Are you planning to start a logistics business in a Free Zone, especially one that involves freight forwarding, warehousing, customs clearance, or transport and distribution? Then JAFZA is one of the best options amongst all the Free zones. With a strong infrastructure, a major port, and easy access to global markets. It gives your business a strong competitive edge and offers many advantages.
In this blog, we’ll walk through what makes JAFZA such a good place for logistics business setup. Moreover, we will also provide a step-by-step guide on how to register your logistics company in JAFZA. Whether you’re planning a freight-forwarding company, a warehousing & distribution centre, or a customs-clearance firm, this guide will help you get started
Why Choose JAFZA for Your Logistics Business?
Here are some of the strong reasons:
- JAFZA is built for logistics. It has established itself as a leading logistics hub in the heart of the global trade network.
- It is a land of opportunities. The zone is next to the Jebel Ali Port, which also has “multi-modal infrastructure.” That gives you access to sea, air, and land markets.
- The zone has great business benefits. For example, 100% foreign ownership, 0% corporate tax (on qualifying income), no currency restrictions, and 0% import/re-export duties.
- It is a large and active logistics zone. For example, the logistics industry inside JAFZA covers “3.85 million sqm of combined facilities, 650+ companies from over 60 countries, and 16,000+ individuals employed.
So your logistics business can operate in a free zone, with fewer barriers and strong infrastructure.
What Types of Logistics Licenses Are Available at JAFZA?
When you open a logistics business in JAFZA, it’s important to select the right license type for your activity. Here are typical options:
A Logistics License:
This allows you to offer services like storage, transportation, distribution, sorting, forwarding, and clearing activities. This license is popular for companies involved in customs thoroughfare and freight services.
Warehousing/Distribution:
If you focus mainly on storage, stock management, and distribution. It allows activities of warehouse/plot usage within JAFZA.
Freight Forwarding / Customs Clearance:
If your activity is moving goods, clearing customs, or forwarding, you’ll pick a license whose activity list includes those tasks.
Transport & Distribution:
If you move goods via road or manage transport logistics, you’ll ensure your license covers transport/distribution.
Before you apply, review JAFZA’s full list of logistics activities to ensure your exact business is covered.
Step-by-Step: How to Start a Logistics Company in JAFZA
Here is a clear, simple workflow:
1. Choose Your Legal Structure
Decide whether you register as a Free Zone Company (FZCo), a Free Zone Establishment (FZE), or a Branch of a foreign company. Fully foreign-owned options are available. JAFZA allows 100% foreign ownership.
2. Select Business Activity & Trade Name
Identify exactly which logistics services you’ll provide. For example, customs clearance, warehousing, or freight forwarding. Pick a trade name and submit it for approval. Then reserve a trade name via JAFZA.
3. Apply for License & Company Registration
Submit your application to JAFZA. Include required documents like shareholder passports, MOA/AOA, business plans, and facility lease details. The initial approval includes your business plan and passport copies.
4. Lease Your Facility
For a logistics business, you’ll likely need a warehouse, a plot, or both. It depends on your operations; you’ll need a lease for an office/warehouse or a land plot. JAFZA offers multiple options of spaces like flexi-desks, warehouse units, and land plots.
5. Pay Fees and Get a License
Once documentation is approved and the lease is secured. Then you have to pay registration and license fees. After that, you get your license and can legally start operations.
6. Clearances and Operations
Since you’re in logistics, ensure you register for a customs code, freight forwarding registration (if needed), and any transport permits. Many logistics firms in JAFZA rely on its bonded customs area.
7. Visa & Bank Account
Once licensed and premises are secured, apply for visas for employees and open a UAE business bank account.
Documents & Space Requirements
Here are the key requirements:
- Application form and initial approval
- Passport copies of shareholder(s) and director(s)
- Memorandum & Articles of Association (MOA/AOA)
- Lease agreement for your facility (office/warehouse)
- Business plan or project summary, if you take a land plot or a large warehouse
- EHS (Environment, Health & Safety) forms if you operate a warehouse/industrial facility
- Additional approvals are required if your logistics activity involves transport, clearance, a large warehouse, etc.
Make sure you check JAFZA’s latest logistics license guidelines.
Cost & Time Estimates
Typical costs and timelines (approximate):
- The license fee depends on size and activity. A logistics license typically costs more than simpler service licenses.
- Warehouse leasing: size and location matter. Smaller units (300-600 sqm) are available.
- The logistics license fee is around AED 30,000 per year for a full logistics license.
- Office/warehouse/land rent for a warehouse or plot can be AED 50,000+ per annum, depending on size.
- Visas: AED 3,500–8,000 per employee, depending on visa type.
- Business setup in JAFZA typically takes 2-4 weeks once documents are complete.
Keep in mind: costs vary widely based on size, facility type, number of visas, and specific activity
Access to Mainland UAE & Trading
Operating in a free zone like JAFZA gives you direct global trade access. If you also want to trade directly in the mainland UAE (outside the free zone). Then you may need a mainland branch or a license to operate there. Make sure to evaluate how your logistics business will access customers in the rest of the UAE.
Starting a logistics business in JAFZA gives you a major advantage. With world-class infrastructure, port access, and strong business incentives, you’re all set to build a regional logistics company.
Make sure you:
- Choose the right license (logistics, warehousing, forwarding)
- Secure your facility (warehouse or plot)
- Submit correct documents & business plan
- Use the free zone benefits (100% ownership, tax incentives)
- Plan for bank account, visas, and operational readiness
What Bestax Offers
- Expert guidance to choose the right company formation structure and license based on your logistics business needs.
- End-to-end support: From documentation to registration, compliance, and operation setup.
- Time and cost savings by handling the process for you so you can focus on your core business.
If you’d like help with your logistics company setup in JAFZA, you might consider engaging a specialist who knows the logistics license specifics.
Quick FAQs
Q: How long does it take to register a logistics company in JAFZA?
Typically around 3-14 business days for company formation once documents and the lease are in place.
Q: What are the office/warehouse space requirements for logistics companies in JAFZA?
You must lease a suitable warehouse or land plot. JAFZA offers units from ~300 sqm and plots for large operations.
Q: Are there customs facilities within JAFZA?
Yes, the JAFZA is a bonded zone and supports import/export and customs-clearing operations.
Q: What are the fees for setting up a logistics business in JAFZA?
Fees vary depending on license type, facility size, visa count, etc. You’ll pay registration and license fees plus lease costs.
Q: Do logistics companies in JAFZA have access to warehousing and storage
Yes. JAFZA offers built warehouses and land plots so you can store goods, distribute, and manage your supply chain.
Q: Is a business plan necessary for company registration in JAFZA?
Yes, especially if you plan a large warehouse or plot. A facility and business plan help in approval.
Q: Can a logistics company in JAFZA trade directly with the mainland UAE?
A free zone company can handle import/export, but may require additional steps to sell directly in the mainland.
Disclaimer: The information provided in this blog is for general informational purposes only. For professional assistance and advice, please contact experts.
