25 October, 2023

Jafza Free Zone : Business Setup, License & Steps Involved

jafza free zone business setup

What is JAFZA FREE ZONE 

JAFZA Free Zone, or the Jebel Ali Free Zone, is a thriving business hub located in Dubai, United Arab Emirates. Established in 1985, it offers a tax-friendly environment for companies to operate, promoting international trade and investment. With state-of-the-art infrastructure, JAFZA provides a range of business solutions, from warehousing to office spaces, and is known for its strategic location near the world-class Jebel Ali Port. Businesses in JAFZA enjoy numerous benefits, including 100% foreign ownership, zero import and export duties, and easy access to global markets. This dynamic free zone is a preferred choice for entrepreneurs seeking growth and expansion opportunities in the Middle East.

 

What are Facilities available in JAFZA FREE ZONE

  1. Warehousing Solutions:
  • Modern and secure warehouses.
  • Flexible storage options for businesses of all sizes.

2. Office Spaces:

  • Cutting-edge office facilities.
  • A range of office sizes and configurations.

3. Industrial Units:

  • Specialized units for manufacturing and production.
  • Infrastructure tailored to industrial needs.

4. Strategic Location:

  • Close proximity to Jebel Ali Port for global trade access.
  • Efficient transportation networks for seamless logistics.

5. Business Benefits:

  • 100% foreign ownership for international investors.
  • Zero import and export duties, reducing operational costs.
  • Full repatriation of profits.

6. Comprehensive Infrastructure:

  • Robust logistics support.
  • Customs services for easy clearance.
  • State-of-the-art communication and utility services.

7. Supportive Ecosystem:

  • Regulatory environment conducive to business growth.
  • Streamlined administrative processes for efficiency.

 

Types of Company in JAFZA Free Zone

  1. Free Zone Company (FZCO):
  • Offers flexibility in terms of shareholding structure.
  • Allows one or more shareholders.
  • Ideal for small to medium-sized businesses.

2. Free Zone Establishment (FZE):

  • Suited for a single shareholder, whether an individual or a corporate entity.
  • Provides complete control over the business.

3. Branch of a Foreign Company:

  • Allows international companies to extend their presence to JAFZA.
  • Retains a separate legal identity from the parent company.

4. National Industrial License (NIL):

  • For companies involved in manufacturing or industrial activities.
  • Enables businesses to benefit from the UAE’s strong industrial infrastructure.

5. General Trading License:

  • Allows companies to engage in a wide range of trading activities.
  • Suitable for businesses focused on import and export.

6. Service License:

  • Designed for businesses offering services, consultancy, or professional services.
  • Provides a platform for a broad spectrum of service providers.

7. eCommerce License:

  • Tailored for online businesses, including retailers and e-commerce platforms.
  • Supports the growing digital economy.

8. Offshore Company:

  • For non-resident investors looking for international asset protection and wealth management.

 

List of JAFZA Licenses AND Activities

 

1. Trading Licenses:

General Trading License: Allows import, export, and trading activities.

Specific Trading License: Tailored for specialized product categories.

 

2. Industrial Licenses:

National Industrial License (NIL): For manufacturing and industrial enterprises.

General Industrial License: Covers a wide range of industrial activities.

 

3. Service Licenses:

Service License: For businesses offering professional and consultancy services.

Commercial Service License: Suitable for commercial service providers.

 

4. eCommerce Licenses:

eCommerce License: Designed for online businesses, including e-commerce platforms.

ePayment Gateway License: Facilitates online payment processing.

 

5. Offshore Licenses:

Offshore Company License: Ideal for non-resident investors for asset protection and wealth management.

 

6. Financial Licenses:

Banking License: Permits banking activities within the free zone.

Financial Consultancy License: Enables financial advisory services.

 

7. Industrial and Logistics Activities:

Warehousing and Distribution Activities.

Manufacturing and Assembly Operations.

 

8. Retail Activities:

Retail of General Consumer Goods.

Luxury and Fashion Retail.

 

9. Energy and Environment:

Renewable Energy Equipment Manufacturing.

Environmental Consultancy.

 

10. Media and Entertainment:

Media Production and Distribution.

Events Management and Promotion.

 

Cost of JAFZA License

The cost of a JAFZA license varies depending on the type of license and the specific activities your business intends to undertake. JAFZA offers competitive pricing to accommodate a diverse range of businesses. Licensing fees may include application fees, registration charges, and annual renewal costs, which can be influenced by factors such as company size and chosen business activities. It’s essential to consult with JAFZA directly or a business advisor for precise cost details tailored to your company’s needs, ensuring a transparent and cost-effective licensing process.

 

Benefits of starting Business in Jafza

 

  1. Tax Benefits: JAFZA provides a tax-efficient environment with zero import and export duties, offering substantial cost savings for businesses.
  2. 100% Foreign Ownership: Foreign investors can retain full ownership of their businesses, eliminating the need for a local partner.
  3. Strategic Location: Situated near the Jebel Ali Port, one of the world’s largest container ports, JAFZA provides easy access to global markets, facilitating international trade.
  4. World-Class Infrastructure: State-of-the-art facilities, including modern warehouses and office spaces, ensure that your business operates efficiently.
  5. Simplified Setup: JAFZA streamlines administrative procedures, reducing bureaucratic hurdles and expediting the company formation process.
  6. Diverse License Options: JAFZA offers a range of licenses tailored to different business activities, accommodating various industries.
  7. Access to a Vibrant Business Ecosystem: Your business can thrive alongside global industry leaders, fostering collaboration and growth opportunities.
  8. Legal Protections: The legal framework in JAFZA offers security and protection for investors.
  9. International Recognition: JAFZA is renowned globally, enhancing the credibility of businesses operating within its jurisdiction.
  10. Supportive Regulatory Environment: JAFZA authorities work to facilitate the success of businesses, providing a welcoming atmosphere for entrepreneurs.

 

How to Start Business in JAFZA

  1. Market Research: Begin with thorough market research to understand your industry, competition, and potential opportunities within JAFZA.
  2. Business Plan: Develop a comprehensive business plan that outlines your goals, budget, and operational strategies.
  3. Choose Your Business Activity: Select the appropriate business activity and license type that suits your venture.
  4. Legal Structure: Decide on your company’s legal structure, such as Free Zone Company (FZCO), Free Zone Establishment (FZE), or a branch of a foreign company.
  5. Name and Activity Approval: Register your company name and obtain approval for your business activities from JAFZA authorities.
  6. License Application: Submit your license application, along with the necessary documents, to the JAFZA authorities.
  7. Office/Warehouse Space: Secure an office or warehouse space within JAFZA based on your business requirements.
  8. Visa Applications: Apply for the required number of visas for your employees and shareholders.
  9. Bank Account: Open a business bank account with a UAE bank to manage your finances.
  10. Registration: Once your license is issued, complete the registration process, and you’re ready to start your business operations in JAFZA.

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