Jebel Ali Free Zone (JAFZA)

JEBEL ALI FREE ZONE (JAFZA) BUSINESS SETUP

Located in the west of Dubai, Jebel Ali Free Zone is the oldest in the UAE, having been established in 1985. It is also one of the most popular. Jebel Ali is the first freezone created in Dubai and is one of the most well-known freezones in the country. It houses more than 7,000 international companies, some of which are Fortune Global 500 companies. Moreso, JAFZA is one of the contributors of Foreign Direct Investment (FDI) into the UAE so a business setup in JAFZA continues to be rampant and meets the demands of various investors with warehouses, showrooms, offices, and on-site residences. For these reasons and more, many entrepreneurs choose to set up their businesses in Jebel Ali due to its rich infrastructure – surrounded as it is by the necessary amenities and transport links. JAFZA remains one of the ‘on-demand’ company formation sites in UAE.

Types of companies permitted in JAFZA

FZCo: This is a Limited Liability Partnership with the company’s liabilities limited to the company’s asset while the owners’ personal assets are secured. An interested investor is allowed 2 to 50 shareholders which can be either an individual, company or a combination of both.

FZE: FZE is a type of formation with only one shareholder. However, such shareholder can be either an individual or a company. The company’s liabilities are limited to its assets as well, and the owner’s assets are protected.

PLC: Public Limited Company is a type of company that lists its shares on the stock exchange for the public to subscribe to it. JAFZA allows 2 or more shareholders for a PLC company.

Branch: A branch is an extension of the parent company. A company outside JAFZA can establish a branch in the free zone with certain requirements to be met. One of which is that the parent company should own the branch with the same nature of the business and be under the same name as the parent company.

Benefits of Forming a Company in JAFZA:

  • Location: Jebel-Ali’s strategic location is a huge advantage, as Dubai and Al Maktoum International Airport are just 40 and 20 minutes away. For entrepreneurs who require trading with clients from other parts of the world, Jebel Ali is the Freezone of choice as it offers the fastest access to Asia, Africa, Commonwealth countries and elsewhere.
  • Multiple visas with dependant sponsorship without committing to an office: Upto 3 visas are permitted in Jebel Ali without owning a physical office. Instead, a flexi desk can be purchased with services such as conference room hire and reception cover.
  • Easy setup & corporate bank account: Once the activity is decided and the necessary documentation is provided, a business can be set up in within 3 days in Jafza.
  • No paid upfront share capital: No minimum share capital is required in Jafza
  • Diverse list of activities: Jafza is arguably one of the freezones with the longest list of activities. A list of these can be viewed below. What’s more, Jebel Ali Free Zone allows for between 7 and 12 business activities under one trading licence. Also, service activities can be conducted from Jebel Ali, provided there is a registered branch of the company which has been operational in mainland UAE for at least two years. 

List of Activities

The three main categories of activity in JAFZA are trading, service, and industrial. A breakdown can be found below:

Trading

  • Agricultural, flowers and plants
  • Aircraft and train trading
  • Amusement equipment and supplies trading
  • Bags, packaging material and paper trading
  • Building materials trading
  • Chemicals trading
  • Electronics and electrical group
  • Equipment and machines
  • Fuel and petroleum products trading
  • Jewellery trading
  • Metal and its products trading
  • Motor vehicles and auto spare parts
  • Perfumery, medicines, beauty
  • Readymade garments
  • Foodstuff and beverages
  • Separate trading activities
  • Ships and boats trading
  • Spectacles and contact lenses trading
  • Sports equipment trading
  • Stationery and books trading
  • Trade license and video and recordings
  • Tobacco and smoking accessories trading
  • Waste trading
  • Household and furniture trading
  • Exchange and financial
  • Regional liaison office
  • Representative office

Service

  • Advertising
  • Transport, shipping and storage
  • Equipment, engines, machinery and repairs
  • Light aircraft maintenance
  • Motor vehicle repairs
  • Repairing of electrical and electronic appliances
  • Accounts, Banks, finance and credit group
  • Building maintenance, surveillance and cleaning services
  • Car registration and transfer services
  • Car rental and passenger transport
  • Consultancy Re-engineering
  • Cleaning services
  • Contracting and building works
  • Cooperation societies
  • Document destroying and storage
  • Domestic gas station
  • Event organizers
  • Exchange and financial
  • Exhibition organizers
  • Facility management
  • Finance consultant
  • Foodstuffs supply
  • Fuel supply
  • Gas station
  • Government liaison office
  • Halls and exhibitions
  • Hospitals and recovery houses

Industrial

  • Blocks and building stones
  • Cotton, metal nets and rope manufacturing
  • Equipment, engines and machinery
  • Food
  • Garments, rugs, textiles and products manufacturing
  • Glass and chinaware manufacturing
  • Glass industries
  • Handicraft workshops
  • Light aircraft manufacturing
  • Manufacture of batteries
  • Manufacturing of gold
  • Manufacture of eyeglasses
  • Manufacture of medicines
  • Manufacture of motor vehicles and motor cycles
  • Manufacture of tyres and rubber products
  • Manufacturing of bags, shoes and leather products
  • Manufacturing of tobacco and cigarettes
  • Manufacturing of wood, wood products and furniture
  • Meat processing
  • Paper and paper products
  • Petroleum and metal extraction
  • Petroleum products and chemicals
  • Pipes and wire manufacturing
  • Plastic industries
  • Power generation and transmission
  • Electrical and electronic appliances
  • Ship building
  • Structural steel manufacturing
  • Technical and professional workshops

JAFZA’s Fee Structure

Trade License Fee (Commercial & Service/General) FEE 
 Industrial/Trade License (Type 1) (7 products max from 1 group)  5,500  AED
 Industrial/Trade License (Type 2) (12 products max from 2 group)  9,000  AED
 General Trading License 30,000  AED
 Service License8,000  AED
 Registration Charges

FZCO- 15000 AED

FZE – 10000 AED

BRANCH OF A COMPANY- 5000 AED

 Legal Maxims Service Charge 3,000 AED

 

Legal Maxims Consultants has a team of experts committed to providing out of the box consultancy, support and management services to investors interested in a new company formation in JAFZA or any of the Free Zones in the UAE.

Our service charge is arguably the cheapest in the whole of UAE. Contact Us for a free consultation and a free quote today.