Business Setup in Dubai Free Zone

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Strategically situated with easy access to the Jebel Ali Sea Port and the Al Maktoum International Airport, JAFZA facilitates seamless transportation of goods globally. Furthermore, the ongoing construction of the Etihad Rail will further enhance connectivity, linking JAFZA to the rest of the Emirates.

Permissible Business Activities in JAFZA

The allure of JAFZA lies in the diverse range of business activities it permits, providing entrepreneurs with the flexibility to venture into various industries. Businesses may operate under two types of licenses: Type 1, allowing up to 7 products from the same group, and Type 2, allowing up to 12 products from the same group. Additional activities can be added to either license for AED 500.

1. Trading/General Trading:

The trading sector encompasses a broad spectrum of activities, including but not limited to agricultural, machinery, electronics, jewelry, fuel, textiles, and more. This inclusive approach accommodates businesses across diverse specialties.

2. Service:

JAFZA supports several service-oriented activities, such as advertising, transportation services, banking and financial services, consulting, healthcare, and more. This category caters to a wide array of service providers.

3. Industrial:

Industrial activities in JAFZA cover manufacturing and processing across sectors like building materials, food, textiles, glass, medicine, vehicle manufacturing, and many others. The free zone supports a robust industrial landscape.

Benefits of Choosing JAFZA for Your Business

Entrepreneurs opting for JAFZA as their business hub can enjoy a host of advantages, making it a preferred choice. Here are some key benefits:

1. Easy Setup:

JAFZA offers a streamlined and rapid company setup process, allowing for full repatriation of profits and capital. Businesses can commence operations within as little as 10 days after submitting the required documentation.

2. Multiple Visas:

JAFZA permits three different permits without the necessity of a physical office location. This flexibility simplifies the visa acquisition process, enabling business owners to start operations without a physical presence.

3. Tax and Currency Benefits:

Unlike some free zones, JAFZA imposes no currency restrictions, and it boasts a tax-free environment with no personal or corporate income taxes. This makes it a cost-effective choice for international investors.

4. No Minimum Share Capital:

JAFZA stands out by not requiring a minimum share capital for business setup. This omission facilitates a faster startup process, allowing entrepreneurs to initiate operations without financial constraints.

5. Strategic Location:

Positioned near the Jebel Ali Sea Port and equipped with advanced warehouses, JAFZA provides unparalleled connectivity for trading globally. It serves as a strategic gateway connecting Russia, Asia, and Africa.

Types of Company Formations Allowed in JAFZA

When establishing a business in JAFZA, entrepreneurs can choose from various company formations based on their business model:

1. Free Zone Company (FZCO):

Similar to a Limited Liability Partnership, an FZCO offers limited liability to personal assets. It allows for 2 to 50 shareholders, either individuals or companies.

2. Free Zone Establishment (FZE):

Ideal for sole proprietors, an FZE requires only one shareholder, whether an individual or a company. It offers limited liability, safeguarding personal assets.

3. Branch Office:

A branch office serves as an extension of a parent company, operating under the same name and engaging in similar activities. It must be fully owned by the parent company.

Required Documentation for Business Registration in JAFZA

To initiate a free zone business in JAFZA, certain documents must be prepared:

1. Application Form for JAFZA Operation

2. Environmental Health and Safety Application

3. Formal Description of Intended Activities

4. Copy of the Company's Articles of Association

5. Copies of Passports for Managers, Secretaries, and Shareholders

Costs Associated with Business Setup in JAFZA

Starting a business in JAFZA involves various fees:

1. Registration Fee: AED 12,000

2. License Costs: AED 5,500 for Type 1, AED 9,000 for Type 2

3. Office Space Rent: Determined by the chosen location within the free zone

4. Visa Fees: Applicable for obtaining visas for company personnel

How to Set Up a Business in JAFZA

Setting up a business in JAFZA is a straightforward process with minimal steps:

1. Choose a Business Name and Activity.

2. Submit Information for Initial Approval.

3. Submit Documents and Pay Fees.

4. Acquire Office Space.

5. Await Final Approval.

6. Renew the Business License Every Three Years.

How to Cancel a Business License in JAFZA

If a business owner decides to close operations in JAFZA, the following steps are involved:

1. Return Original Company Documents.

2. Pay License Cancellation Fee (Approximately AED 2,000).

3. Complete Liquidation Process (Takes about one month).

4. Obtain Certificate of Closure from JAFZA Company Register.

Embark on Your JAFZA Business Journey

JAFZA stands as a beacon for business opportunities, offering a conducive environment for revenue generation and company growth. Entrepreneurs flock to this dynamic hub to capitalize on its myriad benefits.

Whether you are ready to launch a business in JAFZA or any other free zone in Dubai, we can help. Get in touch with our team to kickstart your business venture in the UAE today.