Jebel Ali Free Zone, (JAFZA)

  • Founded in:  1980
  • Location:  DUBAI FREE ZONES
  • Time for registration: 15-25 days
  • Types of licenses: trading, service, industrial
  • Types of companies:  a new company (single owned FZE or jointly owned FZCO), branch, subsidiary
  • Share capital:  minimum share capital is required. Shareholders may decide which amount of share capital they want to declare and potentially deposit.

BRIEF OVERVIEW OF JEBEL ALI FREE ZONE

Jebel Ali Free Zone, also known as JAFZA is the UAE’s first free zone that started its operations in 1985 by virtue of a Ruler’s Decree. To this day, it still maintains its spot as the largest free zone in the UAE. It is home to almost more than 7,000 companies including 100 of the Global Fortune 500 companies and fosters a long- term relationship with investors and stakeholders.

A large volume of JAFZA companies are dealing with exports. It is a global hub for companies wishing to expand in the Middle East and African markets. It’s a center for trade and logistics with unparalleled benefits and incentives and excellent customer service. The favorable location within a few minutes drive from Al Maktoum International Airport makes it a perfect company setup option for business owners.

BUSINESS STRUCTURES AVAILABLE IN JAFZA

 

At JAFZA, a company can be formed with a single shareholder as well as multiple shareholders & depending on the number of shareholders. As such, it would be best to check which type would be applicable for the company’s establishment.

- Free Zone Establishment (“FZE”) refers to a company with one shareholder, be it individual or corporate.

- Free Zone Company (“FZCo”) refers to a company with two or up to 50 shareholders. Shareholders can be purely individuals or purely corporate or a mixed of both individuals and corporate. In essence, it is a limited liability partnership, liabilities of the company limited to the paid-up capital.

- Branch office for existing companies, whether local or international.

BUSINESS LICENSES AVAILABLE

 

- Trading License –for companies wishing to engage in trading activities

- Service License – for those companies providing various types of services in JAFZA

- Industrial License – for foreign and local companies which would carry out manufacturing activities

OTHER LICENSES ISSUED BY JAFZA

 

For specific businesses, JAFZA issues specific licenses and they are as follows:

- E-Commerce License. It is a kind of trade license mainly issued for the trading of goods via the internet

- Innovation License. This is required if the activities involve the development and invention of new products

- National Industrial License. To obtain this license, a company should be owned by a UAE national

- Offshore Registration. This is a different type of license and, is issued to entrepreneurs looking to establish an offshore company in JAFZA

ADVANTAGES OF JAFZA BUSINESS SETUP

 

- 100% foreign ownership

- 0% VAT on transaction of goods between companies located in Designated Zones in Jebel Ali Free Zone and outside the United Arab Emirates

- No restriction on capital repatriation

- No restriction on foreign talents or employees

- 0% corporate or personal income tax,

- No currency restrictions

- Acquisition of multiple visas even without physical office space

- Simple and straightforward incorporation process

- Can hold shares in UAE free zone companies and limited liability companies

- On site customs

- A world-class infrastructure, support systems, and communications

- Permission to mortgage your property to a bank or financing corporation

- Ready to occupy warehouses and factories

REQUIREMENTS FOR SETTING UP A COMPANY IN JAFZA

 

- Application Form

- Letter of Intent for incorporating a JAFZA company

- Existing company brochure (if available)

- Annual financial report or shareholder(s) 6 months bank statement for the shareholder not applicable for new registration

- Copy of the investor’s passport and a CV

- Copy of shareholder(s) passport and CV

- Original bank reference letter (for each shareholders)

- No Objection letter by the current sponsor, for manager (if a resident of UAE and UAE employment visa-holder)

- Business plan

- A legal representative (if any)

- Initial approval(s) from the third authority(s) for few business activities

JAFZA’S BUSINESS SOLUTIONS

 

Investors can choose from among the several varieties of business facilities, which can cater to any business needs.

- Onsite residences for employees’ accommodation

- JAFZA 1 is a commercial complex which houses several offices for rent, with panoramic views of JAFZA, Jebel Ali Port, Sheik Zayed Road and Palm Jebel Ali.

- Customized Development solutions provides investors with flexibility and efficiency:

- Plots of Lands

- Warehouses

- Showrooms

- Work Stations

- Offices

- Retail Spaces / Outlets

OFFICE FACILITIES

 

- Office in Business Park cost ranges between AED 23,000 – AED 30,000 per office.

- Offices in other Jafza buildings cost ranges from AED 2,000 per sq.m. to AED 2,500 per sq.m.

- Showrooms price ranges from AED 700.00 per sqm. To AED 1,000 per sq.m

- Warehouses and Industrial Units are from AED 25.00 per sq.m to AED 600 per sq.m.

- For retail spaces/ outlets the cost is available upon request from JAFZA.

All fees are the subject for additional 5% Value Added Tax (VAT) and excludes Third party approval cost, if required.

Work Visa allocation depends on the size of the office. 9 sq.ft is equivalent to one (1) visa eligibility.

RESIDENCE VISA

 

The residence visa in JAFZA is valid for three (3) years. The cost of each visa depends on the status of an applicant’s current location, whether application is taking place inside or outside the UAE.

The cost for visa processing can be anywhere between AED 4,100 to AED 5,000.00

Employment Visa Guarantee Deposit is also required in JAFZA, which should be added on top of the visa cost. Medical test and Emirates ID application should also be taken into account when computing the total costs.

FACTS YOU SHOULD KNOW ABOUT JEBEL ALI FREE ZONE, (JAFZA)

 

100% ownership
minimum and low taxes

274$+SHARE CAPITAL

Jebel Ali Free Zone waived the requirement for share capital. Investors are free to decide which amount they want to specify as share capital.

1 year

LICENSE VALIDITY

1 year only, as in any other emirate, after which the license needs to be renewed.

YES

AUDIT

It is mandatory to appoint auditors and submit an annual audit report at the end of a company's financial year.

 

30 days

LICENSE RENEWAL

Company’s license is due for renewal prior to its expiration date, otherwise, penalties for late renewal apply.

FACTS YOU SHOULD KNOW ABOUT Jebel Ali Free Zone, (JAFZA)

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COSTS OF BUSINESS SETUP

Jebel Ali Free Zone (JAFZA)
  • Registration feeAED 10,000 / USD 2,740
  • MOA and AOAAED 1,000 / USD 274
  • LicenseAED 5,500 / USD 1,507
  • Flexi-deskAED 72,000 / USD 19,730
  • TOTALAED 88,500 / USD 24,250

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