Learn How to Start a Business in Jebel Ali Free Zone (JAFZA)

JAFZA company setup is an option if you want to invest in forming a company in the region. In these areas, you will find elements that can help you achieve business objectives. Likewise, it is an area that has services and resources that every company requires to grow.

In this article, you will find the most important aspects of forming a company in this area. Also, what are the types of commercial companies as well as the licenses you will have to get.

How to Set Up Your Business in Jebel Ali Free Zone

The Jebel Ali Freezone in the United Arab Emirates is a free zone founded in 1985 and is currently the largest in Dubai. Likewise, in this area, there are more than 9,500 local and international companies, including logistics companies, packaging units, and factories. Furthermore, together, all these companies generate more than 100 billion dollars for Dubai.

This area gives you direct access to Al Maktoum International Airport and Port Jebel Ali Maritime Airport. Equally, this free zone is the main one of DP World, which is a company that works with logistics and important port operations worldwide. Additionally, it has a customs area that can reduce the costs of cargo shipments.

On the other hand, it is common the JAFZA company setup of transport and logistics trade. Thus, if you want to venture into that type of industry, this area is the one that will offer you the following:

A Logistics Corridor

• This area has Port Jebel Ali which will give it the best maritime flow in the world. In addition, more than 150 shipping lines serve it, which can handle around 19 million containers annually.
• In this area is the Al Maktoum airport with a cargo capacity considered the largest in the world.
• Land route. This area of the Emirates has well-equipped road connections. Thus, any cargo you wish to transport along this route will travel safely and quickly.
• Railroad track. A railway project called Etihad Raid is currently under construction. With the construction of this railway, it is expected to link JAFZA with the Arabian Peninsula.

Choose a Company Type and License Type

For the JAFZA company setup, you will find 5 types that will allow you to connect to an extensive commercial market. Also, the number of shareholders will determine the type of company that will be formed in the area. Similarly, based on the type of company, you will have to apply for a certain type of license and commercial activity.

Likewise, licensed activity is a particular activity that your company will do and will be legally permitted as a part of industrial operations.

Now, you will know the types of licenses that you can request in the area:

• The Service License allows you to provide services only.
• Industrial license to import materials.
• The Commercial License will allow you to trade physical goods.
• Logistics license to provide logistics, supply chain services, and the manufacturing and display of products in other countries
• License for electronic commerce so that you can purchase and sell goods and services electronically.

Requirements for Starting a Company in Jebel Ali Free Zone

For company formation in the Jebel Ali Free Zone, only one shareholder will be required, so this type of company is a sole proprietorship. Then, to formalize the establishment of your online business, you will need to have the following documents:

• JAFZA Application Form.
• Environment, Health and Safety (EHS) application form
• Business Plan or Project Summary. To do this, you will find a sample template on page 22 of the application form. Likewise, the request should limit this to one page.
• Along with the application form, you must submit the Know Your Customer (KYC) form, which must be filled out.
• A Ultimate Beneficial Owner (UBO) Form to be submitted along with the application form. A UBO is a person who will benefit from ending a company.
• Letter of appointment of Director/Manager/Secretary.
• Photocopy of the passport of the shareholder, manager, and secretary.
• The passport will have to be valid for at least 6 months.
• In addition, the Director, the Manager, and the Secretary must be 21 years old or approximately.

Additionally, if the shareholder, secretary, or manager has a current UAE residence visa, a No Objection letter will also be included. It must be on company letterhead and be duly signed by its sponsor. You must also include a photocopy of your current visa.

You must include the shareholder profile, you will find it available on page 25 of the application form. On the other hand, for the business setup in Jebel Ali Free Zone, both the director and the shareholder will be the same person. However, you may include a manager as an additional person.

Additionally, if you need certification for a particular document, JAFZA will let you know. Therefore, they will let you know this through the sales team, personal registration, or via digital email.

Documents for the Contribution of Non-Natural Persons in an FZE Company

The non-natural person of a FZE can be the sole shareholder of the company. Furthermore, if the person wishes to register a company, they will need the legal documents duly notarized and witnessed by the Emirati consulate or embassy. Additionally, apart from the documents described above, you will need:

• Original Certificate of Incorporation or the Original Validity Certificate.
• Deed of incorporation and bylaws (MOA and AOA) of the shareholder company duly notarized and authenticated.
• Shareholder Resolution. The Director or Board requires the JAFZA company setup from an FZE, the details of the assigned Share Capital, and the appointment of the Director, Manager, and Secretary.
• Appointment of a legal representative
• A Power of Attorney (POA)

Additionally, if the mother company is outside the United Arab Emirates, it will have to present the certificate of all documents at the embassy. However, if there is no Emirati embassy in the original country, you can submit the documents notarized and attested by any GCC. You can also take them to the Arab Embassies or consulate in your country of origin.

Likewise, all documents must be attested by the Ministry of Foreign Affairs of the Emirates.

Submit Application, and Supporting Documents and Pay Fees

Below you will see the Jebel Ali free zone company registration:

• Register your interest online by filling out the online form. The sales team will then be in contact with you to verify the request.
• Send the form signed and with the necessary documents.
• Choose the offers available for the license type.
• Make payment for the business start-up process.
• Review the list of activities that are allowed depending on your license type.
• Obtain the license and go to the selected location such as the warehouse, or office, among others.

Types of Companies in Jebel Ali Free Zone

The JAFZA freezone offers you five options for business types based on the number of shareholders. In the same way, you can opt for various types of licenses, as well as several activities to choose from. Likewise, if you want to form a company in JAFZA, you should know that they will not be subject to foreign ownership restrictions.

Below, you will see what the types of constitution for the JAFZA company setup are:

• The FCZO or Free Zone Company. Essentially it is a type of free zone LLC that will be made up of several shareholders. It may also include natural and non-natural persons or, in other words, a company.
• The Establishment of a Free Zone or by its acronym FZEE. It is an LLC with a unitary shareholder who may be an individual or a company.
• A listed company or PLC. Which is similar to an LLC but with two or more shareholders. In addition, it presents a public sale of its shares on the stock market.
• The branch. Which is the branch opened by any parent company within JAFZA. In addition, the ownership of the parent company will be 100% and will depend on the name and activity it carries out.
• The offshore company. It is a legal entity whose objective is to do business outside of the place where the company is located or its jurisdiction. Likewise, it may have one or more shareholders including companies or an individual.

Receive Your Business License

As we have mentioned for the JAFZA company setup, depending on its configuration, the type of license will vary. Below is the list of activities that will be offered according to the license category:

• Trade
• Industrial
• Service
• Logistics
• E-commerce
• General trade

In addition, a service company may only register as the branch of an already existing business in the Continental Emirates. As for commercial licenses, you can obtain them in 2 and 3 different types depending on the activity you can do with this license. That is to say:

• Of the 1st type, there will be up to 7 activities in the same group
• The 2nd type may be up to 12 activities for two or more groups.
• And those of the 3rd type will not have restrictions on the number of activities of more than 3.

In addition, type 3 trade licenses are for general trade so if you want to add another activity of any type, you will pay AED 500. In addition, a JAFZA company is useful if you want to work in the distribution sector, international trade, or logistics.

Jebel Ali Free Zone Jebel Ali free zone company setup cost

The rate for JAFZA company setup or any other in Jebel is reasonable compared to other areas. Below, the cost to register the company will start from:

The cost of setting up a company in the Jebel Ali free zone is quite reasonable compared to other free zones.

• Registration fee AED 5000
• Type 1 license AED 5500 for 7 product categories
• Type 2 license AED 9000 for 12 product categories

Benefits of Establishing a Business in Jebel Ali Free Zone (JAFZA)

With a JAFZA company, you can get full ownership of your company without monetary limits, and import and export tax exemptions. Likewise, it allows you to repatriate profits and capital. Additionally, within the JAFZA Company setup benefits are the following:

Strategic location

Its strategic location makes it the oldest and most famous economic zone in the Emirates. Also, it is made up of good infrastructure with connection services and basic transportation. Consequently, it is an ideal area for the formation of a JAFZA company.

Multiple visas without physical office space

JAFZA company setup will allow you to obtain visas without the need for office space. Likewise, just register for Jebel Ali flexible desk and you will have spaces for desks and other services.

Ease and simplicity in setting up the JAFZA Company

The process for establishing a JAFZA company is very simple, and the first thing you will have to do is decide the type of company you want to establish. For example

• Branch of an existing company
• A free zone establishment
• A free zone company

Next, deliver the documentation you need according to the type of business. Subsequently, a business will begin operations in just 10 days.

Does not require initial share capital

Another advantage that you can have when forming a company in JAFZA is that you will not need capital to start. Thus, the reasons above and the fact that you will need capital to get started, makes this option attractive.

Easy setup of your bank account

Another benefit of opening a JAFZA company is assistance when you need to complete any procedure. In addition, it will help you find a bank that has characteristics according to your requirements.

It is flexible

Jebel Ali Freezone will offer you flexibility due to the varied scales of commercial activities available. This will give you 2 key additional benefits:

• It will allow you to work in diverse sectors that will bring you great opportunities to associate and share knowledge.
• You will be able to carry out multiple commercial procedures since it will allow you to do between 7 and 12 activities with the same license. Additionally, you can do services from Jebel Ali but you will have to register a branch.

Conclusion

JAFZA company setup in the Jebel free zone allows you to develop a business that can give you a lot of satisfaction. In addition, it can give you benefits ranging from costs to a lot of flexibility when marketing. Additionally, it may have spaces for very good level facilities.

Additionally, if you want advice from our experts, contact us to provide you with all the information related to this topic.