Law No. (1) of 2020 Concerning
Small and Medium Enterprises and Establishments in the Emirate of Ajman
We, Humaid bin Rashid Al Nuaimi, Ruler of Ajman
Having perused Federal Law No. (2) of 2014 Concerning Small and Medium Enterprises and Establishments and its Executive Regulations,
And Amiri Decree No. (14) of 2006 Concerning the Reorganization of the Municipality and Planning Department in Ajman and its amendments,
And Amiri Decree No. (9) of 2011 Concerning the Exemption of Projects Supported by the Khalifa Fund for Enterprise Development in the Emirate of Ajman,
And Amiri Decree No. (11) of 2011 Issuing the Financial Law of the Government of Ajman and its Executive Regulations,
And Amiri Decree No. (15) of 2012 Concerning the Department of Finance in Ajman and its amendments,
And Amiri Decree No. (4) of 2014 Concerning the Reorganization of the Executive Council of the Emirate of Ajman and its amendments,
And Amiri Decree No. (1) of 2015 Concerning the Department of Economic Development in Ajman,
And Amiri Decree No. (5) of 2017 Concerning the Financial Audit Authority in Ajman,
And Amiri Decree No. (2) of 2018 Concerning the Legislation Committee in the Emirate of Ajman,
And Amiri Decree No. (4) of 2018 Concerning the Reorganization of the Ajman Chamber of Commerce and Industry,
And Amiri Decree No. (1) of 2019 Concerning Fees, Taxes, and Fines in the Emirate of Ajman,
And Cabinet Resolution No. (22) of 2016 Concerning the Unified Definition of Small and Medium Enterprises and Establishments,
And based on the approval of the Legislation Committee,
We have issued the following Law:
Article (1)
Definitions
The following words and phrases, wherever they appear in this Law, shall have the meanings assigned to them below, unless the context indicates otherwise:
| The State | : The United Arab Emirates. |
| The Emirate | : The Emirate of Ajman. |
| The Department | : The Department of Economic Development in Ajman. |
| The Chairman | : The Chairman of the Department. |
| The Government Entity | : Any department, institution, authority, council, agency, or administration belonging to the Government of the Emirate. |
| The Project | : A set of activities to implement a specific idea, using financial, human, knowledge, and technical resources. |
| The Establishment | : Any company or individual proprietorship that engages in an economic activity, whether small (including micro) or medium. |
| The Program | : The Small and Medium Enterprises and Establishments Program established within the Department under this Law. |
| The Members | : The projects and establishments registered in the Program. |
Article (2)
Objectives of the Law
This Law aims to achieve the following:
- Stimulate economic growth in the Emirate.
- Support small and medium enterprises in the Emirate owned by UAE citizens.
- Encourage UAE citizens to engage in economic activity.
- Create more job opportunities in the Emirate.
Article (3)
Classification of Projects and Establishments
For the purposes of applying this Law, projects and establishments shall be considered small (including micro) or medium if they are classified within the establishments defined in Cabinet Resolution No. (22) of 2016 referred to, or any other federal legislation that replaces it.
Article (4)
The Projects and Establishments Program
a. A program named the "Small and Medium Enterprises and Establishments Program" shall be established in the Department, and it shall be known as "Tazeez".
b. The Chairman shall issue a decision specifying the criteria and regulations for registration in the Program, organizing its work mechanism and procedures, and the necessary rules and regulations for coordination between it and similar or related national programs, institutions, or funds.
Article (5)
Registration in the Program
a. Projects and establishments wishing to join the Program shall be registered upon a request submitted by them in accordance with the procedures determined by the Department, which may at any time verify the continued compliance of the projects and establishments with the conditions and criteria.
b. The registration period in the Program shall be one year, renewable for similar periods if the conditions and criteria stipulated in this Law and the decisions issued thereunder continue to be met.
Article (6)
Conditions for Registering Projects in the Program
The following conditions are required for registering projects in the Program:
- The project must be submitted by UAE citizens and implemented for their benefit.
- The person supervising the project's implementation and follow-up must be a UAE citizen.
- The project must be established in the Emirate.
- The project must meet any other criteria specified by the Department.
Article (7)
Conditions for Registering Establishments in the Program
The following conditions are required for registering establishments in the Program:
- The establishment must be licensed in the Emirate.
- The establishment must be fully owned by UAE citizens.
- No more than three years must have passed since the issuance of the establishment's license.
- The owner of the establishment must not own more than five commercial licenses.
- The establishment must not be benefiting from exemptions granted to members of the Khalifa Fund or any other similar funds in the Emirate.
- The establishment must meet any other criteria specified by the Department.
Article (8)
Program Registration Fees
The Department shall collect a fee for registration in the Program for the first five years of registration only, in the amount of:
- (1,000 AED) annually for the first three years.
- (2,000 AED) annually for the fourth and fifth years.
Article (9)
Exemption of Members from Local Fees
a. Members shall be exempt from all local fees collected by Government Entities, and from the fees of the Ajman Chamber of Commerce and Industry. This exemption does not include public cleaning service fees stipulated in Amiri Resolution No. (5) of 2017 Concerning Public Cleaning Service Fees in Ajman and fines for related violations and its amendments.
b. The exemption from fees shall be for a maximum period of five years from the date of registration in the Program.
Article (10)
Facilities and Incentives for Members
Members shall enjoy the following facilities and incentives:
- Allocation of (10%) of the total annual contracts concluded by Government Entities to meet their purchasing, service, and consulting needs.
- Priority in awarding tenders and auctions to bids submitted by Members if the increase or decrease in the value of the financial offers does not exceed (5%) of the best acceptable offers.
- Reduction of the rental value for Members in properties owned by Government Entities by a rate of no less than (10%) of the rental value estimated by the leasing entity, during the first three years of registration in the Program.
- Free participation in relevant training and research programs organized by Government Entities.
- Priority participation in exhibitions organized by Government Entities.
- Facilitating Members' access to additional facilities granted to them in relevant federal programs, institutions, or funds.
- Any additional facilities, incentives, or benefits decided by the Department, or in coordination between it and relevant entities.
Article (11)
Obligations of Members
Members shall be committed to the following:
- The ownership of the establishment by citizens must be genuine.
- Notify the Department within (30) days in the event of:
a. Changing the project or establishment, or transferring ownership or part of it to another person.
b. The non-fulfillment of any of the conditions and criteria approved by the Department.
- Use the facilities, incentives, and benefits for their specified purposes.
- Conduct the activity for which the establishment was licensed, and not change it without following the procedures in effect at the Department.
Article (12)
Penalties
a. Without prejudice to any more severe penalty stipulated in any other legislation, a Member who violates any of the provisions of Article (11) of this Law shall be fined an amount of (10,000) AED.
b. The fine shall be doubled in the event of a repeated violation of the same type within one year, provided that the value of the fine in case of repetition does not exceed double the prescribed fine.
c. In addition to the fine prescribed under paragraph (a) of this Article, the Department may take one or more of the following measures:
- Recover the fees from which the Member was exempted.
- Cancel the registration in the Program.
- Cancel the commercial license of the establishment.
Article (13)
Grievance
a. A Member may submit a written grievance to the Department against the penalties, decisions, and measures issued against him in accordance with the provisions of this Law within a period of (30) days from the date of his notification of the penalty, decision, or measure being grieved. This grievance shall be decided upon within a period not exceeding (30) days from the date of its submission.
b. The grievance shall be reviewed by the Grievance Committee in the Department, which will submit its recommendations to the Chairman. The decision issued by the Chairman regarding the grievance shall be final.
Article (14)
Executive Decisions
The Chairman shall issue the necessary decisions to implement the provisions of this Law.
Article (15)
Devolution of Fees and Fines
The Department shall be responsible for collecting fees, applying penalties, and recovering the value of exemptions, all of which shall be transferred to the public treasury account of the Emirate's Government.
Article (16)
Repeals
Any text or provision contained in any other local legislation that conflicts with the provisions of this Law shall be repealed.
Article (17)
Entry into Force and Publication
This Law shall come into force (30) days after the date of its issuance and shall be published in the Official Gazette.
Issued by us on this day, Monday, the sixth of Sha'ban 1441 Hijri, corresponding to the thirtieth of March 2020 Gregorian.
Humaid bin Rashid Al Nuaimi
Ruler of Ajman