Jebel Ali Freezone Company Setup
Jebel Ali Free Zone was founded in 1985, thus it’s the oldest free zone of the United Arab Emirates. Most commonly known as JAFZA, this Free Zone hosts more than seven thousands local and foreign companies that range from several industries such as logistics firms, factories, and more.
Business owners, investors and entrepreneurs considering Company Formation in JAFZA Freezone can take advantage of the privileged location of this place to conduct business. Companies in JAFZA enjoy having a direct connection to markets around the world, and as a foreign investor, you can have the great privilege of owning 100% of your company. It’s the perfect option for businesses that want to get involved in trading activities worldwide.
Forming a company in JAFZA
Business Setup in JAFZA Freezone can be a crucial decision for foreign investors considering entering a thriving market in the UAE. Thanks to its direct access to the international airport and Jebel Ali Sea Port, JAFZA has been the preferred place for businesses that want to undertake logistics and trading activities.
The process for incorporating a company in JAFZA is pretty straightforward. You just need to gather the required documents and submit then along with your applications. Some of the documents you need are the following:
- Company registration application form
- Project Summary
- Copy of shareholders’ passports
- Trade name options
- Chosen business activity
- Leasing contract (of your office space)
Company incorporation can be done without being present in JAFZA, but once the documents are generated, shareholders must be present to sign and continue the process of submission of the application to JAFZA Authority.
JAFZA Business Activities
JAFZA is one of the most promising places to carry out lucrative activities. Since the business license allows companies to engage on several products and activities, investors can run a profitable business.
Some of the most popular business activities are the following:
- Trading (local and international)
- Import and export activities
- Logistics and distribution activities
- Manufacturing activities
- Freight Forwarding
Business Licenses for JAFZA
To start your Business in JAFZA Freezone you must first select a business license that will allow you carry out your activities legally. JAFZA Authority issues the following types of business licenses:
- General Trading License: This license allows the company to engage in trading activities such as import/export, store and distribute items according to JAFZA’s regulations.
- Trading License: the trading license enables the business to carry out trading activities according to the specifications issued in the business license.
- Industrial License: the industrial license allows businesses to engage in industrial activities like manufacturing, assembling, import raw material and any other related activity.
- Service License: with the Service License, the company can carry out professional activities in accordance with what’s issued in the license.
- National Industrial License: the National Industrial License is aimed for manufacturing companies that have a 51% or more share with an AGCC national member.
Business licenses in JAFZA have two types, and each type allows a number of activities that can be carried out under it. However, this is only applicable to Service, Trading and Industrial License.
Business license type 1 allows 7 product from the same group, while the type 2 allows 12 products.
Benefits of doing business in JAFZA
- Simple and straightforward JAFZA Freezone Company Setup process
- It’s the perfect location for businesses that want to carry out logistics, trading or distribution activities
- It’s has a quite reasonable company incorporation fee
- Foreign investors can have 100% ownership of their business
- Total repatriation of capital and profits
- There are no currency restrictions
- Direct access to the Jebel Ali Sea Port
- It’s a logistics corridor since offers sea, air, land and rail connectivity to businesses within the UAE and to international markets
- It has world-class facilities
- There are more than 150 shipping lines through the Jebel Ali Port which means an outstanding global ocean connectivity
- JAFZA offers many connections with other Emirates, making trading activities easier
- Companies can renew their license without visiting JAFZA
- Offers a single custom area
Business entities in JAFZA
Starting a business in JAFZA means that you’ll have to select one of the types of legal structures available. Here we have the business entities allowed in JAFZA:
- FZE Company: an FZE Company (Free Zone Establishment) can be formed with a single shareholder (corporate or individual).
- FZCO: an FZCO is a Free Zone Company that should be incorporated with 2 shareholders at minimum and 50 shareholders at maximum.
- Branch office: a foreign or UAE company can establish a Branch Office in JAFZA, as long as it carries out the same activities as the parent company.
JAFZA License costs
The JAFZA company setup cost is one of the most reasonable you can get in comparison with other Free Zones. This is because you can carry out several business activities depending on the type of business license you choose.
Here we have a range of the Jebel Ali free zone license cost:
- Registration fee: starts from AED10,000
- Business license type 1: starts from AED5,500
- Business license type 2: starts from AED9,000
- Add extra activity to the license: AED500
Keep in mind that the cost may vary depending on your kind of business entity, the type of license and any other additional expense you may have to pay. It’s worth comparing the setup cost in the free zone with the JAFZA offshore company cost to determine which option can be best for you.
JAFZA Innovative Facilities
JAFZA is known for its innovative and world-class facilities that allow investors to choose the perfect place to conduct businesses:
- Land plots, to build your own facility to conduct your manufacturing or trading activities.
- Warehouses and showrooms
- Offices, retail outlets and workstations
- Advanced Business Park
- Customized flexible solutions like flexi desks and development places.
In addition, JAFZA provides access to Al Maktoum International Airport, Jebel Ali Port and extensive highway connections. All of these allow the business to carry out logistics and trading activities within the UAE and internationally safely.