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 exactly is JAFZA in Dubai?
JAFZA, the Jebel Ali Free Zone, is a major hub for international trade and logistics. Many investors choose JAFZA company formation because the free zone sits next to Jebel Ali Port and is officially recognised as a Designated Zone under UAE Corporate Tax. It’s one of the most established places to start a company in Dubai.
Why is JAFZA called a Designated Zone for corporate tax?
JAFZA is classified as a UAE Corporate Tax Designated Zone because it operates under specific customs controls and serves high-volume trading and logistics. This structure helps qualifying JAFZA free zone companies benefit from 0 percent corporate tax on eligible transactions.
What are the main advantages of starting a company in JAFZA?
A JAFZA business setup gives you 0 percent corporate tax on qualifying income, full foreign ownership, no import or export duties, and direct port access. These benefits make JAFZA one of the best free zones for trading, logistics, and manufacturing companies.
Will my JAFZA company get 0 percent corporate tax?
Yes. A properly structured JAFZA company can qualify for 0 percent corporate tax if it trades with other Designated Zones or international markets. Many businesses choose JAFZA company formation specifically for this advantage.
What types of business licenses does JAFZA offer?
JAFZA offers several JAFZA license types, including Trading, Service, Industrial, Logistics, and E-Commerce licenses. These cover almost all common JAFZA business activities.
Can a foreigner own 100% of a JAFZA company?
Yes. Any investor can own 100 percent of a JAFZA free zone company, with complete freedom to repatriate profits and capital.
How much share capital do I need to start a company in JAFZA?
The minimum share capital for JAFZA company registration usually starts from AED 1. Exact requirements depend on the activity, but the process remains simple.
How long does the JAFZA company formation process take?
Most JAFZA business setups take around 7 to 10 working days, depending on document preparation. Elevate Accounting & Auditing helps streamline the paperwork to speed up approvals.
How is JAFZA different from free zones like DMCC?
Unlike inland free zones, JAFZA is directly connected to Jebel Ali Port and operates as a Designated Zone, giving extra customs and tax benefits. This makes it ideal for JAFZA trading company setup and logistics-heavy businesses.
Can a JAFZA company do business in the UAE mainland?
A JAFZA free zone company cannot trade directly with the mainland but can work with mainland distributors or agents. It can freely do business internationally and with other free zones.
What company types can I form in JAFZA?
You can register a Free Zone Establishment (FZE), Free Zone Company (FZCO), or a Branch of a local or foreign company during JAFZA company formation.
Can I open a UAE bank account for my JAFZA company?
Yes. All JAFZA companies are eligible for corporate bank accounts in the UAE. Elevate assists with documentation and coordination to make the JAFZA bank account process smooth.
Is an audit required for JAFZA companies?
Yes, every JAFZA free zone company must submit audited financial statements yearly. Elevate provides approved JAFZA audit services to keep your business compliant.
Does JAFZA offer office and warehouse space?
Yes. JAFZA has offices, warehouses, industrial plots, and logistics facilities, making it ideal for JAFZA manufacturing company setup and large-scale trading operations.
Can a JAFZA company apply for UAE residence visas?
Yes. A JAFZA company can sponsor UAE residence visas for shareholders, employees, and dependents. Visa limits depend on the facility size you choose during JAFZA company formation.
What documents do I need to set up a company in JAFZA?
You’ll need passport copies, a business plan, proof of address, and constitutional documents such as the Memorandum and Articles of Association. Elevate ensures your JAFZA company registration documents are correctly prepared.
Do JAFZA companies need VAT or Corporate Tax registration?
Yes. Depending on turnover and activity, a JAFZA company may need VAT or Corporate Tax registration. Elevate handles all VAT, tax registration, and compliance for JAFZA clients.
Is JAFZA good for e-commerce or online businesses?
Yes. The JAFZA E-Commerce License is popular among digital and online trading companies. Qualifying income may fall under 0 percent corporate tax when structured correctly.
Is JAFZA suitable for manufacturing companies?
Yes, JAFZA is one of the best options for JAFZA manufacturing company setup because of its industrial plots, managed warehouses, and quick access to the port.
Why should I choose Elevate Accounting & Auditing for JAFZA company formation?
With over 13 years of UAE experience, Elevate Accounting & Auditing handles the full setup process including licensing, documentation, audit, and compliance. As approved auditors in JAFZA and other major free zones, Elevate makes the entire formation process smooth and reliable.