JAFZA, which was founded in 1985, is the oldest free zone in the UAE. Today, it is home to more than 8,600 firms from over 100 nations, including nearly 100 Fortune 500 organizations. JAFZA has seen an overwhelming rise in existing members in the past few years since its inception, enhancing its strategic position and world-class infrastructure. JAFZA currently has more than 135,000 jobs and, along with Jebel Ali Terminal, accounts for up to 21% of the gross domestic product (GDP) of Dubai. It accounts for almost 32 percent of the overall foreign direct investment (FDI) that flows into the UAE. A substantial number of exports are dealt with by JAFZA firms.
It is a major center for firms wishing to grow into the economies of the Middle East and Africa. With unmatched advantages and benefits and outstanding customer service, it is a center for trade and logistics. It’s a concept company setup choice for business owners a few minutes drive from Al Maktoum International Airport.
Company Formation in JAFZA
Company formation in JAFZA consists of the following types:
Free Zone Establishment (FZE) & Free Zone Company (FZCO)
The creation of a Free Zone Establishment can consist of a single shareholder in JAFZA. An individual or corporation may be the shareholder. This is a limited liability partnership in which the shareholder’s liability is limited to the interests in FZE. In FZE, the shareholder’s personal properties are secured.
Free Zone Company (FZCO)
A Free Zone Company in JAFZA can consist of a minimum of 2 and a maximum of 50 shareholders. Shareholders may be individuals, companies, or a blend of both. Here, FZCO is also a limited liability partnership where owners’ liability is limited to the properties of the firm.
Branch Office of a Company
A branch inside JAFZA may be created by companies founded outside JAFZA with valid registration and license. The parent corporation would have 100% control of its branch, and the branch will run and perform the same activity in the branding of its parent company.
Special Status Non-Resident Offshore Company
Under the JAFZA Companies Regulations Act 2013, an offshore company can be formed by an individual or company. It will be a non-resident company having corporate legal existence.
Procedure to Setup a Company in Jebel Ali Free Zone
The process of JAFZA business formation is reasonably easy and straightforward. First of all, you have to determine the form of enterprise you want to set up, so there is application and documentation work listed below. Your business will only be up and running in 10 days after all the procedures are completed.
Documents Required for Company Formation
- Application form for free zone company setup
- Original as well as a copy of the passport of the selected manger
- Original as well as a copy of passports of all individual shareholders
- No objection letter from current sponsor of each UAE resident shareholder
- Summary of the project
- Application form and letter of undertaking for EHS (Environment Health and Safety)
Additional Documents Required for Individual Shareholders
- Business profile of each shareholder
- Board resolution to set up a company
- Manager signature specimen
Additional Documents Required for Corporate Shareholders and Branch of a Foreign Company
- Attested signature of manager specimen by Jebel Ali Free Zone Authority
- Attested and notarized Memorandum (MOA) and Articles of association (AOA)
- Certificate of Registration
- Copy of Chamber of Commerce certificate (in case of a branch)
- An official letter from the parent company to set up a branch in JAFZA (in case of a branch)
After successful processing of papers, an initial permit for your company will be given to you. You will then pick a suitable ready-made office from JAFZA that fits your company requirements. You should either look for the best fit-out office facility for a business formation specialist or you can do so separately. Leasing arrangements are prepared until the conclusion of the office, and you may receive office keys.
Allowed Business Activities in JAFZA
Setting up a company in JAFZA gives you great flexibility and an endless amount of business activities to choose from. Here are some of the most popular options:
- Waste Management
- All Trading Activities
- Freight Forwarding
- Tobacco Trading
- Hospitality Services
- Sea Cargo Service
- Project Management
- Ship Chartering
Why Choose Jebel Ali Free Zone for Business Setup?
The UAE Free Zones give business owners a diverse range of amazing incentives, including zero income tax, zero personal tax, full company control, import, and export tax deductions, no currency limits, and 100 percent right to repatriate money and earnings.
Here are the top benefits that Jebel Ali Free Zone offers:
Multiple Visas without Office Acquisition
One of the main reasons why entrepreneurs and start-up founders prefer Jebel Ali free zone to start a new company is that it requires three visas to be acquired without acquiring physical office space. Young people who want to have their own company in the UAE but do not need physical presence can sign up for the Flexi-desk choice of Jebel Ali. It allows them to provide convenient access, such as meeting rooms and reception, to desk space and other office facilities.
Easy Setup Process
In JAFZA, the business setup method is easy and clear. All you need to do is determine the form of firm, such as a free zone establishment, a corporation with a free zone, or an established company division. You need to send the relevant documentation depending on your company form. Then within 10 days, you will get your company going.
No Minimum Share Capital
No minimum upfront share capital requirement is another benefit that captures the interest of entrepreneurs. In combination with a fast business registration process, this benefit makes Jebel Ali free zone highly common among entrepreneurs who want to start up a business quickly without any duty to fulfill minimum capital requirements.
Diverse Business Activities
The Jebel Ali free zone gives you a large selection of business activities to select from. There are two opportunities correlated with it. Next, you have a wonderful chance to communicate and exchange expertise as you operate in a number of industries. Secondly, it is particularly useful for certain businesses who are under one authorization in charge of multiple business practices.
In addition, since you have licensed a branch of an organization existing on the mainland for at least two years, you can also prefer service operations.
Its strategic location is the enormous selling point of the Jebel Ali free zone. It is accessible from the region’s most integrated port, where high-end warehouse facilities can be leveraged for import and export business. Plus, both Al Maktoum International Airport and Dubai International Airport have connections to it. Additionally, Jebel Ali is also popular among major companies that frequently exchange outside the UAE borders.
In addition to this, you can conveniently open a corporate bank account, sponsor your employees and dependents, and register several shareholders for your company. Since the unique advantages and details differ depending on company type and license, it will make things much simpler and quicker to get support and guidance from free zone business setup experts.
Riz and Mona Consultancy Company Formation Services
Riz and Mona Consultancy provide a business formation service in every region of the UAE. Our experts have expertise in setting up offices in both emirates, whether it is a free zone or mainland. As JAFZA industry setup advisors, we also provide our services and support you with JAFZA offshore company formation in the UAE. From the submission of the application to the registration of your firm in the Jebel Ali Free Zone, we will take care of the JAFZA company creation process. We also support businesses with securing employment permits for their workers and look into the opening process of the bank account for the enterprise as well as the staff. For technical assistance, please get in contact with us.