AJMAN TRADE LICENSE

AJMAN TRADE LICENSE

How to Deal with Ajman Trade License Renewal?

Ajman is one of the emerging emirates in the UAE when it comes to business formation. Today, a large number of businesses come to the Ajman to set up their shop. Now, there are a few legal documents that you need for doing business in Ajman. One such important document is Ajman Trade License. The Trade License in Ajman, like everywhere else in the UAE, is only valid for a few years. You need to go through Ajman Trade License Renewal to ensure that you can legally conduct business. In the following article, we are going to take a look at the Ajman Trade License renewal process. But, before we do that let us know a bit about the trade license itself.

Ajman Trade License – A Background

There are three types of licenses in Ajman, based on the business that you would be conducting. They are as follows

Trading License: This type of license allows you to carry out trading activities like buying, import & export and selling of number of goods and commodities. The products that you can sell would be limited by the laws of Ajman and UAE.

General Trading License: A General Trading License will allow you company to deal with trading of all types of goods. However, there are exemptions on banned goods. On the other hand, certain products need special approvals from relevant ministries

Service License: This particular type of license is issued to companies which that deliver services like consultancy, accountancy, etc.

Industrial License: This type of license allows you to carryout industrial process such manufacturing, packaging and processing in free zones.

Key Benefits of Free Zone Company Set Up Under the Ajman Free Zone Authority (AFZA):

The Ajman Free Zone Authority (AFZA) is the controlling authority of the Ajman Freezone. The Ajman free zone is one of the most lucrative areas in the emirates in Ajman. Here are some of the biggest advantages of forming a company in the Ajman Free Zone

  • 100% Foreign Ownership allowed
  • No corporate tax for 50 years. This can be renewed for an additional 50 years
  • No duty on imports
  • Easy recruitment procedures. Lenient procedures for work permits and Visas
  • Permission to own the properties
  • Renewal fees are affordable for free zone company formation
  • High level of confidentiality
  • You would be allowed to open bank account in Dubai
  • You would be allowed to conduct more than one activity

The Details of the Ajman Trade License Renewal

Every year, you would need to renew your Ajman Trade License to continue doing business in Ajman. Here are the things that you would need to know when it comes to Ajman Trade License Renewal

Required Documents for Renewing Ajman Trade License:

You would need the following documents from the Ajman Trade License

  • Request Letter from company, duly signed and stamped.
  • If it is a Branch Of Foreign Company, then you would need conformation letter from the main company. It should be signed and stamped from the following authorities:
    • UAE embassy in the foreign country
    • Ministry of Foreign Affairs in U.AE
  • You would need to submit original documents, which includes the Trade license, permits from the Chamber of commerce and registration certificate).
  • If the company owns/operates a warehouse/land/showroom, then the Copy of Civil Defiance Certificate is needed)

The Cost of Renewing Ajman Trade License:

The details of the costs that you need to pay for Ajman Trade License renewal is given below:

Particulars Fee Amount
General Trading AED 9100
One activity trading AED 3900
Two activity trading AED  5200
Three activity trading  AED  6500
Service  AED 6500
Industrial/ Manufacturing   AED 9100

Please note that AFZA reserves the right to change the charges without advance notice

Important Things to Note for Ajman Trade License

  • You must be physically present while applying the above procedure.
  • The Authorization letter must be submitted if you authorize a person to sign/apply on your behalf in your absence.
  • Any delay will incur penalties. Usually, it is monthly AED 100. However the actual fines will be known after initial submission
  • There will be detailed inspection for warehouse, land and showroom.
  • You would need to submit a police report if you lose any original document (only if it’s still valid).
  • It’s not compulsory to provide with the original documents (License, Chamber, Commercial  Registration)
  • You can update the passport number while renewing the license.
  • You can add a partner or change the legal status of the license form entity to company.

If you want more information about Ajman Trade License, then you can get in touch with Arab Business Consultant as they would help you with all the processes of getting a trade license or renewing it. Get the help of the experts and conduct your business with ease.