Ajman Free Zone 2026: A Complete Breakdown of the UAE’s Oldest Budget Free Zone

Ajman Free Zone (AFZ) is one of the UAE’s oldest free economic zones, launched in 1988 in the emirate of Ajman, now overseen by the umbrella structure Free Zones Authority of Ajman (FZA).

AFZ is officially included on the VAT Designated Zones list under Cabinet Decision No. 59 of 2017 — a status not every UAE zone holds (Meydan Free Zone, for example, does not have it).

The Free Zones Authority of Ajman (FZA) was established in 2021 as the umbrella body overseeing both Ajman Free Zone and Ajman Media City Free Zone.

AFZ differs from many UAE zones by offering a dedicated Freelancer Package — a specific package for solo entrepreneurs with no staff, which Dubai South, for example, does not offer.

⚠ AFZ’s regulatory basis traces to Amiri Decree No. 2 of 2014 concerning Ajman Free Zone — a later instrument formalising the legal status of a zone launched back in 1988. As with Dubai South and KEZAD, the actual launch date and the date of the formalising legal instrument do not coincide.

1. The Legal Basis and Corporate Structure

Ajman Free Zone is governed by a two-tier structure that only fully took shape in 2021.

The Free Zones Authority of Ajman (FZA) is the umbrella body responsible for developing and managing all of the emirate of Ajman’s free zone assets, including Ajman Free Zone and Ajman Media City Free Zone.

Ajman Free Zone itself operates under Amiri Decree No. 2 of 2014 concerning Ajman Free Zone, issued by the Ruler of Ajman.

⚠ The official regulations page on afz.gov.ae lists a broad range of applicable federal laws, including Federal Decree-Law No. 8 of 2017 (VAT), Federal Decree-Law No. 32 of 2021 (Commercial Companies), Federal Decree-Law No. 47 of 2022 (Corporate Tax), and Federal Decree-Law No. 10 of 2025 (AML/CFT) — confirming that AFZ is fully integrated into the federal regulatory system, unlike, for example, Meydan Free Zone, which excludes the federal Commercial Companies Law from applying within its perimeter.

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2. Scale and Location

Ajman Free Zone sits in the UAE’s smallest emirate by territory, but holds a notable position among Northern Emirates zones by resident company count.

Per the zone’s official profile, AFZ serves over 9,000 companies from more than 165 countries.

The zone adjoins Ajman Port and sits in close proximity to the international airports of Dubai and Sharjah.

In 2021, Ajman Free Zone ranked 7th in the Global Free Zone of the Year Awards by FDI Intelligence magazine (part of the Financial Times Group).

3. Comparison with Other UAE Zones

Parameter	Ajman Free Zone	Dubai South	KEZAD
Year launched	1988	2015 (formalised)	2022 (formalised)
Umbrella authority	Free Zones Authority of Ajman (since 2021)	DACC/DWCC	AD Ports Group
VAT Designated Zone status	Yes	Partial (not the whole territory)	Partial (not the whole territory)
Freelance permit	Dedicated Freelancer Package	Not offered	Not a core product
Profile	Broad: trading, services, industry, e-commerce	Aviation, logistics	Heavy industry, logistics

AFZ’s key practical distinction is combining Designated Zone status with its own freelance product, which neither Dubai South nor KEZAD offers.

4. Legal Structures and Licence Types

Licence/package type	What it permits	Notes
Business (Commercial) License	Import, export, distribution of goods	One of the zone’s base categories
Industrial License	Manufacturing, assembly, processing	Requires technical documentation for the specific activity
Services License	Consulting, professional services	No physical goods requirement
Freelancer Package	Individual practice with no staff or separate legal entity	One of the few dedicated freelance licence options among UAE free zones
E-commerce Package	Online trading	A separate package with tailored conditions
Offshore	Holding and international structures with no right to operate within the UAE	A separate registry, distinct from a standard AFZ licence

Officially available legal structures at AFZ are: Free Zone Establishment (FZE), Free Zone Company (FZC), a branch of a local company, a branch of a foreign company, and a separate offshore registry.

ℹ The minimum required capital for AFZ companies is not directly confirmed in freely available official zone documents at the time of writing — the exact figure for a specific activity should be requested directly from AFZ before registration, rather than relying on figures from third-party aggregators.

5. Designated Zone Status: What It Means for AFZ

Designated Zone status concerns exclusively the VAT treatment of goods transactions between zones holding that status, not a general tax exemption for the business.

Ajman Free Zone is included on the official Designated Zones list under Cabinet Decision No. 59 of 2017, alongside JAFZA, DAFZA, and several other zones.

⚠ Designated Zone rules do NOT apply to services — any service supplied within the zone is subject to the standard 5% VAT rate on the usual basis. This is a frequent planning error: the zone’s status protects only goods transactions between similarly designated zones, not the business as a whole.

6. Corporate Tax and QFZP

AFZ companies are treated as Free Zone Persons for Corporate Tax purposes and can apply for the 0% rate on qualifying income subject to Qualifying Free Zone Person (QFZP) conditions.

The federal Corporate Tax rate is 9% on profit above AED 375,000 for non-qualifying income; QFZP conditions are set by Cabinet Decision No. 100 of 2023 and Ministerial Decision No. 265 of 2023 — the same instruments applicable to all UAE free zones.

✅ VAT Designated Zone status and Corporate Tax Qualifying Free Zone status are independent regimes established under different instruments. AFZ’s inclusion on the Designated Zones list does not automatically confer QFZP eligibility — conditions for each tax are assessed separately.

7. AML Compliance for Professional Residents

AFZ explicitly flags elevated anti-money laundering risk for its professional-services residents.

⚠ Per AFZ’s own official FAQ section, independent accountants, auditors, and legal consultants (DNFBPs — Designated Non-Financial Businesses and Professions) are classified as high risk under Federal Decree-Law No. 10 of 2025 on Anti-Money Laundering — such companies should build internal compliance procedures in advance, rather than reacting only when an audit occurs.

8. Company Closure Procedure

Closing a company at AFZ follows a standard procedure with public notice, as in most UAE zones.

The local newspaper announcement period for a company liquidation is 14 days, per AFZ’s official FAQ section.

A 30-day grace period is granted following resident visa cancellation.

9. Step-by-Step Registration Process

1.     Select the licence/activity type: Business, Industrial, Services, Freelancer Package, or E-commerce Package.

2.     Choose the legal structure: FZE, FZC, a branch of a local/foreign company, or an offshore structure.

3.     Reserve the company name through the AFZ portal.

4.     Prepare the document package: founders’ passports, a business plan or activity description, proof of address.

5.     Choose the workspace configuration: virtual office, flexi-desk, ready office, or warehouse.

6.     Pay the licensing fees and receive the licence, certificate of incorporation, and constitutional documents.

7.     Register for VAT and Corporate Tax through the EmaraTax portal within the applicable federal deadlines.

8.     Process resident visas for founders and employees.

10. Common Mistakes

•       Assuming the entire emirate of Ajman is a Designated Zone. Status is confirmed specifically for the Ajman Free Zone territory, not for mainland companies registered through Ajman’s Department of Economic Development.

•       Relying on minimum capital figures from third-party aggregators without verification. The exact figure for a specific activity should be requested directly from AFZ.

•       Underestimating banking accessibility as a factor in choosing a zone. AFZ companies in practice undergo more conservative review at Tier-1 banks compared to DIFC or DMCC residents — worth factoring into planning alongside licence cost.

•       Ignoring AML obligations for professional services. Accountants, auditors, and legal consultants at AFZ are explicitly classified as high risk — compliance procedures should be built in advance, not reactively at audit time.

11. Who This Fits

•       Solo entrepreneurs and small service companies seeking a budget entry point into the UAE market. A dedicated Freelancer Package is a rarity among Dubai-tier free zones.

•       Trading companies that value Designated Zone status. Special VAT treatment applies to goods transactions between similarly designated zones.

•       Businesses with a limited startup budget. The Northern Emirates, including Ajman, traditionally offer some of the UAE’s most accessible starter packages.

12. Who This Does Not Fit

•       Companies for whom address reputation with Tier-1 banks is critical. AFZ residents in practice face a more conservative approach from major banks compared to DIFC or DMCC.

•       Businesses relying on a prestigious central Dubai address. Ajman sits outside Dubai — potentially suboptimal for brands dependent on a Dubai location.

13. When Professional Verification Is Essential

Self-assessment is worth supplementing with specialist advice when: planning a banking strategy that accounts for Tier-1 banks’ more conservative treatment of AFZ residents; conducting professional activity falling under the DNFBP category under AML legislation; and confirming the exact minimum capital for a specific activity not directly confirmed in public sources.

FAQ

Is Ajman Free Zone a VAT Designated Zone?

Yes, AFZ is on the official Designated Zones list under Cabinet Decision No. 59 of 2017 — the regime covers only goods transactions between such zones, not services.

Who regulates Ajman Free Zone — AFZ itself or a separate body?

Since 2021, the umbrella body has been the Free Zones Authority of Ajman (FZA), which oversees both Ajman Free Zone and Ajman Media City Free Zone.

Does Ajman Free Zone offer a freelance licence?

Yes, AFZ offers a dedicated Freelancer Package — distinguishing it from Dubai South and most major Dubai zones, which do not offer this product.

Is it easy to open a bank account for an AFZ company?

In practice, harder than for DIFC or DMCC residents — Tier-1 banks apply a more conservative approach to Northern Emirates companies, worth factoring into planning.

Key Takeaways

•       Ajman Free Zone launched in 1988; its legal status was formalised by Amiri Decree No. 2 of 2014.

•       Since 2021, the umbrella authority has been the Free Zones Authority of Ajman (FZA).

•       AFZ is officially on the VAT Designated Zones list (Cabinet Decision No. 59 of 2017).

•       The zone offers a dedicated Freelancer Package — a rarity among Dubai-tier zones.

•       AFZ companies can apply for 0% Corporate Tax subject to QFZP conditions — independent of Designated Zone status.

•       Accountants, auditors, and legal consultants at AFZ are classified as elevated AML risk.

Summary

Ajman Free Zone (AFZ) is a free economic zone in the emirate of Ajman, launched in 1988 and formalised by Amiri Decree No. 2 of 2014. Since 2021, AFZ has been overseen by the umbrella body Free Zones Authority of Ajman (FZA), which also oversees Ajman Media City Free Zone. AFZ is officially on the VAT Designated Zones list under Cabinet Decision No. 59 of 2017, providing special VAT treatment for goods transactions between such zones. The zone offers a broad range of licences, including a dedicated Freelancer Package for solo entrepreneurs — a rarity among major UAE zones. AFZ companies can apply for the 0% Corporate Tax rate subject to Qualifying Free Zone Person (QFZP) conditions under Cabinet Decision No. 100 of 2023 and Ministerial Decision No. 265 of 2023.

Sources

• Free Zones Authority of Ajman — official website (fza.ae)

• Ajman Free Zone — official profile (afz.gov.ae)

• Ajman Free Zone — Rules & Regulations, official register of applicable instruments (afz.gov.ae)

• Ajman Free Zone — official FAQ section (afz.gov.ae)

• Ministry of Economy and Tourism UAE — Ajman Free Zone, official free zone registry (moet.gov.ae)

• Department of Digital Ajman — Ajman Free Zone Services, official government portal (ajman.ae)

• Federal Tax Authority — Designated Zones VAT Guide, official document (tax.gov.ae)

Disclaimer

This material is for informational purposes only and does not constitute legal, tax, financial, investment, or consulting advice. Exact tariffs, fees, and capital requirements are updated regularly — request a current quotation directly from Ajman Free Zone. Information is accurate as of June 2026.