Business Setup in JAFZA

Why Choose JAFZA for Your Business?

JAFZA, established in 1985, is one of the world’s largest and fastest-growing free zones. It hosts over 9,000 companies, including 100+ Fortune 500 firms, contributing significantly to Dubai’s economy with $169 billion in trade value in 2023. Its proximity to Jebel Ali Port and Al Maktoum International Airport ensures unparalleled access to global markets.

JAFZA offers 100% foreign ownership, zero corporate and personal income taxes, and full repatriation of profits. The free zone’s state-of-the-art facilities, including offices, warehouses, and logistics hubs, cater to diverse industries like trading, logistics, manufacturing, and services. With a business-friendly environment, JAFZA is ideal for startups, SMEs, and multinational corporations.

Consulting with experts like BizInvestFirm ensures a hassle-free setup, guiding you through licensing, documentation, and compliance. Their tailored solutions simplify the process, saving time and costs. Let’s dive into the licenses, company types, setup process, and costs involved in starting your business in JAFZA.

What are the benefits of registering a company in Dubai?

Strategic Location for Global Connectivity

JAFZA’s proximity to Jebel Ali Port, one of the world’s largest container ports, and Al Maktoum International Airport ensures seamless access to global markets. This strategic positioning connects businesses to over 3.5 billion consumers across the Middle East, Africa, and Asia. The free zone’s single customs-bonded area simplifies logistics, reducing costs and delays.

100% Foreign Ownership

Unlike mainland UAE companies, JAFZA allows full foreign ownership without requiring a local sponsor. This gives investors complete control over their operations and profits. Entrepreneurs can make decisions independently, fostering flexibility and growth.

Tax Benefits and Profit Repatriation

JAFZA offers a 50-year corporate tax exemption, renewable for another 50 years, and zero personal income tax. Businesses can fully repatriate capital and profits without restrictions. This tax-free environment maximizes profitability for companies of all sizes.

World-Class Infrastructure

JAFZA provides state-of-the-art facilities, including offices, warehouses, showrooms, and industrial units. Its infrastructure supports diverse industries, from manufacturing to e-commerce. Ready-to-use premises and customizable spaces cater to specific business needs.

Simplified Business Processes

The free zone streamlines company formation, licensing, and visa issuance. Digital processes and dedicated support from JAFZA authorities ensure quick setup, often within 3 to 14 days. This efficiency minimizes bureaucratic hurdles for entrepreneurs.

Access to a Diverse Talent Pool

JAFZA’s cosmopolitan environment attracts skilled professionals from over 135 countries. Businesses benefit from a diverse workforce, enhancing innovation and productivity. The free zone’s visa policies simplify hiring foreign employees.

Robust Logistics and Trade Support

With access to 170 shipping routes and extensive transport networks, JAFZA is a logistics powerhouse. The free zone supports trade-focused businesses with customs duty exemptions and advanced warehousing. This makes it ideal for import, export, and distribution activities.

Licenses Available for Company Formation in JAFZA

JAFZA offers a variety of licenses tailored to different business activities, ensuring flexibility for entrepreneurs. Each license type governs specific operations within the free zone. Below are the key licenses available for company formation in JAFZA.

Trading License:

Permits importing, exporting, distributing, and storing specific goods. Ideal for businesses in wholesale, retail, or e-commerce, it allows trading within JAFZA and internationally. Additional activities can be added for AED 500 per activity.

General Trading License:

Enables trading a wide range of products, except prohibited items. Perfect for companies handling diverse goods, it offers flexibility for import, export, and storage. Ensures compliance with JAFZA’s regulations for seamless operations.

Service License:

Allows businesses to provide professional services like consulting, IT, or marketing. Based on the professional’s qualifications, it supports service-oriented enterprises. Ensures operations align with JAFZA’s guidelines for service-based activities.

Industrial License:

Designed for manufacturing and industrial activities. Permits importing raw materials, producing goods, and exporting finished products. Requires a warehouse and production facility within JAFZA for compliance and operational efficiency.

Logistics License:

Supports businesses in warehousing, distribution, and transportation. Ideal for logistics, inventory management, and supply chain services. Enables efficient handling of goods in transit within JAFZA’s world-class logistics infrastructure.

Innovation/Incubator License:

For businesses focused on developing new products or technologies. Supports innovation, consultancy, and project development. Provides workspace and resources for entrepreneurs to foster creativity and growth in JAFZA.

National Industrial License:

For manufacturing firms with at least 51% GCC ownership. Grants the same status as local UAE entities. Allows production and export activities, leveraging JAFZA’s infrastructure for regional market access.

E-Commerce License:

Permits trading goods via online platforms. Ideal for businesses engaging in digital commerce. Supports seamless import, export, and storage operations within JAFZA’s ecosystem, catering to the growing e-commerce market.

Types of Companies That Can Be Registered in JAFZA

JAFZA offers flexible company structures to suit various business needs, from single-owner setups to multinational branches. The choice depends on the number of shareholders and business objectives. Below are the types of companies that can be registered in JAFZA.

Free Zone Establishment (FZE):

A single-shareholder entity with limited liability. Ideal for solo entrepreneurs or single corporate owners. Offers 100% foreign ownership and tax exemptions, requiring a minimum capital of AED 1 million for setup.

Free Zone Company (FZCO):

Suitable for 2 to 50 shareholders, individual or corporate. Provides limited liability and 100% foreign ownership. Requires a minimum capital of AED 500,000, ideal for partnerships or larger ventures.

Branch of a Foreign Company:

Allows companies established outside JAFZA to set up a branch. Operates under the parent company’s name and activities. Benefits from JAFZA’s infrastructure while maintaining the parent company’s legal identity.

Branch of a Local Company:

For UAE-based companies to establish a presence in JAFZA. Operates under the parent company’s name, conducting similar activities. Leverages JAFZA’s logistics and tax benefits for seamless regional operations.

Publicly Listed Company (PLC):

A limited liability company with at least two shareholders. Suitable for larger businesses seeking public investment. Offers 100% foreign ownership and tax exemptions, with compliance to JAFZA’s regulatory framework.

Offshore Company:

A non-resident entity for international trading or asset protection. Operates under JAFZA’s Offshore Companies Regulations. Requires an approved registered agent and offers tax benefits and confidentiality for global operations.

Documents Required for Setting Up a Company in JAFZA

To initiate business setup in JAFZA, you must submit a set of documents to ensure compliance. Below is a comprehensive list of required documents:

For Individual Shareholders

• Passport copies (original and copy) for all shareholders and the appointed manager.
• Visa status copy or entry stamp (if applicable).
• Personal information sheets for shareholders and directors.
• Curriculum vitae (CV) of the founders.
• Specimen signatures of the manager and directors.

For Corporate Shareholders

• Notarized and attested company documents (e.g., Certificate of Incorporation).
• Memorandum and Articles of Association (MOA and AOA), legally translated to Arabic if from a foreign company.
• Board resolution approving the establishment of the JAFZA entity.
• Certificate of Registration and Chamber of Commerce certificate (for branches).

General Requirements

• Completed application form for company setup.
• Detailed business plan outlining activities and objectives.
• Project summary for Environment, Health, and Safety (EHS) compliance.
• No Objection Certificate (NOC) from the current sponsor (for UAE residents under employment visas).
• Attested MOA and AOA (AED 200 each for attestation).
• Lease agreement for office space or facility within JAFZA.

Additional Notes

• Documents for foreign companies must be attested by the home government, UAE Embassy, and UAE Ministry of Foreign Affairs.
• An Economic Substance Report is mandatory for all new companies, per Ministerial Decision No. 100 of 2020.
• Offshore companies require accounting records and supporting documents (e.g., invoices, contracts) maintained for 10 years.

How to Start a Business in Jebel Ali Free Zone?

Starting a business in JAFZA involves a structured yet streamlined process. Follow these steps to ensure a smooth setup:

Choose Your Business Activity

Identify the specific activities your company will undertake. JAFZA’s jafza license activities list includes 335 activity groups across trading, industrial, and service sectors. Ensure your chosen activities align with JAFZA regulations to avoid issues during registration or visa issuance.

Select a Company Structure

Decide between an FZE, FZCO, branch, PLC, or offshore company based on your business needs and shareholder structure. Consult with experts to choose the most suitable option.

Pick a Trade Name

Select a unique trade name that complies with JAFZA’s naming guidelines. Avoid names that conflict with existing businesses or violate cultural norms. Submit multiple options for approval.

Submit Application and Documents

Complete the application form and submit all required documents, including passports, business plans, and lease agreements. Ensure accuracy to prevent delays.

Secure a Lease Agreement

Leasing a facility (e.g., office, warehouse, or flexi-desk) is mandatory in JAFZA. Choose a space that fits your operational needs, with options starting at 26.88 sq.m. for offices.

Obtain Initial Approval

Once documents are processed, JAFZA issues an initial permit. This allows you to proceed with facility leasing and visa applications.

Finalize Licensing and Registration

Pay the necessary fees and receive your trade license and company incorporation documents. This process typically takes 3 to 14 working days.

Apply for Visas

JAFZA allows one resident visa per 10 sq.m. of office space. Submit visa applications, including medical tests and Emirates ID registration. Costs range from USD 1,950 to USD 2,400 per visa.

Open a Corporate Bank Account

Partner with a business setup consultant to open a corporate bank account in Dubai. This facilitates financial transactions and ensures compliance.

Commence Operations

Once licensed and operational, leverage JAFZA’s infrastructure and logistics to start your business activities. Annual audits and license renewals are mandatory to maintain compliance.

JAFZA Company Setup Cost

The Jafza company setup cost ranges between AED 10,000 to AED 50,000, depending on the company structure, license type, facility, and visa requirements. Below is a breakdown of estimated costs:

Additional Considerations

• Total Setup Cost: Excluding visas, the average cost for a basic JAFZA company setup is approximately AED 86,935.
• Visa Costs: Include guarantee deposits (1.5 x basic salary + one-way airfare) and medical/Emirates ID fees.
• Renewal Fees: Licenses and health insurance must be renewed annually, with penalties for late renewals.
• Audits: Annual audit reports are mandatory, requiring appointed auditors.

For precise cost estimates, consult with a business setup specialist like BizInvestFirm, as costs depend on your specific business activities and scale.

List of Business Activities in Jebel Ali Free Zone

JAFZA offers businesses great flexibility and an endless number of activities to choose from. Some of the common choices of activities in the free zone are listed below –

• Trading activities
• Manufacturing
• Project management
• Waste management
• Freight forwarding and sea cargo
• Ship chartering
• Hospitality services
• Training and Consultancy
• Transportation services

Consultation with BizInvestFirm

Navigating the JAFZA company formation process can be complex, especially for first-time investors. Partnering with a reputable consultancy like BizInvestFirm simplifies the journey. Here’s how they can assist:

Why Choose BizInvestFirm?

• Expert Guidance: BizInvestFirm’s team has extensive experience in JAFZA company setups, ensuring compliance with all regulations.
• Tailored Solutions: They offer customized packages based on your business type, budget, and goals.
• End-to-End Support: From document preparation to visa processing and bank account setup, BizInvestFirm handles every step.
• Free Consultation: Initial consultations are often free, allowing you to explore options without commitment.

Services Offered

• Business Activity Selection: Guidance on choosing the right activities from the JAFZA license activities list.
• Document Preparation: Assistance with compiling and attesting required documents.
• Facility Leasing: Help in selecting and securing the ideal office or warehouse space.
• Visa and PRO Services: Streamlined visa applications and ongoing regulatory compliance support.
• Post-Setup Support: Advice on audits, renewals, and business expansion.

How to Get Started

• Contact BizInvestFirm: Reach out via email or phone for a free consultation.
• Discuss Your Vision: Share your business goals to receive a tailored setup plan.
• Streamline the Process: Let BizInvestFirm manage paperwork, approvals, and licensing for a hassle-free experience.

By partnering with BizInvestFirm, you can focus on growing your business while they handle the complexities of JAFZA setup.