Jebel Ali Free Zone Authority (JAFZA) is one of the world’s biggest logistics and R&D-driven industrial park developers. It offers a streamlined business environment with land, offices and warehouses on long-term leases.
Business setup in Jebel Ali Free Zone Authority is made easier due to its strategic location, which attracts investors and entrepreneurs. Here, we look at the process of setting up a business in Jebel Ali Free Zone Authority in detail.
Benefits of Setting up a Business in JAFZA
There are certain benefits to setting up a business in the Jebel Ali Free Zone. Let us learn about them:
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Huge Tax exemptions
- 9% of corporate tax on taxable profits exceeding AED 375,000 (around USD 100,000) per year.
- 0% of the tax for profits below this threshold.
- 5% of VAT on goods and services in Dubai.
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100% repatriation on profits
You as an investor or entrepreneur can claim 100% repatriation on profits.
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100% foreign ownership
For starting a business in JAFZA, you can own 100% of ownership in most cases. Only a few businesses require a local sponsor, who holds 51% of the shares.
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Easy process
The process of business setup in Dubai is a hassle-free one compared to other free zones.
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Excellent infrastructure
Access to modern infrastructure in JAFZA boosts Dubai’s economy and the business environment.
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Access to a large market
Dubai is a business hub, and its business environment offers access to a large global market.
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Simplified visa process
The visa process is not as tough as in other nations. The number of visas you can apply for depends on your business size and activity.
How to Open a Company in Jebel Ali Free Zone?
Specific regulations with regard to licensing, registration, employment, and resolution of disputes apply to companies which are set up in Jebel Ali Free Zone Authority. The procedure involved for the company set up in JAFZA is mentioned below:.
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Choose Business Activity
You need to choose a business activity before starting a business in JAFZA.
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Get an Office Space
Acquire an office space in Jebel Ali Free Zone to commence your business.
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Select a Corporate Structure
Before starting a business in JAFZA, you must select a corporate structure. You can choose to open a branch of a local or foreign company or set up a Free Zone Establishment (FZE) or Free Zone Company (FZC/FZCO).
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Finalise Company Name
Choose an appropriate business name that abides by governmental guidelines.
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Submit Company Documents
You need to submit the required documents to the relevant authorities.
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Make the Payment
The next step involves paying the necessary fee to the authorities for the license.
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Obtain Business License
After paying the fees, collect the specific business license from the respective authority.
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Open Bank Account
For ease of doing business transactions, open a bank account in JAFZA.
Licenses Required for Companies in Jebel Ali Free Zone Authority
There are various license categories for companies in JAFZA. Let us look at them:
|
License Type |
Description |
Trading License |
It allows the license holder to import raw materials, export, distribute, and store items specified in the license, and store them in a single location. |
Service License |
It allows the license holder to carry out services like legal advisory, accountancy, and business consultancy within the free zone. The services offered must conform to the parent company’s license issued by the Department of Economic Development (DED) or Municipality of the relevant Emirate in the UAE. |
Industrial License |
It allows the license holder to import raw materials, manufacture, process, assemble, package, and export the finished products. |
National Industrial License |
It provides the license holder the same status as a local inside the UAE. It requires manufacturing companies to have a minimum of 51% shareholding or ownership of the Arabian Gulf Co-operation Council. |
General Trading Licence |
This license enables the holder to import, distribute, and store all items according to Jafza's rules and regulations. |
Innovation License |
Holding this license means companies in, JAFZA can construct frameworks dependent on creativity. |
Offshore Registration |
JAFZA Offshore company setup can be undertaken only if you have a Certificate of Incorporation. |
E-Commerce License |
JAFZA offers an e-commerce license for companies wishing to launch and set up an e-commerce business. |
Documents Required for Company Setup in Jebel Ali Free Zone
Below are the documents required to set up a business in Jebel Ali Free Zone:
- Summary of the project.
- Application form for free zone company setup.
- Passport of the selected manager, plus a copy.
- Passports of all the individual shareholders, with copies.
- Application form and letter of undertaking for Environment Health and Safety (EHS).
- No objection letter from the current sponsor of each UAE resident shareholder.
Below are the documents that you need to submit for individual shareholders, non-individual shareholders and branch offices:
|
Individual shareholder |
Non-Individual Shareholder & Branch Office |
|
Business profile of each shareholder. Manager’s specimen signature. Board resolution to set up a company. |
Certificate of Registration. Copy of Chamber of Commerce certificate (in case of a branch). JAFZA specifies and attests the manager's signature. An official letter from the parent company to set up a branch in JAFZA (in case of a branch). Attested and notarised Memorandum (MOA) and Articles of Association (AOA). |
If you, as an entrepreneur, want to form a Dubai freezone company, Commitbiz has been facilitating small and medium-sized businesses. Contact us to set up your business in Jebel Ali Free Zone Authority, and our team will gladly assist you!
When was the Jebel Ali FZ established?
The freezone was established in 1985.
Which are the most prominent companies incorporated in JAFZA?
While many companies are incorporated in JAFZA, some of the prominent ones include Exxon Mobil, General Electric, Proctor and Gamble, Nestle, Toshiba, and Rolls Royce.
What are the benefits of establishing a business in the Jebel Ali Free Zone?
The benefits are as follows:
- No paid upfront share capital requirement.
- There are no currency restrictions and flexibility for companies to transfer any required capital.
- 0% customs duties on import and re-export.
- A company established here that has built its facility has the convenience of mortgaging its premises on the leased land to any bank or financing company for any of its debts or obligations.
How can the license be extended for three years in JAFZA?
The license may be extended by businesses for three years with a land plot and sublease plant.