When did Federal Decree-Law No. 20 of 2025 take effect?

15 October 2025 per Gibson Dunn and Norton Rose Fulbright. Clyde & Co states 15 November 2025. Several provisions are phased over 12-24 months.

Company Registration in AFZ

Government Fee

from 5 555 AED

Processing time

from 4 business days

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Ajman

AFZ (Ajman Free Zone) is a free economic zone (free zone) established in 1988 in the Emirate of Ajman, UAE. Since its inception, AFZ has established itself as a significant economic hub in the region, attracting a diverse range of businesses and contributing to the socio-economic development of both Ajman and the UAE as a whole. Its strategic location near the Port of Ajman and proximity to Dubai and Sharjah international airports provide seamless access to key transportation networks, making AFZ an attractive choice for international investors. The free zone offers a wide range of infrastructure solutions, including office spaces, warehouses, and industrial complexes for various sectors such as trade, professional services, manufacturing, logistics, and agriculture. This makes AFZ a key hub for business projects targeting both local and international markets. Businesses registered in AFZ are permitted to operate both within the free zone and beyond the UAE. AFZ issues the following types of business licenses: Commercial (wholesale and retail trade) Professional (provision of services) Industrial (manufacturing) E-commerce Freelance Offshore Through integration with global supply chains and fostering international partnerships, the free zone plays a vital role in expanding business opportunities in the region. AFZ is ideally suited for companies of all sizes, from startups to large corporations, offering equal opportunities for scaling, innovation, and strengthening their position in a dynamic business environment.

What you get:

Access to Local and Global Markets
Strategic Location
Remote Company Registration
Full Profit Control
Wide Range of Business Activities
Combining Business Activities
Infrastructure
Business Ecosystem

About Ajman Free Zone

AFZ (Ajman Free Zone) is a free economic zone (free zone) established in 1988 in the Emirate of Ajman, UAE. Since its inception, AFZ has established itself as a significant economic hub in the region, attracting a diverse range of businesses and contributing to the socio-economic development of both Ajman and the UAE as a whole. Its strategic location near the Port of Ajman and proximity to Dubai and Sharjah international airports provide seamless access to key transportation networks, making AFZ an attractive choice for international investors.

The free zone offers a wide range of infrastructure solutions, including office spaces, warehouses, and industrial complexes for various sectors such as trade, professional services, manufacturing, logistics, and agriculture. This makes AFZ a key hub for business projects targeting both local and international markets. Businesses registered in AFZ are permitted to operate both within the free zone and beyond the UAE.

AFZ issues the following types of business licenses:

Commercial (wholesale and retail trade)
Professional (provision of services)
Industrial (manufacturing)
E-commerce
Freelance
Offshore

Through integration with global supply chains and fostering international partnerships, the free zone plays a vital role in expanding business opportunities in the region. AFZ is ideally suited for companies of all sizes, from startups to large corporations, offering equal opportunities for scaling, innovation, and strengthening their position in a dynamic business environment.

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We offer products AFZ

Company setup
Services related to the establishment of a new company
Service
Visa Obtaining
Assistance with filling out documents or turnkey visa obtaining services. The services includes various types of resident visas. Tourist and transit visas are not included
Service

Suitable Targets

Local Business

Company registration for conducting business that requires a local presence in the UAE.

International Business

Company registration for conducting business both within specific jurisdictions and outside the UAE, including international wholesale trade and the provision of services at a global level.

Regional Representation

Establishing permanent establishments or subsidiaries to promote interests and coordinate operations in the Middle Eastern market.

Investment Projects

Company registration for implementing and managing investment projects and startup accelerators in the UAE using own funds or attracted investments.

Resident Visa

Company registration for obtaining a UAE residency visa with the right to permanent residence, opening a bank account in UAE banks, and acquiring tax residency.

Popular Business Fields

Food, Beverage & Tobacco
01
Household & Consumer Goods
02
Information Technology & Communication
03
Professional services
04
Automotive, Machinery & Equipment
05
Construction & Engineering
06

AFZ Offices and Commercial Premises

Virtual Office

An official registered address without the need to rent a physical office solution

1/4

Coworking

Smart OfficeA workspace in a coworking with access during working hours

1/4

Offices

Executive Office Private offices ranging from 10 to 130 sq.m. with unlimited 24/7 access and security. Available fully furnished or as customizable unfurnished spaces. Includes a lease agreement with Signboard, cleaning services, and access to the AFZ Customer Portal and B2B investor services.

1/4

Business Spaces

Specialized corporate spaces or business centers designed for business networking and corporate events, including offices, meeting rooms, training rooms, conference halls, and event spaces Ajman Free Zone Head Quarters Al Zorah Business Centre Ajman Boulevard

1/6

Commercial Premises

Business-designated areas: retail units in business centers, shops, showrooms, specialized premises, standalone buildings, and other commercial facilities Ajman China Mall – the largest shopping center in the region, specializing in wholesale and retail trade of Chinese products Ajman Car Market – the largest automobile market in Ajman, featuring showrooms, service areas, auto parts shops, and exhibition spaces for vehicle sales The Pavilion Business Centre – a modern business center with office spaces, retail units, restaurants, and food trucks

1/6

Warehouses

Warehouses for storage, processing, and distribution of products. Eco-friendly units from 100 m² with energy-efficient technologies, chilled storage units, built-in office space, and parking facilities. Additional services such as labour, forklifts, manpower for cargo handling, cleaning, and labour accommodation are available at extra cost.

Land Plots

Land plots for long-term lease of 20+ years for development, commercial, and industrial use

1/4

Accomodations

Facilities for employee and labour accommodation close to company premises.Well-spaced rooms for up to 5 employees with 24/7 security and surveillance.Facilities include shared toilets and washrooms, laundry services, centralized air conditioning, prayer rooms, dining areas, grocery stores, cafeterias, and parking areas. Bed space rental is available with utilities (electricity and water) included.

1/3

Hubs

Specialized industry-focused spaces equipped with relevant infrastructure, bringing together companies, startups, and professionals for networking and innovation development Freelancer & Pioneers Hub — for freelancers, graduates, and young entrepreneurs looking to start or grow business AI & Robotics Hub — for startups, SMEs, and research institutions operating in the fields of artificial intelligence and robotics E-Commerce Hub — for online businesses, startups, and entrepreneurs aiming to expand their operations in the e-commerce sector

Requirements for Legal Entities Names

Must not violate the country laws or contain words that are obscene, indecent or generally offensive
Must not contain the names of Allah, Buddha or God, or any other religious terminology
Must not infringe any third party's intellectual property rights
Must not be identical or similar to local/global brands or registered trademarks
Must not contain geographical names, such as the names of emirates, cities, countries and other landmarks
Must not contain the names of local/international religious, political or governmental organizations

Authorized capital requirements

The minimum share capital required for AFZ company is AED 10,000. Its contribution is optional.

If the share capital exceeds 100,000 AED, its contribution becomes mandatory.

Tax Regime and Profit Management

Value Added Tax (VAT)

Since January 1, 2018, the UAE has implemented a VAT rate of 5%, which applies to most goods and services and is charged to companies operating within the country, except for those registered in designated zones.
A Designated Zone is a territory within a free zone that is treated as outside the UAE for tax purposes, allowing goods to be exempt from taxation, provided certain criteria are met. The main taxation rules in Designated Zones are as follows:

The Designated Zones are listed in the Cabinet Decision to Federal Decree-Law No. (8) of 2017 on Value Added Tax (VAT).
Goods moved between or within Designated Zones are not subject to tax.
The export and import of goods between a Designated Zone and a foreign company are also not subject to tax.

For local companies and those registered in Non-Designated Zones (free zones not included in the Designated Zones list), the standard tax rules set forth in the Federal Decree-Law on VAT apply.

Companies with an annual turnover exceeding AED 375,000 are required to register with the Federal Tax Authority (FTA) as VAT taxpayers.
Companies with a turnover between AED 187,500 and AED 375,000 may register on a voluntary basis.
Companies can offset VAT paid on purchases of goods and services (input VAT) against the VAT they collect on sales (output VAT), shifting the tax burden to the final consumer.
Some goods and services may be exempt from VAT or taxed at a 0% rate, such as international transportation, educational, and medical services.

Corporate Tax

As of June 1, 2023, the UAE has introduced a corporate tax at a rate of 9%, levied on the taxable net profit of companies with income exceeding AED 375,000.
A 0% rate is applied to taxable income not exceeding AED 375,000.
Charitable, non-profit organizations and medical institutions are fully exempt from corporate tax.

Excise Tax

Since October 1, 2017, the UAE has introduced an excise tax aimed at reducing the consumption of harmful products and funding healthcare initiatives. The tax applies to alcohol, tobacco products, and beverages containing added sugar, including energy drinks and carbonated beverages.Excise tax rates vary depending on the product category:

50% on carbonated drinks (excluding mineral water)
100% on tobacco products
100% on energy drinks
100% on electronic smoking devices and liquids used for them
50% on products containing added sugar or sweeteners.

Companies dealing with excise goods must register with the Federal Tax Authority (FTA), submit monthly declarations, and maintain records. Excise tax is paid upon the import, production, or release of goods for consumption in the UAE.

Customs Duties

Custom duties in the UAE are applied to most imported goods at a standard rate of 5% of the cost, insurance, and freight (CIF). Exceptions include certain categories of goods, such as medicines and food products, which may be exempt from duties or subject to a reduced rate.
Goods imported into UAE free zones are generally not subject to customs duties as long as they remain within these zones. However, when such goods are transferred to the UAE mainland, standard duties apply.

Personal Income Tax

In the UAE, personal income is not subject to taxation.
UAE citizens and residents are exempt from paying taxes on their personal income, including salaries, interest, dividends, inheritances, gifts, luxury goods, and capital gains.

Local Taxes and Fees

Individual emirates may impose specific local taxes and fees in line with their economic and social needs. These taxes and fees are aimed at supporting public services and implementing infrastructure projects.