Established in 1985, Jebel Ali Free Zone (JAFZA) stands as the eldest free zone in the UAE. Presently, it holds the distinction of being the largest free zone situated in Dubai.
Jebel Ali Free Zone (JAFZA) has solidified its position as one of the premier free trade zones within the UAE, providing a comprehensive array of top-tier business services and cutting-edge facilities to both domestic and international enterprises.
The year 2022 saw JAFZA achieve a remarkable 30% surge in customer registrations, underscoring its status as a preeminent business nexus in the region. In this piece, we will delve into the enduring appeal of JAFZA as a preferred destination for entrepreneurs, elucidating the advantages associated with establishing a company within its confines. Our discussion will encompass the following key facets:
Table of Contents
Exploring the Variety of Company Types Offered by JAFZA
JAFZA offers clients five distinct company types tailored to accommodate varying shareholder preferences, with a diverse range of license types and activities available for selection. Notably, these company formation options are unrestricted in terms of foreign ownership.
The available company types are as follows:
#1. Free Zone Company (FCZO):
This is akin to a free zone LLC, established by multiple shareholders, comprising both individuals and non-individual entities (companies).
#2. Free Zone Establishment (FZE):
An LLC structure with a single shareholder, who may be either an individual or a non-individual entity (company).
#3. Public Listed Company (PLC):
This entity type resembles an LLC, featuring two or more shareholders and the option for public offering of its shares on the stock exchange market.
#4. Branch:
As the name suggests, this is a branch established by a parent company within JAFZA, enjoying 100% ownership by the parent entity and operating under its name and activities.
#5. Offshore Company:
This legal entity is primarily geared towards conducting business outside of its registered jurisdiction. It requires at least one shareholder, with no maximum limit, and can encompass both individuals and non-individual entities (companies).
Exploring License Categories and Activities Available in JAFZA
When establishing a business in the UAE with JAFZA, the type of license you obtain depends on the nature of your business setup. JAFZA offers a comprehensive range of license categories to accommodate various business activities:
- Trading
- Industrial
- Service
- Logistics
- E-Commerce
- General Trading
It’s important to note that companies engaging in service activities can only be registered as a branch of an existing UAE Mainland entity.
For Service and Trading licenses, there are different types available, each dictating the number of activities permissible under the license:
1st Type: Allows for up to 7 activities from the same group.
2nd Type: Permits up to 12 activities from two or more groups.
3rd Type: Imposes no restrictions on the number of activities from three or more groups. Notably, the 3rd Type license in Trading essentially constitutes the General Trading license.
Should you wish to add an additional activity to any type of license, an additional fee of 500 AED applies.
JAFZA company formation is particularly recommended for those intending to venture into international trading, distribution, or logistics sectors.
Benefits of Starting a Business in the JAFZA Free Zone
Starting a business in the JAFZA Free Zone presents numerous advantages, complemented by its status as a flagship project of DP World, a global leader in port operations and logistics. Here are some key benefits:
1. Full Foreign Ownership:
JAFZA Free Zone allows businesses to maintain 100% foreign ownership, offering unparalleled control over operations and investments.
2. Favorable Tax Environment:
Companies operating within JAFZA Free Zone benefit from a competitive corporate tax rate of just 9%, applicable to profits exceeding 375,000 AED.
3. Strategic Location:
Positioned at the crossroads of Asia, Europe, and Africa, JAFZA serves as an optimal base for businesses seeking to extend their reach globally. Its proximity to Jebel Ali Port, one of the world’s largest container ports, facilitates seamless trade and logistics operations.
4. Exceptional Infrastructure:
JAFZA Free Zone boasts state-of-the-art infrastructure, including advanced warehousing, manufacturing facilities, and office spaces, ensuring businesses operate in a conducive environment equipped with modern amenities.
5. Streamlined Procedures:
Setting up and operating a business in JAFZA Free Zone is characterized by simplified and efficient processes, minimizing bureaucratic hurdles and expediting registration timelines, thereby saving time and resources.
6. Access to Skilled Workforce:
Businesses in JAFZA Free Zone gain access to a diverse pool of highly skilled and educated professionals from various parts of the world, facilitating talent acquisition and fostering innovation and growth.
JAFZA Offshore Companies and Special Purpose Companies (SPCs)
JAFZA facilitates the formation of not only Mainland and Free Zone companies but also Offshore companies and Special Purpose Companies (SPCs).
Offshore companies, as non-residents, are permitted to conduct business outside the UAE but are restricted from operating within the country. These entities enjoy tax exemptions but are obligated to maintain a registered office and a designated registered agent within the JAFZA jurisdiction. Common activities for offshore companies include asset holding, investment management, and consultancy services.
In contrast, SPCs are established for specific purposes, such as asset ownership, project execution, or holding shares in another company. They can be registered as FZCOs, FZEs, or branch offices.
How do I set up a company in Jebel Ali free zone?
Embark on your business journey in JAFZA by following these key steps:
Step 1. Choose Your Company Type:
Select the most suitable company formation from options like Free Zone Company (FZCO), Free Zone Establishment (FZE), Branch Office, or Offshore company offered by JAFZA.
Step 2. Select Your Business Activity:
Ensure your chosen business activity aligns with the free zone regulations and determines the eligible type of trade license.
Step 3. Decide on a Trade Name:
Opt for a business name that resonates with your company ethos and complies with naming regulations.
Step 4. Submit Your Application:
Furnish necessary documents, including passport copies, proof of address, and a comprehensive business plan, alongside your application for company formation. Our experts at Company Setup will streamline this process, ensuring efficiency.
Step 5. Secure a Physical Space:
Regardless of the company setup, acquire a physical location for your business in JAFZA. Finalize a lease agreement and fulfill the necessary payments accordingly.
Step 6. Open a Corporate Bank Account:
Deposit the stipulated minimum capital for your company in a UAE corporate bank account. Rely on the guidance of Company Setup professionals to choose the most suitable banking partner that aligns with your business requirements.
Essential Documents for Setting Up a Business in JAFZA, Dubai
Establishing a business in Dubai, whether on the Mainland or within a free zone like Jebel Ali Freezone (JAFZA), necessitates the submission of authentic and valid documentation. Below are the key documents required to obtain a business license with JAFZA in Dubai:
- Passport copies of company shareholders.
- Passport-sized photos of shareholders.
- Copies of entry visa and stamp page.
The specific documents needed for your business setup in JAFZA will vary depending on the type of business you intend to establish. Common business activities include trading, industrial, services, logistics, and general trading. Additionally, the structure of your company, such as whether it’s a Free Zone Company (FCZO), Free Zone Establishment (FZE), branch, or offshore company, will also influence the documentation requirements.
What Is the Cost of Starting a Company in JAFZA?
Determining the precise cost of starting a business in JAFZA entails consideration of various factors, including the type of license, company structure, office space requirements, and additional services. While providing an exact figure is challenging due to these variables, an estimated cost for obtaining a Jebel Ali Free Zone License, inclusive of desk space, typically ranges from approximately AED 55,000 to AED 70,000.
How can I setup a business in Jebel Ali Free zone?
- Choose your business formation type and license category.
- Select suitable lease solutions provided by JAFZA.
- Complete payment for company setup as per your selections.
- Acquire premises keys and commence business operations swiftly.
How Company Setup can Help
Navigating the complexities of starting a business in JAFZA can be overwhelming, but Company Setup Consultant is here to simplify the process. Our team of seasoned business experts with over 14 years of experience in the UAE business landscape is dedicated to guiding you every step of the way. From company registration and licensing to visa processing, bank account opening, and office space rental, we offer tailored business services to meet your specific needs. Contact us to kickstart your business journey with confidence.
