Set up your business in JAFZA Jebel Ali Free Zone Dubai UAE

The Jebel Ali Free Zone, often referred to as JAFZA, has long served as a global hub for logistics and commerce. The process of establishing a company in this thriving free zone depends on the number of shareholders and the type of business you intend to start. For anyone considering a business setup in JAFZA, obtaining the best services is essential.

In this article, you will learn everything about setting up a business in JAFZA Jebel Ali Free Zone Dubai UAE. You’ll discover what this free zone offers and the requirements for opening your company there. Let’s explore:

• Introduction to (JAFZA) Jebel Ali Free Zone Dubai UAE
• Benefits of Setting Up a Business in JAFZA
• Available Licenses for JAFZA Company Registration
• Requirements for Starting a Business in JAFZA
• How to Register a Company in JAFZA
• Documents Required for JAFZA Company Registration
• Stages for Setting Up a Company in JAFZA
• Forming a Company in JAFZA: Key Points to Know
• How Alfa Zone Can Help You with Your Business Setup in JAFZA

A brief introduction to JAFZA Jebel Ali Free Zone

JAFZA Jebel Ali Free Zone Dubai UAE: A Premier Business Hub

The Jebel Ali Free Zone (JAFZA) is a prominent free economic zone situated in the Jebel Ali district of Dubai, UAE, near Abu Dhabi. Established by a Ruler’s Decree, JAFZA commenced operations in 1985 with standard-sized office units and warehouses to provide clients with ready-to-use facilities.

Over the years, JAFZA expanded its facilities to include light industrial units in 1990. It has grown to become the largest free zone in the world, strategically located on both sides of Sheikh Zayed Road. JAFZA is easily accessible by road and via the Danube and UAE Exchange stations on the Dubai Metro Red Line.

JAFZA’s Global Reach and Economic Impact

JAFZA is home to nearly 7,000 international companies, including approximately 100 of the Fortune Global 500 firms. This concentration of major corporations highlights JAFZA’s significance as a global business hub. The free zone attracts around 32% of the UAE’s total Foreign Direct Investment (FDI) inflows, showcasing its vital role in the nation’s economy.

Contribution to Dubai’s Economy

JAFZA contributes 21% of Dubai’s GDP annually and provides employment to over 144,000 people in the UAE. In 2015 alone, JAFZA generated $87.6 billion in trade. These figures underscore the free zone’s substantial impact on both local and national economic landscapes.

Benefits of setting up a business in JAZFA Jebel Ali Free Zone Dubai?

Exemptions and Incentives for Foreign Enterprises in JAFZA Jebel Ali Free Zone Dubai UAE

Foreign enterprises operating in the Jebel Ali Free Zone (JAFZA) benefit from a range of exemptions and incentives, making it a prime location for businesses, particularly those involved in exporting. Here are some of the key advantages available to international investors:

1. Complete Control of a Company
   Foreign investors can enjoy full ownership and control over their businesses in JAFZA Jebel Ali Free Zone Dubai UAE.
2. Easy Business Setup Process
   Establishing a business in JAFZA is straightforward, uncomplicated, and quick. The owner simply decides the type of business they want to create, completes the necessary paperwork, and can start business activities within 10 days.
3. Multiple Visas Without Office Space
   JAFZA allows businesses to obtain up to three permits without the need for physical office space, offering flexibility and cost savings.
4. Full Repatriation of Profits and Capital
   Businesses in JAFZA can repatriate all profits and capital, ensuring a straightforward business registration process and financial freedom.
5. No Minimum Share Capital Requirement
   There is no minimum share capital required to establish a corporation in JAFZA Jebel Ali Free Zone, lowering the entry barriers for new businesses.
6. Limited Liability
   Shareholders’ liability is limited to the amount of capital invested in the firm, protecting personal assets.
7. Tax Benefits
   There are no business income taxes in JAFZA, providing significant tax savings for companies.
8. No Currency Restrictions
   JAFZA imposes no monetary restrictions, allowing for free movement of funds.
9. Easy Sponsorship for Dependents
   It is simple to sponsor dependents, making it easier for business owners and employees to relocate their families.

Strategic Location and Infrastructure

JAFZA’s strategic location and advanced infrastructure are major selling points. The free zone boasts one of the most modern warehousing facilities in the region and the most developed port. Its well-developed transportation infrastructure makes JAFZA a preferred choice for large companies engaged in global trade. The location provides the quickest connection to shipments from Asia, Africa, the Russian Commonwealth (CIS), and other regions, enhancing trade efficiency and connectivity.

Available Licenses for JAFZA Company Registration

JAFZA Jebel Ali Free Zone Dubai UAE offers five types of business formations, enabling companies to connect directly to a market of over 3.5 billion people. The type of entity formed in JAFZA is determined by the number of shareholders. Additionally, businesses must decide on the type of license and the specific activities they will engage in. The license activity is a predetermined business activity that is legally allowed as part of your business operations.

Types of Business Formations in JAFZA

1. Free Zone Establishment (FZE)
   For a single shareholder entity.
2. Free Zone Company (FZCO)
   For a multi-shareholder entity with 2 to 50 shareholders.
3. Public Listed Company (PLC)
   Suitable for companies planning to offer shares to the public.
4. Branch of a Company
   Allows an existing company to open a branch in JAFZA.
5. Offshore Company
   For businesses looking to establish an offshore presence.

License Types Available in JAFZA

1. Trading License
   Allows trade in physical goods.
2. Service License
   Permits the provision of services only.
3. Industrial License
   Allows the owner to import raw materials, manufacture products, and exhibit the finished product in other countries.
4. Logistics License
   Enables specified logistics services and supply chain activities.
5. E-commerce License
   Facilitates the buying and selling of goods and services over electronic networks via any electronic means.

Requirements for Starting a Business in JAFZA Jebel Ali Free Zone Dubai UAE

Starting a business in JAFZA Jebel Ali Free Zone Dubai UAE is a straightforward process, but there are specific prerequisites that you must be aware of before proceeding. Here’s a comprehensive overview of the requirements for forming a company in JAFZA:

Shareholder Requirements

1. Free Zone Corporation (FZCO)
   Must have between two to five shareholders.
2. Free Zone Establishment (FZE)
   Requires only one shareholder.
3. Branch Offices
   Foreign enterprises looking to expand in Dubai can open branch offices in JAFZA.

General Requirements

1. Business Plan
   A detailed business plan outlining the intended business activities and objectives.
2. Shareholder Information
   Information about the shareholders, including identification documents and proof of address.
3. Initial Capital
   Although there is no minimum share capital requirement, shareholders’ liability is limited to the amount of capital invested in the firm.
4. Office Space
   While JAFZA allows multiple visas without committing to physical office space, selecting appropriate office or warehouse facilities is necessary for certain business activities.
5. License Type and Business Activity
   Decide on the type of license (e.g., Trading, Service, Industrial, Logistics, E-commerce) and the specific business activities to be undertaken.
6. Application and Documentation
   Complete and submit the necessary application forms along with supporting documents, such as passport copies, business plan, and bank reference letters.

How to Register a Company in JAFZA Jebel Ali Free Zone Dubai UAE

Registering a company in JAFZA Jebel Ali Free Zone Dubai UAE is a streamlined process overseen by the Jebel Ali Free Zone Authority (JAFZA), which is the regulatory agency responsible for approving company registrations in the free zone. Follow these clear and uncomplicated steps to register your company:

1. Choose a Company Name
   Select a unique and appropriate name for your company, ensuring it complies with JAFZA’s naming conventions and regulations.
2. Decide on a Company Activity
   Determine the business activities your company will engage in, as this will be essential for obtaining the appropriate license. The activity should align with one of the available license types (e.g., Trading, Service, Industrial, Logistics, E-commerce).
3. Obtain Preliminary Approval
   Submit your company name and business activity for preliminary approval from the Jebel Ali Free Zone Authority. This step ensures that your proposed business activities are permissible and your company name is available.
4. Submit Documents and Pay Fees
   Prepare and submit the required documents to JAFZA, including:
   Completed application form
   Passport copies of shareholders and directors
   Proof of address for shareholders
   Business plan
   Bank reference letter
   Pay the applicable registration and licensing fees.
5. Obtain an Office Space
   Secure a suitable office space or warehouse within JAFZA. While JAFZA allows for multiple visas without requiring physical office space, certain business activities may necessitate having a physical location.

Required Documents for JAFZA Company Registration

Establishing a business in JAFZA Jebel Ali Free Zone Dubai UAE requires specific documentation. While the exact requirements can vary depending on the chosen company format, the following documents are generally required for all businesses:

1. Application Form for Setting Up a Business in JAFZA
   This form provides essential details about your business and its operations.
2. Application Form for Environmental Health and Safety
   This form ensures that your business complies with JAFZA’s environmental and safety regulations.
3. Copies of Passports
   Provide copies of the passports of all shareholders, managers, and secretaries involved in the business.
4. Summary of the Company’s Operations
   A brief overview of the business activities your company will engage in within JAFZA.
5. Articles of Incorporation
   The company’s articles of incorporation, outlining the legal structure and governance of the business.

Additional Documents (If Applicable)

Depending on the type of business and specific requirements, you may also need to provide additional documents, such as:

• Proof of Address
  Address verification documents for all shareholders.
• Business Plan
  A detailed business plan describing the objectives, strategies, and operational plans of the company.
• Bank Reference Letter
  A reference letter from the shareholders’ bank.

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Stages for Setting Up a Company in JAFZA Jebel Ali Free Zone Dubai UAE

Setting up a company in JAFZA Jebel Ali Free Zone involves several key stages. Here’s a comprehensive guide to the process:

Stage 1: Establish the Legal Entity

First, you must determine the type of legal entity for your business. The primary forms of company formation in JAFZA include:

• Company with Multiple Shareholders
  Consists of 2 to 50 shareholders, which can be individuals or entities.
• Company with a Single Shareholder (Free Zone Establishment)
  Registered by a single individual or commercial entity, this entity operates independently of its shareholders and enjoys similar rights to a natural person.
• Existing Commercial Entity
  Allows a company with a branch outside JAFZA to open a branch within the Free Zone. This branch is considered a legal entity of the parent company.

Stage 2: Choose a Trading Name

Select a trading name for your business. Ensure the name complies with JAFZA’s regulations by:

• Checking Availability: Verify that the desired name has not been previously registered.
• Compliance: Ensure the name does not compromise public morality or national policy, aligns with the company’s legal form, and corresponds to the type of activity.

Stage 3: Apply for a License

Depending on your business activities, apply for the appropriate license from JAFZA:

• Trading License
  Allows for the import, export, distribution, and storage of products mentioned in the license.
• Service License
  Permits the provision of services specified in the license within the Free Zone.
• Industrial License
  Enables the import of raw materials, manufacture of goods, and export of finished products.

Stage 4: Select an Office Location

Choose an office space and secure a rental contract. This step is crucial and may be facilitated by real estate services, which can assist you in finding and securing suitable office space.

Stage 5: Obtain Pre-approvals and Complete Registrations

• Initial Approval
  Obtain an initial approval certificate to proceed with the business license application and legal procedures.
• Business Registration
  Register your business name and pay the associated registration fees.
• Licensing and Visa Applications
  Submit all required documents to receive your business license. Visa processing for employees and stakeholders will also commence at this stage.

6. Forming a Company in JAFZA: What You Need to Know

• Shareholders
  At least one shareholder is required, whether an individual or a corporation. Regular shareholder meetings should be held, with minutes kept of all proceedings.
• Directors
  A minimum of two directors is required. Their personal information is not public, and they are appointed by shareholders for a specified period. In cases of death or resignation, a shareholder resolution can appoint a new director.
• Secretary
  Every company must appoint a secretary, selected by shareholders for a defined term.
• Annual Accounts and Audits
  Companies must maintain annual accounts, which should be kept for at least one year from their preparation date. Regular audits are also required.

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