Investors across the world prefer the process of business setup in Jebel Ali Free Zone (JAFZA) is due to its reputation, legacy, highly sophisticated infrastructure and the availability of all services under one roof. The free zone provides great location benefits to companies focusing on trading, imports and re-exports as JAFZA is strategically located in the Jebel Ali port with close proximity to the Dubai International Airport.

Established in 1985, JAFZA holds the reputation of being one of the oldest and fastest-growing free zones in the UAE. The investors who focus on activities like wholesale trading, logistics, or e-commerce find the process of business setup in JAFZA ideal for their prospects. The JAFZA company formation process is rather straightforward, but for quick incorporation, it is highly recommended to hire the best business setup consultants in Dubai.

Benefits of Company Formation in JAFZA

JAFZA is one of the most dynamic free zones in Dubai to establish a company with 100% foreign ownership and total repatriation of capital. JAFZA offers high-end facilities that are perfectly suited for the trading, logistics, construction and manufacturing sectors. JAFZA has a strong legacy of enhancing the economy of Dubai and the UAE by bringing global trade partners to the country.  JAFZA is home to more than 7,500 companies and has generated over 150,000 jobs in the UAE. The free zone is located along the deep seaport in Jebel Ali and is adjacent to the Expo 2020 site.

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    Types of Legal Structure allowed in JAFZA

    To commence the process of business setup in Dubai, the investors have to choose the right company structure depending on their business requirements. Based on the number of shareholders in the company, the investor can set up the following types of companies in JAFZA:

    Free Zone Establishment in JAFZA

    The investors can register their business in JAFZA as a Free Zone Establishment (FZE), which has only a single shareholder. The shareholder of an FZE in JAFZA can be an individual or a company. The liability of an FZE in JAFZA is limited to the capital paid. The investors need to consult the best business setup consultants in Dubai to have a hassle-free FZE incorporation in JAFZA.

    Free Zone Company in JAFZA

    While the FZE has only a single shareholder, the Free Zone Company (FZCo) Formation in JAFZA is marked by more number of shareholders. The investors can set up an FZCo in JAFZA with 2 to 50 shareholders. The shareholders can be individuals or companies, and the FZCo can be considered as an LLC within the free zone with all the liabilities limited to the capital paid.

    Public Listed Company in JAFZA

    The JAFZA allows the setting up of a Public Listed Company (PLC) within the free zone with the limited liability of two or more shareholders. A PLC can invite the public for subscribing to its shares, and such companies are required to list their shares on the stock exchange.

    Formation of a Branch of a Company in JAFZA

    The JAFZA allows the companies operating outside the free zone to form its branch inside the free zone. The branch can be of a company based outside the UAE or a local company within the UAE (outside JAFZA). The branch is 100% owned by the parent company and should carry out the same business as the parent firm. It is important to note that the branch should have the same name as the parent company.

    Types of Licenses Available for Business Setup in JAFZA

    Every investor should first obtain a license to begin the process of business setup in JAFZA. The license is associated with the type of business activity the proposed company is planning to conduct. Based on the type of business activity, the JAFZA issues the following licenses:

    1. Trading Licence
    2. General Trading Licence
    3. Service Licence
    4. Industrial Licence
    5. National Industrial Licence
    6. Logistics Licence
    7. E-Commerce Licence

    Documents Required for All Types of Company Formation in JAFZA

    In order to complete the process of business setup in JAFZA, the following documents should be submitted:

    • Application Form
    • Copies of Passport/ Emirates ID of managers, and directors
    • Project Summary of the Proposed Company
    • NOC from sponsor (for UAE resident only)
    • Documents Required for Setting up FZE/FZCo in JAFZA
    • Certificate of Registration (Duly notarised and attested )
    • MoA (Duly notarised and attested)
    • Specimen Signature of Manager (to be attested by JAFZA or UAE Embassy)
    • Board Resolution & Power of Attorney (to be attested by the UAE Embassy)
    • Document Required for Setting up Branch of a Foreign Company in JAFZA
    • Certificate of Registration (Duly notarised and attested)
    • MoA (Duly notarised and attested)
    • Board Resolution or Power of Attorney (Duly notarised and attested)
    • Specimen Signature of Manager (Duly attested)
    • Documents Required for Incorporating Branch of a Local Company in JAFZA
    • Copy of License
    • Copies of MoA and Articles of Association
    • Copy of Share Certificate
    • Letter issued by the parent company in favour of Branch formation in JAFZA
    • Original Board Resolution
    • Duly Attested specimen signature of the manager

    Facilities Provided by JAFZA for the Investors

    Plots of Land for Businesses

    One of the top factors that attract companies in the manufacturing sector to JAFZA is the availability of ready land. The plots of land are highly beneficial to the companies that desire to build their own facilities. The plots of land are available from 5,000 sqm, and the companies can choose the size of the plot according to their business requirements. The businesses can lease the land for either the short or long term.

    Modern Warehouses

    The investors could easily justify their choice of business setup in JAFZA just by looking at the quality of the warehouses available in the free zone. JAFZA offers strongly built warehouses that are particularly useful for manufacturing and e-commerce companies. The warehouse units come with office space and are available in size from 313sqm to 670sqm.

    Top Quality Office Spaces

    If the investor’s plan of business setup in JAFZA includes the requirement for a large number of employees or regular visits by clients, then they can rent state-of-the-art office spaces. The companies can design the office space as per their plan as most of the office spaces come unfurnished in JAFZA.

    JAFZA Business Park

    The JAFZA business parks are ready-to-use office spaces that are fully furnished. The top quality Business Parks attract no setup costs and are ideal for both short and long-term use. The investors also get the freedom to upgrade the Business Parks into full-fledged offices later on.

    Labour Accommodation

    JAFZA provides accommodation facilities for company staff within the free zone premises. The free zone has more than 4,850 rooms in JAFZA North and over 4,600 rooms in JAFZA South. Every labour accommodation consists of facilities such as shared washrooms, communal mess hall, 24-hour security, access to mosques, shops, laundry services, tennis court, cricket court, volleyball court, football court, and supermarkets.

    Reporting Requirements in JAFZA                              

    Investors who wish to commence the process of business setup in JAFZA should be mindful of certain reporting requirements such as Ultimate Beneficial Ownership (UBO), Economic Substance Regulation (ESR) and Anti-Money Laundering & Combatting Financing of Terrorism (AML-CFT). Business setup consultants in Dubai can help the investors comply with the regulations.

    Choose the Best Business Setup Services in Dubai

    JAFZA is one of the oldest and most reputed free zones in Dubai, UAE, which attracts investors from all over the world. JAFZA offers a wide range of licenses and top-class facilities that makes the company formation in Dubai an attractive prospect for foreign investors. The process of business setup in JAFZA may appear easy, but the investors need to deftly handle procedures such as choosing the business activity and drafting the documents. Any laxity in the paperwork or failure to comply with the free zone regulations may turn the process of business setup in JAFZA into a bumpy road trip for the entrepreneurs. To prevent such errors, the investors need the assistance of reputed business setup consultants in Dubai.

    Jitendra Business Consultants (JBC) comes in handy for foreign investors in such situations by providing end-to-end solutions for a flawless process of business setup in Dubai. JBC’s core strength is its highly qualified team of business setup consultants who assist the investors in setting a company in Dubai with ease. JBC’s business setup consultants are well-versed in all the free zone regulations and requirements, and therefore complying with the free zone authority’s standards is not a tough task for the entrepreneurs. JBC provides services including company registration, visa processing, drafting of MoA, and help with Economic Substance Regulations (ESR) compliance. JBC is committed to standing strong with the clients in all the processes from company registration to incorporation, thereby helping the investors achieve their entrepreneurial dreams in Dubai.

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