Ajman Free Zone accounting for every licence type

An AFZ industrial licence holder making detergents earns mostly from manufacturing, a qualifying activity in the FTA guide. An e-commerce licence holder selling to consumers earns mostly from individuals, normally an excluded activity. A services company billing mainland clients earns income that is qualifying only if it comes from a listed activity. Same zone, three very different outcomes.

HelloBooks sets up income accounts to match your licence and your actual customers. The AI agent tags each sale by customer type and item, under rules agreed with your accountant, and flags anything that does not fit, such as the first sale to an individual by a company that normally sells only to businesses.

• Industrial: income by product line, with stock and production costs
• E-commerce: gross sales, fees and refunds in separate accounts
• Services and freelancers: income by client type

Ajman Free Zone also offers an offshore licence. One FTA condition for qualifying free zone person status is adequate substance: core income-generating activities in the free zone with adequate assets, full-time employees and operating expenditure. A company with no staff or premises in the zone will struggle to meet it, though the FTA guide allows outsourcing under conditions. Offshore holders should take advice on their corporate tax position.

Take an AFZ trading company with revenue of AED 1.4 million. It sells building materials to contractors on the mainland and to a few walk-in customers. Unless the sales meet the conditions of a qualifying activity, much of that revenue is non-qualifying, far over the cap of AED 70,000 (5% of revenue). The company would be taxed at the regular rates: 0% up to AED 375,000 of taxable income and 9% above.

Because it would not be a qualifying free zone person and revenue is under AED 3 million, it could look at small business relief, extended to tax periods ending on or before 31 December 2029. The AI shows the revenue total against that limit throughout the year. For licence-specific charts of accounts or invoice templates, book a call at /book-a-demo or email hello@hellobooks.ai.