Dhs 11,900.[6]

The UAE levies a 5% Value Added Tax, from which companies at AFZA are exempt when trading between free zones or internally.[7] However, the tax is levied on goods and services traded onshore into the UAE.

Indian-owned businesses comprise 40% of the companies operating from AFZA,[8] which is growing at a rate of 28% new business registrations year on year (of which 46% were import and export businesses).[9] A number of international representative, sales and promotion offices have opened, with Mumbai, Dubai, Karachi and Manchester opening in 2015[10], Delhi[11], Dar es Salaam, Johannesburg[12], Cyprus and Moscow in 2016[13] and in 2017 Hong Kong, Canada, Azerbaijan, Switzerland and China,[14] joined by Lahore in 2018.[15]

Media Zone

Ajman Media City Free Zone was launched in 2018,[16] some three years after the Emiri Decree to establish the zone was issued.[17] The zone offers a wider and more inexpensive range of small company licensing services to media-related businesses and operates independently of Ajman Free Zone.

See also

References

  1. ↑ Report, Staff. "Ajman Free Zone to open new offices in 5 countries". www.khaleejtimes.com. Retrieved 2018-09-19.
  2. ↑ Abbas, Waheed. "More relief as three UAE free zones are out of VAT scope". www.khaleejtimes.com. Retrieved 2018-09-19.
  3. ↑ Reporter, Aya Lowe, Staff (2011-04-05). "The cost of setting up shop in the UAE". GulfNews. Retrieved 2018-09-19.
  4. ↑ "Are free zones in a bind?". www.khaleejtimes.com. Retrieved 2018-09-19.
  5. ↑ carla (2018-02-21). "Snap's Analyst Rating Slips After Over 1.2 Million Users Protest Update - Forbes Middle East". Forbes Middle East. Retrieved 2018-09-19.
  6. ↑ "Ajman Free Zone kick-starts its latest product 'Business Centre'". Retrieved 2018-09-19.
  7. ↑ "UAE tax authority outlines VAT exempt free zones". Gulf Business. 2018-01-10. Retrieved 2018-09-19.
  8. ↑ "Ajman Free Zone targets Indian businesses". The National. Retrieved 2018-09-19.
  9. ↑ "New business licences in Ajman Free Zone increase 28% to 12,362 in Q1 2018". www.afz.gov.ae. Retrieved 2018-09-19.
  10. ↑ Wam. "Ajman free zone aims to draw Pakistan firms". www.khaleejtimes.com. Retrieved 2018-09-19.
  11. ↑ IANS (2016-01-12). "Ajman Free Zone opens second India office in Gurgaon". Business Standard India. Retrieved 2018-09-19.
  12. ↑ Zendera, Yamurai. "Ajman Freezone floats tender for expansion works | ConstructionWeekOnline.com". www.constructionweekonline.com. Retrieved 2018-09-19.
  13. ↑ "Ajman Free Zone to open rep office in Azerbaijan". AzerNews.az. 2017-08-07. Retrieved 2018-09-19.
  14. ↑ Report, Staff. "Ajman Free Zone to open new offices in 5 countries". www.khaleejtimes.com. Retrieved 2018-09-19.
  15. ↑ Wam (2016-12-19). "Ajman Free Zone opens Representative Office in Lahore". Emirates24|7. Retrieved 2018-09-19.
  16. ↑ Staff, Entrepreneur Middle East (2018-08-20). "Ajman Media City Free Zone's New Offer For Startups". Entrepreneur. Retrieved 2018-09-19.
  17. ↑ Wam. "Ajman Ruler issues decree establishing Media Free Zone". www.khaleejtimes.com. Retrieved 2018-09-19.
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