JAFZA FREE ZONE

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.

Business setup in Jafza Free Zone
Why Setup Business In Jebel Ali FreeZone, JAFZA

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

  1. Choose your structure and license. FZE, FZCO, branch or offshore, plus a trading, service, industrial or logistics license.
  2. Select activities. Some goods, such as food or regulated products, need extra approvals from other authorities.
  3. Reserve a company name. It must be unique and follow UAE naming rules.
  4. Choose and lease a facility. JAFZA needs an active lease at setup, from a co-working workstation to a warehouse or land plot.
  5. Submit your application online through the JAFZA business setup portal or with a registered consultant.
  6. Pay the setup fees and sign the lease.
  7. Receive your license and certificate of formation. JAFZA states 3 to 14 business days once all documents are in.
  8. Get your establishment card and apply for investor and employee visas.
  9. Open a corporate bank account with our bank account opening support.
  10. 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.

Start Your Business Today

+971 56807 2491

24/7 Emergency Service

CALCULATE BUSINESS SETUP COST