The emirate of Dubai contains highest number of free zones in UAE and all these free zones are unique that are renowned in the whole world. But the most important and famous of all these is JAFZA (Jebel Ali Free Zone) which is one of the largest free zones in the world. But the achievement of JAFZA is not just limited to its size as the specific free zone has now also earned the position of world’s best free zone for 2017 after beating the last 3 year’s champion, DMCC. JAFZA achieved this status due to the confident it received from companies all around the world.
More and more companies are choosing JAFZA for their businesses and their numbers are increasing continuously with the passage of time. In 2016, total 470 companies started their businesses in the free zone while more than 120 companies from 33 countries established their business in the 1st quarter of 2017.
JAFZA was founded in 1985 in the Jebel Ali area in the proximity of Jebel Ali Port, world’s largest man-made harbor. The area also hosts the UAE’s largest desalination plant (the Jebel Ali Desalination Plant). JAFZA is spread over the area of 57 km2 on the both sides of Sheikh Zayed Road. The free zone is accessible via road and Dubai Metro. Currently, more than 7,000 international companies have their businesses established in JAFZA out of which there are around 100 companies present in the Fortune Global 500. JAFZA is responsible for bringing more than 30% of total FDI (Foreign Direct Investment) in UAE.
The presence of such large number of famous international companies is due to several lucrative benefits provided by the free zone. Few of such benefits include:
- 100% foreign ownership without any restriction on foreign employees • 0% tax and duties
- Freedom of complete capital repatriation without any currency restriction
Setting up a company in JAFZA:
The above mentioned points proved that JAFZA is one of the best free zones in the world that is trusted by few of the world’s best organizations. An individual or company should think seriously about JAFZA if they are going to setup business in a free zone.
There are three types of companies that can be established in JAFZA. A single shareholder (individual or company) can setup Free Zone Establishment (FZE) which is like a Limited Liability Company (LLC) in the free zone. If the number of shareholders (again either individuals or companies) is between 2 and 50, then these shareholders can establish either a Free Zone Company (FZCo) or a Public Listed Company (PLC). If a business is already established outside JAFZA, then it can setup its branch inside the free zone in order to gain benefits of JAFZA. This branch will completely be owned by its parent company.
Total 6 types of licenses are available for businesses in JAFZA:
- Trading License (for trading activities)
- Industrial License (for manufacturing activities)
- National Industrial License (manufacturing activities with 51% of ownership for national of AGCC country)
- Innovation License (development of new products and services)
- E-Commerce License (for trading of goods and services using electronic means)
- Service License (for services related activities)
All these licenses open the door for number of activities for businesses.
You can avail the opportunity of setting up your company in world’s largest and best free zone in several types of companies as stated above. You can contact Riz & Mona Consultancy for further information and complete assistance to setup any type of the said company in JAFZA. We can have a meaningful conversation via our WhatsApp # 971-56-9971225.