JAFZA is the oldest free zone in the UAE. It was founded in 1985. It became home to more than 7,000 international and local companies, factories and logistics firms, manufacturing plants, and assembling units. Jebel Ali free zone has direct access to Jebel Ali Seaport and to the Al Maktoum International Airport. It has a single customs area, which helps to reduce cargo clearance times and costs. Shipping, logistics, and trading companies are often based in this free zone. If you are intending to do such a business setup in Dubai, JAFZA has a lot to offer for you.
Different Activities Allowed in JAFZA
There are various types of licenses offered by JAFZA Free Zone, out of which you can choose the ones which are required for your business-related activities. Primarily, there are licenses based upon three major categories, which are trading, services, and industrial.
Trading Activity in JAFZA
When a business requires conducting trading related activities, it can get a Trading or General Trading License.
Service Activity in JAFZA
The companies which only deal with services only require getting a service license.
Industrial Activity in JAFZA
Under this, activities related to manufacturing come, which need to perform the export, import, manufacturing, and logistics-related activities. A company with service activity can be registered only as a branch of an existing UAE Mainland entity.
Types of License Available in JAFZA
Based on the above mentioned three types of activity, seven different licenses are introduced:
In this license, you need to specify the products which you are going to import, export, or distribute. You will only be able to conduct these activities after getting the license. If an item is not specified on the license, conducting these activities will not be allowed.
General Trading License
For getting permission for a broader range of activities and products, one needs to get a General Trading License.
As the name suggests, if your company deals with any services, you need to get this license. One should note that there is only one license in the service category which covers everything.
The Industrial License is required when you require the manufacturing of products. This license allows the import of raw material, undertaking manufacturing activity, and export of finished goods. One needs to specify the raw materials that he has to import and products that he intends to manufacture and export.
National Industrial License
It is a unique license which is not provided according to the activities and products, but according to the company’s ownership. It is provided to the manufacturing companies, which at least own 51 percent GCC (Gulf Co-operation Council) ownership.
There are various services associated with logistics, and if you wish to conduct them in JAFZA Dubai, you first need to get Logistic License. This license will allow you to perform storage, distribution, forwarding, inventory management, transportation, etc. activities.
Most of the companies in today’s world have an e-commerce platform to boost their sales. If you conduct any buying and selling activities online in Jebel Ali Free Zone, you need to have an e-commerce license that provides you its permit.
JAFZA License Costs
The company set up in Jebel Ali Free Zone is quite reasonable compared to the other Free Zones. Jebel Ali free zone company registration starts from:
- 10,000 AED fee for the registration
- 5,500 AED license of type 1 (7 categories of products)
- 9,000 AED license of type 2 (12 categories of products)
It is pretty evident that the JAFZA free zone license cost is reasonable, considering the big number of activities you can get in the license. It is a mandatory requirement to have an office space in this Free Zone. One of the smallest offices is 26.88 sqm, with an annual rent of 53,670 AED. Trading, Industrial, and Service licenses have 2 types. They differ according to the number of activities you can have under the license:
Type 1: up to 7 products from the same group
Type 2: up to 12 products from the same group
If you want to add extra activity to any type of license, it will cost 500 AED. JAFZA company formation is highly recommended for those who are planning to deal with international trading, distribution, or logistics sectors. The total company setup in JAFZA without resident visas will cost about 86,935 AED. Apart from the above mentioned costs, it includes name approval fees, attestation of documents costs, and establishment card as well.
Benefits of JAFZA Company
- A big choice of trading activities, up to 12 product categories per license
- Biggest UAE seaport within the Free Zone
- Warehouses and plots of land
- Retail locations outside of the Free Zone for JAFZA licenses
- The oldest and the biggest Free Zone of UAE – highly recognized and reputable
- Favored by local banks – quicker account opening process
Riz and Mona Consultancy Company Formation Services
Riz and Mona Consultancy offers company formation service in any of the parts of the UAE. Whether it is a free zone or mainland, our consultants have experience in setting up offices in all the emirates. We also provide our services as JAFZA Business Setup Consultants and help you with JAFZA Offshore Company Formation in UAE. We take care of the JAFZA Company Formation process from submission of the application to registering your company in Jebel Ali Free Zone. We also assist companies in getting work visas for their employees and look over the bank account opening process for your company as well as the employees. Please get in touch with us for professional assistance.