JAFZA company formation process
- Choose your business activities and license type. Determine the business activities of your future company and the appropriate license type. This is a critical step for successful business formation, as choosing the wrong activities or license may lead to errors during company registration, complications in opening a bank account, or issues obtaining residence visas for you and your employees.
- Determine the legal entity of your business.
Specify the legal status of your company in JAFZA. In this free zone,
you can establish the following types of companies:
- FZE (Free Zone Establishment): a free zone company with one shareholder
- FZC (Free Zone Company): a free zone company with 2-50 shareholders
- PLC (Publicly Listed Company): a publicly listed limited liability company
- Branch of a local or foreign company
- Offshore company: no limitations on the number of shareholders
- Prepare and file the required documentation.
Prepare and submit the necessary documents along with the application
form. The following documents are required for company registration in
JAFZA:
- Passport
- Passport-size photo
- Recent utility bill as proof of address
- NOC (No Objection Certificate) from your sponsor for UAE visa holders
- Company name options
- Business description
- List of business activities
- Collect the license and registration documents.
Receive your license and registration documents, including:
- Certificate of Incorporation
- Business license
- Articles of Association
- Investment Agreement
- Share Certificate
- Lease Agreement
- Secure your establishment card. Collect the establishment card containing information about your company and visa quotes.
- Apply for an entry permit. Submit an application for an entry permit. If you’re outside of the UAE during the processing of the entry permit, you will need to come to the country when the document is issued within 60 days to complete the medical test and biometrics for your visa. If you’re in the UAE when the entry permit is issued, a status change will be done from your previous UAE tourist/residency visa to the new one.
- Take a medical test and submit visa documents. Undergo a medical checkup and submit documents for a residence visa. Different registration packages may provide for a varying number of visas available for owners and employees of the company.
- Collect your Emirates ID. Once your visa is issued, secure your Emirates ID card.
- Open a bank account. Apply to a UAE bank to open a corporate bank account. Once you receive your account details, you are free to start running your business.
With us you can navigate this process quickly and effortlessly. You don't even have to arrive in Dubai — the registration procedure can be completed remotely. However, you will need to visit the UAE for medical checkups, visa formalities, and account opening.
JAFZA license cost
Here is the list of JAFZA licenses and associated fees:
| LICENSE TYPE | COST |
|---|---|
| Trading license type 1/Services/Industrial (7 categories of products) | 5,500 AED |
| Trading license type 2 (12 categories of products) | 9,000 AED |
| General Trading license/Logistics/E-Commerce | 15,000 AED |
Other fees associated with company registration at JAFZA include:
| FEE | COST |
|---|---|
| Registration fee | 5,000 AED |
| Additional business activity | 500 AED per activity |
In addition to the aforementioned costs, you will need to cover other fees not included in the license cost, such as:
- Company name approval fee
- Document attestation fee
- Establishment card fee
- Office rental costs
- Visa fees
- Medical checkup fee
- Emirates ID
The most affordable company registration package in JAFZA will cost approximately 52,636 AED. While the overall costs of setting up a business in JAFZA may appear higher than in other free zones, they are compensated by the provided advantages and opportunities.
Is JAFZA suitable for your business?
- Biggest UAE sea port within the Free Zone
- Warehouses, plots of land, and customizable solutions
- Retail locations outside of the Free Zone for JAFZA licenses
Yes
- If you already have a medium or large business, especially in manufacturing, assembly, trading, import/export, or logistics.
- If you have a real need for large production spaces, warehouses, transport hubs, and land plots. The cost of setting up a company in this free zone is relatively high, but such advantages outweigh the costs for industry-focused companies.
- If you prefer a free zone with highly developed infrastructure, as JAFZA offers a wide selection of modern offices in new buildings, commercial spaces, and exhibition halls. Also, it has an in-house customs area, which allows for cheaper and faster cargo clearance.
- If your business requires sea and port operations. Jebel Ali Port is one of the largest and oldest in the UAE. Additionally, it is a major transportation hub in the country.
An alternative to JAFZA is RAKEZ, as it also has all the facilities for manufacturing and logistics businesses (land plots, warehouses, sea port) but the setup cost is lower. For air cargo and logistics tied to Dubai International Airport rather than the sea port, DAFZ is the closer fit.
No
- If you have a small company or startup due to the high registration costs and the limited number of small offices and coworking spaces (flexi-desks). For these purposes, we recommend other free zones, such as IFZA or DMCC.
JAFZA licenses and business activities
The category of your license can be different based on the type of your business setup in the UAE. JAFZA company formation is highly recommended for those who are planning to deal with international trading, distribution, or logistics sectors.
The Trading license has 3 types. They differ depending on the number of activities you can have under the license:
- Type 1: up to 7 activities from the same group
- Type 2: up to 12 activities from two groups
- Type 3: no restrictions on the number of activities from 3 or more groups
Type 3 license in Trading essentially constitutes the General Trading license. Adding an extra activity to any type of license will cost AED 500.
Licenses at Jebel Ali Free Zone can be obtained for a variety of business activities. JAFZA’s activity list is vast, with 335 activity groups divided into license categories. It should be noted that the Industrial license also mandates having a warehouse and a production plant inside JAFZA.
JAFZA facilities
Company formation at Jebel Ali Free Zone is suitable for many business types and activities due to the extensive choice of available facilities. JAFZA provides an array of ready-to-use or customizable premises for work, storage, and staff accommodations as well as land plots suitable for development and logistic facilities for cargo shipping.
In JAFZA, it is mandatory to have a premise within the free zone, as it requires having a lease agreement in time for company setup. One of the smallest available offices is 26.88 sq. m. with an annual rent of AED 53,670.
It should be noted that the number of visas available for a company setup is directly tied to the floor space of the leased premises.
Warehouse
A facility for companies needing storage space for goods and materials, often equipped for light industrial use.
Plot of land
A space where businesses can construct their own facilities according to their specific needs, often with freehold or long-term lease options.
Residential buildings
Housing facilities within the free zone for staff or executives, providing convenience and proximity to the workplace.
Furnished office
Fully equipped office space with furniture and essentials, allowing you to move in and start working immediately.
Note that the minimum available facility for Jebel Ali Free Zone company setup is a workstation (5-7 sq. m.) eligible for 2 visas. If you are planning to start your business here, you should consider an office space right away.
Jafza also has:
- Workstation: this is the smallest facility that is available in JAFZA and it is given based on availability. The workstation allows for the sponsorship of up to 2 employee visas
- Office spaces: they also have office spaces, with the smallest being 27sqm. The office is price is calculated per square meter, the size and location of the office.
JAFZA residence visas
Like any other Dubai free zone, JAFZA makes your company’s owners and staff eligible for resident visas. You will be entitled to 1 resident visa per every 10 sq. m. of office space you have.
JAFZA visa costs
| VISA TYPE | JAFZA FEE | MEDICAL CHECKUP | EMIRATES ID |
|---|---|---|---|
| Investor | 4,000 AED | 760 AED | 390 AED |
| Employee | 4,000 AED | 760 AED | 390 AED |
Visas are valid for 2 years. Health insurance is mandatory to obtain them in this free zone. The cheapest package you can get is AED 600-800 per year, and it must be renewed annually.
JAFZA company license renewal
In order to execute company renewal at JAFZA, you need to pay:
- License fees
- Office (facility) fees
- Establishment card costs
License renewal in Jebel Ali Free Zone costs the same as company registration. The renewal procedure can be carried out without visiting the free zone.
You need to provide your company’s audit report at the time of company renewal. Audit can be done through any UAE licensed and accredited auditing company.
A license can be renewed for 3 years for companies having a plot of land and a sublease facility.
JAFZA company amendments
Most of the amendments of your JAFZA company can be processed without a personal visit to the free zone.
Such amendments include:
- Change of company name
- Change of business activity
- Change of manager/director
- And others.
For the share transfer procedure, you will be required to visit the free zone. Otherwise, it can be done by a person holding a notarized Power of Attorney.
JAFZA company liquidation
The liquidation procedure requires the personal presence of the owner or it can be done by the Power of Attorney holder.
The free zone will request you to return the original documents and pay the liquidation fee. Company liquidation will take approximately 1 month. JAFZA company register will provide you with a certificate of liquidation upon completion of the procedure.
| SERVICE | COST |
|---|---|
| JAFZA license de-registration | 2,000 AED |
Business setup consultants in JAFZA can handle the company liquidation process on your behalf, significantly simplifying the procedure.
About JAFZA
Jebel Ali Free Zone (JAFZA) is the oldest free zone in the UAE. It was founded in 1985 and is currently the largest free zone in Dubai attracting immense foreign investments.
It has become home to more than 9,500 international and local companies including factories and logistics firms, manufacturing plants and assembling units, and the overall annual trade value generated by these companies exceeds $100 billion.
Jebel Ali Free Zone has direct access to Jebel Ali Sea Port (Port Jebel Ali) and Al Maktoum International Airport (also known as Dubai World Central), which adds to its global connectivity. JAFZA is also the primary free zone of DP World, one of the world’s major logistics companies and port operators.
It has a single customs area, which helps to reduce cargo clearance time and costs.
Shipping, logistics, and trading companies are often based in this free zone. If you are intending to implement such a business setup in Dubai, JAFZA has a lot to offer you:
Logistic corridor
- By sea: Port Jebel Ali has one of the best global ocean connectivities. It serves over 150 shipping lines capable of handling over 19 million containers per year.
- By air: Al Maktoum International Airport is considered one of the largest cargo airports around the globe.
- By land: The UAE region is fully equipped with an extensive highway link. It makes the cargo travel fast and safely in Dubai and between the emirates.
- By rail: Etihad Rail, UAE’s national rail project, is currently under construction. Once completed, its second stage is going to link JAFZA to the entire Arabian Peninsula.