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Business Setup in Jebel Ali Free Zone

Business Setup in Jebel Ali Free Zone

Jebel Ali Free Zone (JAFZA) is the oldest and largest free zone in UAE, established in 1985. For many, starting and running a business in JAFZA is a dream come true. With its world-class infrastructure, tax advantages, and strategic location, JAFZA opens doors to global markets and seamless trade. The Jebel Ali Free Zone (JAFZA) has made a name for itself as one of the most significant free trade zones in the United Arab Emirates by providing both domestic and foreign
businesses with a variety of premium business services and excellent facilities.


The company formation types are:

  1. FCZO (Free Zone Company) – It is basically a free zone LLC formed by multiple
    shareholders, who may be both individuals and non-individuals (companies).
  2. FZE (Free Zone Establishment) – An individual or a non-individual (company) can be
    the sole shareholder of this LLC.
  3. Branch – it is a branch formed within JAFZA by a parent company with the parent
    company ownership 100% of it and being responsible for its name and activities.

Facilities in Jebel Ali free zone (JAFZA)

. Offices
. Retail outlets
. Warehouses
. Showrooms
. Customized development solutions
. Workstations
. Park for businesses
. Plots of land
. On-site residence

Business activities permitted in Jebel Ali free zone

Various activities are permitted in the free zone by JAFZA.

These are:

. Logistics
. Industrial
. Service
. Trading
. General Trading

JAFZA business LICENSES available

The category of your license might be different depending on how your business is
set up in the UAE.
The following license types are available,

  1. Trading License – This is available to companies who wish to conduct trading
    activities. It allows the holder of the license to import raw materials, export, distribute,
    and store the licensed items in any nation.
  2. Service License – available to companies providing various types of services in
    JAFZA. It allows the license holder to do the tasks listed in the license (like
    accountancy, legal advice, and business consultancy) within the free zone. The type
    of service must be in accordance with the parent company’s license, which was
    granted by the Economic Department or Municipality of the relevant Emirate in the
    United Arab Emirates.
  3. Industrial License – It allows the license holder to import raw materials, produce,
    process, assemble, package, and export finished products to any country. license for
    foreign and local companies which would carry out manufacturing activities.
  4. Innovation License – This is required if the activities involve the invention and
    development of new items. Dubai is known as a creative city. Corporate organizations
    that construct frameworks dependent on creativity have become the focus of the city.
    In the case, JAFZA provides licenses that these businesses need to keep for creative
  5. E-Commerce – Because e-business has been flourishing all over the world, JAFZA
    provides an e-commerce license for businesses wishing to launch and establish an ecommerce business.
  6. Offshore Registration – This is a different type of license that is given to entrepreneurs
    who want establish an offshore company in JAFZA. Only when a Limited Liability
    Company is already in existence may offshore registration be done. A certificate of
    Incorporation is required but a license is not required.
  7. National Industrial License – A company must be owned by an Emirati citizen to be
    eligible for this license. It provides the license holder the same status as a local inside
    the UAE. A minimum of 51% ownership or ownership of the Arabian Gulf Co-operation
    Council is required from manufacturing companies.
  8. General Trading License – The holder of this license is permitted to import,
    distribute, and store all items according with JAFZA regulations and rules.


  • 100% foreign ownership.
  • 0% VAT on transaction of goods between companies located in Designated Zones in Jebel Ali Free Zone and outside the United Arab Emirates.
  • No restrictions on the repatriation of capital- No restrictions for foreign employees or talents.
  • 0% corporate or personal income tax.
  • No limitations on currencies.
  • Acquisition of multiple visas even without physical office space.
  • A clear and easy incorporation process.
  • Can hold shares in limited liability corporations and free zone businesses in the UAE.
  • On site customs.
  • A world-class infrastructure, support systems, and communications.
  • Permission to loan a bank or finance company a mortgage on your property.
  • Ready to occupy industries and warehouses.


JAFZA company setup can be started without your presence, but when your company documentation are created, you will need to visit the free zone.

  • A form for applying.
    – A letter of intent to form a JAFZA corporation.
  • Existing company brochure (if available).
  • Annual financial report or shareholder(s) 6 months bank statement for the shareholder not
    applicable for new registration.
  • A copy of both the manager’s cv and passport.
  • A copy of each shareholder’s cv and passport.
  • An original letter of reference from a bank (for each shareholder).
  • A letter of no objection from the manager’s current sponsor, if the manager is a UAE resident
    and holder of a work visa for the UAE.
  • Business plan.
  • A legal representative, if any.
  • Initial approval(s) from the third authority(s) for few business activities

Business liquidation in JAFZA

Similar to renewal, company liquidation can be completed through an agency and does not require the owner’s actual presence. You must pay a charge to the government in order to finish the liquidation procedure.

company liquidation takes about 1 month to be completed and involves the following steps:
. Cancellation of visas
. Termination of lease agreement
. bank account closure


The free zone will request you to return the original documents and pay the liquidation fee. Around 2,000 AED will be charged as a license cancellation fee. Once the process is completed, you will be given a certificate of liquidation, which usually takes around a month.

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