Beyond Dawlish

Ajman Free Zone (AFZ) is one of the most cost-effective business hubs in the UAE, attracting entrepreneurs with its affordable licensing options and simplified setup process. However, many investors fail to account for hidden fees that can increase the overall cost of obtaining a business license. This article explores the potential hidden fees when getting an Ajman Free Zone license and how businesses can avoid unexpected expenses.

Common Hidden Fees in Ajman Free Zone

While the advertised costs for obtaining an Ajman Free Zone license appear attractive, several additional expenses may arise during the process. Below are some common hidden fees that business owners should consider:

Visa Processing Fees

Although some free zone packages include a visa, additional visas for employees or investors come at an extra cost. Visa-related expenses may include:

• Entry permit fees

• Medical tests and Emirates ID charges

• Visa stamping costs

• Renewal fees for visas after their validity period expires

Establishment Card Fees

An Establishment Card is mandatory for businesses operating in Ajman Free Zone. This card allows a company to apply for visas and interact with government authorities. While some packages may include the Establishment Card fee, others may charge it separately, often costing around AED 1,000 to AED 2,000 annually.

Office Space and Desk Rental Charges

Ajman Free Zone offers different office options, including flexi-desks, shared workspaces, and dedicated offices. While some packages may include workspace, others require businesses to pay extra for rental fees. The cost depends on the type and size of the workspace chosen.

License Renewal Fees

Business owners should be aware that free zone licenses must be renewed annually. While the initial setup fee might seem reasonable, renewal costs can sometimes be higher than expected. Businesses should check the renewal charges in advance to avoid surprises.

Bank Guarantee for Employee Visas

For companies hiring employees, Ajman Free Zone may require a refundable bank guarantee for each visa. This amount varies based on the employee’s designation and can add a significant financial burden to businesses.

Government and Administrative Fees

Additional administrative costs may apply for legal documentation, company amendments, and attestations. These fees may include:

• Notary public charges

• Legal translation fees

• Document attestation fees

Late Payment Penalties

Failure to renew a license or pay government fees on time can result in penalties. Businesses should stay updated with renewal deadlines to avoid unnecessary fines.

How to Avoid Hidden Fees

To minimize unexpected costs when obtaining an Ajman Free Zone license, consider these steps:

1. Research and Compare Packages – Different service providers offer various licensing packages with different inclusions. Understanding what each package covers can help prevent unexpected charges.

2. Ask for a Detailed Cost Breakdown – Request a complete list of all potential fees before committing to a business setup package.

3. Plan for Recurring Costs – Budget for annual renewal fees, visa renewals, and other long-term expenses.

4. Consult a Business Setup Expert – Professional consultants can help navigate the licensing process and provide transparency on all associated costs.

Conclusion

While Ajman Free Zone offers an affordable and attractive business setup environment, entrepreneurs should be aware of hidden fees that can increase overall costs. Visa fees, office rental charges, bank guarantees, and government administrative costs can add up, making it essential to budget accurately. By researching and planning for these expenses, businesses can ensure a smooth setup process without unexpected financial burdens.