Why you should consider setting up a business in JAFZA
When starting a business in the UAE, there are generally two choices: registering on the mainland or setting up in one of the countries many free zones. While mainland companies have greater jurisdictional scope, having the ability to operate across the entire UAE market, free zones are generally a more cost-effective option and offer a number of other important advantages.
Free zones offer various tax incentives, including exemptions from corporate and personal income tax, import and export duties, and value-added tax (VAT). They also provide streamlined administrative processes, access to state-of-the-art infrastructure, and business-friendly regulations, facilitating a quick and efficient setup. Moreover, free zones often offer a supportive ecosystem with networking opportunities, access to markets, and other important business services.
There are over 40, multidisciplinary free zones across the UAE, each catering to different business sectors and offering unique investor support. When looking at available options, Jebel Ali Free Zone (JAFZA) should definitely be on your shortlist.
Why choose to set up a business in JAFZA?
JAFZA’s success has paved the way for the development of other free zones in Dubai and the UAE. Founded in 1985, it was the first free zone to be established in Dubai and has since become one of the largest and most successful free zones in the region.
Some of the key benefits of registering a business in JAFZA include:
- Proximity to Key Markets: JAFZA’s strategic location near the Jebel Ali Port, one of the largest container ports in the region, provides easy access to global markets. It serves as a gateway for businesses looking to expand their reach across the Middle East, Africa, and beyond.
- World-Class Infrastructure: JAFZA boasts state-of-the-art infrastructure, including modern office spaces, warehouses, manufacturing facilities, and logistics services. The zone offers advanced telecommunications systems, reliable utilities, and efficient transportation networks, enabling businesses to operate smoothly and efficiently.
- Business-Friendly Regulations: JAFZA provides a favourable business environment with investor-friendly regulations and streamlined procedures. It offers 100% foreign ownership, no currency restrictions, and exemption from personal and corporate taxes, helping companies maximise growth and profitability.
- Comprehensive Business Activities: JAFZA supports a wide range of business activities across various sectors, in particular companies involved in manufacturing, logistics, trading and e-commerce. This diversity allows businesses to find suitable opportunities and leverage synergies within a vibrant business community.
- Industry-Specific Clusters: JAFZA has established industry-specific clusters, such as the Dubai Auto Zone, Dubai Biotechnology & Research Park, and Dubai Logistics City, creating an environment conducive to collaboration and knowledge sharing within specific sectors.
- Supportive Ecosystem: JAFZA provides comprehensive support services to businesses, including legal, administrative, and licensing assistance. It also offers access to networking events, seminars, and training programs, fostering business growth and development.
- Incentives and Benefits: JAFZA offers various incentives and benefits to its members, including customs duty exemptions, easy visa processes, and access to a dedicated logistics hub, helping to contribute to cost savings and operational efficiencies.
- Established Reputation: JAFZA has a long-standing reputation as one of the most successful and well-regulated free zones in the UAE. Its credibility and track record is one of its biggest strengths and helps to attract investors, partners, and customers, providing businesses with a competitive edge in the market.
What is the process for setting up a business in JAFZA?
- Determine Business Activity: Identify the specific business activity or activities you plan to undertake in JAFZA. This will help determine the appropriate licence and legal structure for your business.
- Choose the Legal Entity Type: Select the legal entity type for your business, which can be a Free Zone Company (FZCO) or a Branch of an existing company. Consider the ownership structure, liability, and operational requirements when making this decision.
- Submit Application: Prepare the necessary documentation, including the completed application form, business plan, and any other required supporting documents specific to your business activity. Submit the application to the JAFZA authorities.
- Review and Approval: JAFZA will review your application and conduct due diligence checks. This may include verifying the business plan, financial statements, and background checks on shareholders and directors. If all requirements are met, JAFZA will issue an initial approval.
- Lease Agreement: Obtain an office, warehouse, or land space in JAFZA by signing a lease agreement. The type and size of the facility will depend on your business requirements.
- Licensing and Registration: Complete the licensing and registration process. This involves obtaining the necessary permits, approvals, and licences from relevant government authorities, such as the Department of Economic Development (DED) and JAFZA itself.
- Pay Fees and Capital Requirements: Pay the required fees, including the initial registration fee, licence fees, visa fees, and any applicable capital requirements as per the chosen legal entity type.
- Obtain Visas: Apply for the necessary employment visas for company personnel and shareholders. This process involves medical tests, Emirates ID registration, and visa stamping.
- Signatory and Bank Account: Appoint a signatory for the company and open a corporate bank account in a UAE bank. This will facilitate financial transactions and operations for your business.
- Obtain Final Licence: Once all the necessary steps are completed, JAFZA will issue the final trade licence, enabling you to commence business operations within the free zone.
It’s important to note that the exact process and requirements may vary depending on the type of business activity, legal entity structure, and other factors. It is recommended to consult with JAFZA authorities or engage the services of a business setup consultancy to ensure a smooth and successful setup process.
How can Global Link help?
Global Link has over 16 years’ experience working with local and global businesses, providing bespoke consultancy services for company incorporation in Dubai and the wider UAE.
If you’re looking to set up a business in JAFZA, we can assist by providing guidance on legal requirements, assisting with documentation and applications, liaising with authorities, ensuring compliance, and offering additional services such as accounting and HR support.
If you need advice on this or any other company incorporation, visa or PRO service, please get in touch with us on +971 4 553 9901 or email us at [email protected] and we will be happy to assist you.