UAE Free Zones

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Ajman Free Zone

The Ajman Free Zone is strategically situated at the entrance of the Arabian Gulf, Ajman Free zone is well placed to serve the eastern and western markets.

The liberal economic climate in Ajman has been specifically designed to welcome foreign business and investment, encourage production, provide incentive for trade, develop international commerce, and above all promote industrial activity. The needs of small to mid-sized businesses are given particular attention, and no effort is spared to facilitate cooperation with foreign firms.

Ajman Free Zone offers all the benefits found in the other Free Zones while providing investors with a major cost advantage. Ajman Free Zone also offers stability through an available 20-year contract. These incentives have led to a phenomenal growth in the size of the Ajman Free Zone in the past year, as investors have been keen to take advantage of the opportunities the Ajman Free Zone offers.

• Unique Advantages
• 100% foreign ownership
• 100% repatriation of capital and profits
• No personal income tax
• No corporate tax
• Cheap energy
• The most economical wage structure and easy access to vast work force
• Total exemption from all import and export duties
• Total elimination of all service charges and hidden fees
• Exceptionally low handling charges
• 20 years contract renewable to another 20 years guaranteeing 40 years tax and customs free operations
• Low lease prices
• World class infrastructure
• Lowest tariffs in the region

CUSTOM DUTY EXEMPTION IN GCC COUNTRIES

Goods produced by companies having a National Industrial License in the Ajman Free Zone with 51% share holding with GCC nationals are eligible for a "UAE Certificate of Origin" from the Ministry of Economy and Commerce, UAE, qualifying them for customs duty exemption in member states of GCC, provided the value addition in Ajman Free Zone has been at least 40% of the total final value of the relevant product.

AFZ CHOICE OF LICENSES

Ajman Free Zone, in its endeavor to eliminate bureaucratic procedures, has introduced four types of licenses namely:

Trading License
This License is issued to foreign/UAE companies/Free Zone Entities who wish to carry out trading activities in the Free Zone. The fees for a General Trading License is AED7,000, fees for a one activity Trading License is AED3,000, fees for a two activity Trading License is AED4,000 and fees for a Three Activity Trading License is AED5,000. Sales or provision of services outside of the free zone and within the UAE must be carried out through a distributor or agent. In this case usually a 4 % duty is imposed by the AFZ authorities, which is normally split between the two parties concerned

Industrial License
This License is issued to foreign/ UAE companies/ Free Zone Entities who wish to carry out manufacturing activity in the Free Zone. The Industrial License fee is AED 7,000

Professional/Services License
This License is issued to foreign/ UAE companies/ Free Zone Entities who wish to carry out the business of providing professional/ services in the Free Zone. The license fees are AED 5,000

National Industrial License
This License is issued to a registered company operating in the Free Zone who meets the following eligibility criteria:

• The company should be registered within G.C.C. with a G.C.C. national/s owning majority share holding of 51% or above.
• At least 40% of the manufacturing process should be accomplished in the Free Zone.

Companies holding a National Industrial License are eligible for duty free exports to the member states of the Arab Gulf Cooperation Council. The fee for a National Industrial License is AED 7,000.

Different forms of registration:

FREE ZONE ENTITY (FZE)

FZE is an entity formed and registered in Ajman Free Zone and regulated by the Free Zone Authority, in accordance to the Amiri Decree No. 3 of 1988 as amended by the Amiri Decree No.3 of 1996. FZE enjoys a separate legal entity and is owned (100%) by either a natural person or a corporate body. Such an entity must have a capital equivalent to U.S. $ 50,000. The liability of the owner is limited to the amount of the share capital.

FREE ZONE COMPANY (FZC)

Licenses under this category are issued to Free Zone Companies incorporates within the Free Zone in accordance with the Amiri Decree.

Such company enjoys a separate legal identity and the liability of its owner is limited to the value of the paid up shared capital.

BRANCH OF A LOCAL COMPANY (BLC) / BRANCH OF A FOREIGN COMPANY (BFC)

Branch of a local company
Licenses under this category are issued to companies holding a valid license from any UAE Licensing authority except from other Free Zones.

Branch of a foreign company
Licenses under this category are issued to companies established outside the UAE. The ownership of the company could be 100% foreign. However, sales can be made through a UAE registered agent or a distributor only. The activity may be commercial, industrial or professional/ service.

Disclaimer:

Every effort has been made to ensure the material contained in this document is correct at time of publishing. However, this information should be interpreted as information only and does not constitute any legal or tax advice from Zenesis Corporation or any of its subsidiaries.