7 Types of Business License in Jebel Ali Free Zone

The United Arab Emirates (UAE) has been significantly growing in all directions ranging from the oil industry to the non-oil industries. The nation is recognized as one of the top business centres by foreign ex-pats as it holds multiple free trade zones. One such free trade zone is the Jebel Ali Free Trade Zone (JAFZA). This free trade zone has been marked as a game-changer since its inception as it offers different company formation types and licenses. Let’s understand…

Jebel Ali Free Zone (JAFZA)

The Jebel Ali Free Zone was established in the year 1985, is situated at the far western end of Dubai, and acts as a major trading and logistics hub after it made a humongous change in the growth record of Dh 294.5 billion that raised the non-oil industries by 17%.

The company formation in Jebel Ali Free Zone is a tremendous opportunity for business entities to establish their roots. Down the line of its inception, the region has been acting as a ground of international logistics and trading spot. Company formation in Jebel Ali Free Zone depends upon the number of shareholders and the nature of the business.

Benefits of Starting a Business in JAFZA

• One of the top 10 free zones in the world
• 0% personal and income tax
• No currency restrictions
• Onsite customs
• Land, warehouse, and office space available
• 100% foreign ownership
• No currency restrictions
• Business-friendly environment and regulations

Company Formation Structures

The different types of company formation types include:

Multiple Shareholder Company

The number of shareholders for such company ranges between 2-50, that can be an individual or a business entity. It is essentially a Limited Liability Company within the free zone.

Single Shareholder Company

A single individual or business entity has the flexibility to register themselves as a Free Zone Establishment (FZE) in JAFZA Free Zone. The entity holds a different identity from its shareholder and has certain rights and privileges as that of a natural person.

Branch Company Setup

Branch of a well-established company possesses the full right to set up their branch in JAFZA.

Business License Types in JAFZA

Now, let’s have a look at the different types of trade license that you can acquire depending upon your business type in Jebel Ali Free Zone.

1. Industrial License

This license is issued to business entities who are involved in the manufacturing or production business of different goods.

2. Service License

This license is meant to carry out the legal activities, as well as professional level activities in JAFZA region. Any individual who wants to establish their business in this domain needs to have a Service License.

3. National Industrial License

Companies where the Government of UAE has acquired more than 51% of ownership, need to possess a national industrial license.

4. Innovation License

Dubai has been remarked as an innovative city. The city has been focusing on business entities that build innovative-based models. Keeping this in mind, JAFZA offers innovation license that these companies need to hold.

5. Offshore Registration

Offshore registration can be initiated only when an established Limited Liability Company comes into the picture. It is not mandated to hold a license, but the Certificate of Incorporation is a must.

6. Trading License

Companies who plan to move ahead in the trading business in JAFZA Zone needs to hold a JAFZA trade license.

7. E-Commerce License

Since the concept of E-Business has been booming all around the world, JAFZA provides an e-commerce license for business entities who want to initiate and set up an e-commerce business.

Thus, you have seen the different types of licenses that can be acquired in order to establish a company in JAFZA. Moving ahead, let’s have a look at the documents required and cost involved in acquiring these licenses.

Documents Required to Obtain a License in Jebel Ali Free Zone

To initiate the process of acquiring a license in JAFZA, the following essentials are to be submitted:

• Application for facility
• Passports of Shareholders and Managers
• Bank reference of each Individual
• Project summary
• Parent company’s profile (in case of a Branch Company)
• Application for registration of a Free Zone Company (FZCO)
• Application for registration of a Free Zone Establishment (FZE)
• A non-refundable deposit of Dh 500

Dubai Free Zone License Cost

The JAFZA free zone license cost is stated below:

License Type	Group	Fee in AED
Trading License	One	5,500
	Two	9,000
Industrial License	One	5,500
	Two	9,000
National License	One	5,500
	Two	9,000
General Trading License	-	30,000
Logistics	-	30,000

Registration Free Zone License Cost

The registration cost differs according to the company structure:

Type	Fee in AED
Free Zone Company (FZCo)	15,000
Free Zone Establishment (FZE)	10,000
Branch of a Company	5,000
Memorandum and Articles of Association (MOA)	200
Specimen Signature	50
Board Resolution	200
Application Fee	500

In a nutshell, we can say that JAFZA serves to be one of the brilliant destinations for business entities. The entities have the freedom to obtain the license as per their business nature. To obtain your license in a foreign land, it’s good to have a word with a consultant before you actually initiate the process of establishing your company.  We at Commitbiz helps you to obtain the same. We are one of the top business consultants in UAE that helps business entities to build their foundations in different corners of the world. Our core activities include accounting, taxation, legal, visa services. Our expert team will help you to obtain the license in a hassle-free way. To obtain a suitable license for your business, do contact us – we’d be happy to assist.