Under a Ruler’s Decree, Jebel Ali Free Zone, also known as JAFZA, became the first free zone in the UAE in 1985. To this day, it continues to hold the title of being the biggest free zone for Business Setup in Dubai. This free trade zone creates a long-term engagement with investors and stakeholders. It is home to almost 7,000 enterprises. This free zone has 100 Global Fortune 500 companies, and it is a hub for business innovation.
Some Interesting Facts About JAFZA Free Trade Zone:
Jafza is home to foreign investors who contributes 23,8 percent of Dubai’s GDP. Hence, it employs 135,000 people in the United Arab Emirates. In 2019, JAFZA generated $99.5 billion in trade.
It is responsible for roughly 32 percent of foreign direct investment. The JAFZA is home to many businesses that focus on international trade. JAFZA trade zone serves as a worldwide center for businesses who want to grow their operations in the Middle East and Africa markets. Therefore, it is a hub for commerce and logistics, providing unrivaled perks and incentives and exceptional customer service.
JAFZA is just a short car ride from Al Maktoum International Airport. Thus, it is an excellent choice for entrepreneurs looking to establish a company there. With us, JAFZA Company Formation is quite simple and straightforward.
It is possible to do a Business Setup in Dubai with a single shareholder and numerous owners. The following kinds of company formations are eligible for incorporation in JAFZA depending on the number of shareholders.
As a result, it is best to investigate which kind of structure would be appropriate for the company’s headquarters. Hence, you can contact a Business Setup Consultant in Dubai to understand the company structure and wide network throughout Dubai.
Some Facts about Free Zones in Dubai:
A company is known as a Free Zone Establishment (“FZE”) if it has just one stakeholder. And that shareholder might be a person or a corporation. Hence, a “Free Zone Company” may have anywhere from two to fifty shareholders. In its most basic form, it is a limited liability partnership, with the company’s liabilities restricted to the amount of paid-up capital. Shareholders may consist entirely of persons, corporations, or a combination of the two in whatever proportion they see fit. Therefore, investors can have branch offices for already-established enterprises, whether such companies are operating locally or internationally.
Business Licenses Available
- Trading and General Trading License – This license makes it possible to import, export, distribute, store, and sell certain items inside the marketplace of the UAE. Hence, the companies that deal in a wide variety of goods, except those that are expressly forbidden by law, are eligible for extra leeway under the terms of a broad trade license.
- Professional / Services License – An investor or company needs a services license to carry out the authorities’ services listed in the license.
- Industrial License: A company must have a valid industrial license to carry out any manufacturing-related activity. Therefore, the license holder can import raw materials, then produce, process, assemble, and package the finished product before exporting it.
- The National Industrial License is for businesses that deal in manufacturing. Hence, the AGCC (Arabian Gulf Co-operation Council) requires that such manufacturing enterprises have a minimum of 51 percent sharing or ownership with AGCC (Arabian Gulf Co-operation Council) nationals or residents. Hence, the bearer of the license will have the same rights and responsibilities inside the UAE as a local citizen.
Other Licenses by JAFZA
The following is a list of the special licenses that JAFZA may issue to certain types of businesses:
- Innovation License — This is necessary if the activities include researching and inventing new items.
- E-Commerce License — This is a kind of trade license that is primarily for the trading of goods through the internet.
- National Industrial License: A company must have a UAE national as its only shareholder to be eligible for this license.
- Offshore Registration: This is a new license given to business owners who want to start an offshore company in JAFZA.
Advantages of JAFZA Business Setup
- Foreign ownership of 100 percent of the business
- Zero percent value-added tax on the sale of products between businesses in designated zones inside the Jebel Ali Free Zone and businesses outside of the United Arab Emirates
- Repatriation of capital is not subject to any restrictions.
- There are no limitations on workers or professionals from other countries.
- At a tax rate of 0% on either personal or business income,
- There are no monetary controls in place.
- The ability to get several visas despite the absence of a real office place
- An incorporation procedure that is easy to understand
- Capable of holding shares in free zone firms and limited liability corporations in the UAE
- On-site customs
- An infrastructure, support systems, and communications that are on par with the best in the world
- Authorization to provide a mortgage on your property to a financial institution such as a bank or a financing company
- Warehouses and factories that are ready to be occupied
Requirements for Setting up a Company in JAFZA
- Brochure of the existing company
- Application Form
- Letter of Intent for Incorporating a Jafza Company (if available)
- An annual financial report or shareholder(s) bank statement covering the previous six months is not eligible for new registration unless both are provided.
- A photocopy of the manager’s passport as well as his curriculum vitae
- A photocopy of each shareholder’s passport and curriculum vitae
- Original bank reference letter (for each shareholder)
- A letter stating that the present sponsor has no objections to the management (if a resident of UAE and UAE employment visa-holder)
- A plan for the company
- A representation in court, if there is one.
- Provisional authorization from the third authority for a limited number of commercial endeavors
JAFZA’s Business Solutions
JAFZA company formation comes with a wide range of commercial facilities. Each of which is suitable to meet the requirements of any enterprise.
- Housing facilities on-site for staff members to use as accommodations
- Jafza One is a commercial complex offering panoramic views over JAFZA, Jebel Ali Port, Sheik Zayed Road, and Palm Jebel Ali. Hence, the facility is also home to various offices that are available for rent.
- Customizable Development solutions provide investors more leeway and help them save time and money when developing and delivering built-to-fit facilities.
- Individual Parcels of Land
- Places of Employment
- Storefronts and Commercial Outlets
When deciding whether or not to incorporate the company, the following expenses need to be taken into consideration:
- Trading Licensing: The license price is AED 5,500, and you may sell no more than seven items from a single group. The licensing cost is AED 9,000.00, and it covers a maximum of 12 items from each of the two classes.
- License for General Trading: 30,000 Emirati Dirhams
- The Service License for a branch of a company headquartered in the UAE costs AED 8,000.00
- Industrial Licensing: The license charge is AED 5,500, and you may sell no more than seven items from the same group. Hence, the licensing cost is AED 9,000.00, and it covers a maximum of 12 items from each of the two classes.
- FZCo – 15,000.00 AED;
- FZE – 10,000.00 AED;
- Branch of a Company – 5,000.00 AED
- An additional cost of AED 200 per type of company for the attestation of the MOA and AOA, and AED 200 for the board resolution. Hence, AED 50 is needed for each shareholder and designated company representative to provide a specimen signature.
The number of available visas is proportional to the office’s headcount. Hence, one (1) visa eligibility requires a minimum of nine (9) square feet of space.
- The cost of an office in the business park goes anywhere from AED 23,000 to AED 30,000 per office.
- The price of an office in one of the other Jafza buildings might vary from 2,000 to 2,500 AED per square meter.
- Showroom prices vary from AED 700 per square meter to AED 1,000 per square meter.
- Prices for warehouses and industrial units range from AED 25.00 to AED 600 per square meter in the United Arab Emirates.
- The pricing of retail spaces and outlets is available from JAFZA upon request.
All fees are subject to an extra value-added tax (VAT) of 5% and do not include any costs related to obtaining authorization from a third party if this is necessary. Hence, you can simply contact a Business Setup Consultant in Dubai to get things done in no time.
For the company to be able to register with the Residency Department, the company must possess an establishment card. Hence, contacting a business setup professional can help you with the establishment card in less time.
The duration of stay on the JAFZA resident visa is three years. Therefore, the applicant’s present location status determines the fee for each visa. Hence, it is regardless of whether the application process is within or outside the UAE.
In JAFZA, an Employment Visa Guarantee Deposit is also necessary. The cost of this deposit should be on top of the visa cost. Hence, a medical examination and an Emirates ID application are also mandatory when calculating the overall fees.
Hence, get the right guidance in JAFZA company formation from professionals. Whether you need help with Visa processing or need end-to-end help with business setup in Dubai, business consultants can help.