By Adil Ahmad, Business Setup Consultant at Gulf Corporate Services
Summary
JAFZA, the Jebel Ali Free Zone, is Dubai’s largest free zone for trading, logistics, and manufacturing, right next to Jebel Ali Port. You can register an FZE, an FZCO, or a branch with 100% foreign ownership and no fixed minimum capital. Licences start from about AED 5,000, but your facility is the main cost. This guide explains company types, costs, visas, setup steps, and tax.
JAFZA Company Formation at a Glance
| Item | Details |
|---|---|
| Free zone | Jebel Ali Free Zone (JAFZA), operated by DP World |
| Location | Next to Jebel Ali Port and close to Al Maktoum International Airport |
| Companies | 11,000+ from 157 countries (DP World, 2025) |
| Entity types | FZE, FZCO, branch of a foreign or UAE company, offshore company |
| Licence types | Trading, service, industrial, logistics |
| Licence fee | From about AED 5,000, plus facility costs |
| Minimum capital | No fixed minimum since 2017 |
| Facilities | Co-working, offices, warehouses, light industrial units, land |
| Setup time | About 3 to 14 business days once documents and lease are ready |
| VAT status | Designated Zone for certain goods transactions |
What Is JAFZA and Who Is It For?
JAFZA opened in 1985 and has grown into one of the world’s biggest trade and logistics hubs. It sits beside Jebel Ali Port, has customs-bonded facilities, and connects by road to the rest of the UAE, Saudi Arabia, and the wider GCC. Companies use JAFZA to import, store, assemble, and re-export goods across the Middle East, Africa, and South Asia.
JAFZA suits:
- Traders and distributors that hold physical stock
- Logistics, freight forwarding, and e-commerce fulfilment companies
- Manufacturers and assemblers that need light industrial units or land
- Multinationals setting up regional distribution centres
- Companies serving Saudi Arabia and the GCC by road from Dubai
If you run a pure service business with no stock, a cheaper office-based free zone may be enough. Compare options in our free zone company setup guide.
Benefits of JAFZA Company Formation
- 100% foreign ownership and full repatriation of capital and profits
- Port access: direct links to Jebel Ali Port and Al Maktoum International Airport
- Customs advantages: duty suspension on goods stored in the zone and re-exported
- Designated Zone VAT treatment for certain goods movements
- Wide facility choice: from a single workstation to land for a factory
- No fixed minimum capital for FZE and FZCO companies
- Mainland access options through Dubai’s free zone permit rules
- Strong reputation with banks, suppliers, and global partners
JAFZA Company Types: FZE, FZC and Branch
| Entity | Shareholders | Best for |
|---|---|---|
| Free Zone Establishment (FZE) | 1 individual or corporate | Solo founders, single parent companies |
| Free Zone Company (FZCO, often called FZC) | 2 to 50 | Partnerships and joint ventures |
| Branch of a foreign company | Owned by the overseas parent | Multinationals extending into the region |
| Branch of a UAE company | Owned by a UAE parent | Local groups adding a free zone arm |
| JAFZA Offshore company | Non-resident holding vehicle | Holding assets outside the UAE, no trading licence |
A branch must use the same name and activities as its parent. If you want to hold shares in other companies, see our guide on how to start a holding company in Dubai.
JAFZA License Types and Business Activities
According to JAFZA’s business licence page, the main licence categories are:
- Trading licence: import, export, distribution, and storage of listed products
- Service licence: consulting, logistics services, and other services; no physical stock
- Industrial licence: manufacturing, assembly, and processing; needs a production facility or warehouse
- Logistics licence: freight forwarding, shipping, and warehousing services
Choose activities carefully. A service licence cannot hold stock, and adding trading later means changing your licence and often your facility.
JAFZA License Cost and Facility Cost
JAFZA lists licences from about AED 5,000, but it does not publish one fixed package price. Your total cost depends mostly on the facility you lease.
| Cost item | Indicative cost (AED) |
|---|---|
| Licence fee | From about 5,000 a year, by licence type |
| Registration and incorporation documents | A few thousand, one time |
| Co-working workstation | Market-reported about 15,000 to 25,000 a year |
| Office | Market-reported about 40,000 to 100,000+ a year |
| Warehouse or light industrial unit | Market-reported about 50,000 to 300,000+ a year |
| Establishment card and immigration registration | A few thousand dirhams |
| Each residence visa | About 3,500 to 5,500 plus medical and Emirates ID |
For a small trading FZE with a workstation and one visa, budget roughly AED 30,000 to 60,000 in the first year. Warehouse-based setups often run into six figures. Facility rates are broker estimates, so get a written JAFZA quote before you commit. You can also estimate costs with our business setup cost calculator.
JAFZA Facilities and Visa Quota
Your facility decides how many visas you can sponsor. Indicative quotas reported for JAFZA include:
- Co-working workstation: about 2 visas
- Office: roughly one visa per 9 m² of space
- Showroom: capped at about 5 visas
- Warehouse or light industrial unit: scales with area
- Land plot: an initial allocation, expandable on approval
Confirm your quota with JAFZA before signing a lease. Once the company has its establishment card, you can apply for an investor visa for yourself and employment visas for staff.
Industrial Units, Warehouses and Land in JAFZA North and South
JAFZA is split into JAFZA North, closer to the port and older warehouse clusters, and JAFZA South, with newer logistics parks, larger plots, and light industrial units. Manufacturers and distributors usually choose between:
- Pre-built warehouses, including JAFZA Gateway units of about 325 to 2,475 m²
- Light industrial units for assembly, packaging, and small-scale production
- Land plots on short or long leases for build-to-suit factories
- Showrooms and staff accommodation for larger operations
Ask about power supply, loading bays, civil defence approvals, and customs-bonded status before you sign.
How to Register a Company in JAFZA: Step-by-Step
- Choose your entity type and licence based on whether you hold stock.
- Confirm your activities are on JAFZA’s list and check if any need extra approvals.
- Reserve a trade name through the JAFZA portal.
- Select your facility: workstation, office, warehouse, or land.
- Submit the application with documents and sign the lease.
- Pay registration, licence, and lease fees.
- Receive your certificate of formation and licence.
- Apply for the establishment card and visas.
- Open a corporate bank account and register for tax.
The JAFZA company formation page has the latest checklists.
Documents Required for JAFZA Registration
Individual shareholders:
- Passport copies and photos
- Proof of residential address
- Business plan or company profile
- Completed JAFZA application forms
Corporate shareholders and branches:
- Certificate of incorporation, memorandum, and articles of the parent
- Board resolution approving the JAFZA company or branch
- Certificate of good standing and recent audited financials for branches
- Documents legalised and attested by the UAE embassy and Ministry of Foreign Affairs
Corporate Tax, VAT and Customs in JAFZA
JAFZA companies are not automatically tax free:
- Corporate tax: a Qualifying Free Zone Person pays 0% on qualifying income, such as manufacturing, distribution, logistics, and trading in qualifying goods, and 9% on non-qualifying income
- Conditions: adequate substance, audited financial statements, transfer pricing compliance, and non-qualifying revenue within the de minimis limit
- VAT: JAFZA is a Designated Zone, so some goods transactions fall outside UAE VAT, but services are still taxed at 5%
- Customs: duty is suspended on goods stored and re-exported, and is paid when goods enter the UAE mainland
Read the FTA’s Designated Zones guidance and speak to our corporate tax and accounting teams.
Can a JAFZA Company Operate on the Dubai Mainland?
Yes, with the right permit. Under Dubai Executive Council Resolution No. 11 of 2025, free zone companies can apply to the Department of Economy and Tourism for a mainland branch licence or a temporary permit, according to KPMG. Goods sold to mainland customers still go through customs. If most of your sales are in the UAE, compare with mainland company formation or read about moving a free zone company to the mainland.
JAFZA vs Other Dubai Free Zones
| Free zone | Best for | Cost level |
|---|---|---|
| JAFZA | Trading, logistics, manufacturing with port access | Medium to high |
| DAFZA | Air cargo, high value goods, airport-linked trade | Medium to high |
| DMCC | Commodities, trading, services in JLT | Medium |
| Dubai South | Logistics and aviation near Al Maktoum Airport | Medium |
Compare with DAFZA company formation and DMCC free zone. Our JAFZA free zone service page covers packages handled by our team.
Using JAFZA as a Gateway to Saudi Arabia
Many of our clients store stock in JAFZA and truck it into Saudi Arabia. If Saudi sales grow, a local entity often becomes necessary for registrations and tenders. Read our guide to importing goods into Saudi Arabia and explore business setup in Saudi Arabia.
Common Mistakes to Avoid
- Taking a service licence when you need to hold stock
- Signing a facility lease without checking the visa quota
- Budgeting only for the licence and forgetting facility costs
- Assuming 0% tax without meeting QFZP conditions
- Selling to mainland customers without the right permit or distributor
Expert tip from Adil Ahmad: start banking conversations as soon as your licence is approved. JAFZA companies with clear supply chain documents and real facilities usually open accounts faster than office-only setups.
FAQs on JAFZA Company Formation
How much does JAFZA company formation cost?
Licences start from about AED 5,000, but a small trading company with a workstation and one visa often costs AED 30,000 to 60,000 in year one.
What company types can I register in JAFZA?
FZE, FZCO, branch of a foreign or UAE company, and JAFZA Offshore company.
Is there a minimum capital in JAFZA?
No fixed minimum since 2017, but capital should match your activities.
Can a foreigner own 100% of a JAFZA company?
Yes. JAFZA allows full foreign ownership.
How long does JAFZA registration take?
About 3 to 14 business days once documents and the lease are ready.
Can I get a warehouse in JAFZA?
Yes. JAFZA offers warehouses, light industrial units, and land plots.
Is JAFZA tax free?
Not automatically. Qualifying income can be taxed at 0%, and you must register and file corporate tax returns.
Can a JAFZA company sell on the Dubai mainland?
Yes, through a distributor or a mainland permit from the Department of Economy and Tourism.
Set Up Your JAFZA Company With Expert Help
Our team chooses the right JAFZA licence and facility, handles registration and visas, and supports corporate bank account opening. We also offer full business setup in Dubai. Speak with our business setup consultants for a free JAFZA quote.
