Pricing for - JAFZA Free Zone
About Jebel Ali Free Zone (JAFZA)
JAFZA, the oldest free zone in the UAE, was established in 1985. Currently, it is the home of over 8,600 companies from more than 100 countries, including almost 100 Fortune 500 organizations.
The free zone is very well connected, directly linked to one of the busiest ports in the world, and is just around half an hour away from two international airports.
Prices start from AED 50,000
Average business setup time: up to 4 weeks
Benefits of setting up a company in - the JAFZA Free Zone
100% Business Ownership And Capital Repatriation
- As an expatriate, you can own 100% of the company and remit all profits to your home country.
Flexible Licensing
- JAFZA issues industrial, service, and trading licenses to combine multiple activities.
Strategic Location
- JAFZA free zone is directly connected to Jebel Ali Port, one of the busiest cargo ports globally.
Customs Compliant
- JAFZA provides various customs services on-site, including re-export services for the MENA region.
Range Of Services
- JAFZA provides a range of government and business services in partnership with the Dubai government.
JAFZA Business Activities
JAFZA Free Zone is pleased to offer a variety of financial and professional business activities. Some of the most popular options include:
Consultancy
Sea Cargo Service
Tobacco Trading
All Trading Activities
Training
Manufacturing
Project Management
Hospitality Services
Freight Forwarding
Waste Management
Transport
Ship Chartering
Physical Presence Requirement
You do not have to be physically present to complete the setup process of your company.
What Is JAFZA and Why You Should Start Your Company Here?
The United Arab Emirates (UAE) has been predominantly known for its economy based on petroleum and natural gas for many years. However, with an estimated growth rate of 2.1% in the upcoming year, the UAE has become an ideal destination for investors to establish their companies.
Jebel Ali Free Zone (JAFZA) is currently one of the most sought-after locations for entrepreneurs who are interested in starting a business in the UAE. JAFZA is a free zone that offers a wide range of benefits and incentives for business owners.
If you’re planning to set up a company in JAFZA, this guide will provide you with all the necessary information you need to know about opening and registering a business in this free zone.
What Is JAFZA?
JAFZA is short for Jebel Ali Free Zone Authority and is one of the oldest free zones in Dubai. This free zone was first set up back in 1985, making it the oldest free zone in all of the United Arab Emirates.
Over the years, JAFZA has become a popular destination for business owners who want to start their business in Dubai. It offers great opportunities to investors and currently hosts thousands of business operations.
The free zone is easily accessible via the Jebel Ali Sea Port and the Al Maktoum International Airport, making it a perfect location for transporting goods and conducting operations worldwide.
Apart from these two transportation methods, the Etihad Rail is currently under construction. Once completed, the railway will link JAFZA to the rest of the Emirates, making it easier than ever to transport goods across the country.
Business Activities Allowed in JAFZA
One of the main reasons why so many investors are choosing to set up shop in JAFZA is due to the many business activities that are allowed in the area. You can choose to start a business in several different industries within the area.
Company owners that start a business in the industry may operate using two different types of licenses. Type 1 allows businesses to offer up to 7 products from the same group, while Type 2 allows businesses to offer up to 12 products from the same group.
Businesses can add activity to either type of license for AED 500.
Trading/General Trading
The trading industry includes several different activities, including:
- Agricultural activities
- Train, sea vessels, and aircraft trading
- Supplies and amusement equipment
- Paper and packaging materials
- Build materials
- Chemicals
- Electronics
- Jewellery
- Fuel and petroleum
- Equipment and machines
- Metals
- Food and beverages
- Clothing
- Motor vehicles
- Sports equipment
- Waste
- Tobacco and smoking accessories
- Exchange and financial
- Household furniture
Any of these activities are considered to fall under the trading category. That means that you can open a business no matter what you specialize in.
Service
Several activities fall under the services category in JAFZA as well. These activities include:
- Advertising
- Machinery, equipment, and repairs
- Transport, storage, and shipping services
- Banking and financial services
- Surveillance services
- Building maintenance and management services
- Cleaning services
- Car rental and transportation services
- Consulting services
- Contracting and building services
- Gas station services
- Document storage and destruction services
- Event and exhibition organization services
- Government liaison
- Food supply services
- Hospitals and recovery house services
Industrial
The third major category of activities in JAFZA is industrial activities. Businesses operating in this category can perform numerous activities, such as:
- Building materials manufacturing
- Food
- Textile and textile product manufacturing
- Glass industries
- Handicraft workshops
- Medicine manufacturing
- Vehicle manufacturing
- Rubber products manufacturing
- Wood products manufacturing
- Tobacco product manufacturing
- Meat processing
- Paper manufacturing
- Metal, petroleum, and chemical manufacturing and extraction
- Plastic Industries
- Power transmission and generation
- Technical and professional workshops
Benefits of Starting a Business in JAFZA
Easy Setup
Setting up a company in JAFZA is one of the quickest and most straightforward processes available. One of the advantages of this area is that it allows for complete repatriation of profits and capital, giving business owners more control over their company’s finances.
Additionally, businesses only need to decide on the type of establishment they wish to operate under. Once this step is complete, they can start operating in as little as 10 days after submitting the required documentation.
Multiple Visas
One of the biggest advantages of starting a business in JAFZA is that it offers three different permits without the requirement of a physical office location. This makes it convenient to get a visa.
Business owners can establish a company in the area without being physically present by utilizing the flexi-desk option provided by this free zone.
Additionally, it is very easy to sponsor dependents in this free zone. Any business owner who wants to sponsor a dependent in the area can do so without having to go through a lot of paperwork.
Tax and Currency Benefits
Several free zones impose restrictions on currency, which can make it difficult for foreign investors to establish a business. However, JAFZA does not have any currency restrictions, making it easier for international investors to start their business operations.
Additionally, JAFZA does not impose any personal or corporate income taxes, providing significant cost savings to businesses.
No Minimum Share Capital
While many free zones in the UAE require a minimum share capital for starting a business, JAFZA does not. Investors are not obligated to meet any minimum investment amount to launch their operations.
The result is that young entrepreneurs can initiate their business operations much faster than in other locations. Without the burden of any minimum startup fee requirements, they can establish a company and commence operations right away.
Location
The Jebel Ali Free Zone offers a multitude of benefits, with its location being one of the most significant. The region is home to the most advanced port and warehouse in the area, making it a prime location for businesses.
Furthermore, the area is well-connected with several transport options available, facilitating easy trade with other parts of the UAE and the world. With some of the world’s fastest connections between Asia, Russia, and Africa, businesses can reach out to a wider customer base and expand their operations globally.
Types of Company Formations Allowed in JAFZA
When establishing a business in JAFZA, you have various choices for company formation depending on the nature of your business.
Free Zone Company (FZCO)
An FZCO is a type of business formation that is quite similar to a standard Limited Liability Partnership. In this formation, the assets of the business owner are completely secured, and the liabilities are limited to those of the company.
If you are planning to establish an FZCO in JAFZA, you should note that you can have between 2 and 50 shareholders. These shareholders can be either individuals or companies.
Free Zone Establishment (FZE)
For people who wish to own a company without having shareholders, an FZE is an excellent option. These businesses only need one shareholder, which means that a sole proprietor can own the company.
One interesting aspect of FZE companies is that they can be owned by either an individual or another company. It is a suitable choice for safeguarding your assets, as the liability is limited to the assets of the company.
Branch Office
The easiest way to establish a business in JAFZA is by forming a branch office. This type of business is an extension of an existing parent company and can be set up by companies located outside JAFZA.
To establish a branch office in the Jebel Ali Free Zone, the company must fully own the branch and operate under the same name. Additionally, the branch must conduct operations of the same nature as the parent company.
Required Documentation for Registering a Business in JAFZA
You’ll need a few documents to start a free zone business in JAFZA. These documents are easy to obtain and will help you get started with your company.
The first document you will need is an application form for operation in JAFZA. You’ll also need to complete an environmental health and safety application.
Furthermore, you’ll have to write a formal description of your company’s intended activities and provide a copy of your company’s articles of association along with your business applications.
Please note that any managers, secretaries and shareholders will be required to submit copies of their passports. If you have multiple higher-ups in your company, keep this in mind.
How Much Does a Business License in JAFZA Cost?
To set up a business in JAFZA, there are a few fees you need to be aware of. The good news is that these fees are comparatively lower than other free zones in the UAE.
Firstly, you need to pay an AED 10,000 registration fee to register your business in JAFZA. Additionally, you need to pay for your license. The Type 1 license costs AED 5,500 while the Type 2 license costs AED 9,000.
Moreover, you must have an office space within the free zone. You must consider the cost of rent while planning your budget for setting up your business in JAFZA.
Finally, to start a business in JAFZA, you must obtain a visa. There are multiple fees associated with getting your visa approved that you should consider while calculating the cost of starting a company in this free zone.
How to Set Up a Business in JAFZA
Starting a business in JAFZA is a relatively simple process with minimal steps. You can start the process from anywhere in the world but will need to visit the free zone once your company documents have been issued.
The first step you need to take to open a free zone company is to choose a business name and decide on the activity you want to undertake. You will then submit this information to the relevant authority to obtain your license.
Once you receive initial approval from the authority, you can submit your documents and pay the associated fees. At this stage, you should acquire office space.
Depending on the type of business and activity you choose, you can expect the JAFZA registration process to take anywhere between two to four weeks. You can get your business up and running within 10 days of approval.
To continue operations, you will need to renew your business license every three years. However, the renewal process can be completed from outside the UAE.
How to Cancel a Business License in JAFZA
If you decide to close your business operations in JAFZA, you must either visit the UAE in person or authorize a designated individual with Power of Attorney to handle the cancellation process on your behalf.
To cancel your business, you must return the original company documents and pay a license cancellation fee, which typically costs around AED 2,000.
The liquidation process usually takes about one month to complete. Once the process is complete, the JAFZA company register will issue a certificate to confirm that the company is no longer in operation.
Launch a Company in JAFZA
JAFZA provides business owners with numerous opportunities, making it an ideal location to generate revenue and grow a successful company. Many UAE business owners are flocking to JAFZA to take advantage of the myriad benefits the area has to offer.
If you’re considering starting a business in JAFZA or any other free zone in Dubai, we are here to help. Contact our team to launch your business in the UAE today.
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