Jebel Ali Free Zone (JAFZA) is one of the largest and most established free zones in Dubai, United Arab Emirates (UAE). It is strategically located next to the Jebel Ali Port, the largest seaport in the Middle East, and near the Al Maktoum International Airport. JAFZA is known for its advanced infrastructure, ease of doing business, and diverse range of services, making it an attractive option for international companies looking to establish a presence in the UAE.
Business Entity Types
- Free Zone Limited Liability Company (FZ-LLC): The most common structure with 100% foreign ownership and limited liability.
- Branch of a Foreign Company: Allows a foreign company to establish a branch in JAFZA, fully owned by the parent company.
- Representative Office: Used for marketing and promotional purposes but cannot engage in direct business activities.
Ownership
- 100% Foreign Ownership: JAFZA allows full foreign ownership of companies.
License Types
- Trading License: For companies involved in import/export or trading activities.
- Service License: For consultancy, IT, and professional services.
- Industrial License: For manufacturing and production activities.
- E-Commerce License: For companies engaging in online trading and digital services.
Required Documents
- Documents Needed:
- Passport copies of shareholders and directors.
- Proof of address.
- Business plan detailing company activities.
- Application forms provided by JAFZA.
Office Space Options
- Office Solutions:
- Options include Flexi-desk, Virtual Office, or custom-built office space depending on the size of the business.
- Office size determines the number of visas a company can sponsor.
Minimum Capital Requirement
- No Minimum Capital Requirement: There is no mandatory capital required to start a business in JAFZA.
- Capital needs may vary depending on the type of business and office space.
Visa Eligibility
- Visa Options:
- JAFZA allows companies to apply for employee visas depending on office size.
- Investors can also obtain residency visas for themselves.
- Family visas are available under certain conditions.
Taxation
- Tax Exemptions:
- No personal income tax.
- 9% corporate tax exemption as per FTA certification.
- VAT (5%) applies to goods and services.
Registration Process
- Steps to Register:
- Select your business activity and entity type.
- Submit documents and business plan to JAFZA authorities.
- Pay the registration and license fees.
- Obtain license approval from JAFZA.
- Finalize the office lease agreement and open a corporate bank account.
Cost of Formation
- Cost to Register:
- Costs start from AED 15,000 to AED 20,000 depending on office space, licenses, and visas.
- Additional fees may apply for visas, banking setup, and other services.
Banking Setup
- Corporate Bank Account:
- JAFZA helps companies establish corporate accounts with local banks.
- Bank account opening requires a trade license and other company documents.
Ongoing Compliance
- Annual Renewal:
- Companies must renew licenses, visas, and other permits on an annual basis.
- Ensure compliance with JAFZA regulations and UAE laws.