The Emirate of Ajman situated on the coast of the Arabian Gulf extending over a distance of 16 kms between Sharjah & Umm Al Quwain is located on the western coast of United Arab Emirates. It covers an area of 259 sq km and was formed by the Al Nuaimi tribe well known for their bravery, courage and wisdom who migrated to this region from Oman around 1775.
Ajman Free Zone established in 1988 was granted autonomous status under the Amiri decree no. 3 of 1996 issued by H.H. Sheik Humaid Bin Rashid Al Nuaimi, Ruler of Ajman. Ajman Free Zone Authority has been named as the sole regulatory agency for Free Zone in the Emirate.
The free zone authority introduced the registration & formation of Offshore Companies under Ajman Offshore Free Zone Offshore Companies Regulations of 2014.
Characteristics of an offshore company registered in the AFZA are as follows:
Minimum of one shareholder is required. Corporate shareholders are permitted. Shareholders will decide capital structure of the Company. Single class of shares permitted and bearer shares are not permitted.
A minimum of one director is required and corporate directors are not permitted. Individual shareholder can be a director as well.
Every company must have a secretary. Director can be a secretary as well.
Restrictions on Name & Activity:
Names must end with Limited.
Company must appoint an approved registered agent. A registered agent’s office in the UAE can be used as the registered office of the offshore company.
Registration of the AFZ Offshore will take approximately 3 days.
Every company is required to keep financial books and prepare auditor’s reports within 3 months by the end of every financial year. These must be approved by the shareholders. The accounts / audit report however do not need to be filed with the Authority.
AFZA Offshore pays no taxes in UAE.
Details of shareholders & directors need to be filed with authorities but are not available for public record.
Ajman offshore cannot:
a. Engage in any activities outside the Free Zone or carry out business with persons outside the Free Zone and within UAE (however permitted to deal with companies in Ajman Free Zone)
b. Have a physical office in UAE
c. Sponsor UAE residence visas for employees / directors / shareholder
d. Obtain tax residency certificate
e. Own more than 3 properties
Renewals for AFZA Offshore companies falls every anniversary date of incorporation. Failure to do so result in penalties. In the event the company is not renewed within 6 months of the renewal due date, the company will be struck off from the registrar of the companies.
Audit Confirmation Letter issued by appointed auditors of the company along with the latest valid passport copy and recent utility bill for address proof of shareholder/director are required to be submitted every renewal as part of enhanced due diligence. If shareholder is a corporate entity, then latest certificate of incumbency and above stated docs of directors would be required.
Individual's KYC Docs:
1. Passport Copy (clear copy with clear photo)
2. UAE Visa Copy, if applicable
3. UAE Entry Stamp, if applicable
4. N.O.C. from UAE Sponsor, if applicable
5. Address Proof (original recent utility bill for residence)
6. Bank Reference letter (original)
7. CV / Profile
Corporate Shareholder's KYC to be attested upto UAE Ministry:
1. Certificate of Incorporation
2. Memorandum / Articles of Association
3. Board Resolution
4. Power of Attorney
5. Certificate of Incumbency
All shareholders (or authorized attorney in case shareholder is a corporate entity) are required to sign in our presence before incorporation of the company. Alternatively they can provide a notarized passport copy and notarized Agent Appointment letter.
Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal, tax or other professional advice. We do not accept any responsibility, legal or otherwise, for any errors or omissions.