Business Setup In The Jebel Ali Free Zone
Setting up a business in the Jebel Ali Free Zone (JAFZA) means choosing an FZE, FZCO, branch or offshore company, picking a trading, service, industrial or logistics license, and leasing a JAFZA facility. Registration takes 3 to 14 business days once documents are complete. First year JAFZA company formation usually costs AED 40,000 to 70,000 for a small setup. This guide covers costs, visas, tax and FAQs.
Why Set Up Your Business in JAFZA?
JAFZA is one of the largest and oldest free zones in the region, built next to Jebel Ali Port and close to Al Maktoum International Airport. For trading, logistics and manufacturing companies, few locations in the Middle East offer the same mix of port access, warehousing and connections to markets across the GCC, Africa and South Asia.
Key benefits of JAFZA company formation:
- 100% foreign ownership with no local partner
- Direct port access through DP World’s Jebel Ali Port, with customs duty suspended on goods held in the zone
- Wide facility choice: co-working desks, offices, showrooms, warehouses and land plots
- No minimum share capital prescribed for FZE and FZCO companies
- Full repatriation of profits and capital
- 0% corporate tax on qualifying income for companies that meet the Qualifying Free Zone Person conditions
JAFZA suits importers, distributors, manufacturers, logistics firms and regional headquarters. Consultants and small service startups often find a lighter free zone cheaper. If you are still comparing options, start with our business setup in Dubai services or our free zone company setup guide.
JAFZA License Types
Every JAFZA company holds one license category, with activities chosen from that category:
License Type | What It Allows | Typical Businesses |
|---|---|---|
Trading license | Import, export, distribution, re-export and storage of listed goods | Traders, distributors, general traders |
Service license | Services listed on the license, without holding physical stock | Consultancy, IT, management, marketing |
Industrial license | Manufacturing, processing, assembly and packaging | Factories, food processing, assembly plants |
Logistics license | Freight forwarding, warehousing and supply chain services | 3PL firms, forwarders, shipping agents |
A service license cannot hold stock, and an industrial license needs a production facility or warehouse inside the zone. If you plan to trade many unrelated product lines, compare JAFZA with a general trading license in Dubai.
Company Structures in the Jebel Ali Free Zone
Structure | Shareholders | Best For |
|---|---|---|
Free Zone Establishment (FZE) | One individual or company | Solo founders and single parent companies |
Free Zone Company (FZCO) | 2 to 50 individuals or companies | Partners and joint ventures |
Branch of a company | 100% owned by a UAE or foreign parent | Multinationals adding a regional hub |
Public listed company | Two or more, listed on an exchange | Large listed groups |
JAFZA Offshore | One or more, no maximum | Holding companies, asset and property ownership |
Not sure whether to choose an FZE or FZCO? Read the difference between FZE and FZCO. Overseas groups can also review our guide to opening a branch office in Dubai. JAFZA Offshore companies cannot trade in the UAE or sponsor visas; for that difference, see offshore company formation in Dubai.
JAFZA vs Mainland vs Other Free Zones
Factor | JAFZA | Dubai Mainland | Lighter Free Zones (IFZA, Meydan) |
|---|---|---|---|
Best for | Trading, logistics, manufacturing | Local retail and services | Consultants and small service firms |
Port and warehouse access | Direct, on site | Through customs | Limited |
Trade with UAE customers | Through a distributor, DET permit or mainland entity | Directly | Through a distributor or permit |
Physical facility | Required at setup | Office with Ejari | Flexi desk often enough |
Typical first year cost | Higher | Medium | Lower |
Since Dubai’s Executive Council Resolution No. 11 of 2025, Dubai free zone companies can apply for a Department of Economy and Tourism (DET) permit or branch license to work on the mainland, with free zone approval. For full local trading, many JAFZA clients still open a sister company through mainland company formation in Dubai. Lean service startups should also compare company formation in IFZA, and logistics firms can look at Dubai South Free Zone.
Business Setup in JAFZA: Step by Step
- Choose your structure and license. FZE, FZCO, branch or offshore, plus a trading, service, industrial or logistics license.
- Select activities. Some goods, such as food or regulated products, need extra approvals from other authorities.
- Reserve a company name. It must be unique and follow UAE naming rules.
- Choose and lease a facility. JAFZA needs an active lease at setup, from a co-working workstation to a warehouse or land plot.
- Submit your application online through the JAFZA business setup portal or with a registered consultant.
- Pay the setup fees and sign the lease.
- Receive your license and certificate of formation. JAFZA states 3 to 14 business days once all documents are in.
- Get your establishment card and apply for investor and employee visas.
- Open a corporate bank account with our bank account opening support.
- Register for VAT and corporate tax with the Federal Tax Authority.
Documents Required
For individual shareholders:
- Passport copy and passport photo
- UAE visa and Emirates ID, if resident
- Proof of residential address
- Business plan or activity description
For corporate shareholders and branches:
- Certificate of incorporation, memorandum and articles of the parent company
- Board resolution approving the JAFZA company and appointing a manager
- Certificate of good standing
- Latest audited financial statements, where requested
- Legal attestation of foreign documents
JAFZA Company Formation Cost
JAFZA does not publish a single package price, because cost depends on license, facility and visas. The figures below are approximate market estimates from recent client projects. Use the JAFZA cost calculator and confirm current fees before budgeting.
Cost Item | Approximate Cost (AED) |
|---|---|
License fee | From around 5,000 per year |
Registration and setup charges | 5,000 to 15,000 |
Co-working workstation or flexi desk | Around 12,000 to 20,000 per year |
Office space | 40,000 to 150,000+ per year |
Warehouse lease | From around 400 per square metre per year |
Establishment card | 1,000 to 2,500 |
Employment visa per person | Around 2,400 to 4,100, plus medical and Emirates ID |
Small first year setup (workstation, one visa) | 40,000 to 70,000 |
Trading company with warehouse | 150,000 to 400,000+ |
Renewals are usually lower than year one, since registration charges do not repeat. For wider comparisons, see the cost of obtaining a trade license in Dubai.
JAFZA Facilities and Visa Allocation
Your facility drives your visa quota, so choose space with your hiring plan in mind:
- Co-working workstation: about 2 visas per workstation
- Office: roughly 1 visa per 9 square metres
- Showroom: usually capped at a small number of visas
- Warehouse and light industrial units: quota scales with area
- Land plot: a larger starting quota that can be expanded
These ratios are indicative, so confirm them with JAFZA when you lease. Shareholders can apply for an investor visa, and qualifying investors can explore the UAE Golden Visa. For warehouse heavy businesses, also read our warehouse license in Dubai guide.
VAT and Corporate Tax in JAFZA
- Designated Zone VAT: JAFZA is listed as a Designated Zone by the Federal Tax Authority. Certain movements of goods within or between designated zones can fall outside the scope of UAE VAT. Services are still standard rated at 5%.
- VAT registration: mandatory once taxable supplies pass AED 375,000 a year, and voluntary from AED 187,500. Our VAT and tax consultancy team can handle this.
- Corporate tax: a Qualifying Free Zone Person pays 0% on qualifying income and 9% on other taxable income, as set out by the UAE Ministry of Finance. You need adequate substance, audited financial statements and non-qualifying revenue within the de minimis limit. See our corporate tax services.
Calling JAFZA “tax-free” is no longer accurate. The 0% rate is a status you must earn and keep every year.
JAFZA or Dubai Auto Zone for Car Businesses?
Many founders searching for a “Dubai car free zone” mean Dubai Auto Zone (DAZ), formerly known as DUCAMZ, the Dubai Cars and Automotive Zone. It is a separate free zone built for used car trading and re-export. JAFZA suits automotive parts distribution, vehicle logistics and assembly with warehouse needs. For car trading showrooms, read our Dubai Auto Zone company formation guide.
Common Mistakes to Avoid
- Choosing a service license when you need to hold stock
- Leasing a facility too small for your planned visa numbers
- Assuming JAFZA companies can sell directly to mainland customers without a permit or distributor
- Losing 0% corporate tax status by mixing in too much non-qualifying revenue
- Underestimating attestation time for parent company documents
Expert Tip From Our Consultants
Plan your JAFZA setup around your supply chain, not just the license fee. If goods arrive by sea and are re-exported across the GCC or Africa, JAFZA’s port access and Designated Zone treatment can save far more than its higher rent. If you only need a license and a visa, a lighter free zone is usually the smarter start. We often set up trading and logistics clients in JAFZA, with a small mainland company for local sales.
Frequently Asked Questions
How much does JAFZA company formation cost?
A small setup with a workstation and one visa usually costs AED 40,000 to 70,000 in the first year. Warehouse based trading companies often spend AED 150,000 or more.
How long does it take to set up a company in JAFZA?
JAFZA states 3 to 14 business days once documents and the lease are complete. Visas and banking add a few more weeks.
Is there a minimum share capital for a JAFZA company?
JAFZA no longer prescribes a fixed minimum for FZE and FZCO companies. Capital should suit your activities.
Can a foreigner own 100% of a company in the Jebel Ali Free Zone?
Yes. JAFZA allows 100% foreign ownership for all its company structures.
Do I need an office to register a company in JAFZA?
Yes. JAFZA requires an active lease at setup, from a co-working workstation to an office, warehouse or land plot.
Can a JAFZA company trade with mainland UAE?
Yes, through a local distributor, a DET permit or branch license under Resolution No. 11 of 2025, or a mainland sister company.
What is the difference between JAFZA and JAFZA Offshore?
A JAFZA free zone company can trade, lease space and sponsor visas. A JAFZA Offshore company is a holding vehicle that cannot trade in the UAE or issue visas.
Do JAFZA companies pay corporate tax?
Qualifying Free Zone Persons pay 0% on qualifying income and 9% on other taxable income above the threshold. Conditions apply every year.
Start Your JAFZA Business Setup With Expert Support
Gulf Corporate Services helps investors complete company setup in JAFZA, from license selection and facility leasing to visas, banking, VAT and corporate tax. For a deeper look at JAFZA packages, see our JAFZA company formation page, or speak to our business setup consultants for a free cost estimate.