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Establishment of a company in Jebel Ali

Establishment of a company in Jebel Ali

The Jebel Ali area, located in Dubai, is one of the most prominent investment destinations in the United Arab Emirates, thanks to the exceptional advantages it offers to investors. Establishing a company in Jebel Ali represents a golden opportunity for both local and international investors, due to the tax exemptions, logistical facilities, and legal flexibility that this free zone provides. Jebel Ali is not only a strategic location near one of the largest ports in the region, it is also a gateway to global markets thanks to its modern infrastructure and integrated services.

Establishing companies in Jebel Ali includes clear and organized steps, starting from choosing the appropriate type of business activity and conducting a comprehensive feasibility study, all the way to registering the company and obtaining the necessary licenses. Jebel Ali free zones offer attractive benefits such as 100% foreign ownership, exemption from corporate tax, and no restrictions on transferring profits abroad, making it a preferred investment destination.

In addition, the free zones in Jebel Ali provide a comfortable and flexible work environment, with advanced infrastructure that includes commercial and industrial facilities, and administrative and logistical support services. This allows new companies to focus on growing and expanding their business without having to worry about administrative or legal complexities.

In this article, we will review the basic steps for establishing a company in Jebel Ali, and we will discuss the benefits of investing in this distinguished region, helping investors make informed decisions to make the most of the opportunities available in this strategic location.

Establishment of a company in Jebel Ali
Establishment of a company in Jebel Ali

Why start your activity and establish a company in Jebel Ali?

The Jebel Ali area in Dubai is one of the distinguished destinations for establishing companies and commercial activities, thanks to the many advantages it offers. Firstly, Jebel Ali offers an ideal environment for business through the Jebel Ali Free Zone (JAFZA), which provides unprecedented tax benefits, including full exemption from corporate tax and value-added tax. These advantages contribute significantly to reducing operational costs and enhancing corporate profitability.

Secondly, Jebel Ali provides advanced infrastructure and exceptional logistical support, thanks to Jebel Ali Port, which is one of the largest and most important ports in the world. This allows companies to access international markets efficiently and quickly, contributing to accelerating business growth and expanding their geographic reach.

Third, Jebel Ali provides diverse options for establishing companies in Jebel Ali , from sole proprietorships to limited liability companies and private joint stock companies, allowing individuals and investors to choose the appropriate structure for their needs. The administrative process in Jebel Ali is simple and smooth, with effective government support and facilitation of legal procedures.

Fourth, the Jebel Ali region gives companies complete freedom to own shares, making it easier for foreigners to fully establish and manage their companies without the need for a local partner.

Finally, the cost of setting up and operating a business in Jebel Ali is reasonable compared to other regions, with additional benefits including access to a talented labor market and facilitation of licensing and procedures. These factors combined make Jebel Ali an excellent choice for investors looking for a supportive and thriving business environment.

Free zones in Dubai

  • Dubai South

The Dubai South project extends over a huge area estimated at about 145 square kilometers. The Dubai South Economic Zone supports all types of businesses and industries, in addition to its inclusion of Al Maktoum International Airport, which is expected to be the largest airport in the world once construction work is completed. Dubai South also embraces the land on which the Expo 2020 will be held.

  • Jebel Ali Free Zone

One of the largest free zones in the world, it allows foreigners to own 100% of their own company with no corporate taxes and customs duties on imported raw materials and equipment, with taxes imposed only on exports and imports.

  • Dubai Airport Free Zone

The Dubai Airport Zone was established in 1996, becoming the most distinguished and attractive free zone in Dubai for international companies, with industries ranging from automobiles, navigation, beauty and fashion to consumer goods and information and communications technologies.

  • Dubai Internet City

Dubai Internet City is the largest technology zone and infrastructure in the Middle East. It was established within a free zone to support the business of global and regional telecommunications and information companies.

  • Dubai Media City

Dubai Media City is considered the largest area specialized in the media and thriving business sector in North Africa and the Middle East. Currently, Dubai Media City hosts more than 1,500 headquarters of the largest international and regional media companies.

  • Dubai Studio City

Dubai Studio City, which extends over an area of ​​22 million square feet, provides a business environment that meets various talent requirements. This city was established to provide support and development to broadcast, television, film and music production companies in the Middle East. It currently hosts 288 studio companies for the “MBC” network and the “Film” company. Works.”

  • Dubai International Financial Centre

The Dubai International Financial Center, which is considered one of the free zones in Dubai, aims to support and unleash the capabilities and activities of the financial services department in the emirate. This center also includes more than 750 international companies, as it has become a huge complex for the largest global financial services companies.

  • Dubai World Trade Centre

The Dubai World Trade Center was opened in 1979, to be one of the free zones in Dubai that played an important role in supporting the growth and development of global trade in the Middle East, aiming to strengthen the position of the Dubai World Trade Center to provide a flexible base for various international companies in order to support their development and growth on the continents. The whole world.

  • Dubai Healthcare City

Dubai Healthcare City is home to more than 80 hospitals and medical clinics that operate in accordance with international standards. Among these medical facilities are; Moorfields Eye Hospital, City Hospital, Dr. Hamed Medical Centre, Dubai Fertility and Gynecology Centre, Dr. Sulaiman Al Habib Medical Centre, Magrabi Eye Centre, Al Jalila Hospital and the German Cardiology Centre.

  • Dubai Multi Commodities Centre

This center is a government initiative developed to create a commodity market in Dubai, so that the Dubai Multi Commodities Center forms an infrastructure for markets specialized in industry, gold and precious metals from gems, diamonds and other commodity sectors, and provides them with complete facilities that facilitate their working mechanism. It also sought to expand its field of activity beyond commodity companies to extend to service companies and offices that represent foreign companies.

  • Gold and Diamond Complex

This center, as one of the free zones in Dubai, has gained wide fame since its establishment in 2011. The reason for this is that it is not only a store that sells jewelry to customers, but also represents an opportunity for office owners to rent their properties to merchants located in this place.

  • Dubai Production City

Dubai Production City, which was established in 2003, includes about 170 companies in various production sectors, including publishing, printing and packaging, and provides them with a full-service business environment equipped with the latest and finest facilities that meet their needs.

  • Dubai Design

Dubai Design District is an apt name developed specifically for creative people in the fashion, design and luxury industries in the emirate.

Steps to establish a company in Jebel Ali

Establishing a company in Jebel Ali, Dubai, requires following several important steps to ensure that all legal and administrative requirements are met. Here are the steps for establishing a company in Jebel Ali :

  1. Determine the type of company: Determine the type of company you wish to establish (limited liability company, private joint stock company, etc.) and the type of business activity you will undertake.
  2. Choosing a trade name: Choose a distinctive trade name that is appropriate for your activity. Make sure the name is not similar to the names already registered.
  3. Preparing a business plan: Prepare a detailed business plan that includes the company’s objectives, administrative structure, marketing strategies, and financial projections.
  4. Jebel Ali Free Zone (JAFZA) Registration: Apply to register your company with the Jebel Ali Free Zone Authority. This includes submitting the required documents such as a passport, certificate of origin, and office lease contract.
  5. Obtaining a commercial license: Apply for a commercial license from the free zone authority. Ensure you meet all licensing requirements and submit required documentation.
  6. Open a bank account: Open a bank account in the name of the company. This will require submitting the company’s legal documents such as articles of incorporation, trade license, and passports.
  7. Hiring employees and obtaining visas: If you plan to hire employees, you will need to obtain work visas for them according to local regulations.
  8. Office Setup: Set up the office according to licensing requirements and to ensure you comply with legal regulations.
  9. Registration with government agencies: Make sure to register with other government agencies if your activity requires it, such as obtaining health or environmental licenses if your activity requires them.
  10. Compliance with legal requirements: Ensure compliance with all local legal and regulatory requirements, including value added taxes and environmental licenses where applicable.
  11. Starting a Business: After completing all procedures and licenses, you can start the business and actually operate the company.

 

Costs of establishing a company in Jebel Ali

Business setup costs in Jebel Ali vary based on several factors, but the main expenses you may face can be summarized as follows:

  1. Licensing and registration costs: These costs include the fees necessary to obtain a commercial license from the Jebel Ali Free Zone Authority. The fees include registration costs and any additional fees related to the type of activity and company.
  2. Office rent: Companies must rent an office within the free zone. The rental cost varies depending on the location and size of the office, and the office must comply with licensing requirements.
  3. Visa fees: Visa costs include fees for issuing work and residence visas for employees. Visas may also be required for established individuals if they are non-residents.
  4. Preparing legal documents: These expenses include the costs of preparing and documenting legal documents, such as the company’s articles of incorporation and articles of association, as well as any other legal fees.
  5. Insurance: Businesses may need to obtain insurance for their office and employees, including health and accident insurance.
  6. Initial operating costs: These expenses include the initial expenses for setting up the office, such as furniture and equipment, as well as purchasing any materials or tools necessary to get started.
  7. Consulting Services: Companies may need to engage legal or business consulting services to assist with the proceedings, which may include the cost of legal advice or document preparation services.
  8. Other costs: Additional costs may include document authentication fees, initial advertising and marketing costs, and any other related expenses.
Steps to establish a company in Jebel Ali
Steps to establish a company in Jebel Ali

Advantages of establishing a company in Jebel Ali

Establishing a company in Jebel Ali, Dubai, provides many advantages that make it an attractive destination for investors and businessmen. Here are some key advantages:

  • Tax exemptions: Jebel Ali Free Zone (JAFZA) provides complete exemption from corporate tax and value-added tax on most commercial activities, reducing the financial burden on companies and increasing their profitability.
  • Full ownership of the company: Foreigners can own 100% of the company’s shares in free zones such as Jebel Ali without the need for a local partner, which provides complete freedom in business management and decision-making.
  • Advanced infrastructure: Jebel Ali provides high-quality infrastructure that includes ports, roads, and advanced logistics facilities, which facilitates shipping and storage operations and saves operating costs.
  • Easy access to global markets: Thanks to Jebel Ali Port, which is one of the largest ports in the world, companies enjoy seamless access to global markets, which enhances competitiveness and contributes to expanding business scope.
  • Strong government support: Local authorities provide comprehensive support to businesses by facilitating administrative procedures, providing advisory services, and facilitating licensing and registration.
  • Reasonable operating costs: Compared to some other areas, Jebel Ali offers reasonable operating costs that include affordable office rentals and commercial services.
  • Encouraging work environment: Jebel Ali provides a stimulating work environment thanks to the presence of a diverse business community and a professional business environment, which contributes to building strong business relationships and encourages cooperation and innovation.
  • Fast and flexible incorporation procedures: Jebel Ali Free Zone is characterized by fast and flexible incorporation procedures, which reduces the time required to establish a company and enhances the speed of market entry.
  • Flexible visas and residency: The free zone provides facilities for issuing visas and residency for investors and employees, which contributes to attracting qualified human resources from different parts of the world.
  • Intellectual property protection: Jebel Ali provides a legal environment that protects intellectual property rights, which enhances the protection of brands and innovative ideas for companies.

In conclusion, establishing companies in Jebel Ali is a distinct strategic option for investors wishing to take advantage of the advantages of the favorable business environment in the UAE. Jebel Ali Free Zone offers a range of incentives that make it an attractive business destination, from tax and customs exemptions to flexibility in business ownership. With its strategic location close to Jebel Ali Port, businesses can benefit from easy access to global markets and support for international trade.

The process begins by determining the type of business activity and conducting a comprehensive feasibility study to evaluate potential returns and costs. Next, incorporation includes choosing the appropriate legal entity type, registering the company, obtaining the necessary licenses, and opening a bank account. It also requires leasing or purchasing the necessary property and operating businesses, hiring employees, and setting up the infrastructure necessary to run the business effectively.

The advantages of tax exemptions, 100% foreign ownership, and fast processing make Jebel Ali an attraction for local and international investors. In addition, Jebel Ali free zones provide a vibrant business environment that supports growth and expansion, making them an ideal choice for investors seeking innovation and expansion into global markets.

The most important frequently asked questions about establishing a company in Jebel Ali

What types of companies can be established in JAFZA?

Different types of companies can be established, such as limited liability companies, joint stock companies, sole proprietorships, and commercial companies.

What are the requirements for registering a company in JAFZA?

Registration requires submitting documents such as articles of incorporation, identity certificate, business plan, shareholder documents, and paying the required fees.

What are the advantages of taking advantage of Jebel Ali’s strategic location?

Jebel Ali’s strategic location provides easy access to global markets through Jebel Ali Port, enhancing competitiveness and reducing logistics costs.

What are the steps to set up the office in JAFZA?

Steps include choosing an office location, setting up furniture and equipment, and ensuring compliance with licensing requirements.

How can a company license be renewed in JAFZA?

Renewing the license requires submitting a renewal application before the expiration of the previous license, submitting the required documents and paying the fees.