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21 Reasons Why Logistics Companies in JAFZA Grow Faster

logistics companies in jafza

Logistics Companies in JAFZA are outpacing their competitors, growing at an impressive rate. What’s driving this growth? JAFZA offers unbeatable advantages, like direct access to Jebel Ali Port, no import/export duties, and 100% foreign ownership. Did you know that JAFZA contributes to over 25% of Dubai’s total trade? according to Dubai Statistics Center. With over 650 logistics firms thriving in the zone, it’s clear that JAFZA is a key player in the global supply chain. Want to know why logistics companies are thriving here? Keep reading to explore 21 reasons behind their rapid success

Table of contents

  1. 21 Reasons Why Logistics Companies in JAFZA Grow Faster?
  2. What Licenses Do Logistics Companies in JAFZA Need?
  3. How Much Does It Cost to Start Logistics Companies in JAFZA?
  4. What Documents Do You Need to Start a Logistics Company in JAFZA?
  5. How Long Does It Take to Start a Logistics Company in JAFZA?
  6. How to Register a Company in JAFZA: 11 Simple Steps to Follow.
  7. JAFZA vs. Sharjah: A Comparative Analysis for Logistics Company Establishment.
  8. The Summary.
  9. FAQ’s.

21 Reasons Why Logistics Companies in JAFZA Grow Faster?

 

Jebel Ali Free Zone (JAFZA) gives logistics businesses the tools to grow fast and work without delays. It offers direct access to major ports, low operating costs, and a quick setup process. With intelligent systems and support in place, it’s one of the most trusted zones in the region. That’s why logistics companies in JAFZA keep growing every year.

  1. Next to Jebel Ali Port and near Al Maktoum Airport
  2. Connects easily by sea, air, and road
  3. Over 150 global shipping routes pass through nearby ports
  4. Bonded customs zone cuts delays and paperwork
  5. No import or re-export duties inside the free zone
  6. No corporate or personal tax for up to 50 years
  7. 100% foreign ownership—no local sponsor needed
  8. All profits and capital can be sent abroad anytime
  9. No currency limits on international transfers
  10. Quick business setup with fewer steps and documents
  11. Some firms may qualify for a Dubai Instant License
  12. Digital systems save time and reduce errors
  13. Ready-to-use warehouses and cold storage available
  14. Custom-built logistics space for any company size
  15. Onsite customs support helps clear goods faster
  16. Flexible lease terms for offices and storage units
  17. Clear rules make operations easy for any business
  18. Free zone teams help with licensing and approvals
  19. Strong trade links to GCC, Asia, and Africa
  20. Trusted by leading global supply chain brands
  21. Helps you reach over 3 billion customers in nearby markets

JAFZA removes barriers. It’s clear, fast, and built for real trade—not red tape. That’s why it remains the top logistics hub in the UAE.

What Licenses Do Logistics Companies in JAFZA Need?

 

To legally run a logistics business in the Jebel Ali Free Zone (JAFZA), the right license is a must. Each license depends on what your company does—moving goods, storing them, or handling customs. Below is a clear, straightforward guide to the main licenses needed by logistics companies in JAFZA.

Logistics License

Needed for warehousing, freight forwarding, and distribution. Also covers inventory, customs clearance, and transport.

Trading License

Trade license or business license Required if the company buys, sells, or stores specific goods. Useful when import or export is part of the business.

General Trading License

General trading license is a broader license that allows trade across many product types. Ideal for companies dealing with varied goods.

Service License

For firms offering support like logistics consultancy, IT, or supply chain services.

Industrial License

Needed when goods are repackaged, processed, or assembled in JAFZA. Requires a production facility on-site.

E-commerce License

Used by businesses that handle logistics for online orders or offer shipping services online.

Customs Code (Dubai Customs)

Mandatory for companies handling import/export. You’ll need to register and get a Free Zone Importer Code.

Transportation Permits (RTA)

Required to move goods outside JAFZA. Companies need vehicle permits based on fleet type.

Special Warehousing Permits

If handling flammable or restricted goods, approvals from Civil Defense and Dubai Police may be needed.

Freight Forwarding or Customs Broker Approvals

Even if covered by the Logistics License, some roles may require added registration with Dubai Customs.

Each license depends on your core business model. That’s why defining your services clearly is the first step. For smooth setup, many firms consult JAFZA experts to avoid delays and stay compliant. Always check current rules, as they may change.

How Much Does It Cost to Start Logistics Companies in JAFZA?

 

Starting a logistics company in the Jebel Ali Free Zone (JAFZA) involves clear steps and predictable costs. The total depends on your business size, setup type, and chosen facility. However, the process is flexible, allowing startups to grow without overspending.

Key Cost Components:

 

  • Logistics License: AED 15,000 per year covers core logistics activities like storage, transport, and customs clearance.
  • Company Registration: One-time fee between AED 5,000 to AED 10,000 based on legal structure.
  • Office Options:
    • Shared desk: From AED 5,000 to AED 9,000 yearly.
    • Dedicated office: Starts from AED 15,000 and up depending on size and location.
    • Warehouse: Costs vary; ranges start from AED 50,000 yearly and scale up for larger units.
  • Visas:
    • Depending on duration and type, each employee visa costs between AED 3,500 to AED 10,000.
  • Customs Code Registration: AED 500 to AED 1,000 if importing or exporting goods.
  • Other Setup Costs:
    • Trade name reservation: AED 620
    • Initial approval fees: AED 500 to AED 1,000
    • Document attestation: AED 200 per document
    • Establishment card: AED 200 plus admin charges
    • Extra business activities: AED 500 per added activity

Additional Costs May Include:

 

  • Transport Permits (RTA): AED 1,000 or more per vehicle if operating outside JAFZA.
  • Insurance and Compliance Fees: Budget AED 2,000 to AED 5,000 for admin and safety approvals.
  • Bank Account Minimum: UAE banks often ask for an AED 10,000–50,000 minimum balance.

What Makes JAFZA Worth It?

 

  • Completely foreign ownership
  • No personal or corporate taxes for 50 years
  • Direct access to Jebel Ali Port and Dubai’s airports
  • Streamlined customs and fast approvals

Despite the setup costs, many logistics companies in JAFZA save in the long term through tax relief, low duties, and fast processes. Always confirm the latest fees with JAFZA or a registered consultant before starting.

What Documents Do You Need to Start a Logistics Company in JAFZA?

 

If you’re planning to start a logistics company in JAFZA, it’s best to have your papers ready from the start. Having the right documents saves time and helps avoid delays. Requirements can change, so always check with JAFZA or a setup agent before submitting anything.

Here’s a checklist of the main documents you may need:

  1. Valid passport copy of each shareholder and manager
  2. UAE visa page or entry stamp copy (if inside the country)
  3. Emirates ID (if you’re a UAE resident)
  4. Passport-sized photo with a white background for each shareholder
  5. Trade name reservation approval
  6. Filled out and signed the application form
  7. Simple business plan showing your activities and budget
  8. Proof of address, such as a recent utility bill or lease
  9. Lease agreement for JAFZA office or warehouse
  10. NOC from current sponsor (if applying from within UAE)
  11. Memorandum and Articles of Association (MOA and AOA))
  12. Board resolution (for corporate shareholders or branches)
  13. Certificate of Incorporation (if applying as a corporate entity)
  14. Company profile or service list
  15. Customs code registration (if you deal with goods)
  16. Bank reference letter or recent statement (if needed)
  17. Payment receipt for registration and license fees
  18. Power of Attorney if someone will apply on your behalf

Preparing everything in advance helps you move faster. Also, regulations may vary depending on the license type, so confirm your list with JAFZA before applying.

 

How Long Does It Take to Start a Logistics Company in JAFZA?

 

Starting a logistics company in JAFZA takes less time than you might expect. If your papers are ready and correct, the whole process can take around 1 or 2 weeks. Still, some steps depend on how complex your business is and how fast you respond. Here is a simple breakdown to guide you.

What Affects the Timeline?

  • Missing or incorrect documents delay approvals
  • Larger companies need more paperwork and reviews
  • Busy seasons may slow JAFZA processing
  • Visa quota depends on facility size

How to Speed It Up?

  • Choose your license and space early
  • Prepare and review all documents in advance
  • Stay in contact with JAFZA or a trusted agent

Factors Influencing the Setup Timeline

 

Factor Potential Impact on Timeframe Mitigation Strategies
Complexity of Business Activities Increase Detailed planning, understanding of specific regulatory needs
Completeness and Accuracy of Documents Increase Thorough document preparation and verification
Type of Legal Entity Variable Choosing the most suitable entity early in the process
JAFZA Processing Efficiency Variable Timely submission of all requirements, following up regularly
Visa Processing for Employees Increase Early initiation of visa applications, ensuring all requirements are met

A good plan saves time and keeps your setup on track. Always check with JAFZA for any updates.

How to Register a Company in JAFZA: 11 Simple Steps to Follow

 

Setting up your company in JAFZA can be simple if you prepare well. Whether you’re in trading or part of logistics companies in JAFZA, the steps stay the same. This quick guide helps you register your company without delays.

  1. Choose your business activity and license: Decide if you need a trading, service, industrial, or logistics license.
  2. Pick your legal structure: Choose from FZE (1 owner), FZCO (2-50 owners), or a branch setup.
  3. Select and reserve your trade name: Make sure it’s unique, clear, and approved by JAFZA.
  4. Prepare your documents: Submit a business plan, passport copies, application form, and board resolution.
  5. Get your initial approval: JAFZA will review and confirm your application.
  6. Choose and lease a space: Select a warehouse, office, or land plot, then sign the lease.
  7. Submit final documents: Share your MOA, AOA, and any required legal forms.
  8. Pay registration and license fees: Costs depend on your license and space.
  9. Receive your license and company papers: These include your trade license and certificate of formation.
  10. Apply for a visa quota and start the visa process: Get entry permits, then complete medical tests and Emirates ID.
  11. Open a business bank account in the UAE: This is needed to run your company.

Always check JAFZA’s latest updates. Rules may change over time.

 Summary of JAFZA Legal Structures

Legal Structure Number of Shareholders Liability Key Features Suitable For
Free Zone Establishment (FZE) 1 Limited LLC within the free zone Single owner businesses
Free Zone Company (FZCO) 2-50 Limited LLP within the free zone Partnerships, joint ventures
Branch (Foreign) 1 (parent) Extends to Parent No capital required Foreign companies expanding
Branch (UAE) 1 (parent) Extends to Parent Leveraging UAE presence UAE companies expanding
Public Listed Company (PLC) 2+ Limited Public offering possible Mature businesses
Offshore Company 1+ Limited International business, asset holding, No physical office required International investors

JAFZA vs. Sharjah: A Comparative Analysis for Logistics Company Establishment

 

Setting up logistics companies in JAFZA gives better port access, advanced infrastructure, and stronger global trade links.
But Sharjah offers a faster setup, lower costs, and good access to both air and sea routes.
Choosing the right place depends on your budget, business size, and logistics needs.

The UAE is a global leader in logistics.
Two zones stand out—JAFZA in Dubai and Sharjah’s SAIF Zone and Hamriyah Free Zone.
JAFZA connects directly to sea and air routes.
Sharjah provides affordable, flexible options with access to airports and seaports.

Why Choose JAFZA?

  • Direct access to Jebel Ali Port 
  • Close to Al Maktoum International Airport 
  • Over 79,000 sqm of logistics parks 
  • Custom-ready and temperature-controlled warehouses 
  • Home to 650+ logistics companies 
  • 100% foreign ownership 
  • 0% corporate tax and no import/export duties 
  • Full profit repatriation allowed. 
  • Quick visa processing 
  • Fully digital setup 
  • Setup time: 2 to 4 weeks 

Why Choose Sharjah?

 

SAIF Zone:

  • Ideal for air cargo businesses 
  • Next to Sharjah International Airport 
  • Pre-fitted office and warehouse combos 
  • License can be issued on the same day 

Hamriyah Free Zone:

  • Suits maritime logistics firms 
  • Has direct deep-water port access 
  • Offers a special Maritime Industry License 
  • Large industrial plots available 
  • Setup possible in 1 to 3 days 

 

Licensing Comparison

Feature JAFZA SAIF Zone Hamriyah Free Zone
License Type Logistics License Trading, Service, Industrial Maritime, Commercial, Industrial
Setup Time 2–4 weeks Same day possible 1–3 working days
Ownership 100% foreign ownership 100% foreign ownership 100% foreign ownership

 

Infrastructure and Costs

Zone Warehouse Type Port Access Estimated Setup Cost (AED)
JAFZA Custom, temperature-controlled Direct to Jebel Ali Port 35,000 – 150,000+
SAIF Zone Office-warehouse combos Near Sharjah Port From 17,000
Hamriyah Land and pre-built warehouses Direct seaport access From 22,000
  • Choose JAFZA if you have a global logistics business and need strong access to sea, air, and road transport.
  • Pick SAIF Zone if you want fast setup and air cargo support.
  •  Go with the Hamriyah Free Zone if you focus on sea trade and need port-based infrastructure.

Need Help? Business Link can assist you with every step. We’ll guide your setup, handle documents, and help you start fast. Reach out today for expert support.

Summary

 

Logistics companies in JAFZA have proven to be a driving force in the global supply chain. With the advantages JAFZA offers, it’s no surprise that businesses continue to flourish here.Are you prepared to gain from these advantages? Reach out to Business Link for business setup in uae free zones today, and let us guide you through setting up your logistics company in JAFZA. The opportunity to grow your business is right in front of you—don’t miss it.

FAQ’s

 

Can I start logistics companies in JAFZA with a small budget?

Yes, you can start logistics companies in JAFZA with a small budget. JAFZA offers affordable options like flexi-desk setups and shared warehouses. You don’t need a large space at first; you can upgrade later. Also, comparing prices from JAFZA-approved agents helps cut costs. The Dubai Instant License is another way to launch quickly if speed matters. With the right steps, you can build your logistics business in JAFZA without spending much at the start.

Are There Tax Benefits for Logistics Companies in JAFZA?

Yes. Logistics companies in JAFZA benefit from full foreign ownership, 0% personal income tax, and 0% corporate tax for up to 50 years. There are no customs duties on goods traded within the free zone. Businesses can repatriate all profits and capital freely. These tax benefits reduce startup and operating costs, making JAFZA one of the best locations in the UAE for setting up logistics companies. Always confirm current tax rules before registering.

Why Do Global Brands Choose Logistics Companies in JAFZA?

Global brands choose logistics companies in JAFZA for their fast customs clearance, 24/7 security, and strong sea, air, and road links. JAFZA offers tax-free operations, no import/export duties, and full foreign ownership. The zone connects easily to MENA, Asia, and Europe, with access to skilled workers and world-class infrastructure. These benefits make JAFZA a leading logistics hub in the UAE for shipping, freight, and global supply chain operations.

What services do logistics companies in JAFZA offer?

Logistics companies in JAFZA offer freight forwarding, customs clearance, warehousing, packing, and distribution. They manage every supply step—by sea, air, or road. These services support global businesses needing fast, reliable movement of goods in and out of the UAE.

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