Discussions

Ask a Question
Back to all

Eligibility Criteria for Company Formation in Ajman

Ajman, one of the fastest-growing emirates in the UAE, offers a business-friendly environment for entrepreneurs and investors. To establish a company in Ajman, there are specific eligibility criteria that must be met, depending on the type of business structure and location (mainland or free zone).

For company registration in Ajman Free Zone, the primary requirements include a valid passport copy of the shareholder(s), a clear business plan, and the selection of an appropriate license type (commercial, industrial, or service). The applicant must be at least 18 years old. Foreign investors can retain 100% ownership in the free zone, with no requirement for a local sponsor. Certain business activities may require additional approvals from relevant authorities.

In the Ajman Mainland, companies generally require a UAE national as a local service agent or sponsor for specific business types. However, following recent reforms, many professional and commercial activities allow full foreign ownership. A trade name reservation and initial approval from the Department of Economic Development (DED) are mandatory steps.

Regardless of the location, compliance with UAE laws, a minimum capital requirement (varies by license type), and obtaining necessary approvals are crucial for a successful setup. Ajman’s streamlined processes and low costs make it an attractive option for startups and SMEs.