JAFZA Free Zone Company Setup in Dubai
Business setup in JAFZA (Jebel Ali Free Zone) offers numerous advantages for companies looking to establish a presence in Dubai. JAFZA (Jebel Ali Free Zone) is a prominent free zone in Dubai, UAE, established in 1985. It’s the largest customs bonded zone in the Middle East. It offers numerous benefits for businesses looking to set up operations in the region. JAFZA is a major contributor to Dubai’s economy, attracting 23.9% of Dubai’s Foreign Direct Investments and is strategically located near the Port of Jebel Ali. Today, Jafza proudly stands as a dynamic base for thousands of businesses from 150+ countries
What are the benefits of setting up a business in JAFZA
Setting Up a Business in JAFZA (Jebel Ali Free Zone)
Setting up a business in JAFZA offers numerous benefits for entrepreneurs and companies looking to establish a presence in Dubai. Here are the key advantages:
Tax Benefits
- 0% corporate tax for 50 years (extendable) on qualified income
- No personal income tax
- Exemption from import and re-export duties
- Out of scope from VAT in certain cases
Ownership and Financial Freedom
- 100% foreign ownership allowed
- Full repatriation of profits and capital
- No currency restrictions
Business-Friendly Environment
- Fast and straightforward company setup process, typically taking 15 to 21 business days
- Multiple company formation options (FZE, FZCO, Branch Office, Offshore)
- Ability to conduct multiple business activities under a single license
- Option to set up more than one company
Infrastructure and Location
- Strategic location near Jebel Ali Port, Dubai International Airport, and Al Maktoum Freight Airport
- Access to state-of-the-art facilities, including offices, warehouses, and showrooms
- On-site employee residences available
Visa and Employment
- Ability to obtain multiple visas, even without physical office space
- Permission to hire 100% foreign employees
Additional Benefits
- Assistance with bank account setup
- On-site customs arrangements
- Access to banking, finance, insurance, and other necessary services
- Supportive ecosystem with networking opportunities
JAFZA’s comprehensive range of benefits makes it an attractive option for businesses looking to establish a presence in Dubai and tap into the Middle Eastern market.
What types of businesses can be set up in JAFZA?
Business Types, License Types, and Industries in JAFZA (Jebel Ali Free Zone)
JAFZA (Jebel Ali Free Zone) allows for a wide range of business types to be set up within its jurisdiction. The free zone caters to various industries and offers multiple license types to accommodate different business activities:
License Types
- Trading License: For companies engaged in import, export, and distribution of goods.
- General Trading License: Allows trading in multiple product lines.
- Service License: For companies providing various services.
- Industrial License: For manufacturing and production activities.
- National Industrial License: Specifically for UAE nationals in industrial sectors.
- Logistics License: For companies involved in transportation and logistics services.
- E-Commerce License: For online retail and digital commerce businesses.
Popular Industries
- Logistics and supply chain
- E-commerce
- Petrochemicals
- Food processing
- Automotive
- Retail
- Electronics
- Construction and manufacturing
Business Activities
The free zone offers an extensive list of permitted business activities across various sectors. Some popular activities include:
- General trading
- Warehousing and distribution
- Consulting services
- Manufacturing and assembly
- Freight forwarding
- Software development
Companies in JAFZA can choose multiple business activities under a single license, providing flexibility for diverse operations.
Company Formation Types in JAFZA
JAFZA offers several company formation options to suit different business needs:
Formation Options
- Free Zone Establishment (FZE): For single shareholders.
- Free Zone Company (FZCO): For 2-50 shareholders.
- Branch of a Company: For existing companies to establish a presence in Jebel Ali Free Zone.
- Public Listed Company (PLC): Allows a company to invite the public to subscribe to its shares and must list its shares on a stock exchange in accordance with the Markets Laws.
- Offshore Company: For non-resident businesses.
With its strategic location, world-class infrastructure, and variety of business options, JAFZA continues to attract companies, making it a dynamic hub for international trade and business operations.
Facilities and Lease Options in Jebel Ali Free Zone (JAFZA)
JAFZA boasts a wide spectrum of real estate offerings tailored to various operational needs:
Co-Working & Flexi-Desks
- Shared environment for lean teams or new entrepreneurs.
- Usually limited in size but sufficient for minimal staff and 1-2 visas.
Offices
- Ranging from small units to entire floors or buildings.
- Best for companies seeking a professional business environment with ample desk space.
Warehouses & Light Industrial Units
- Pre-built structures suitable for storage, distribution, or light manufacturing.
- Typically available in diverse sizes with options for customization.
Plots of Land
- For large-scale manufacturing or custom-built facilities.
- Especially beneficial for heavy industries needing extensive space and specialized infrastructure.
On-Site Staff Accommodation
- JAFZA North & South offer thousands of rooms for worker housing within the free zone.
- Minimizes commute and simplifies workforce management.
License Categories in JAFZA
JAFZA offers a range of license categories, each detailing the permissible scope of activities. Below are the primary license types with references to the JAFZA Business Setup Guide:
Trading License
- Type 1: Up to 7 activities (same group).
- Type 2: Up to 12 activities (two groups).
- Type 3/General Trading: Multiple or unlimited activities across 3 or more groups.
Industrial License
- For manufacturing, assembling, and packaging operations.
- Mandatory requirement to lease a warehouse, land plot, or industrial unit.
Service License
- For professional services, consultancy, and specialized trades.
Logistics License
- Focuses on freight forwarding, customs brokerage, shipping, distribution, etc.
E-Commerce License
- Enables the online sale of goods/services with specialized e-commerce activities.
What is The Process for JAFZA Business Setup?
Step-by-Step Process for Setting Up a Business in JAFZA
According to JAFZA Authority guidelines, forming a company typically takes 2–14 working days, depending on business activity. The step-by-step process is as follows:
1. Preliminary Research & Activity Selection
- Confirm your intended activities align with JAFZA’s Approved Business Activity List.
- Decide on entity type (FZE, FZCO, or Branch).
2. Name Reservation & Initial Approval
- Submit 2–3 proposed names that comply with Dubai Economic Department and free zone naming criteria (e.g., no religious or offensive terms).
3. Documentation & Application
- Fill in the Application Form, EHS form, KYC, and UBO declaration (Cabinet Decision No. (58) of 2020).
- Provide supporting documents (passport copies, shareholding documents, etc.).
- For branches or corporate shareholders, attest MOA, AOA, and Board Resolutions at the UAE Embassy in the parent company’s origin country.
4. Facility Lease Agreement
- Sign a lease contract for the chosen workspace (office, warehouse, etc.).
- Pay initial rent and security deposits as required.
5. Pay Registration & License Fees
- Includes Registration fee, License fee, Establishment card fee, plus any document attestation fees.
6. Incorporation & Document Issuance
- Upon approval, JAFZA issues the Certificate of Incorporation, Business License, Share Certificates, and Memorandum (if applicable).
7. Visa Eligibility & Application
- Each 9–10 m² of leased space typically yields 1 resident visa quota.
- Follow JAFZA’s official Immigration guidelines: medical test, Emirates ID, visa stamping.
8. Open a Corporate Bank Account
- Generally requires a physical visit to the UAE.
- Present your new JAFZA company documents, business plan, and KYC forms.
What documents are required for setting up a Free Zone Company in JAFZA?
Documents Required for Setting Up a Free Zone Company in JAFZA
The documents required for setting up a Free Zone Company (FZCO) in JAFZA include:
General Requirements
- JAFZA Application Form
- Environment Health and Safety (EHS) Application Form
- Project Summary or Business Plan (limited to one page)
- Know Your Customer (KYC) Form
- Ultimate Beneficiary Owner (UBO) Form
- Appointment Letter for Director, Manager, and Secretary
- Passport Copies of shareholders, directors, manager, and secretary
- Director, Manager, or Secretary of the company must be at least 21 years old.
- Original and copy of passports for all individual shareholders
- No Objection Letter (NOC) from current sponsor for each UAE resident shareholder (if applicable)
Additional Requirements for Corporate Shareholders
- Certificate of Registration or Certificate of Good Standing (notarized and attested by UAE Embassy)
- Memorandum and Articles of Association (MOA/AOA) (notarized and attested by UAE Embassy)
- Board Resolution calling for the establishment of the company in JAFZA, detailing share capital allocation, and appointing key positions
- Power of Attorney (POA) for appointed representatives
The exact set of documents may vary slightly depending on the specific circumstances of the company formation. It is advisable to consult with JAFZA directly or work with a licensed company formation specialist to ensure all required documents are properly prepared and submitted.
Key Regulatory & Compliance Points in JAFZA
1. VAT & Customs
- As per Federal Decree-Law No. (8) of 2017 on Value Added Tax (VAT), a standard 5% VAT applies.
- For exports, VAT is 0%.
- Businesses must register with the Federal Tax Authority (FTA) if they exceed the VAT threshold and file returns monthly or quarterly.
- Customs Duty: 5% on goods entering mainland UAE from JAFZA; re-exports remain zero-rated.
2. Corporate Tax (Effective 01 June 2023)
- Under Federal Decree-Law No. 47 of 2022, the UAE introduced a 9% corporate tax.
- Registration is mandatory for all companies, and tax returns must be filed annually.
- Qualifying Free Zone Persons (QFZP): Companies in JAFZA may maintain 0% corporate tax on qualifying income if they meet conditions like economic substance, transfer pricing compliance, and other regulatory requirements.
3. Ultimate Beneficial Ownership (UBO)
- Cabinet Decision No. (58) of 2020 mandates disclosure of Ultimate Beneficial Owners (UBOs) who hold 25% or more of a company’s shares.
- Companies must submit UBO details within 15 days of incorporation or whenever ownership changes.
- UBO registers should be maintained and updated as per regulatory requirements.
Renewal, Amendments & Liquidation
- Annual Renewal
- Pay the same license fee, office lease, and establishment card cost.
- Submit Audit Report from a UAE-accredited auditor.
- Amendments
- Changes in company name, manager, or activity require official filings but usually no personal presence.
- Share Transfer: May require a personal visit or notarized Power of Attorney.
- Liquidation / Cancellation
- Duration: ~1 month
- Requires settlement of utility bills, lease termination, visa cancellations, tax de-registration, labor cancellations, and submission of original company documents.
Why Partner with Our Experts?
✅ JAFZA Offshore Registered Agent
Direct collaboration with free zone authorities ensures faster approvals.
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End-to-end advisory, from selecting licenses to managing visa quotas.
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Ongoing compliance, VAT and Corporate Tax filings, and annual auditing.
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