Your Guide to Business in Jebel Ali Free Zone

sakinaburhan April 26, 2022

0 1,061 5 minutes read

Dubai has many freezones which accommodate various industry sectors that specialize in different services. These zones offer innumerable benefits to start-ups and foreign companies. Therefore, UAE freezones always remain on the top of the list of investors willing to start their business in this Arab land. Likewise, Jebel Ali Free Zone is one such ideal choice for budding entrepreneurs. Business in Jebel Ali Free Zone operates under the independent authority of the freezone.

The regulatory authority of JAFZA supervises the activities of all the companies established in the region and accordingly issues operating licenses as well. Additionally, it has served as a worldwide logistics and commerce hub for a long time. This article will serve you with the best information about the Jebel Ali Free Zone, the business setup process and requirements, Jebel Ali free zone visa cost and licensing, and other relevant details.

Jebel Ali Free Zone (JAFZA)

Jebel Ali Free Zone was established in the year 1985, and hence, is one of the oldest freezones in Dubai, UAE. It accommodates over 7000 domestic and foreign companies, which includes trading firms, manufacturing plants, factories, and storage units. Thus, it is well known for being one of the largest business networks in the Middle East. Also, it is a well-known global hub for trade and production.

With its legacy and world-class infrastructure, JAFZA assures phenomenal growth to the businesses and attracts more investments and attention from the budding investors. At present status, over 20% of foreign investment and 50% of overall exports come from the Jebel Ali Free Zone in Dubai. These statistics, thus, indicate its tremendous significance in the competitive market center.

Categories of JAFZA company setup

Free Zone Establishment (FZE) – This establishment can be formed with a single shareholder, be it an individual or a corporate entity.
Branch Office of a Company – A branch is a sub-division of an established company. Besides, the parent company controls the activities and events of the branch company. A company can open its branch in JAFZA with valid registration and license.
Free Zone Company (FZCO) – This establishment can be formed with multiple shareholders, minimum of two and a maximum of fifty. The shareholders can be individuals or companies or both.
Special Status Non-Resident Offshore Company – As per JAFZA Companies Regulations Act 2013, any individual or corporate can establish an offshore business with a corporate legal status of non-resident.

Therefore, if you are planning to set up your business in JAFZA, you can contact our team of Shuraa who can guide you with an easy and convenient formation of business in Jebel Ali Free Zone.

Benefits of establishing a business in Jebel Ali Free Zone

Several exemptions and incentives are provided to the foreign companies that operate in JAFZA. Therefore, most of the businesses in the region are involved in trading activities. Apart from that, companies in JAFZA get to benefit from the below provisions:

Full ownership of the business
No inclusion of UAE sponsors or partners
Exemptions from corporate and personal taxes
No restriction on foreign currency
Exemption from trade tariffs
No restriction on hiring foreign employees
Complete repatriation of UAE-earned profits
Freedom to choose up to 12 business activities under one license
Geographical positioning, nearby seaports, and international airports
Availability of warehouses and lands for trading activities
Full assistance by local banks to open a corporate account
Time-saving, cost-efficient, and also uncomplicated incorporation procedure
Easy access to resident visas
No requirement for physical offices to apply for permits and visas
Availability of a good support system, brilliant infrastructure, as well as excellent communication
Affordable and reliable supply of energy resources, such as electricity
Liberty to hold shares in LLC and other companies in UAE freezones
Business-friendly environment and regulations
Presence of fully furnished office spaces, business centers, showrooms, etc.
Freedom from VAT (Value-added Tax)
No minimum share capital required
Shareholder’s liability limited to the invested amount
Easy to sponsor visas for family and employees

For trading companies, Jebel Ali Free Zone is a perfect choice with its most modern warehousing facilities, most developed port, and also well-developed transportation infrastructure. It facilitates regular trade with other countries and also provides the quickest connection to shipments from them as well.

Also read the post: How to do Product Registration in Dubai Municipality?

Licenses available for business in Jebel Ali Free Zone

There are a variety of licenses available for businesses in JAFZA. For instance,

General trading license – Permits to import, distribute, and store all products as per JAFZA’s laws and regulations.
Industrial license – This allows the company to import raw materials, produce specified items, as well as export the final product to any nation.
Trading license – The holder can import, export, distribute, as well as store the products specified in the license.
Service license – This allows the holder to deliver the services specified in the license.
National industrial license – This license is issued to those manufacturing companies that have at least 51% ownership or shareholding with AGCC (Arabian Gulf Co-operation Council) nationals/natives. Hence, with this license, the company can have the same status as a local or AGCC within the UAE.

Steps to register a business in Jebel Ali Free Zone

The process to start a business in JAFZA is as easy and quick. The Jebel Ali Free zone Authority is in charge of the company registrations in the region. The procedure for the same is as follows –

Determine the type of business structure you want to set up
Choose a suitable trading name
Fill out the application form for the license you require for your business
Submit the relevant documents to the JAFZA authorities
Pay the requested amount/fee
Get the final approvals from the authorities
Obtain the business license

The whole application and approval process takes two to five weeks to complete. Once you acquire your license, you are free to commence your business operations.

Documents required for JAFZA company registration

While registering the company in JAFZA, the applicant must be sure about the documents they are submitting to the authorities as minor negligence can lead to major consequences. Therefore, the applicant must properly check and verify all the documents before proceeding with the documentation.

The general documents included in the registration process are as follows –

Passport copies of the owner/shareholders
Updated CV of the owner/shareholders
Application form
Original reference letter from the bank
Bank statement for the past six months
No Objection Certificate (NOC) from the UAE local agent
Business plan/summary of the project
Trading name registration certificate/approval from the authorities
Application form for Environmental Health and Safety (EHS)
Articles of Association (AOA)

Connect with Shuraa Business Setup

Being an experienced company, Shuraa Business Setup can give you the best services for establishing your business in Jebel Ali Free Zone. In addition, we will assist you in every step, from handling all the procedures to turning your business idea into a real operating venture. Moreover, our experts at Shuraa have strong connections with the UAE authorities and government agencies that can help you manage the legal and documentation matters conveniently. To sum up, Shuraa team helps small, medium, and large business entities in setting up and expanding their business in the United Arab Emirates.

To get further information on JAFZA license packages and Jebel Ali free zone visa cost, contact Shuraa at +971 44081900. Also, share your business-related queries at info@shuraa.com or our Whatsapp number at +971 50 777 5554.