What is the Cost of Jebel Ali Free Zone License?

Established in the year 1985, the Jebel Ali Free Zone in Dubai is the oldest free zone in the UAE. ever since it commenced its operations, it has provided a base to more than 7,000 local as well as international corporations, including factories and logistics firms, manufacturing plants, and assembling units. Moreover, with its proximity and direct access to Jebel Ali Seaport and the Al Maktoum International Airport, it has simplified trading for the companies operating within the zone. Also, the single customs area helps in reducing cargo clearance time and costs. Hence, for these key reasons, the company setup in JAFZA can be an ideal choice for any entrepreneur willing to establish their business roots in the Arab land. 

Besides, JAFZA(Jebel Ali Free Zone Authority) is currently one of the strongest brands in the nation that stands for excellence and innovation. This article will discuss the JAFZA brand and various aspects related to acquiring this brand, such as JAFZA company registration, Jebel Ali Free Zone license cost, etc. So, let’s get into it. 

Advantages of company setup in JAFZA 

• Covers up to 12 activities under one license 
• Comprises the biggest seaport in the UAE 
• Availability of warehouses and plots of land for sale as well as lease 
• Provides retail locations outside of the free zone
• Highly recognized and reputable free zone of UAE 
• Support from local banks 
• Foreign ownership allowed 
• Zero VAT on transaction of goods 
• No restrictions on foreign currency as well as capital repatriation
• Foreign recruitment allowed 
• Zero personal and income tax 
• Multiple visa benefits even without physical office space 
• Straightforward incorporation procedure 
• Permission to hold shares in UAE free zone companies and limited liability companies
• On-site customs 
• World-class infrastructure 
• Effective communication and support system 
• Liberty to mortgage property to a bank or financing corporation 
• Business-friendly environment and policies
• Access to corporate facilities such as fully furnished offices, showrooms, business centers, etc. 
• Continuous supply of energy resources at a low cost 
• Boosting opportunities for business expansion 
• Vibrant international community 

Types of business structures available for company setup in JAFZA 

• Free Zone Establishment – The establishment of FZE requires a single shareholder, an individual, or a corporate entity. In addition, the shareholder’s liability is limited to the interests in the establishment. 
• Branch office of a company – Any company established within or outside UAE with valid registration and license can open a branch in the JAFZA zone. The branch will perform the same activity as the parent company and will also be under its full control. 
• Free Zone Company – Unlike FZE, a Free Zone Company(FZCO) can have a minimum of two and a maximum of 50 shareholders. Also, the shareholders can be individuals, corporate entities, or a combination of both. 
• Non-resident offshore company – Any individual or firm can establish an offshore company under JAFZA Companies Regulation Act 2013. It is a non-resident company, but with a corporate legal existence in JAFZA. 

Business licenses available in JAFZA 

There are various types of business licenses available in the Jebel Ali Free Zone. So, companies can choose the license according to the type of their business. 

• Industrial license 
• Trading license
• E-commerce license 
• Service license 
• National industrial license 
• Innovation license 
• Offshore registration 

Activity list for JAFZA companies 

• Trading 
• Project management 
• Waste management
• Hospitality 
• Freight and cargo services 
• Ship chartering 
• Consultancy and training 
• Manufacturing
• Transport 
• Logistics 

Facilities offered to companies in JAFZA 

Jebel Ali Free Zone authorities offer several facilities for company setup in JAFZA, such as – 

• Customized offices 
• Warehouses 
• Showrooms 
• Retail outlets 
• Plots of land
• Business parks 
• On-site residences 
• Customized development solutions, such as Flexi desks 
• Commercial complexes 

Procedure for company setup in JAFZA 

The process of company formation in Jebel Ali Free Zone is simple as well as quick. All you need to do is follow the below steps – 

• Identify the legal form of company structure 
• Select a business activity from the JAFZA list 
• Reserve a trading name and apply for approval
• Fill out the application form for JAFZA company registration as well as the preferred business license 
• Submit the relevant documents for verification 
• Pay the fees for business registration 
• Obtain final approvals 
• Sign the company registration documents at the JAFZA office
• Collect the license and other corporate documents 
• Apply for a JAFZA residence visa 
• Open a corporate bank account

Also read the post: 15 Best Small Business Ideas in Dubai for Ladies in 2022

Required documents for company setup in JAFZA 

You must prepare the following documents to establish your business in Jebel Ali Freezone: 

• Application form for registration 
• Letter of intent 
• Business plan 
• Passport and updated CV of manager/shareholders
• Annual financial report/ six months bank statement of each shareholder 
• Existing company brochure/trade license (for corporate shareholders) 
• Original reference letter from the bank 
• No Objection Certificate from the current sponsor 
• Approval from the external authorities, if required
• Trade name suggestions 
• Business activities description 
• Application for facility 
• Letter of undertaking for EHS (Environment Health and Safety) 
• Emirates ID
• Residence proof, such as utility bill 
• Entry permit/UAE visa 

JAFZA business license renewal 

The renewal process of JAFZA businesses is highly cost-effective. So, all you need to do is submit an audit report, prepared and carried out by any UAE licensed and accredited auditing company. In addition, you also need to pay the license fee, facility fee, and establishment card fee. The renewed license further stays valid for three years. 

Furthermore, the added advantage of the JAFZA license renewal process is that the physical presence of the business owner is not required in the UAE and the process can be completed through an agent. 

On the other hand, JAFZA also allows companies to make any amendments if required. Again, it can be done without making a personal visit to the JAFZA office. The amendments may include the following– 

• Change in name of the company or shareholder 
• Addition or cancellation of business activity 
• Change in managerial positions, such as manager, director, etc. 

However, if you wish to make any amendments to the transfer of the shares, then you might be required to visit the free zone. Otherwise, any individual holding a notarized Power of Attorney can achieve this task. 

JAFZA business liquidation 

Just like the renewal process, the liquidation of the JAFZA business is also straightforward and does not require the presence of the owner. Nonetheless, you need to pay the specified government fee to complete the process. 

Additionally, you also need to accomplish certain tasks, such as – 

• Cancellation of visas 
• Termination of the lease contract 
• Closure of all bank accounts 

The liquidation process might further take about a month to complete. 

Final review

The Jebel Ali Free Zone is a suitable site for particular setups, such as international trading, distribution, logistics, manufacturing, import/export, etc. Although the Jebel Ali Free Zone license cost seems higher as compared to other zones, establishing a business in JAFZA is highly prestigious. Moreover, it consists of all possible types of facilities and incentives. Therefore, it is highly recommended to consider company setup in JAFZA for your next venture. 

But before you take any crucial decisions, it is advisable to have a word with a business formation consultant before you initiate the process. The business advisors at Shuraa can help you with the same. 

Shuraa Business Setup is one of the top business consultants in the UAE. We help corporate bodies to build their foundations in different corners of the country. Furthermore, our highly experienced team will assist you in obtaining the license quickly and in a hassle-free way. So, to redeem our services, contact us at +971 44081900 or reach out to us at info@shuraa.com. We would be happy to assist you!