Recognized for its unmatched industrial growth and sustainability, JAFZA has also been awarded the title of Industrial and Sustainable Free Zone of the Year 2024.
JAFZA is more than just a free zone – it’s a thriving hub for over 10,700 businesses, all contributing to Dubai’s growing economy. In 2023, these companies generated a whooping $169 billion in trade value, proving that JAFZA is a true leader in global trade indeed.
In this blog, we’ll explore why JAFZA is the best choice for businesses looking to grow in the Dubai free zone. Let us explore the world of JAFZA together!
Advantages of Business Setup in Jebel Ali Free Zone
The Jebel Ali Free Zone is one of the largest and most dynamic free zones in the world. It is home to thousands of companies, manufacturers, traders, and exporters from around the globe. It plays a vital role in Dubai’s economy, contributing 24% of the total FDI flow into the emirate.
Its strategic location next to Jebel Ali Port, and proximity to both Al Maktoum International Airport and Dubai International Airport, ensures seamless global connectivity for businesses.
A key link in the global trade network, Jebel Ali Free Zone Authority connects to 150 ports worldwide, making it a hub for international commerce. Companies operating in this Dubai free zone benefit from reduced costs thanks to the availability of storage facilities, equipped business spaces, and industrial land.
Let us dive deeper into the main advantages of setting up a business in Jebel Ali Free Zone Authority.
1. Cooperative Authority
JAFZA offers everything businesses need to run efficiently:
Free zone business licenses to enable smooth operations.
Hassle-free visa processing to make hiring easier.
A full range of business premises, including offices, warehouses, retail spaces, and staff accommodations.
2. An Ideal Place to Trade
JAFZA brings together thousands of traders under one roof, creating a vibrant trading ecosystem.
Modern facilities ensure safe storage of goods close to your retail outlets.
A supportive environment designed for seamless trading and distribution.
3. Strategic Place to Open Business
Businesses in JAFZA enjoy unique advantages:
Proximity to Jebel Ali Free Zone, with easy access for trading and selling without gate entry.
The freedom of a free zone license combined with the ability to sell directly to the UAE public.
4. 0% Corporate Tax Rate
Jebel Ali Free Zone is a designated area of the UAE which is considered a qualified free zone for the purposes of Corporate Tax. In simple terms businesses in Jebel Ali Free Zone can benefit from a 0% Corporate Tax rate on qualifying income as mentioned by the relevant Corporate Tax Cabinet and Ministerial decisions.
Recognized for its unmatched industrial growth and sustainability, JAFZA has also been awarded the title of Industrial and Sustainable Free Zone of the Year 2024.
JAFZA is more than just a free zone – it’s a thriving hub for over 10,700 businesses, all contributing to Dubai’s growing economy. In 2023, these companies generated a whooping $169 billion in trade value, proving that JAFZA is a true leader in global trade indeed.
In this blog, we’ll explore why JAFZA is the best choice for businesses looking to grow in the Dubai free zone. Let us explore the world of JAFZA together!
Advantages of Business Setup in Jebel Ali Free Zone
The Jebel Ali Free Zone is one of the largest and most dynamic free zones in the world. It is home to thousands of companies, manufacturers, traders, and exporters from around the globe. It plays a vital role in Dubai’s economy, contributing 24% of the total FDI flow into the emirate.
Its strategic location next to Jebel Ali Port, and proximity to both Al Maktoum International Airport and Dubai International Airport, ensures seamless global connectivity for businesses.
A key link in the global trade network, Jebel Ali Free Zone Authority connects to 150 ports worldwide, making it a hub for international commerce. Companies operating in this Dubai free zone benefit from reduced costs thanks to the availability of storage facilities, equipped business spaces, and industrial land.
Let us dive deeper into the main advantages of setting up a business in Jebel Ali Free Zone Authority.
1. Cooperative Authority
JAFZA offers everything businesses need to run efficiently:
Free zone business licenses to enable smooth operations.
Hassle-free visa processing to make hiring easier.
A full range of business premises, including offices, warehouses, retail spaces, and staff accommodations.
2. An Ideal Place to Trade
JAFZA brings together thousands of traders under one roof, creating a vibrant trading ecosystem.
Modern facilities ensure safe storage of goods close to your retail outlets.
A supportive environment designed for seamless trading and distribution.
3. Strategic Place to Open Business
Businesses in JAFZA enjoy unique advantages:
Proximity to Jebel Ali Free Zone, with easy access for trading and selling without gate entry.
The freedom of a free zone license combined with the ability to sell directly to the UAE public.
4. 0% Corporate Tax Rate
Jebel Ali Free Zone is a designated area of the UAE which is considered a qualified free zone for the purposes of Corporate Tax. In simple terms businesses in Jebel Ali Free Zone can benefit from a 0% Corporate Tax rate on qualifying income as mentioned by the relevant Corporate Tax Cabinet and Ministerial decisions.
JAFZA isn’t just a free zone; it’s a business ecosystem that helps companies grow, connect, and thrive.
Business Formation in Jebel Ali Free Zone Authority
Setting up a business in this free zone provides numerous opportunities for growth within a world-class business environment. With various company formation types and licensing options, it is perfectly suited to meet the unique needs of entrepreneurs and businesses alike.
Here’s a detailed breakdown of the company formation types and licensing options available in this Dubai free zone.
Types of Business Formation in JAFZA
The type of company you can set up in JAFZA depends on the number of shareholders and your business goals.
Here’s how you can establish your business in Jebel Ali Free Zone:
1. Free Zone Establishment (FZE) – For a Single Shareholder
An FZE is ideal for businesses with a single shareholder. This shareholder can be an individual (person) or a non-individual (company).
It operates as a Limited Liability Company (LLC), meaning the company’s liabilities are limited to its paid-up capital.
An FZE has a separate legal identity, allowing it to operate like a natural person with its own rights, assets, and privileges.
2. Free Zone Company (FZCo) – For Multiple Shareholders
An FZCo allows two to 50 shareholders to form a company. These shareholders can be individuals, companies, or a mix of both.
It is essentially a Limited Liability Partnership (LLP), where liabilities are restricted to the paid-up capital.
The flexibility of this structure makes it one of the most popular choices for companies in Jebel Ali.
3. Public Listed Company (PLC) – For Public Offerings
A PLC is designed for businesses planning to go public by listing shares on the stock exchange.
It is a Limited Liability Company, where liabilities are capped by the paid-up capital.
A PLC can have two or more shareholders and allows the public to own a stake in the company through stock offerings, enhancing its credibility and financial potential.
4. Branch of a Company – For Existing Businesses
An existing company located outside Jebel Ali Free Zone can establish a branch within JAFZA.
The branch operates under the same name and conducts the same business activities as the parent company.
This setup is advantageous for businesses looking to expand while retaining their operational history and branding.
5. Offshore Company – For Flexible International Operations
This free zone also supports the formation of offshore companies, which are limited liability entities primarily used for international trade and business.
There’s no restriction on the number of shareholders, and they can be individuals, companies, or a mix.
Offshore companies benefit from flexible regulations, making them a great option for global operations.
Licensing Options in Jebel Ali Free Zone
Choosing the right license is important for your freezone business setup in UAE. Below is an overview of the licensing options available in JAFZA:
License Type
Business Activities
Trading License
For general trading activities
Industrial License
For manufacturing and industrial operations
Service License
For businesses offering services within the free zone
General Trading License
For handling a variety of goods under general trading terms and conditions
Logistics License
For third-party logistics providers
E-Commerce License
For buying and selling goods/services online
National Industrial License
For GCC nationals with at least 51% ownership in the manufacturing business
Innovation License
For businesses focused on developing new products and services
Business Setup Costs in JAFZA
Setting up a business in Jebel Ali Free Zone is an easy process. However, everything has a cost and we are here to break it down for you. AN estimated total cost for a company formation in JAFZA can vary from AED 50,000 to AED 55,000.
This investment includes essential features such as a premium office space, a trade license with flexibility to add activities, and visa quotas for your team. Costs can vary depending on your specific requirements, so it’s essential to plan accordingly.
The JAFZA has established clear general requirements to ensure compliance, transparency, and smooth business operations within the free zone.
These rules are mandatory for all entities, individuals, and businesses operating in the zone.
Key General Requirements
Compliance with Free Zone Rules
All individuals, whether customers, employees, or contractors, must comply with JAFZA’s Free Zone Rules.
Valid Lease and License
Businesses must maintain a valid lease and license to operate in the free zone.
Entities licensed by other UAE free zones or authorities may lease premises here, provided they obtain the necessary permit.
Timely Renewal
Leases and licenses must be renewed within the designated timeframe to prevent operational disruptions.
Advance Payments
Payment for JAFZA services must be made in advance, following the tariff structure.
Goods Transportation
Movement of goods within the free zone must be conducted by the customer’s own transport or by a UAE-registered transportation company.
Adherence to UAE Laws
UAE local decrees, regulations, and federal laws apply within the free zone in addition to JAFZA-specific rules. Violations will be reported to the appropriate authorities.
International Treaties and Regulations
Customers must comply with all UAE international treaties and laws on intellectual property, anti-money laundering, fair trade, transparency, and combating terrorism financing.
JAFZA reserves the right to take action against customers found in violation of these rules.
Restricted Photography and Drone Usage
Photography, including drone activities, is prohibited within the free zone unless prior approval is obtained in accordance with applicable laws.
Penalties for Violations
Failure to comply with these rules may result in penalties or legal action as outlined in governing laws.
Whether you’re planning a free zone business setup in the UAE or expanding an existing entity, this free zone offers the tools and opportunities to help businesses thrive in a competitive market.
Let Bestax Simplify Your Business Setup
Starting a business in JAFZA can be difficult, but it doesn’t have to be.
✔ Expert Guidance: Our team will help you choose the right formation type and license based on your business needs. ✔ End-to-End Support: From documentation to registration and compliance, we’ll handle it all. ✔ Save Time and Money: Focus on growing your business while we take care of the paperwork.
Ready to start your journey in Jebel Ali Free Zone? Contact Bestaxtoday to unlock the benefits of Jebel Ali Free Zone Authority world-class business environment.
Disclaimer: The information provided in this blog is for general informational purposes only. For professional assistance and advice, please contact experts.
