Ajman Free Zone (AFZ) is one of the UAE’s most cost-efficient free zone options, with license packages starting from AED 3,200 per year for a virtual address and AED 5,500 for a one-visa flexi-desk package. It is right for solo founders and remote-first businesses that want a legitimate UAE company at the lowest possible year-one cost. The trade-off is an Ajman address rather than a Dubai one, which matters for some banks and enterprise counterparties. Full 2026 costs, permitted activities, visa quota rules, the renewal process, and who AFZ actually suits are all below. The AFZ setup checklist PDF is on the right.
What Ajman Free Zone Is and What It Offers
Ajman Free Zone (AFZ) is a UAE free zone authority established in 1988 under the Government of Ajman. It is located in the emirate of Ajman, approximately 30 kilometres north of Dubai on the E11 highway. AFZ is one of the oldest free zones in the UAE and is best known for offering some of the lowest-cost free zone license packages in the country, making it a popular choice for budget-conscious solo founders, remote consultants, freelancers, and small trading businesses that need a legitimate UAE company structure without the cost of a Dubai address.
AFZ offers 100% foreign ownership, no corporate or personal income tax on qualifying income, full profit repatriation, and the standard free zone benefits. It is regulated by the Ajman Free Zone Authority and operates under UAE federal law for corporate tax and AML purposes. The zone has a physical industrial area for manufacturing and warehouse operations and a business centre for virtual and flexi-desk customers.
AFZ Is in Ajman, Not Dubai. The registered business address will show Ajman on the trade license and all official documents. This matters for UAE bank account opening: some major tier-1 UAE banks (Emirates NBD, Mashreq, FAB) have longer and less predictable onboarding timelines for Northern Emirates free zone companies than for Dubai-registered entities. If a Dubai address is important for your clients or banking profile, IFZA, Meydan, or another Dubai free zone is the right choice regardless of the cost difference.
License Types and Packages at Ajman Free Zone
AFZ offers three main license categories and several package tiers within each. The right package depends on your activity type, visa requirement, and whether you need physical workspace access. If you are still deciding between a free zone and a mainland structure altogether, our UAE mainland vs free zone comparison guide covers the full trade-off.
- Commercial License: for trading, import/export, and general commercial activities. Allows buying and selling of goods within the permitted activity list. The most common license type for trading-focused founders.
- Service License: for professional and consultancy services including IT, marketing, consulting, education, and media. No physical goods handling required.
- Industrial License: for manufacturing, processing, and assembly operations. Requires a physical industrial unit within the AFZ industrial area. Not available on virtual or flexi-desk packages.
- E-Commerce License: a specific license type for online businesses selling products or services digitally. Includes permitted activity for online retail and digital services.
Ajman Free Zone Costs in 2026
AFZ is consistently one of the two or three lowest-cost free zone options in the UAE. The table below covers the main package tiers as confirmed from AFZ’s 2026 schedule and from setups we have handled in the past 12 months.
| Package | Workspace Type | Annual License Fee (AED) | Visa Quota |
|---|---|---|---|
| Flexi Desk (Zero Visa) | Shared hot desk access | ~3,200 to 4,500 | 0 |
| Flexi Desk (One Visa) | Shared hot desk access | ~5,500 to 6,500 | 1 |
| Flexi Desk (Two Visa) | Shared hot desk access | ~7,500 to 9,000 | 2 |
| Executive Office (Small) | Dedicated lockable office | ~18,000 to 28,000 | 3 to 6 |
| Industrial Unit (Warehouse/Factory) | Physical industrial facility | ~15,000+ (varies by sqm) | Scales with size |
These figures are the license and workspace package costs only. Government add-ons including the establishment card, e-Channel registration, visa processing, Emirates ID, and health insurance are additional. See the visa costs section below for the full add-on breakdown.
The Zero-Visa Package Does Not Include a Residence Visa. The AED 3,200 to AED 4,500 entry-level package gives you a legitimate UAE trade license and a registered Ajman business address. It does not include a UAE residence visa. If you need a UAE residence visa tied to this company, you must choose a package that includes at least one visa slot, which starts from approximately AED 5,500, plus the visa processing and Emirates ID costs on top.
Permitted Activities at Ajman Free Zone
AFZ has a broad activity list covering most commercial and service categories. The following activity groups are among the most commonly licensed at AFZ in 2026.
| Activity Category | Examples | License Type |
|---|---|---|
| General Trading | Import/export of goods, wholesale, retail trading | Commercial |
| IT and Technology | Software development, IT consulting, app development, SaaS | Service |
| Management Consulting | Business advisory, strategy consulting, HR consulting | Service |
| Marketing and Media | Digital marketing, advertising, content creation, PR | Service |
| Education and Training | Online training, e-learning, corporate training | Service |
| E-Commerce | Online retail, marketplace selling, digital products | E-Commerce |
| Food Trading | Import/export of food products, wholesale food distribution | Commercial |
| Manufacturing and Assembly | Light manufacturing, product assembly, processing | Industrial |
AFZ allows up to 3 activities on a single license at no additional cost, which is an advantage over some other free zones that charge per additional activity. Confirm your specific activity description with AFZ before submitting the application, as the exact wording of the activity on the license affects what you can invoice for and what banks will accept as consistent with the declared business profile.
Visa Quota and Costs: What AFZ Actually Charges
AFZ uses the federal ICP e-Channel system for immigration processing, as it is a non-Dubai free zone. The e-Channel setup involves a one-time non-refundable fee and a refundable security deposit that is returned when the company closes. For a full breakdown of the UAE investor visa process and eligibility, see our UAE investor visa requirements and eligibility guide.
| Item | Notes | Cost (AED) |
|---|---|---|
| Establishment Card (Per Year) | AFZ free zone card, renewed annually | ~1,500 to 2,000 |
| e-Channel Registration (One-Time, Non-Refundable) | Federal ICP system; non-Dubai zones only | ~2,300 |
| e-Channel Refundable Security Deposit | Returned on company closure | ~5,025 |
| Investor Visa (All In) | Entry permit, status change, medical, Emirates ID, stamping | ~3,400 to 5,500 |
| Employment Visa (Per Staff Member) | All in, same process as investor visa | ~3,000 to 4,500 |
| Health Insurance Per Person (Mandatory) | Minimum AED 700 per person; standard plan AED 1,200 to 1,500 | ~700 to 3,000+ |
For a solo founder setting up at AFZ with one investor visa: the realistic year-one total including the AFZ one-visa license package (AED 5,500 to AED 6,500), establishment card (AED 1,500 to AED 2,000), e-Channel registration (AED 2,300), one investor visa all-in (AED 3,400 to AED 5,500), health insurance (AED 700 to AED 1,500), and a setup service fee (AED 3,000 to AED 4,000) runs approximately AED 16,400 to AED 21,800, excluding the AED 5,025 refundable deposit.
Workspace Options at Ajman Free Zone
AFZ offers three main workspace tiers. The right tier depends on your visa count and whether you need a physical office for client meetings or operational work.
- Flexi Desk: shared hot desk access at the AFZ business centre in Ajman. Available during business hours. Supports 0 to 2 visas depending on the package tier. The most common choice for remote-first founders using AFZ as a cost-efficient base.
- Executive Office: a dedicated, lockable private office within the AFZ business centre. Available in small, medium, and large sizes. Supports 3 to 6 visas depending on the office size. Required if you need a permanent, exclusive workspace.
- Industrial Unit: a physical warehouse, factory, or storage unit in the AFZ industrial area. Available from approximately 150 sqm. Required for manufacturing, processing, and assembly activities under the industrial license. Not available as a flexi arrangement.
AFZ Setup Process, Step by Step
The AFZ trade license typically issues within 3 to 5 working days of a complete document set. Full setup including visa and Emirates ID takes 4 to 6 weeks.
- Choose the License Type and Package. Confirm the activity classification (commercial, service, industrial, or e-commerce) and the package tier based on your visa count. Confirm the exact activity wording with AFZ before reserving the name.
- Reserve the Company Name. Must end in “FZE” (single shareholder) or “FZCO” (two or more shareholders). Name reservation is submitted online through the AFZ portal.
- Submit KYC Documents. Passport copy and photograph for each shareholder and manager, proof of residential address, and a UBO declaration under Cabinet Resolution No. 58 of 2020. Corporate shareholders add the parent company’s certificate of incorporation, MOA, and board resolution, all apostilled or UAE embassy attested.
- Sign and Pay. MOA signing (digital accepted), license fee payment. Trade license issued within 3 to 5 working days for standard activities.
- Apply for the Establishment Card. The AFZ establishment card is required before any visa application can be processed. Apply through the AFZ portal on receipt of the trade license.
- Register the e-Channel Immigration File. One-time registration on the federal ICP e-Channel system. Approximately AED 2,300 non-refundable plus the AED 5,025 refundable deposit. Required before any visa application is submitted.
- Process the Investor Visa. Entry permit, status change, medical fitness test, Emirates ID, biometrics, and visa stamping. Two to three weeks per person from entry permit to stamped visa.
- Open the Corporate Bank Account. Allow 6 to 10 weeks at major UAE banks for an AFZ entity. Some founders start with a UAE digital bank in year one and move to a tier-1 bank once 6 to 12 months of trading history is established.
- Register for UAE Corporate Tax. Mandatory on EmaraTax regardless of revenue. AED 10,000 flat penalty for late registration (Cabinet Decision No. 10 of 2024, effective 1 March 2024).
AFZ License Renewal Process and Timeline
AFZ licenses are issued on an annual basis and must be renewed before the expiry date. The renewal process is straightforward when completed on time, but late renewal carries penalties and can trigger complications with immigration card renewals.
- Renewal Notice. AFZ sends a renewal reminder approximately 60 days before the license expiry. Do not wait for the reminder: start the renewal process 45 days before expiry to allow time for any document updates.
- Renew the Trade License. Pay the annual license renewal fee through the AFZ portal. The fee is the same as the original license fee for the same package tier, adjusted for any price changes AFZ has applied for the new year.
- Renew the Establishment Card. The AFZ establishment card must also be renewed annually. The renewal is processed through the AFZ portal alongside or immediately after the trade license renewal.
- Renew Residence Visas. UAE residence visas issued on an investor or employment visa through an AFZ company typically have a 2-year or 3-year duration. Visa renewal must be initiated before the visa expiry date and requires a valid, renewed trade license and establishment card.
- Renew Health Insurance. Health insurance must be maintained continuously. Renewal of the policy or switching to a new insurer must be completed without a gap in coverage.
- File UAE Corporate Tax Return. If the company’s financial year has ended, the corporate tax return is due within 9 months of the financial year-end. Late filing carries a AED 10,000 penalty.
Late License Renewal Triggers Visa and Bank Account Problems. An expired AFZ trade license immediately affects the validity of establishment card, and immigration authorities can block visa renewals for companies with expired licenses. UAE banks also periodically verify trade license validity; a lapsed license can result in the corporate account being frozen pending renewal. Set a calendar reminder 45 days before the license expiry date and treat it as a hard deadline.
Banking for AFZ Companies
Banking is the area where AFZ’s cost advantage most directly comes with a trade-off. The Ajman address and the ICP e-Channel immigration system (rather than GDRFA used by Dubai zones) both affect the bank onboarding experience at major UAE tier-1 banks. For a full picture of what UAE bank account opening involves for a free zone company, see our complete guide to UAE business bank accounts for companies and entrepreneurs.
In practice, founders with AFZ licenses experience longer onboarding timelines at major UAE banks than founders with IFZA, Meydan, or DMCC licenses. This does not mean a bank account is unavailable. It means the compliance review takes longer and may require additional documentation about the business model, expected transactions, and UAE substance. Several founders with AFZ licenses successfully open accounts at Mashreq, RAK Bank, or Commercial Bank of Dubai in 6 to 10 weeks with a well-prepared file. For those for whom banking speed is a hard constraint, a Dubai free zone license is a better starting point.
“The AED 2,000 saving on the AFZ license versus IFZA is real. The 4 to 6 additional weeks on bank account opening is also real. Which one matters more depends entirely on your situation.” Rohan Mahndiratta · UAE Business Setup Specialist
Ajman Free Zone vs Other Budget Free Zones: Honest Comparison
AFZ competes directly with UAQ FTZ, SHAMS, and RAKEZ for budget-conscious founders. Here is how they compare on the factors that actually matter in 2026.
| Factor | Ajman FZ | UAQ FTZ | SHAMS | RAKEZ |
|---|---|---|---|---|
| Starting License Cost | ~AED 3,200 | ~AED 3,500 | ~AED 5,750 | ~AED 6,000 |
| Address Emirate | Ajman | Umm Al Quwain | Sharjah | Ras Al Khaimah |
| Bank Account Ease | Moderate | Moderate | Moderate | Good |
| Activity List Breadth | Broad | Broad | Media Focus | Broad |
| Industrial/Warehouse | Yes | Yes | Limited | Yes (Strong) |
| e-Channel / ICP System | Yes (Non-Dubai) | Yes (Non-Dubai) | Yes (Non-Dubai) | Yes (Non-Dubai) |
RAKEZ is generally preferred over AFZ when industrial operations or warehouse space are the primary requirement, as RAKEZ has a larger and more developed industrial estate. SHAMS is preferred for media, content, and creative activities due to its sector-specific positioning. AFZ and UAQ FTZ are directly competitive on price for pure commercial and service licenses, with AFZ having a slight advantage on starting cost and UAQ FTZ having a marginally stronger banking track record at some institutions.
Who Ajman Free Zone Actually Suits in 2026
AFZ is the right choice when the lowest possible year-one cost is the primary decision criterion, you are a solo founder or a two-person team with a service or consulting business, your business is primarily international-facing and does not need direct UAE mainland customer access, you already have UAE banking established through another route or are comfortable with a 6 to 10 week bank account opening timeline, and an Ajman address does not create issues for your clients or counterparties.
AFZ is not the right choice when a Dubai address is important for your banking relationship, when your clients or enterprise counterparties are likely to check and be sensitive to the address, when you need 3 or more visas from day one at the lowest total cost (IFZA or Meydan may be more cost-efficient at that scale), or when you need a DMCC, JAFZA, or DIFC ecosystem for your activity type or counterparty relationships.
- Ajman Free Zone Authority, official license and package schedule 2026, afz.ae (verified August 2026).
- UAE Federal Decree-Law No. 47 of 2022 on the Taxation of Corporations and Businesses (corporate tax registration requirements).
- Cabinet Decision No. 100 of 2023 on the qualifying conditions for the 0% QFZP corporate tax rate.
- Cabinet Decision No. 10 of 2024 on administrative penalties for corporate tax violations (AED 10,000 late registration penalty, effective 1 March 2024).
- Cabinet Resolution No. 58 of 2020 on the Regulation of the Procedures of the Real Beneficiary (UBO).
- ICP (Federal Authority for Identity, Citizenship, Customs and Port Security), e-Channel registration and immigration file requirements.
