JAFZA Company Formation in Dubai
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JAFZA Company Formation in Dubai
Jebel Ali Free Zone (JAFZA) is one of the UAE’s most established and globally recognized free zones. Known for its strategic port access, strong legal framework, and investor-friendly regulations, JAFZA has become the go-to hub for businesses looking to expand across the Middle East and beyond.
Whether you’re considering JAFZA offshore company formation or a full Jebel Ali Free Zone company setup, the benefits are unmatched: global recognition, tax advantages, and a secure regulatory framework.
Why Choose JAFZA for Your Business?
- Strategic Location – Direct access to Jebel Ali Port and Al Maktoum International Airport.
- Global Reputation – A trusted name in free zone operations since 1985.
- Investor-Friendly Laws – Transparent and efficient business setup procedures.
- Diverse Licenses – Options for trading, services, industrial, and holding activities.
With these advantages, it’s no surprise that JAFZA new company formation continues to attract entrepreneurs, multinationals, and holding companies from across the world.
Required Documents & Regulations
To complete JAFZA company formation, you will prepare and supply:
- Passport copy of shareholder(s) and director(s)
- Proof of address (residence)
- Memorandum & Articles of Association
- Bank reference letters or financial credentials
- Any additional approvals or no-objection certificates if the law requires them
You must follow all JAFZA offshore company regulations regarding compliance. Some activities, such as trading in the UAE mainland, may not be permitted.
JAFZA Company Setup Cost
The JAFZA company setup cost depends on the license type, company structure, and whether you are forming an offshore, free zone, or holding company.
- Industry packages for JAFZA offshore setup commonly start from about AED 18,000. Exact figures vary with services and license type.
- JAFZA license cost depends on activity (for example trading vs industrial) and any facilities you rent.
- Annual renewals and maintenance fees also apply, depending on whether you use an office within the free zone or rely on agent services.
While offshore companies have no minimum capital requirement, a JAFZA holding company or free zone entity may need to meet additional setup conditions.
Office or Flexi-Desk Option
| Workstation/ Flexidesk | |
|---|---|
| Area in sqm | 6 |
| Total Annual Rent | 30000 |
| 10 % Security Deposit (Refundable – One Time) | 3000 |
| Insurance (Annual) (per unit) | 100 |
| Name Plate (One Time) | 500 |
| Total Lease Payments | 33600 |
| Office | |
|---|---|
| Area in sqm | Starting at 40 SQM |
| Rate (PSQM) | 2000 |
| 10 % Security Deposit (Refundable – One Time) | TBC |
| Insurance (Annual) (per unit) | 100 |
| Name Plate (One Time) | 500 |
| Total Lease Payments | TBC |
| Total Available KVA (Electrical Power cannot be Upgraded) | 60 |
|---|---|
| Area in sqm (approximate) | 556 |
| Annual Rent per sqm | 450 |
| Rent | 249,750 |
| 10 % Security Deposit (Refundable – One Time) | 24,975 |
| 2% of annual rent-Public Health Levy | 4,995 |
| Insurance (Annual) (per unit) | 300 |
| Total Lease Payments | TBC |
License Cost
| Activity | License Cost | License Cost | Formation Cost | Other Govt Cost |
|---|---|---|---|---|
| Service License with 7 Activities | 5000 | 5000 | 1500 | 11500 |
| Trading License 7 Activities | 5000 | 5000 | 1500 | 11500 |
| Trading License 2 different Group Activities | 8500 | 5000 | 1500 | 15000 |
| Industrial License | 5000 | 5000 | 1500 | 11500 |
| Industrial License Seven Activities in 2 Groups Each | 8500 | 5000 | 1500 | 15000 |
| General Trading | 15000 | 5000 | 1500 | 21500 |
| Logistic License | 15000 | 5000 | 1500 | 21500 |
JAFZA New Company Formation: Step-by-Step Process
The process of JAFZA new company formation is straightforward when approached with the right guidance:
Choose a Legal Structure
Free zone establishment (FZE), free zone company (FZCO), or branch of an existing firm.
Select a Business Activity
Trade, service, industrial, or holding activities.
Apply for a License
The JAFZA license cost varies depending on your activity type.
Submit Documentation
Shareholder passports, application forms, and business plans.
Obtain Approval
JAFZA authority reviews and issues your incorporation certificate.
This process allows you to establish a legitimate presence in Dubai’s most respected free zone, while gaining access to global markets through Jebel Ali Port.
JAFZA Company Formation in Dubai: Who It Suits Best?
Opting for JAFZA company formation in Dubai makes sense if you want:
- Access to international trade routes via air and sea
- A legally recognized UAE entity with 100% foreign ownership
- A platform for import, export, or re-export activities
- Secure asset-holding through a JAFZA holding company or offshore structure
JAFZA is equally popular among startups testing regional waters and established corporations looking to strengthen their UAE footprint. Its credibility also makes it attractive for investors who may later expand into other free zones, like RAKEZ, or consider a Dubai real estate company setup.
JAFZA Offshore Company: Key Highlights
A JAFZA offshore company is ideal for international operations, asset protection, and holding structures. However, it comes with specific regulations:
- A JAFZA offshore company receives a certificate of incorporation rather than a business licence. It cannot conduct commercial activity within the UAE domestic market or with UAE residents.
- JAFZA offshore companies do not provide eligibility for UAE residence visas. They do not require a physical office in the UAE and must operate via a registered agent.
- Requires at least one shareholder and one director (can be the same person).
- Confidentiality of shareholder details is maintained.
Many investors use offshore companies as part of their broader structure, often combining them with RAKEZ holding companies or other free zone company setups to diversify operations.
JAFZA Offshore Company Regulations
Before proceeding with JAFZA offshore company formation, it’s important to understand the compliance framework:
- Documentation: Passport copies, proof of residence, bank reference letters, and Memorandum & Articles of Association.
- Banking: Offshore entities can open UAE or international corporate bank accounts.
- Restrictions: No physical office space within JAFZA, no visas under the company, and no direct real estate activity (unless specifically permitted).
Despite these restrictions, JAFZA remains a highly trusted offshore jurisdiction — offering a solid alternative to international tax havens.
How Elevate Can Help
Setting up in JAFZA involves legal paperwork, government approvals, and cost structuring. That’s where we step in.
At Elevate Accounting & Auditing, we guide you through:
- Choosing the right license type
- Preparing documentation
- Liaising with JAFZA authorities
- Structuring your setup to match long-term goals
Beyond JAFZA, we also support Dubai real estate company setup, RAKEZ holding company incorporation, and broader free zone company setup services across the UAE.
Ready to Start Your JAFZA Company Formation?
If you hope to move forward with JAFZA company formation, you deserve clear, correct guidance.
Contact Elevate Accounting & Auditing today. Let us help you plan, budget, and complete your setup with confidence.
Frequently Asked Questions (FAQs) –
What is JAFZA in Dubai?
JAFZA (Jebel Ali Free Zone) is one of Dubai’s largest and most established free zones, located near Jebel Ali Port. It’s recognized as a Designated Zone under UAE Corporate Tax law, offering tax and trade advantages to businesses.
Why is JAFZA considered a Designated Zone?
JAFZA is classified as a Designated Zone under UAE Corporate Tax because it facilitates goods trading and logistics through controlled customs zones, allowing 0% corporate tax on qualifying transactions.
What are the main benefits of setting up a company in JAFZA?
JAFZA offers 0% corporate tax, 100% foreign ownership, no import/export duties, strategic location next to Jebel Ali Port, and world-class business infrastructure — making it one of the best Designated Zones in Dubai.
Can a JAFZA company benefit from 0% corporate tax?
Yes, qualifying JAFZA companies that trade with other Designated Zones or internationally can enjoy 0% corporate tax under the UAE Corporate Tax framework.
What types of business licenses are available in JAFZA?
JAFZA offers various license types including Trading, Service, Industrial, Logistics, and E-Commerce licenses to suit different business activities.
Can a foreigner own 100% of a JAFZA company?
Yes. Investors of any nationality can have 100% ownership of their JAFZA company, with full repatriation of profits and capital.
What is the minimum share capital required for a JAFZA company?
The minimum share capital generally starts from AED 1, but it may vary based on business type and activity.
How long does it take to set up a company in JAFZA?
Typically, JAFZA company formation takes 7 to 10 working days, depending on document readiness and business activity.
What is the difference between JAFZA and DMCC or other free zones?
Typically, JAFZA company formation takes 7 to 10 working days, depending on document readiness and business activity.
Can a JAFZA company do business in mainland Dubai?
A JAFZA company cannot directly trade in the UAE mainland but can work with mainland distributors or agents. It can freely trade internationally and with other free zones.
How much does it cost to set up a free zone company in UAE?
The cost depends on the free zone and license type. In JAFZA, company setup costs usually include registration, license fees, and office space.
How much does JAFZA cost?
The JAFZA company setup cost varies depending on your chosen structure and license. Registration packages often start with basic licensing and scale up based on activities.
How to create a free zone company in Dubai?
To create a free zone company, you select a legal structure, apply for a license, submit documents, and get approval. JAFZA is one of the most established options for free zone company setup in Dubai.
What is the difference between a JAFZA offshore company and a free zone company?
Unlike most free zones, JAFZA is connected directly to a major seaport (Jebel Ali Port) and is a Designated Zone, giving it special tax and customs advantages ideal for trading and logistics businesses.
What licenses are available in JAFZA?
The zone offers several license types, such as trading, service, industrial, and logistics. The JAFZA license cost depends on the activity and office requirements.
Can foreign investors own 100% of a JAFZA company?
Yes. JAFZA allows full foreign ownership for both new entities and branches, making it highly attractive to international investors.
Is JAFZA suitable for holding companies?
Yes. Many businesses choose a JAFZA holding company to manage regional investments. It is also a strong option for those who may later expand into RAKEZ or other zones.