How to Start a Limited Liability Company in Ajman | 2025 Your Complete Guide

To start a Limited Liability Company (LLC) in Ajman in 2025, choose a unique trade name, submit an application to the Ajman Department of Economic Development (DED), prepare documents like the Memorandum of Association (MoA), passport copies, and a lease agreement, and obtain a trade license. The process takes about 3–7 weeks, depending on approvals and visa processing. You’ll enjoy tax exemptions, liability protection, and access to Ajman’s strategic location near Dubai. Costs start at AED 15,000 (~USD 4,000) for mainland LLCs, with Ajman Free Zone options being even more affordable.

Starting a business in Ajman is a smart move for entrepreneurs looking to tap into the UAE’s booming economy. As one of the UAE’s seven emirates, Ajman offers a business-friendly environment, low setup costs, and a strategic location close to Dubai. A Limited Liability Company (LLC) is the most popular business structure here, balancing liability protection with operational flexibility. Whether you’re eyeing the mainland or the Ajman Free Zone.

Why Choose Ajman for Your LLC in 2025?

Ajman, one of the UAE’s smallest yet fastest-growing emirates, is a hidden gem for entrepreneurs. Its strategic location, tax-free environment, and cost-effective business setup make it a top choice for company formation in  UAE. Whether you’re launching a startup or expanding an existing enterprise, here’s why Ajman LLC registration stands out.

1. Strategic Location Near Dubai

Ajman’s proximity to Dubai, a global business hub, gives you access to a massive market without the high costs. Located just 40 kilometers away, Ajman connects you to Ajman Port, which handles over 1,000 vessels annually, and two international airports. This advanced logistics network makes trading and international trade seamless, whether you’re in retail, e-commerce, or manufacturing.

2. Tax-Free Environment

The UAE’s zero percent corporate tax policy is a major draw for LLC registration in Ajman. As of 2025, Ajman Free Zone companies can still qualify for a 0% tax rate if they meet specific criteria, like maintaining economic substance (more on this later). This favorable tax environment lets you keep more profits for reinvestment or growth.

3. Cost-Effective Business Setup

Compared to company formation in Dubai or Abu Dhabi, Ajman business setup is wallet-friendly. Mainland LLC setup costs start at around AED 15,000 (USD 4,000), while Ajman Free Zone options can be even lower, with packages as affordable as AED 10,200 (USD 2,800) for a Free Zone Establishment (FZE). Low-cost office leasing and land leasing further reduce expenses.

Why it matters: Ajman’s affordability and business-friendly environment make it ideal for startups, small businesses, and international investors looking to maximize ROI.

What Is a Limited Liability Company (LLC)?

A Limited Liability Company (LLC) is a business structure that protects your personal assets from business liabilities. If your venture faces debts or legal issues, your personal belongings—like your car or home—stay safe. In Ajman, an LLC allows 2 to 50 shareholders, with liability protection limited to the capital you invest. This structure is flexible, letting you manage operations while enjoying tax exemptions and full control.

For example, imagine you’re starting an e-commerce business. If a supplier sues your company, your personal savings remain untouched because of the LLC’s liability protection. This peace of mind is why LLCs are the go-to legal entity for entrepreneurs in Ajman.

Mainland vs. Free Zone LLC: Which Is Right for You?

Choosing between a mainland LLC and an Ajman Free Zone LLC depends on your business activities and goals. Here’s a clear comparison to help you decide.

Ajman Mainland LLC

A mainland LLC lets you operate anywhere in the UAE, including direct trade with local markets. It’s ideal for businesses like retail, hospitality, or consulting that need a local presence.

Pros:

• Full access to UAE markets without restrictions.
• Flexibility to open multiple branches in other emirates.
• No requirement for a local sponsor since 2020 (Federal Decree-Law No. 26).

Cons:

• Slightly higher setup costs (AED 15,000–25,000).
• Requires a physical office lease in Ajman.

Ajman Free Zone LLC

The Ajman Free Zone (AFZ), established in 1988, is perfect for international trade, e-commerce, or manufacturing. It offers unique benefits like 100% foreign ownership and tax exemptions.

Pros:

• Lower setup costs (starting at AED 10,200 for an FZE).
• Smart offices, executive offices, or warehouses for rent.
• Streamlined visa processing (up to 5 visas depending on office size).
• Full ownership without a local partner.

Cons:

• Restricted from direct trading with UAE mainland unless through a registered distributor.
• Limited to specific business activities (e.g., no banking or insurance).

Steps to Start an LLC in Ajman

Starting an LLC in Ajman is straightforward if you follow these steps. The process typically takes 3–7 weeks, depending on approvals and visa processing. Here’s how to get started.

Step 1: Choose a Trade Name

Pick a unique trade name that reflects your business activity and complies with Ajman DED or Ajman Free Zone Authority rules. The name must:

• End with “LLC” for mainland or “FZE/FZC” for free zone.
• Avoid religious or offensive terms.
• Include at least one shareholder’s name (full, not initials).

Step 2: Select Your Business Activity

Choose the business activity your LLC will undertake, like trading, consulting, or e-commerce. The Ajman DED or Free Zone Authority uses a standardized activity code system. For instance, an e-commerce license in Ajman requires a specific code, while industrial licenses need environmental approvals.

Step 3: Submit Application for Initial Approval

Submit your business application to the Ajman DED (mainland) or Ajman Free Zone Authority (free zone) for initial approval. Some activities, like manufacturing, may require pre-approvals from other UAE authorities. This step takes about 3–5 days.

Step 4: Prepare and Submit Documents

Gather and submit required documents (see below for details). The Ajman DED or Free Zone Authority reviews them within 5–10 days. Ensure all documents are notarized if required, especially the Memorandum of Association (MoA).

Step 5: Obtain Your Trade License

Pay the license fees (AED 5,000–10,000 depending on the activity). Once approved, you’ll receive your trade license and certificate of incorporation, making your LLC official.

Step 6: Apply for Visas

Apply for investor visas or work visas based on your business needs. In Ajman Free Zone, the number of visas depends on your office size (e.g., smart offices offer 2 visas, executive offices up to 5). The process involves medical exams, biometrics, and takes 5–10 days.

Step 7: Open a Corporate Bank Account

Open a corporate bank account with banks like Mashreq Bank, Emirates Islamic, or Standard Chartered Bank. You’ll need your trade license, MoA, and passport copies. This step takes about 4 weeks, often without travel if coordinated through a business setup consultant.

Documents Required for Ajman LLC Registration

To register an LLC in Ajman, you’ll need the following documents:

• Passport copies of all shareholders (valid for at least 6 months).
• No-objection certificate (NOC) from the sponsor if a shareholder is employed in the UAE (not required for GCC citizens).
• Memorandum of Association (MoA) outlining company objectives, shareholder agreement, and profit-sharing.
• Articles of Association (AoA) detailing governance and management roles.
• Lease agreement for a physical office space (mainland) or smart office/warehouse (free zone).
• Business plan (recommended, especially for industrial or services licenses).
• Application form from the Ajman DED or Free Zone Authority.
• Bank reference letter (optional, depending on the bank).

Pro Tip: Notarize the MoA and AoA with a UAE public notary to avoid delays.

Costs of Starting an LLC in Ajman in 2025

The cost of starting an LLC in Ajman varies by location (mainland or free zone) and business activity. Here’s a breakdown for 2025:

• Mainland LLC: AED 15,000–25,000 (~USD 4,000–6,800), including license fees, office lease, and visa processing.
• Ajman Free Zone LLC: AED 10,200–20,000 (~USD 2,800–5,500), with lower office leasing costs (e.g., smart offices at AED 5,000/year).
• Visa Costs: AED 4,200 (~USD 1,150) per investor visa or work visa, including medical exams and Emirates ID.
• Corporate Bank Account: Free to open, but some banks require a minimum balance (e.g., AED 50,000).
• Annual Fees: AED 2,450–8,800 for license renewal and office lease.

Example: Setting up an e-commerce license in Ajman Free Zone might cost AED 12,000 (~USD 3,300) for a Free Zone Establishment (FZE) with a smart office and two visas.

Benefits of an LLC in Ajman

An Ajman LLC offers a range of benefits that make it attractive for entrepreneurs:

• Limited Liability Protection: Your personal assets are safe from business debts or legal issues.
• Tax Exemptions: Zero percent corporate tax (if compliant with economic substance rules) maximizes profits.
• 100% Foreign Ownership: Since 2020, foreigners can fully own mainland and free zone LLCs (Federal Decree-Law No. 26).
• Strategic Location: Proximity to Dubai and Ajman Port boosts international trade and logistics.
• Skilled Workforce: Access to a diverse, talented pool of professionals in Ajman.
• Cost-Effective: Lower setup costs and office leasing compared to company formation in Dubai.
• Flexibility: Supports multiple shareholders (2–50) and various business activities, from e-commerce to consulting.

For instance, a friend of mine started an e-commerce LLC in Ajman Free Zone. The low setup costs and tax exemptions let her reinvest profits into marketing, doubling her revenue in a year.

Ongoing Compliance Requirements

Once your LLC is registered, you’ll need to meet ongoing compliance requirements:

• License Renewal: Renew your trade license annually (AED 2,450–8,800).
• Accounting Records: Maintain accurate records, though audits are not mandatory in Ajman Free Zone.
• VAT Compliance: If your turnover exceeds AED 375,000 (~USD 100,000), register for VAT (5% rate) with the Federal Tax Authority.
• Visa Renewals: Renew investor visas or work visas every 2 years (AED 4,200 per visa).
• Economic Substance: Free zone LLCs must prove economic substance (e.g., local operations, employees) to qualify for 0% corporate tax.

Can Foreigners Start an LLC in Ajman?

Yes, foreigners can start an LLC in Ajman with 100% foreign ownership, thanks to the Federal Decree-Law No. 26 of 2020. This applies to both mainland and Ajman Free Zone LLCs for over 1,000 business activities, excluding strategic sectors like oil and gas. You don’t need a local sponsor, making Ajman a top choice for expats and international businesses.

Ajman LLC for Specific Industries

Ajman supports a range of business activities, from e-commerce to freelancing. Here’s how an LLC works for specific industries.

E-Commerce License in Ajman

An e-commerce license in Ajman is perfect for online businesses. Costs start at AED 12,000 (~USD 3,300) in the Ajman Free Zone, with smart offices for startups. You can sell globally without corporate tax, leveraging Ajman’s logistics for shipping.

Freelancer License in Ajman

The Ajman freelance visa cost is around AED 7,500 (~USD 2,000), including a freelancer license for professionals like marketers, designers, or consultants. It’s ideal for solo entrepreneurs wanting liability protection and visa eligibility.

Common Questions About Ajman LLCs

Q1: How long does it take to start an LLC in Ajman?

It takes 3–7 weeks to register an LLC in Ajman, including trade name approval (3–5 days), document review (5–10 days), visa processing (5–10 days), and corporate bank account opening (4 weeks).

Q2: What is the cost of an LLC in Ajman in 2025?

Costs range from AED 10,200 (USD 2,800) for a Free Zone LLC to AED 15,000–25,000 (USD 4,000–6,800) for a mainland LLC, including license fees, office lease, and visas.

Q3: Can I open a branch office in another emirate?

Yes, a mainland LLC can open branches in other emirates like Dubai or Abu Dhabi, but you’ll need additional approvals from the respective DED . Free Zone LLCs require a registered distributor for mainland operations.

Q4: How do I renew an LLC license in Ajman?

Renew your trade license annually by paying AED 2,450–8,800 and updating your office lease. Ensure compliance with VAT and economic substance rules.

Q5: What’s the difference between Ajman LLC and Dubai LLC?

Ajman LLCs are more cost-effective (AED 10,200 vs AED 20,000 for Dubai) and offer similar tax exemptions. However, Dubai provides a larger market and more business activities, while Ajman excels in logistics and affordability.

Conclusion: Why Start Your LLC in Ajman Today?

Starting a Limited Liability Company in Ajman in 2025 is a smart choice for entrepreneurs seeking growth, profitability, and flexibility. With tax exemptions, 100% foreign ownership, and a strategic location near Dubai, Ajman offers unmatched opportunities. Whether you choose a mainland LLC for local market access or an Ajman Free Zone LLC for low costs, the process is straightforward and affordable. From selecting a trade name to opening a corporate bank account, you’re just weeks away from launching your venture.

Ready to kickstart your business in Ajman? Take the first step by choosing your business activity and contacting the Ajman DED or Free Zone Authority. With advanced logistics, a skilled workforce, and a business-friendly environment, your LLC is set to thrive in the UAE’s dynamic economy.