The Dubai government established the Jebel Ali Free Zone in 1985. JAFZ is a free zone facility offering attractive business benefits to aspiring entrepreneurs and investors who wish to start a business in the UAE. JAFZA company formation is more beneficial than in other free zones in Dubai. In this article, we will explore the benefits of Jebel Ali Free Zone company formation, and what are the requirements to register a company on the Jebel Ali Free Zone companies list.
Jebel Ali Free Zone Company Formation
Jebel Ali Free Zone had only 19 companies when it was created. The Jebel Ali Free Zone companies list now contains over 7100 companies and around 135,000 jobs in the country’s job market. Due to its strategic location, top-grade infrastructure, and business-friendly environment, investors worldwide invest in and contribute to the growing business sector of Dubai.
Identifying the type of company you plan to start and the kind of license required to carry out your planned business activity is the first step towards Jebel Ali Free Zone Business Setup. Once identified, the rest of the process eventually becomes easier and more hassle-free.
However, to start a business in Dubai, Jebel Ali Free Zone is an ideal place to meet your needs. We assist entrepreneurs in starting all company types in the Jebel Ali Free Zone (JAFZA) and the UAE. We present tailored solutions to develop your business in one of the most attractive free zones in the Middle East.
Types of Jebel Ali Free Zone Companies
1. Branch Company
A branch company formation in the JAFZA is perfect for organizations established outside of the JAFZA. Treated as a legal entity of its parent company, the branch company operates under the parent company’s name and benefits from the business-friendly environment of Dubai.
2. Free Zone Establishment (FZE)
This legal form of company requires only a single shareholder. Acting as a single shareholder, an individual or a company can register a Free Zone Establishment (FZE) in JAFZA.
3. Free Zone Company (FZCO)
A minimum of 2 and a maximum of 50 shareholders can put their efforts together for this type of business startup in Jebel Ali Free Zone. This is the most common company form in the Jebel Ali Free Zone.
Types of Licenses Available In Jebel Ali Free Zone
Following are the types of licenses required for business setup in Jebel Ali Free Zone:
1. General Trade License
Companies operating under this license are allowed to import, distribute, and store all items, in line with the rules and regulations set by the Jebel Ali Free Zone.
2. Trading License
This license is almost similar to the general trading license. The only difference is that companies operating under a trading license can import, export, distribute, and store only the licensed items.
3. Service License
A service license gives the investor the right to operate a specific service business in the Jebel Ali Free Zone. The type of service carried out under this license should be similar to the one mentioned on the parent company’s license.
4. National Industrial License
A national industrial license is required to carry out any industrial activities, such as manufacturing, assembling, packaging, and exporting final products. The eligibility criteria to apply for a national industrial license are as follows:
- The company should be registered under the name of a GCC national.
- The GCC national should own at least 51% of company shares.
- A minimum of 40% of the manufacturing should be completed in the free zone.
The documents for JAFZA forms
A notarized document by the UAE embassy in the origin country. After the submission and approval of these documents, licenses will be obtained within 2 business days, and the business setup process will begin.
Following is a general list of documents required for company formation in the Jebel Ali:
- JAFZA application form
- Passport copy and colored passport-sized photographs of all shareholders and the manager, with six months validity.
- No Objection Certificate (NOC) from the existing sponsor if the applicant is an ex-pat resident of the UAE.
- Project summary
- Environmental health and safety application form for EHD (Environment Health and Safety)
Benefits of Registering a Company in Jebel Ali Free Zone
Many advantages come with a business setup in Dubai.
- Investors can benefit from Dubai’s strategic location and state-of-the-art infrastructure.
- There are absolutely no currency restrictions. You can invest and conduct business with the currency that best suits your needs.
- Companies operating under JAFZA are 100% foreign-own and allow 100% repatriation on capital and profits.
- Dubai’s strong economy is an excellent backdrop for any new or established business.
- Those who opt for business setup in Dubai enjoy 100% tax exemption on:
1. Corporate and personal income
2. All imports and exports. - For 50 years, there won’t be any income or corporate tax
- No re-export or import duties on the business owner
- Receive water and electricity supply at a very reasonable price
- Necessary services such as banking, insurance, etc. are easily available.
To utilize the benefits of company setup in JAFZA, entrepreneurs, and investors should team up with a reputable business setup consultancy in Dubai to help them acquire the right licenses and operate efficiently.
Liquidation of JAFZA Companies
Jebel Ali is one of the fastest-growing free zones in the UAE. It gives all companies direct access to a market of over 2 billion people. Additionally, it attracts new investors and foreign companies. Company de-registration normally occurs if the owner wants to immigrate to another country. Liquidation could happen due to a lack of sufficient funds to run all the company’s operations. So if you are looking to wind up your business in the Jebel Ali Free Zone, then here is the complete guide to making the company liquidation process hassle-free.
Documents Required for JAFZA Company Liquidation:
- For FZE / FZCO: Resolution regarding De-registration with Liquidator details (Available in Jafza.ae)
- For Branch: Resolution from the Mother Company notarized and attested.
- Original Certificate of Formation: Applicable only for FZE & FZCO
- Original Share Certificate(s) in case of share capital deposited Applicable only for FZE & FZCO.
- For FZE/FZCO: Resolution regarding the appointment of Liquidator (Available in Jafza.ae )
- Liquidation Report: (Available in Jafza. ae)
- Copy of Dubai Trade License of the Liquidator appointed.
- Lease Termination form: (Available in Jafza.ae)
How Business Link Simplifies The JAFZA Company Formation
At BusinessLink, we have the best business setup consultants in Dubai who know how to make the business setup process smooth. From helping you apply for the right license to creating a feasibility study and a business plan, our reputable business consultants will help you at every step of starting a company in the JAFZ.
