Establishment of a company in Jebel Ali Free Zone

Establishing a company in Jebel Ali Free Zone represents an important strategic step for investors looking to take advantage of the dynamic business environment and investment opportunities available in Dubai. Jebel Ali Free Zone (JAFZA) is strategically located close to major ports and airports, making it a vital connection point for international trade and logistics. JAFZA was established to provide an ideal platform for businesses, thanks to its advanced infrastructure that includes state-of-the-art office and warehouse facilities, as well as a network of supporting services.

One of the most prominent advantages of establishing a company in JAFZA is enjoying tax and customs exemptions, which reduces operational costs and enhances companies’ competitiveness. The free zone also offers 100% foreign ownership, allowing foreign investors to take full control of their projects without the need for a local partner. Furthermore, JAFZA contributes to simplifying administrative procedures through a rapid registration system and providing support and consulting services for new businesses.

These facilities contribute to making JAFZA an attractive option for ambitious investors seeking to enter the UAE market and enhance their international presence. With a variety of business license options available, from commercial to industrial and service, investors can choose activities that suit their strategic objectives. Therefore, establishing a company in Jebel Ali Free Zone is a strategic step towards achieving success in a global and evolving business environment.

Steps to establish a company in Jebel Ali Free Zone

Establishing a company in the Jebel Ali Free Zone (JAFZA) includes a set of basic steps to ensure compliance with legal requirements and benefit from the available benefits. Here are the steps to establish a company in Jebel Ali:

1. Determine the type of business activity: Determine the type of business activity you wish to engage in. Activities can be diverse, such as trading, manufacturing, or providing services.
2. Choosing a company name: Choose a trade name for your company that is consistent with legal requirements and is non-reservative. Make sure the name is not similar to other company names.
3. Apply for a license: Submit an application for a commercial license from the Jebel Ali Free Zone Authority. You can apply through the free zone website or by visiting their office.
4. Choose an office and sign the lease: Choose an office within the free zone and sign the lease. Make sure the office meets your business requirements.
5. Issuance of Certificate of Incorporation: After submitting the required documents and complying with the licensing requirements, you will be issued a Certificate of Incorporation by the Free Zone Authority.
6. Open a bank account: Open a business bank account in the name of the company. Make sure to provide the necessary documents to the bank to facilitate the process.
7. Apply for work visas: Apply for work and residency visas for employees (if necessary). This includes submitting documents such as employment contracts and passports.
8. Company registration in the competent authorities: Register your company in the Dubai Chamber of Commerce and Industry if there is a need for this, as well as in the tax system if your activity requires it.
9. Comply with local regulations: Ensure compliance with all local regulations and laws related to your business, including tax and environmental obligations.
10. Start-up: After completing all procedures and obtaining licenses and visas, you can start your business and operate the company.

Costs of establishing a company in Jebel Ali

Establishing a company in Jebel Ali , Dubai, requires consideration of a range of costs associated with the process. Jebel Ali is one of the famous free zones in Dubai and is considered a prime location for business due to its developed infrastructure and tax advantages. Here’s an overview of the costs associated with setting up a company in Jebel Ali:

• License fees: Includes the cost of obtaining a business license from the Jebel Ali Free Zone Authority (JAFZA). Fees may vary based on license type and business activity.
• Registration fees: Includes the cost of registering the company with JAFZA and issuing a certificate of incorporation. This includes submitting the required documents and ensuring compliance with requirements.
• Rental fees: Related to renting the office or work space in the free zone. Fees may vary based on office size and space and location within the region.
• Service fees: Includes costs for additional services such as secretarial services, legal advice, and assistance with incorporation procedures.
• Recruitment and visa fees: Includes the cost of issuing work and residency visas for employees, which may vary based on the number of employees and the type of visas required.
• Bank account opening fees: The cost of opening a business bank account for a company, which may include account setup fees and minimum deposits.
• Legal documentation fees: This includes the cost of documenting legal documents and contracts, such as preparing articles of incorporation and having them notarized by a notary.
• Additional Fees: There may be additional costs related to special licenses or other permits depending on the business.

Documents required to establish a company in Jebel Ali

Establishing a company in Jebel Ali Free Zone (JAFZA) requires submitting a set of essential documents to ensure compliance with legal and regulatory requirements. Here is a list of documents you need to establish a company in JAFZA:

• Company Registration Application: Registration application form completed and signed by the founders or legal representative of the company.
• Passports: Color copies of the passports of all major shareholders and directors. Passports must be valid and not expired.
• Existing Visas: If a shareholder or director is resident in the UAE, a copy of the residence visa is required.
• Business plan: A document that describes the type of business activity, business strategy, goals, and estimated budget. The business plan must be detailed and realistic.
• Memorandum of Association and Articles of Association: Legal documents that include details about the company’s founding, its bylaws, shareholders’ rights and duties, and management structure.
• Office address: A document proving the office’s location, such as a lease contract or office purchase contract in the free zone. The office must be within the scope of JAFZA.
• Financial documents: Pro forma financial statements showing the company’s financial resources, including proof of the capital required to establish the company.
• Activity Permit: Some commercial activities may require additional permits or approvals from the relevant authorities. Documents proving that these permits have been obtained must be submitted if necessary.
• Company founders’ data: Information about all founders and key managers, including their CVs and documents proving their experience and qualifications.
• Personal photo: Recent personal photos of key shareholders and directors, may be required for some procedures.
• Commercial License: To obtain a commercial license, additional documents may be required such as insurance, service contracts, etc., depending on the type of business activity.

Key advantages of establishing a company in Jebel Ali Free Zone

Establishing a company in Jebel Ali Free Zone (JAFZA) comes with a host of advantages that make it a preferred destination for many investors and companies. Here are some of the most notable advantages:

1. Comprehensive tax exemptions: JAFZA provides complete exemption from taxes on personal profits and corporate taxes, which helps companies increase their profit margin and stay away from heavy tax liabilities.
2. Freedom to transfer funds: It allows investors to transfer profits and funds outside the Emirates without restrictions, which facilitates the management of the financial affairs of international and local companies.
3. Full Foreign Ownership: JAFZA allows foreign companies to enjoy full ownership without the need for a local partner, providing greater flexibility in business management and decision-making.
4. Advanced infrastructure: The free zone provides a modern infrastructure that includes offices, warehouses, and fully equipped industrial facilities to support various commercial and industrial activities.
5. Strategic location: JAFZA is located close to Jebel Ali Port, one of the largest ports in the world, providing easy movement of goods and access to new markets via maritime transport and logistics.
6. Simplified and quick incorporation procedures: JAFZA facilitates company incorporation procedures by providing fast and efficient services, which contributes to reducing the time and effort required to start a business.
7. Integrated logistics facilities: The free zone provides integrated logistics services, including warehousing, shipping, and distribution, which effectively supports business operations and enhances supply chain efficiency.
8. Supportive Business Environment: JAFZA provides a supportive business environment by providing advisory services, licensing assistance, and guiding companies through the establishment and operation process.
9. Modern facilities and commercial services: The free zone includes a group of modern facilities and commercial services that include advanced communications, entertainment facilities, and business support equipment.

At the conclusion of our article about establishing a company in the Jebel Ali Free Zone, it becomes clear that this region offers an ideal environment for businesses wishing to expand and innovate. Jebel Ali Free Zone is considered one of the most attractive business destinations in Dubai, thanks to its advanced infrastructure, advanced logistics facilities, and exceptional tax concessions.

Choosing to establish your company in Jebel Ali provides you with the opportunity to access a wide network of services and facilities that contribute to the success of your business. With the facilities provided, such as customs and tax exemptions, and fast company registration procedures, the free zone allows you to achieve your business goals effectively and efficiently. The strategic location of Jebel Ali, close to ports and airports, enhances your ability to access global markets and facilitates import and export operations.

Moreover, the transparent and supportive regulatory environment provided by the free zone enhances the growth and expansion opportunities for your company. It allows you the flexibility to choose the type of commercial license and the activity you wish to practice, which reflects the extent to which the region is compatible with the needs and requirements of businessmen and investors.

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