The United Arab Emirates ( UAE) has expanded considerably in all directions, from the oil field to the non-oil market. International expats know the country as one of the biggest business centers since it maintains several free trade zones. The Jebel Ali Free Trade Zone (JAFZA) is one such free trade zone. After its establishment, this free trade zone has been identified as a significant opportunity as it provides numerous types and licenses of company formation.
Jebel Ali Free Zone
The Jebel Ali Free Zone was formed in 1985, is located at the far western end of Dubai, and acts as a major trade and logistics center after making a significant shift in the growth record of 294.5 billion Dh, which lifted 17 percent of the non-oil industries. The founding of a business in the Jebel Ali Free Zone is a massive opportunity for companies to develop their roots. The zone has served as a platform for multinational logistics and trade locations down the line of its formation. Company incorporation in Jebel Ali Free Zone depends on the number of shareholders and the enterprise’s existence.
Different Types of License in Jebel Ali Free Zone
Now, let's look at the various types of trade licenses that you can secure in the Jebel Ali Free Zone, based on your market type.
1. Industrial License
This license is provided to business companies engaged in the manufacture or production of various goods.
2. Service License
This license is intended for the operation of legitimate activities and technical activities in the JAFZA region. Any individual who wants to establish up a company in this domain must have a Service License.
3.National Industry License
Companies, where the UAE government has purchased more than 51 percent of equity, need to provide a national industrial license.
Dubai is known as a creative city. The city has centered on corporate organizations that construct frameworks dependent on creativity. Holding this in mind, JAFZA provides licenses that these businesses need to keep for creativity.
Offshore registration can be undertaken only when an existing Limited Liability Company comes into the picture. It is not mandated to have a license, but a Certificate of Incorporation is a must.
Companies preparing to go on with the JAFZA Zone trading company must possess a trading license.
7. E-Commerce License
JAFZA offers an e-commerce license for business companies that wish to launch and set up an e-commerce business because the idea of E-Business has been flourishing around the world.
Thus, to establish a business in JAFZA, you have seen the various types of licenses that can be issued. Moving on, let's look at the relevant paperwork and costs involved throughout the issuance of these licenses.
Steps to Obtain a License in Jebel Ali Free
- Fill up the application form.
- After the approval of the proposal, the authority may grant an initial business license to the firm.
- Select a ready-fitted office room from the JAFZA range.
- The lease papers are issued after the contract is finalized.
- After the office allocation process is finished, legal documents for company registration should be completed.
- Send the same to the authority for free zones.
- The license will be released within 2-4 weeks.
- Start the bank account opening procedure.
Documents Required to Acquire a License in Jebel Ali Free Zone
The following are the essentials that must be sent to begin the process of obtaining a license from JAFZA:
- Application for facilities
- Passports of Investors and Managers
- Bank benchmark of each person
- Description of Project
- Profile of the parent business (in the case of a branch company)
- Registration Application for a Free Zone Business (FZCO)
- Requisite for Free Zone Establishment (FZE) Registration
- A non-refundable investment amounting to Dh 500
Steps to Renew License in Jebel Ali Free Zone
- The renewal of the Jebel Ali free zone license costs the same as a JAFZA corporation’s registration.
- It is possible to renovate the business without entering the Jebel Ali free zone.
- At the time of business renewal, you need to include the company's audit report. An audit may be carried out by any auditing firm authorized and approved by the UAE.
- For businesses with a land plot and sublease plant, the license may be extended for three years.
In brief, we can say that one of the best destinations for business organizations is JAFZA. The companies have the right, due to their company intent, to acquire the license. It is good to have a word with a contractor to obtain your claim in a foreign land before you finally start the process of starting up your business.
We at Commitbiz are helping you to do the same. We are one of the top UAE business consultants who support business organizations to develop their foundations in various corners of the globe. Accounting, payroll, legal, and immigration programs are our primary operations. Our team of experts will help you obtain a license in a hassle-free way. To get a suitable permit for your business, do contact us – we’d be happy to assist.