JAFZA FREE ZONE OVERVIEW
Founded in 1985, JAFZA has since been the host to some of the largest UAE enterprises and corporations today. More than 20% of foreign investment and over 50% of overall exports from Dubai come from the Jebel Ali Free Zone, which, as a competitive market center, shows its tremendous significance. As of today, $69 billion in exchange alone is worth in the Jebel Ali Free Zone. Situated at the Port of Jebel Ali, JAFZA is close to the world’s largest port linked to all seaports worldwide. It can handle over 15 million containers through 170 shipping routes each year.
JAFZA BUSINESS SETUP BENEFITS
Company set up in JAFZA has a lot of advantages for business owners. The geographical positioning of the Jebel Ali Free Zone ensures that, although Dubai International Airport and Al Maktoum Freight Airport are nearby, it has connections to most markets worldwide. A single customs service linking these two airports is provided by the Jebel Ali Free Zone, offering a hassle-free air cargo operation. Other benefits include:
- Presence of fully furnished offices, business parks, warehouses, showrooms, and traders’ market
- 0% corporate tax (for 50 years), personal income tax, and import/re-import duties
- Reliable supply of electricity and its availability at very low cost
- Complete repatriation of profits and capital
- Allowed to hire foreign employees
- Free from VAT (value-added tax)
- No currency restrictions
JAFZA FACILITIES
Being home to over 7,000 companies from 150 countries all around the world, Jebel Ali free zone offers a great range of facilities to its inhabitants. These facilities include:
- Customized development solutions for flexibility of investors, such as flexi desk
- On-site residence for employees residing inside the Jebel Ali Free Zone
- JAFZA One – A one of a kind commercial complex
- Retail outlets and spaces
- Business Park
- Workstations
- Warehouses
- Showrooms
- Offices
JAFZA ACTIVITY LIST
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:
- Project Management
- Waste Management
- All Trading Activities
- Hospitality Services
- Freight Forwarding
- Sea Cargo Service
- Tobacco Trading
- Ship Chartering
- Manufacturing
- Consultancy
- Transport
- Training
JAFZA COMPANY SETUP
The process of JAFZA company formation is reasonably easy and straightforward. Firstly, you have to determine the form of company you want to set up. The documentation and application work listed below will be dependent on the type of your company. Your business will be up and running in 10 days after all the procedures are completed. Company setup in JAFZA consists of the following types:
Documents Required for Company Formation in JAFZA
- Application form and letter of undertaking for EHS (Environment Health and Safety)
- No objection letter from current sponsor of each UAE resident shareholder
- Original as well as a copy of passports of all individual shareholders
- Original as well as a copy of the passport of a selected manger
- Application form for free zone company setup
- Summary of the project
Additional Documents Required for Individual Shareholders
- Business profile of each shareholder
- Board resolution to setup company
- Manager signature specimen
Documents Required for Corporate Shareholders / Branch of a Foreign Company
- An official letter from a parent company to set up a branch in JAFZA (in case of a branch)
- Attested and notarized Memorandum (MOA) and Articles of association (AOA)
- Attested signature of manager specimen by Jebel Ali Free Zone Authority
- Copy of Chamber of Commerce certificate (in case of a branch)
- Certificate of Registration
After the documents are successfully processed, 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. To avoid any mishaps, it is recommended to take help from a business setup specialist. Leasing arrangements are prepared until the office space is finalized, and you may receive the office keys upon completion.
JAFZA FREE ZONE LICENSE COSTS
Jebel Ali Free Zone offers 4 different licenses which are namely:
- Industrial and Trading License
- General Trading License
- Logistics License
- Service License
There are 2 types of trading and industrial licenses. They vary depending on the number of operations that you may have under a license:
- Type 1: offers a maximum of 7 products from the same group
- Type 2: offers a maximum of 12 products from the same group
JAFZA license cost depends on the type of license your business is applying for. Different license costs start from:
| License Type | Annual Fees |
| Service License | AED 8,00 |
Industrial and Trading License · Type 1 (up to 7 products from the same group) · Type 2 (up to 12 products from the same group) | AED 5,500 AED 9,000 |
| Logistics License | AED 30,000 |
Other than JAFZA license cost, JAFZA company registration fee is AED 10,000.
JAFZA COMPANY SET UP COST
The overall company set up cost in Jebel Ali Free Zone is quite reasonable as compared to other free zones in the country. The license cost is also reasonable considering the number of activities allowed in Jebel Ali Free Zone and the amenities offered to the investors. The one-time company registration fee depends on the type of JAFZA company formation and structure.
| Company Type | One Time Registration Fee |
| Free Zone Establishment FZE | AED 10,000 |
| Free Zone Company FZCO | AED 15,000 |
| Branch Office of a Company | AED 5,000 |
Additionally, for the attestation of MOA and AOA, and board resolution, AED 200 are charged respectively. It is compulsory to have an office space in Jebel Ali Free Zone. Cost of offices in JAFZA Business Park ranges between AED 23,000 – AED 30,000 per office. Meanwhile, cost of offices in other buildings ranges from AED 2,000 per m2 to AED 2,500 per m2. Price of showrooms ranges from AED 700.00 per m2 to AED 1,000 per m2. The price of warehouses and industrial units are from AED 25.00 per m2 to AED 600 per m2. JAFZA Flexi desk cost is around AED 72,000.
The JAFZA company setup cost (without resident visas) comes down to a total of about AED 86,935. Other than the costs mentioned above, the total company setup cost includes name approval fees, attestation of documents fees, and establishment card fees as well.
UAE RESIDENCE VISAS IN JEBEL ALI
Jebel Ali Free Zone visa cost varies depending on the status of the applicant’s current location, to determine whether application is taking place inside or outside of the UAE. Revision of visa can be done only if the applicant has canceled his previous UAE Residence Visa or is transferring within Jebel Ali Free Zone. JAFZA employment visa requires a guarantee deposit, which is calculated as:
Guarantee Deposit = 1.5 x Basic Salary + One-way Ticket Airfare (per visa)
If the applicant is in the UAE at the time of application, he can easily stay in the country and enjoy the hassle-free process by choosing the Employment Visa application inside the country with a local amendment. There will be no need to exit the UAE for the Visa Status Change process. The total JAFZA visa cost includes:
| Employment Visa (outside the country) | AED 4,900 |
| Employment Visa (inside the country) | AED 5,320 |
| Amendment in Visa Status | AED 950 |
| Health Insurance (Basic) | AED 1,000 |
| Medical Check-Up | AED 690 |
| Emirates ID | AED 370 |
Just like any other free zone business setup in UAE, Jebel Ali Free Zone makes your company eligible for resident visas. You will be entitled to 1 resident visa per every 10 sq meters of office space you have got. Jebel Ali Free Zone visas are valid for 3 years. The health insurance plan needs to be renewed annually.
LICENSE CANCELLATION FOR JAFZA
In case of cancellation of the license and liquidation of the company, the personal presence of the owner is required. This can also be done by Power of Attorney holder. You will have to return the original documents and pay a liquidation/cancellation fee of AED 2,000. This process takes around 1 month, and you will be given a certificate of liquidation once the process is completed.
