Ajman trade license – Cost, renewal and cancellation
Ajman trade license allows you to start conducting business activities easily in either Mainland and free zone areas. This city unlocks countless business opportunities and a wide variety of trade licenses for those planning to start a new company with low investment.
Unlike Dubai where competition is furious, Ajman offers good market and business potential with medium level competition. Prospr wants every entrepreneur to set up business in Ajman with ease and comfort. So, today we are here to unlock every bit of detail about Ajman trade license, its acquisition, cost and renewal process. Let’s find out what we have for you.
Don’t forget to explore: Different types of Trade licenses in Dubai
What is the Ajman trade license?
This license is a work permit that allows individuals and businesses to continue doing business in Ajman.
Here are some common types of Ajman trade license.
1-Trading or commercial license
This work permit is designed for companies planning to be involved in trading and commercial activities such as import, export, distributions, trade of goods and services nationally and internationally.
2-Industrial or manufacturing license
If you have a plan to set up industry and facilities for processing, assembling, manufacturing of raw material then you need to acquire this kind of license. You need to first register your business with the Gulf Cooperation Council (GCC) for getting this Ajman trade license.
It’s essential that 40 percent of manufactured goods in the freezone, while holders of a license will have 51 percent share of the business.
3-Service or professional license
When you run a service business, you need to get a professional license in Ajman. You can get this license for different kinds of services such as:
- Marketing
- Accounting
- Engineering
- Technical services
- Auditing
- Legal
- Management services
- And consultation.
4-Pioneers package
The Ajman government wants to promote young talent and thereby they have introduced a pioneer package for post-graduate and startup business. Youngers can enjoy professional independence through this license that doesn’t require them to spend long-term expenses. If you have a good startup idea, you can get a pioneer package and start working on it.
5-Freelancer permit license
There are more than 40 categories defined by AFZ. You can apply for a license in these categories and get a work permit as a freelancer and enjoy a tax-free lifestyle in Ajman.
Ajman Free zone -AFZ offers a wide variety of opportunities and facilities for freelancers and pioneers. If you want to know more about these opportunities- check this out
6- E-commerce license
If you have a plan to run an e-commerce business in Ajman, you need to acquire an e-commerce license through Ajman Department of Economic Development- DED. entrepreneurs can participate in electronic trade activities and dig into countless B2B and B2C opportunities with the use of an e-commerce license. You can get an e-commerce trade license in Ajman for automotive e-trading, industrial equipment trade online, media e-trading, fashion retail e-trading, home/office/personal utilities e-trading license. The following e-commerce activities are allowed in the above license.
Learn about: How to add activities in trade license Dubai
Ajman trade license cost and fees – What you need to know?
Ajman trade license cost completely depends on a type of a business license, size and nature of your business.
Cost of a general trading license in Ajman is AED 35,150. Opening a general trading company in Ajman involves less cost than opening the same company in Dubai and other emirates.
How to start a general trading company – check complete guide.
In case you want to open an LLC in Ajman, then cost of an LLC trade license in Ajman is AED 14,000 for the first year. Later, you need to renew the license.
When you start a company in Ajman, you don’t only pay for the Ajman license cost. Here are some other fees that require capital investment.
Office space:
You need to rent an office space and getting an office is a part of setting up business in Dubai. Typical rent cost in Ajman is from AED 15,000 to 30,000. You will rent an office as per your business requirements and number of employees.
Company formation fee:
The fee for company formation in Ajman is one-time fee. Be ready to spend at least AED 10,000-15000.
Bank guarantee:
Since you want to setup a business in Dubai as a foreigner, you also need to deposit some investment in bank so that bank can provide guarantee. Amount of this deposit vary from one business to another but it is typically AED 10,000 to 50,000.
Document required to get Ajman trade license
- Passport copy of the owners and the manager
- Trade name reservation certificate
- Application form for business license
- Bank statement or certificate of deposit to prove the availability of financial resources
- Description of the nature of the business activities
- No Objection Certificate from any relevant government departments
- CV of the owner/s and the manager
- Proof of business address in Ajman
- Your business plan
- Memorandum of Association and Articles of Association of the company
How to get trade license in Ajman
Here are the main steps you need to follow for getting an Ajman trade license.
- Conduct market research and decide about your economic activities
- Reserve your business name from trade name reservation services by Ajman DED
- Prepare all the required documents., pay the fee and then submit your trade license application at Ajman DED. The cost of trade name reservation is AED 350. Here is cost breakdown:
- The trade name reservation is AED 200
- Initial Approval AED 100
- Administrative Services Application Fee AED 50
4-Once the application is submitted, the government will review your application and provide you with a business license within 3 to 5 business days.
How to cancel Ajman trade license?
#1-Login to e-services account of Ajman DED through your login pass and UAE pass- on this link.
#2-Get ready to provide following documents:
- A copy of the valid ID card (stakeholders)
- A copy of a valid passport (stakeholders)
- A copy of the original license (in case of branches)
#3-Fill out the application form.
You need to terminate the partnership contract, if you have formed a company. There is a need to publish an advertisement that you are going to end this contract. You will also need to get a certificate from the general assembly to cancel the company. A letter from the auditor is required. This NOC is required after the announcement is done.
#4-Pay the fee
#5-And get a company’s license cancellation certificate, which you can print.
What is the cost of Ajman trade license cancellation?
To cancel the license of a facility suspended from carrying out its activity upon the facility’s request, a fee of AED 2,000 is required. Additionally, there is an AED 50 fee for the administrative service application form.
Publishing the license advertisements in daily newspapers incurs a fee of AED 500. Issuing a “To Whom It May Concern” Certificate costs AED 100.
For documenting the termination of a partnership contract, the fee is AED 200 for each signature on a non-fixed price contract, and if the contract is translated, an additional AED 50 is charged for each page.
Also read about advertising agency license in Dubai – Cost and approvals
Ajman trade license renewal process
You can perform Ajman trade license online check on this link:https://eservices.ajmanded.ae/en/tradelicense
You will provide details of your license number or trade name to see whether your license is valid or needs renewal. If it requires renewal, then first of all, you need to prepare the documents.
Everything about how to renew trade license in Dubai
Document required from individuals are as follows:
- License application (to complete service at a center)
- Activating the investor’s account of the license owner (for electronic service)
- The validated lease contract is valid
- External approvals (dependent on activity)
Document required from business are as follows:
- License application (to complete service at a center)
- Activating the investor’s account of the license owner (for electronic service)
- The validated lease contract is valid
- External approvals (dependent on activity)
- In the case of the branch (the original must be renewed)
Trade license renewal process:
- Go to official website of Ajman DED and login
- Choose business license renewal from the available service option
- Provide certificate of lease contract and document explaining provision of external approvals if necessary and as per activities.
- Pay the fee
- Your Ajman trade license will be renewed within a day or two.
Ajman trade license renewal cost
The cost for renewing an Ajman trade license varies depending on the type of business activity. Here are the renewal fees for different categories:
- General Trading: AED 9,100
- One Activity Trading: AED 3,900
- Two Activity Trading: AED 5,200
- Three Activity Trading: AED 6,500
- Service: AED 6,500
- Industrial/Manufacturing: AED 9,100
Additional fees may include AED 600 for economic license renewal, AED 50 for administrative services application, and AED 350 for a permit to place a commercial name advertising banner. There are also charges for registration in the commercial register and the unified economic activities register, each costing AED 200 (Ajman Portal)
Let Prospr help you with business setup in Ajman
As a foreigner, it will be quite challenging for you to set up a business in Ajman. Since you have little or no idea about rules and regulation. Even when we have explained the process of getting a UAE trade license, its cost and renewal. Still, you need a local business expert who can hold your hand and guide you through the process.
We want to make your business setup hassle-free. Thereby, we offer our consultancy services where our experts stand by your side and help you build a successful business from scratch. Send us your inquiries at hello@prosprplus.ae
Together we can take your business to new heights.