Business Setup in Jebel Ali Free Zone

Jebel Ali free zone (JAFZA) is among the oldest locations for business setup in the UAE. JAFZA is named the flagship free zone of Dubai Ports (DP) World. Hence, it plays an integral role in the DP World UAE region’s integrated business hub.

Furthermore, the free zone is located near the world’s 7th largest container port named Jebel Ali Port and adjacent to prime cargo airports. Hence, Jebel Ali free zone is a hub for shipping companies and trading sectors including export and import ventures. It is also the largest free zone in the UAE.

The free zone was established in 1985 by the Dubai Government. Since then, the Jebel Ali free zone has been aiding in improving the economy of Dubai. This is because of its unique positioning and progressive work procedures. Furthermore, the ISO-certified jurisdiction allows diversification of business modules. Not long after, JAFZA company registration gathered demand and popularity.

JAFZA company structures

Jebel Ali free zone provides easy procedures for free zone company registration in Dubai. Jebel Ali free zone company setup can be done under three structures:

• • Free Zone Establishment (FZE)
  • Free Zone Company (FZC)
  • Branch Office

Benefits of company registration in Jebel Ali free zone

The region that started with only 19 companies has grown within just a few decades and currently houses over 7,000 companies. One of the major advantages of JAFZA company formation is the governmental and jurisdictional benefits that the region offers.

If you are intending to start with the process of business setup in Jebel Ali free zone, the region has a lot to offer. The various benefits include:

• • 100% foreign ownership
  • No personal, income, or corporate taxes
  • Dynamic international community
  • Full repatriation of capital and profits
  • Strategic location boosting opportunities
  • Leasing options
  • Simple and quick set up process
  • Innovative infrastructures
  • Exemption from all import and export duties; however, you can’t import into mainland

Facilities offered at JAFZA free zone

JAFZA offers various facilities for company formation in the free zone, these include:

• • Plots of land
  • Warehouses
  • Showrooms
  • Customised developmental solutions
  • Offices
  • Business parks
  • Rental outlets
  • On-site residence
    

Business activities permitted in Jebel Ali free zone

JAFZA permits various activities to be conducted in the free zone. These are:

• • Trading
  • Industrial
  • Service
  • Logistics
  • General Trading

Licenses offered by JAFZA free zone

Jebel Ali free zone trade license cost is affordable and starts from approximately AED 5,000. The various types of licenses issued by JAFZA include:

• • Trading license – Empowering the trading sector the Jebel Ali free zone does provide a lot of possibilities for the trading sector, however, to conduct any activities in Jebel Ali, you do need a JAFZA trade license from the concerned free zone authority.
    
  • Service license – Any professional level activities or service-oriented businesses in JAFZA need to have a service license, to start a business in the region.
    
  • Industrial license – Manufacturing activities and industrial companies are directed to have an industrial license. For the production of goods specific requirements are listed that are in general enforced by the Industrial License.

In order to acquire a license, you will be required to have a physical space when setting up company in Jebel Ali free zone. These could be either flexi desks or full office spaces.

Additionally, JAFZA also offers other licenses depending upon the nature of your company, including:

• • E-commerce license – Understanding the need of the hour, JAFZA also provides e-commerce licenses for online business entities and businesses held through electronic networks via any electronic means.
    
  • Innovation license – Lately, Dubai has been stressing on an innovative-based module that offers sustainability of business entities. Focusing on the same concept, JAFZA’s jurisdiction offers innovation license as part of the various business licenses available in JAFZA free zone. Moreover, this encourages entrepreneurs to take up activities related to new and inventive products and services.
    
  • National industrial license – A company that at least has 51% of the UAE ownership is allowed to obtain the National Industrial License. This helps to articulate the range of manufacturing and local manufacturers regulating within the UAE.
    
  • Off-shore registration – An offshore company in JAFZA can be only established with the help or collaboration of a limited liability company that already exists in the region. Although you may not need a Jebel Ali free zone license, you’ll need a certificate of incorporation for offshore company formation in JAFZA.
    

JAFZA license renewal

The renewal process of businesses in JAFZA is a highly cost-effective and simple process. You will be required to submit an audit report starting from the second renewal of your company on an annual basis.

In order to complete the process of renewal for your company, you will need to pay the renewal fee and submit the signed lease agreement for your facility. To add on, an advantage is that your physical presence in the UAE isn’t required for renewal and can be completed through an agent.

Business liquidation in JAFZA

Similar to renewal, company liquidation also does not need the physical presence of the owner and can be completed through an agent. There is a requirement for you to pay the government fee to complete the process of liquidation.

Company liquidation takes about 1 month to be completed and involves the following steps:

• • Cancellation of visas
  • Termination of lease agreement
  • Closure of bank account

To find out more about various business setups in JAFZA, contact Shuraa – one of the best business setup companies in Dubai. Shuraa helps solve your business-related queries and offers you solutions best suited to your company formation in the UAE.