A new law was issued in Ajman. The Law No.1 for 2020 on small and medium-sized enterprises, SMEs was issued by His Highness Sheikh Humaid bin Rashid Al Nuaimi, Supreme Council Member and Ruler of Ajman.The Ajman ruler issued the new law aiming at promoting economic growth by supporting local SMEs, and encouraging citizens to engage in economic activity and create more job opportunities.
The law directs that projects registered under the programme must follow a set of conditions. They must be fully owned and supervised by UAE nationals, registered and based in the emirate, and their licences must be valid for three years.
Owners must also not have more than five commercial licences, and their establishments must not benefit from exemptions granted by the Khalifa Fund for Enterprise Development or any other similar local funds.
The l Department of Economic Development, in exchange for the programme’s registration, will collect a registration fee for the first five years only of Dh1,000 for the first three years and Dh2,000 in the fourth and fifth years, provided that members are exempt from all local fees charged by government authorities and the Ajman Chamber of Industry and Commerce, with the exception of public cleaning services fees included in Emiri Resolution No.5 for 2017.
Members will be fined Dh10,000 if they violate any of the law’s provisions, and this value will be doubled in the event of a repeat violation within one year.