The UAE's decision to offer cost-effective licensing of businesses is seen as one of the key factors that make the country a highly preferred investment haven. The growing preference has further consolidated the country's leading position as one of the world's top venues in terms of ease in doing business. The UAE's move to launch new types of licenses and its liberal compliance regulations for foreign investors have resulted in an increase in foreign direct investments (FDI).
The World Bank report
The World Bank (WB) has reported that these efforts have made an impact in the UAE’s ranking as the topmost in the Middle East and Arab region in the World Bank’s 'Ease of Doing Business' report for 2020. The country's current 16th place global rank is attributed to its introduction of instant licenses, commercial permits, and reduced licensing fees.
As industry analysts from the World Bank have cited that the reforms the UAE previously implemented have played a significant role in the increase of FDI. These reforms include policies that reduces the cost of opening a business such as cutting costs on fees for business incorporation, easier construction permits by using a risk-based approach to reduce the number of inspections, improving minority investor protection, ease of paying taxes and making trading across borders easier by reducing the time to export by fully digitizing certificates of origin and the cost to import by issuing certificates of conformity that cover multiple shipments.
Attracting youngblood to the AFZ
Backing the UAE in achieving this ranking, the Ajman Free Zone (AFZ) has begun to offer reasonably priced effective licensing options. The move is particularly being made attractive to young entrepreneurs and their start-up ventures. In fact, you can set up your own business at the AFZ for as low as only AED 5,000 per license applied. This exciting new offering is called the ‘Pioneers license’ package and has been especially created to cater to young businessmen aged 20 to 30 years old and represents a great opportunity to avail of a low-cost license.
AFZ also offers a ‘Freelancer license’ package, which is priced at AED 6,000. Meanwhile, other packages include a 'Trading license’ package, priced at AED 13,535 and a ‘Service license’ package, priced at AED 16,135—both of which are eligible for up to five visas, depending on the client’s needs.
Multiple installment payment options for your licensing
Wanting to give these new entrepreneurs a big push in setting up their businesses, the AFZ is the only free zone in the country today that offers a multiple installment payment option. Under this attractive new payment scheme, investors can set up their business by paying for the licensing requirements in two, three or six easy installments. With this in mind, company formation can actually be applied for and completed in one working day.
These attractive offerings have been created and rolled out to further reinforce the AFZ's reputation of being an ideal hub for small start-ups while larger businesses can also take advantage of the facilities of the free zone and its close distance to Dubai. Businesses that have decided on setting up shop in the AFZ are expected to gain key benefits and advantages like total exemption from all import and export duties; the offer of the lowest ever lease prices; presence of world-class infrastructure and facilities and the lowest tariffs imposed in the region.