Top Business Licenses Issued By JAFZA Every Entrepreneur Must Know

Top business licenses in JAFZA Every Entrepreneur must Know

With no foreign ownership restrictions and modern infrastructure, the process of business setup in Jebel Ali Free Zone (JAFZA) is ideal for investors looking to expand into the Middle East. Businesses within JAFZA are regulated by an independent authority that issues trade licenses for carrying out business activities. As an entrepreneur wishing to set up a business in Dubai, you must know what kind of licenses are needed depending on the activity or services. Business setup consultants in Dubai can guide you on the types of licenses issued by the free zone authority. Read ahead to know further:

1. Trading License

Obtaining a trading licence is JAFZA allows the license holder to import, export and distribute goods specified on the license. A trading license is one of the most popular license types in JAFZA, enabling you to carry out buying and selling of products. A trading license offers the highest level of flexibility and freedom to operate a business in Dubai.

You can’t use a trading license to manufacture goods in the UAE. However, investors are allowed to offer services as part of their business that complements the trading of goods. You may require a trading license under the following situations:

  • When you import or export physical goods
  • When you import physical goods, hold inventory for the purpose of sale in the UAE
  • When you purchase goods from the UAE market, hold inventory and export the goods outside the UAE
  • Holding inventory in any possible way warrants a trading license

2. Service License

A service license in JAFZA allows you to provide the services stated on the trade license. You need to obtain a JAFZA service license when the primary activity of your business is based on providing services, consulting models, or knowledge transfer based on skill or talent. Unlike a trading license, a service license is ideal for businesses that do not trade in or hold inventory of physical products.

3. Industrial License

An industrial license issued by JAFZA allows the holder to import raw materials, carry out the manufacturing of permitted products and export the finished products to countries outside the UAE. The key activities under an industrial JAFZA include production, segregation, collection, packaging etc. Applicants of industrial license are required to rent or lease a production facility and a warehouse within the JAFZA. Business Setup Consultants in Dubai can assist you in obtaining an industrial license.

4. National Industrial Licence

Unlike a regular Industrial license, a National Industrial License in JAFZA is issued to companies with at least 51% GCC (Gulf Cooperation Council) ownership. Consult with business setup advisers in Dubai to know further about the National Industrial License in JAFZA.

5. Logistics Licence

A logistics license in JAFZA permits the license holder to carry out specified logistic services such as storage, transportation, distribution, sorting, forwarding and clearing activities, order management, inventory management etc. Logistics is one of the most lucrative sectors in JAFZA with 430 companies from 31 countries playing a key role in the free zone’s logistics sector. Logistics companies express their interest in the process of business setup in JAFZA mainly due to the free zone’s proximity to the Jebel Ali Port.

6. E-Commerce License

An e-commerce license issued by JAFZA allows you to buy and sell goods and services over electronic networks. E-commerce license holders are not permitted to engage in the trading of products using a physical storefront.

Choose the Best Business Setup Services in Dubai

JAFZA is one of the oldest and most reputed free zones in Dubai, which attracts investors from all over the world with its wide range of license types and top-class facilities. The fundamentals of business setup in JAFZA is almost similar to other free zones but entrepreneurs should not take a casual approach towards incorporation. Any laxity would derail the company formation process but business setup advisers in Dubai, such as Jitendra Business Consultants (JBC) can make it easier.

JBC provides 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 up 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 bespoke services including company registration, visa processing, drafting of MoA, and help with compliance requirements such as Ultimate Beneficial Ownership (UBO), Economic Substance Regulations (ESR), Anti-Money Laundering and Combatting Financing of Terrorism (AML-CFT) etc.

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