Starting a business in Ajman Free Zone (AFZ) is attractive because of its fast setup, affordable costs, and full foreign ownership. But one of the most important steps is choosing the right licence type.
Ajman Free Zone Licence Types Explained
Starting a business in Ajman Free Zone (AFZ) is attractive because of its fast setup, affordable costs, and full foreign ownership. But one of the most important steps is choosing the right licence type. Picking the wrong licence can create extra costs, delays, or even compliance issues. We’ll break down the main licence types in AFZ, what they allow, who they’re for, and some tips to make your decision easier. If you haven’t already, check out our complete guide to setting up in Ajman Free Zone for a full overview of the process, costs, and benefits.
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01. Commercial / Trading Licence in the UAE
A Commercial or Trading Licence is the most common type of business licence in the UAE. It’s designed for companies that buy, sell, import, or export goods whether locally within the UAE or internationally. This licence gives you the legal right to trade products, manage a retail or wholesale business, and even export or re-export goods to other countries.
Who is it for:
If your business involves physical products rather than services, this licence is ideal. It suits:
- Importers and exporters
- Retailers and wholesalers
- General trading companies
Key things to know:
- You’ll need to show proof of your trading activity like supplier or distributor contracts.
- The licence can be issued with various office options, from a flexi-desk setup (shared workspace) to a full physical office, depending on your budget and needs.
If you’re planning to start a trading business, explore our Ajman Free Zone Business Setup Cost & Packages Guide
2. Service / Consultancy Licence in the UAE
A Service or Consultancy Licence is ideal for professionals and companies that provide specialized skills or expert advice rather than selling physical products. This licence allows you to legally offer professional services in the UAE both to local and international clients.
What it allows you to do:
With this licence, you can provide a wide range of services such as IT solutions, marketing, business consulting, accounting, design, education, or healthcare services, depending on your area of expertise.
Who it’s for:
This licence is perfect for:
- Freelancers and independent consultants
- Agencies and professional firms
- Small to mid-size service-based companies
Key things to know:
- It’s designed specifically for businesses that don’t trade physical goods, you’re offering knowledge, advice, or creative skills.
- In some industries like finance, education, or healthcare, you might need extra approvals from the relevant authority before you can start operations.
Tip: Thinking of offering consulting or digital services? You can explore setup packages and costs in our Ajman Free Zone Business Setup Guide
3. Industrial / Manufacturing Licence in the UAE
An Industrial or Manufacturing Licence is required for businesses involved in producing, assembling, or processing goods. This licence is perfect if you plan to set up a factory, workshop, or light manufacturing facility in the UAE.
What it allows you to do: With an Industrial Licence, you can:
- Establish production or assembly units for manufactured goods.
- Set up industrial workshops or small factories.
- Engage in light manufacturing, packaging, or processing activities.
Who it’s for: This licence suits:
- Small to medium-sized manufacturers
- Craft producers and industrial workshops
- Businesses that require warehouse or factory space for operations
Key things to know:
- You’ll need a physical location that meets the UAE health, safety, and environmental standards.
- The setup cost is generally higher, as you’ll need to invest in warehouse facilities, equipment, and compliance with industrial regulations.
- Licences are often issued after site inspections and authority approvals to ensure proper standards are met.
Tip: Thinking about starting a small manufacturing business? Check out our guide on the Benefits of Setting Up in Ajman Free Zone for SMEs
4. Freelancer Permit in the UAE (Optional)
A Freelancer Permit is perfect for individuals who want to work independently without setting up a full company. It gives you the legal right to offer professional services, sign contracts, and issue invoices under your own name, all while enjoying the freedom of being self-employed.
What it allows you to do: With a Freelancer Permit, you can:
- Provide professional or creative services on a project or contract basis.
- Legally invoice clients in the UAE and abroad.
- Operate as a solo entrepreneur without needing to hire staff or open a full company.
Who it’s for: This option is ideal for:
- Independent consultants and digital marketers
- Writers, designers, developers, and content creators
- Solo entrepreneurs testing the market before forming a company
Key things to know:
- Not every business activity is allowed under a freelancer permit; always check with the Ajman Free Zone (AFZ) or the relevant approval authority.
- It’s a cost-effective way to start your business journey in the UAE, with minimal setup requirements and flexible renewal options.
Tip: If you’re planning to sell digital products or online services, you might also find our E-commerce Business Setup Guide in Ajman Free Zone
5. E-commerce Licence in the UAE
An Ajman Free zone E-commerce Licence allows entrepreneurs to sell products or services online through a website, mobile app, or digital platform. With the UAE growing digital economy, this licence is one of the most popular options for startups, freelancers, and traditional retailers expanding into online sales.
What it allows you to do:
With an E-commerce Licence, you can:
- Sell physical or digital products online within the UAE and internationally.
- Manage an online store, marketplace, or dropshipping business.
- Provide online services such as digital marketing, content creation, or software solutions.
Who it’s for:
This licence suits:
- Online retailers and marketplace sellers
- Digital entrepreneurs and freelancers offering services online
- Traditional businesses wanting to expand their sales channels to e-commerce
Key things to know:
- You’ll need a domain name, website, or e-commerce platform to operate legally.
- Some products (like health or food items) may require additional approvals from relevant UAE authorities.
- You can run your business from a flexi-desk or shared office, making it a budget-friendly option for startups.
Tip: If you’re starting an online business in Ajman Free Zone, explore our AFZ E-commerce Setup Packages & Costs Guide
How to Choose the Right Licence
- Identify your business activity: Are you trading goods, providing services, manufacturing, or working solo?
- Check allowed activities: Each licence has specific permitted activities.
- Estimate costs: Consider licence, visas, and office requirements.
- Think long-term: Pick a licence that allows future growth or adding activities.
- Freelancers or service providers seeking low-cost, fast setup may choose flexi desk + service licence.
- Traders or manufacturers needing warehouses, land, or logistics support should consider commercial or industrial licences.
- Ensure your business activity is on the Afza-approved list of industries.
- Budget for renewal and banking requirements, not just the first-year cost.
- Pick the correct licence type to avoid delays or extra charges.
- Review the licence you need (commercial/service/industrial); picking the wrong one can cause delays or additional costs.
FAQs
Q.1 Can I switch licence types later?
Yes, AFZ allows you to upgrade or change licence types if your business grows or changes focus.
Q.2 Do I need a physical office for every licence?
No. Flexi-desk and virtual offices are available for most service and commercial licences.
Q.3 Can I get a freelancer permit for trading goods?
No. Freelancer permits are generally limited to professional or digital services.
