JAFZA FREE ZONE
Costs for: JAFZA Free Zone
About Jebel Ali Free Zone (JAFZA)
Jebel Ali Free Zone (JAFZA), founded in 1985, is the oldest free zone in UAE and is notable for its contribution in facilitating business growth and international trade. Due to the diverse ecosystem of JAFZA, it has become the most famous commercial hub for a variety of companies from around the globe. It has many big companies and it is known as a business city because of that .
I think the location of JAFZA contributes to its importance because it is situated strategically. The free zone is located near one of the busiest ports in the world and provides easy access to international shipping routes for smooth imports and exports. In addition, its location is close to two international airports, enabling quick and easy transportation for companies based there.
Benefits of setting up a company in: JAFZA Free Zone
What Is JAFZA and Why You Should Start Your Company Here?
The UAE’s economy has been dependant on oil and gas for a long time now and this has led to its prosperity. Nevertheless, even though the projected growth rate for the upcoming year is quite low at 2.1%, the country has still become an attractive place for investors looking to expand their businesses beyond the traditional energy sector.
According to me, the best area for new business enterprises is the Jebel Ali Free Zone (JAFZA) because of its great prospects. Located in Dubai, the JAFZAFree Zone is a critical business hub and is developing rapidly. JAFZA provides a viable platform for business owners and investors looking to expand their operations in the UAE.
This guide is especially for me because I’m really interested in creating a company in JAFZA. This information will help you understand all the important details of starting a business in the JAFZA as well as help you complete the process more efficiently. JAFZA is very helpful. It has manybusiness benefits. You can find more rules about it easily.
What Is JAFZA?
The JAFZA, an abbreviation for Jebel Ali Free Zone Authority, was established in 1985 and has grown to become one of Dubai’s most established and successful free zones, supporting thriving businesses. JAFZA being the first free zone is attracting business leaders to have a presence in Dubai.
well the airport has become a business hub for corporate and it attracts thousands of visitors daily including commercial flights from all over the world. It is very popular in Dubai because it provides many opportunities in the changing business environment.
JAFZA is situated in close proximity to both the Jebel Ali Sea Port and the Al Maktoum International Airport which makes it strategically located. This positioning makes it beneficial for companies that operate in a global market, as it allows for smooth transport of products and efficient business operations.
The construction of Etihad Rail contributes to the transportation network, adding more connectivity on top of it. The railway system that connects JAFZA to the entire Emirates will incredibly facilitate the transfer of goods within UAE. This is really useful for the growth of trade in Dubai, it shows that JAFZA is really serious about its role in logistics and providing opportunities for businesses.
Business Activities Allowed in JAFZA
JAFZA is an attractive place for investors because it allows a wide variety of business activities. As students, we aspire for the same flexibility in our lives, to have the freedom to enter any field that we are interested in and capture the market opportunities that presents itself to us.
The Arabian Free Zone, JAFZA, offers two types of licenses for business owners to operate under. Firstly, a type one allows for the maximum selection of 7 items from a single category. However, with type 2 license, the capacity increases, enabling firms to offer up to 12 products from related groups. This adaptability gives entrepreneurs the freedom to shape their business pursuits as per their own imaginations and changing consumer trends.
Adding activity to either license ensures optimal functioning of the business operations. This can be achieved for a minimal fee of AED 500 which is definitely worth the investment. This cost-effective approach of companies allows them to provide various goods and services based on changing market trends without paying high licensing charges.
The ability to adjust its licenses permits makes JAFZA a viable option for individuals seeking a flexible and open-minded business environment in the UAE.
- The stock market provides a varied range of opportunities for entrepreneurs to invest in various industries. The broad spectrum of trading activities includes:
- Agricultural activities
- We can utilize haftimari or the barter system for trading of trains, sea vessels, and aircraft.
- Supplies and amusement equipment
- Paper and packaging materials
- Building materials
- Fuel and petroleum
- Equipment and machines
- Beauty and medicines
- Food and beverages
- Motor vehicles
- Sports equipment
- Tobacco and smoking
- Exchange and financial
- Household furniture
This means that individuals who have expertise in a particular area can still create a business and be successful. For this reason, the trading sector in JAFZA plays an important role in our economy. By being adaptable, investors can take advantage of many trading opportunities that are constantly changing in the market.
JAFZA offers entrepreneurs an extensive range of services on a single platform. The activities falling under the services category include:
- Machinery, equipment, and repairs
- Transport, storage, and shipping services
- Banking and financial services
- Surveillance services
- Building maintenance and management services
- Cleaning services
- Car rental and transportation services
- Consulting services
- Contracting and building services
- Gas station services
- Document storage and destruction services
- Event and exhibition organization services
- Government liaison
- Food supply services
- Hospitals and recovery house services
This multitude of service providers demonstrate the adaptability of this industry in JAFZA. We know that entrepreneurs are smart enough to discover business possibilities in domains like advertising, logistics, finance, maintenance and many more. JAFZA provides a wide range of services that helps businesses to be successful in the service sector.
Benefits of Starting a Business in JAFZA
Establishing companies in JAFZA can provide business owners with significant benefits, especially to investors. Here are some compelling reasons why JAFZA attracts businesses:
Setting up a business in JAFZA is very fast and easy. However, they have the ability to manage their company funds with much more control. It’s great, you just need to know what your business needs before you start.
JAFZA is unique in the way it offers three permits without needing a physical office. This is really cool, since it makes it much easier for business owners to start a company even if they are not physically present. The flexibility of having a flexi-desk option makes it easier for a business to start.
Visa Sponsorship and Dependents
Sponsoring dependents is easier when it comes to JAFZA. It does away with most paperwork and makes the entire process stress-free for business owners. The visa sponsorship process is easy now, so entrepreneurs can handle this efficiently.
Tax and Currency Benefits
The JAFZA airport us unique in the sense that it has no currency issues that prevent international investors from smoothly operating their businesses and conducting transactions within and outside the UAE. Additionally, not putting taxes on income, whether personal or for a corporation, helps lower the cost of doing business in a free zone.
No Minimum Share Capital
Free Zones in UAE with no share capital requirement Unlike other free zones in UAE, JAFZA is not obligated to have a minimum capital requirement. It gives investors, mainly young business people, the option to starting their business without any upfront costs.
JAFZA is located in a very strategic place and because of this it is very attractive for business. This place has the best option for transportation because it is near the largest port and well-equipped warehouses in the area. This connectivity makes sure that there is easy trade happening locally as well as across the world with direct links to Russia, Asia, and Africa.
Types of Company Formations Allowed in JAFZA
In JAFZA, you have a number of options for organizing a business, each suited to particular business models. Depending on what type of business you run, your choices will vary. Here are the critical company formation options available in JAFZA:
Free Zone Company (FZCO)
A FZCO is an organization that functions in the same manner as a partnership limited in liability. So, if a legal dispute arises, only the company assets can be seized, and the business owner’s personal assets remain untouched. In JAFZA, we can create a company called FZCO that allows for 2 to 50 shareholders, which could be individuals or companies.
Free Zone Establishment (FZE)
FZE is a good option for individuals who want to own a company on their own. Having an FZE means that you only need one shareholder and that allows you to have sole ownership which is very convenient. It’s quite interesting that the ownership of an FZE can be with an individual or a company which implies flexibility. This structure provides protection to the assets of the organization, limiting the liability of the members.
This is the easiest branch office formation type. It acts as an extension of the main company. This is good for companies that are not located in JAFZA. The parent company must establish a branch in the Jebel Ali Free Zone only if it wholly owns the branch and conducts operations of the exact same nature as the parent company under the same name.
These business formation options are specifically categorized for certain requirements and establishments, providing entrepreneurs with a variety of alternatives to select from, to suit the objectives and processes of their companies. JAFZA offers different alternatives based on various business objectives, by providing the safety of private property rights, owning businesses independently or extending an existing organization.
Required Documentation for Registering a Business in JAFZA
Launching a business in JAFZA requires obtaining numerous important documents. These documents are pretty easy to get, which makes it easy for you to start your own company. Here are the key documents you’ll need:
Application Form for Operation in JAFZA: The first thing that is required of you is to fill in the application form for working in JAFZA. This Free Zone business setup form is very important for starting a business.
Environmental Health and Safety Application: I don’t know what is this application that we have to fill but I guess it has something to do with environment and health and safety. This measure highlights the dedication of JAFZA in maintaining environments of safety and discipline.
Formal Description of Company’s Intended Activities: It is super important that you have a proper description of what your company does, so that they know what you are capable of doing. It is important to list all your business operations clearly in order for JAFZA to understand the scale and complexity of your business.
Copy of Company’s Articles of Association: It is very necessary to attach a copy of the company’s articles of association while incorporating the company. This guideline provides instructions related to the internal affairs of the organization and is one of the important documents required for joining this firm.
Passport Copies for Managers, Secretaries, and Shareholders: I heard that the company wants all the people who are related to the company such as the managers, secretaries, and shareholders to submit their passport copies. This documentation is really important as it verifies the identity of the key persons involved in the business.
When making a trip abroad, it is a rule that the business representatives must provide By submitting these documents, you will be able to start your business in JAFZA without any hassle.
How Much Does a Business License in JAFZA Cost?
It is good to know that starting a business in JAFZA comes with cheaper fees compared to other free zones in the UAE, which is good news for entrepreneurs who want to set up their businesses there. The first step to registering your business in a free zone requires a registration fee of AED 10,000, which is paid only once.
Having an understanding of your business activities is crucial when it comes to choosing the right license. Type 1 license costs AED 5,500 while a Type 2 license requires a payment of AED 9,000. A free zone office space is necessary, and the cost of rent will vary according to its size and location. In addition to the fees for obtaining visas, there are also extra charges for application processing, issuance, as well as other linked services for both you and your employees. It is important that we factor in all of the fees that are needed in order for us to fully plan out our finances before starting a business in the JAFZA zone.
How to Set Up a Business in JAFZA
Starting a business in JAFZA is quite easy, it has few processes to follow which makes it reachable for entrepreneurs. The process enables companies to begin the setup outside the country and request the mandatory visit to the free zone after receiving corporate documents.
The first step is to determine the name of the business and its operations. Then, this information is given to the necessary authority to get the required license. After obtaining the initial approval, the subsequent phase includes submitting documents, paying fees, and securing an office space.
The registration process for JAFZA can take two to four weeks for business type and activities. Wow, how is that possible?
Businesses need to renew their licenses after three years in order to sustain their operations. I find it very convenient and accessible for companies to renew their operations in JAFZA from outside the UAE. They don’t have to physically be present in UAE to renew their renewal process.
How to Cancel a Business License in JAFZA
If the decision is taken to stop the operations in JAFZA then what will happen next? So, that means that the closure process needs either the person who is physically present in UAE or an individual assigned with the Power of Attorney. In order to close a company, the original papers must be given back, and a cancellation fee of roughly 2000 AED has to be paid.
It usually takes around a month to finish the process of liquidation. If the JAFZA company registers gets finalized. Then, it will send a certificate to the company stating that the company is legally no longer operating. By using a deliberate plan, business activities can be properly terminated in JAFZA, and they’ll have a properly documented record.
Launch a Company in JAFZA
JAFZA gives business owners a lot of opportunities to make money and helps them grow their business. Having heard about numerous benefits of JAFZA, a number of UAE business owners are really inclined to take advantage of this area.
We can help you set up your business in JAFZA or any other free zone in Dubai. if you are interested in starter your own business in UAE please contact us immediately so we can guide you towards the process of starting it Our primary objective is to provide the necessary assistance and direction to you in launching a successful business in this region which is known for its favorable business environment.