INTRODUCTION

Welcome to our comprehensive guide on how to start a Business in Jebel Ali Free Zone (JAFZA). As experts in the field of business setup and optimization, we aim to provide you with the most detailed and up-to-date information that will help you navigate the process successfully. Whether you’re an entrepreneur, a small business owner, or an investor looking to explore the opportunities in JAFZA, this guide is your ultimate resource.

Understanding Jebel Ali Free Zone (JAFZA)

Jebel Ali Free Zone (JAFZA) is one of the largest and fastest-growing free zones in the world, located in Dubai, United Arab Emirates. It offers a strategic location, state-of-the-art infrastructure, and a business-friendly environment that attracts companies from various industries. By setting up your business in Jafza, you gain access to numerous benefits, including:

• Complete Foreign Ownership: JAFZA Free Zone allows businesses to have 100% foreign ownership, providing full control and flexibility to investors.
• Low Tax Rate: Businesses operating within JAFZA Free Zone can take advantage of a favorable corporate tax rate of 9% if their profits exceed 375,000 AED. This ensures a competitive and tax-efficient environment for companies.
• Strategic Location: Situated at the crossroads of Asia, Europe, and Africa, JAFZA offers an advantageous location for businesses seeking to expand into multiple markets. Additionally, its proximity to Jebel Ali Port, one of the world’s largest container ports, enables efficient logistics and global trade connections.
• World-Class Infrastructure: JAFZA Free Zone boasts modern infrastructure and state-of-the-art facilities. From advanced warehousing and manufacturing spaces to well-equipped office premises, businesses can thrive in a conducive environment.
• Simplified Procedures: JAFZA Free Zone simplifies the process of establishing and operating a business. With streamlined procedures, minimal paperwork, and swift registration, entrepreneurs can save time and resources, focusing on their core operations.
• Access to Skilled Workforce: JAFZA Free Zone provides access to a diverse and highly skilled workforce. Companies can tap into a pool of talented professionals from around the world, ensuring the availability of expertise across various industries.

Step-by-Step Guide to Start a Business in Jebel Ali Free Zone (JAFZA)

Step 1: Determine your Business Activity

Before diving into the setup process, it’s crucial to identify the specific business activity you wish to undertake in JAFZA. Whether it’s manufacturing, trading, or providing services, understanding your business activity will help you navigate the subsequent steps more effectively.

Step 2: Choose the Right Company Formation Type

JAFZA offers several company formation types to suit different business needs. Here are the main options:

• Free Zone Company (FZCO): Ideal for businesses with multiple shareholders, allowing up to five shareholders and the flexibility to engage in multiple activities.
• Free Zone Establishment (FZE): Suitable for a single shareholder, providing complete control and ownership of the business.
• Branch of a Foreign Company: If you already have an established company outside JAFZA and wish to expand your presence, this option allows you to open a branch.

Step 3: Prepare the Required Documents

To initiate the business setup process, you need to gather and prepare the necessary documents. The typical documentation includes:

• Application form (provided by JAFZA)
• Passport copies of shareholders and directors
• Proof of address for shareholders and directors
• Business plan outlining your company’s objectives, products/services, and market analysis
• Memorandum and Articles of Association (MOA and AOA)
• NOC letter from a current sponsor (if applicable)
• Specimen signature of shareholders and directors

Step 4: Obtain the Initial Approval

Submit your completed application along with the required documents to JAFZA. The authorities will review your application and grant the initial approval, allowing you to proceed with the next steps of the setup process.

Step 5: Lease an Office Space or Warehouse

Based on your business requirements, choose an appropriate office space or warehouse within JAFZA. The zone offers a wide range of options to cater to businesses of all sizes. Ensure that the chosen space aligns with your operational needs and budget.

Step 6: Pay the Registration Fees and Obtain License

Once you’ve secured the office space, pay the necessary registration fees as stipulated by JAFZA. After the payment is confirmed, you will receive your business license, allowing you to legally operate within JAFZA.

Step 7: Complete the Visa Process

As a business owner in JAFZA, you may need to obtain visas for yourself, employees, and dependents. JAFZA provides support in facilitating the visa process, ensuring a smooth transition for you and your team.

Step 8: Open a Corporate Bank Account

To facilitate financial transactions and operations, it’s essential to open a corporate bank account with a reputable bank in the UAE. Ensure you fulfill the bank’s requirements and provide the necessary documentation to complete the account opening process.

JAFZA Offshore Company and Special Purpose Company (SPCs)

JAFZA allows for the creation of different types of companies, including Mainland and Free Zone companies, as well as Offshore companies and Special Purpose Companies (SPCs).

Offshore companies are non-residents that can do business outside of the UAE but not within the country itself. These companies don’t have to pay taxes. However, they need to have an office registered in JAFZA and a designated registered agent within the same jurisdiction. Offshore companies typically engage in activities like holding assets, managing investments, and providing consultancy services.

On the other hand, SPCs are established for specific purposes such as owning assets, running projects, or holding shares in other companies. They can be registered as FZCOs, FZEs, or branch offices.

Cost of Establishing a Business in JAFZA

Securing a trade license in JAFZA can be as affordable as AED 5,500. However, it’s important to consider the overall expenses involved in setting up a company within this jurisdiction. The total cost typically ranges from AED 20,000 to AED 100,000, taking into account additional fees such as visa charges, registration costs, and miscellaneous expenses.

How Positive Zone Can Assist You

Positive Zone understands the challenges involved in starting a business in JAFZA, and we are dedicated to providing support every step of the way. Our team of experienced business experts is here to offer comprehensive guidance tailored to your specific needs. With over 8 years of expertise in the UAE business landscape, we offer a range of specialized services, including company registration, licensing, visa processing, bank account opening, and office space rental. We are committed to making your JAFZA business journey seamless and successful.

To embark on your JAFZA business venture, please contact us at +971564228581 to speak with one of our knowledgeable experts.