A Comprehensive Guide to Company Formation in Ajman Mainland

Are you considering starting a business in the heart of the United Arab Emirates (UAE)? Ajman Mainland, with its strategic location and business-friendly environment, is a prime destination for entrepreneurs looking to establish their companies. In this article, we’ll provide you with a comprehensive guide to company formation in Ajman Mainland, covering the key steps, benefits, and important information you need to get started.

Why Choose Ajman Mainland?

Ajman Mainland is one of the seven emirates of the UAE, known for its dynamic business ecosystem and progressive economic policies. Choosing to set up your company in Ajman Mainland offers several advantages:

  1. Strategic Location: Ajman’s proximity to Dubai and Sharjah makes it an ideal location for trade and commerce. It is strategically situated close to two international airports and major seaports, facilitating the smooth movement of goods.
  2. Business-Friendly Environment: The Ajman government has taken significant steps to create a business-friendly environment, with streamlined procedures and minimal bureaucratic obstacles for company formation.
  3. Diverse Business Opportunities: Ajman Mainland provides diverse business opportunities across various sectors, including trading, manufacturing, services, and more.
  4. No Currency Restrictions: You can operate your business in any currency without restrictions, which allows for greater flexibility in your financial transactions.
  5. Competitive Taxation: Ajman Mainland offers a competitive tax environment, with no personal income tax, corporate tax, or value-added tax (VAT).

Steps for Company Formation in Ajman Mainland

  1. Choose Your Business Activity: The first step in company formation in Ajman Mainland is to determine the type of business activity you want to engage in. It’s crucial to select the right activity as per the UAE’s business activities classification.
  2. Find a Local Sponsor: To establish your business in Ajman Mainland, you need a local sponsor, also known as a service agent. The local sponsor will hold a 51% share in your business while you retain the remaining 49%. The local sponsor’s role is primarily administrative, and they won’t interfere in your business operations.
  3. Select a Business Structure: You have the option to choose from different business structures in Ajman Mainland, including a sole establishment, civil company, or LLC. Your choice will depend on the nature of your business and the number of partners involved.
  4. Register Your Business Name: Your business name plays a crucial role in building your brand. Ensure that your chosen business name is unique and in compliance with the UAE’s naming guidelines. The name registration process is carried out with the Department of Economic Development (DED) in Ajman.
  5. Obtain Initial Approvals: You’ll need to secure initial approvals from relevant government authorities and departments, such as the DED, Ajman Chamber of Commerce, and the Ministry of Economy, depending on your business activity.
  6. Lease a Business Premises: You must have a physical business address in Ajman Mainland. Leasing a commercial space is a mandatory requirement for company formation.
  7. Draft the Memorandum of Association (MOA): The MOA outlines the details of the company’s shareholding, management structure, and responsibilities of the partners. This document must be notarized and submitted to the DED.
  8. Get Licensing and Approvals: Depending on the nature of your business, you will require specific licenses and permits. This may include trade licenses, professional licenses, and industrial licenses.
  9. Open a Corporate Bank Account: To manage your business finances, you’ll need to open a corporate bank account in a UAE bank. The bank will require various documents, including your trade license and MOA.
  10. Visa Processing: You can apply for visas for your employees and dependents, if needed. The visa process is relatively straightforward and can be handled by your business setup consultant.
  11. Commence Business Operations: Once all approvals and licenses are in place, you can officially commence your business operations in Ajman Mainland.

Benefits of Company Formation in Ajman Mainland

  1. 100% Repatriation of Profits: You can repatriate all your profits and capital without any restrictions.
  2. Access to Local and Global Markets: Ajman’s strategic location provides easy access to local and global markets, enhancing your business prospects.
  3. Competitive Costs: Operating costs in Ajman Mainland are generally lower compared to other emirates, making it an attractive destination for businesses.
  4. World-Class Infrastructure: The emirate offers modern infrastructure and amenities that facilitate business operations and growth.
  5. Business Flexibility: Ajman Mainland allows you to engage in various business activities, providing flexibility and adaptability to market changes.


Establishing a company in Ajman Mainland is a strategic move for entrepreneurs looking to tap into the UAE’s thriving business landscape. The emirate’s business-friendly environment, easy procedures, and numerous advantages make it an appealing choice for those seeking to set up their businesses. By following the steps outlined in this guide, you can navigate the company formation process in Ajman Mainland and unlock a world of opportunities for your business. Whether you’re interested in trade, manufacturing, or services, Ajman Mainland has something to offer every entrepreneur. So, don’t miss out on the opportunity to join the ranks of successful businesses in this vibrant emirate.

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