Introduction to Jebel Ali Free Zone Authority (JAFZA), Dubai
Jebel Ali Free Zone (JAFZA), located in Dubai, is a beacon of the business world, renowned for its comprehensive facilities and services catering to trade, production, and logistics. Established in 1985, JAFZA stands as the oldest and largest free trade zone in the region, offering a plethora of land, warehousing, office, residential, and retail options. Today, it hosts over 10,000 companies from more than 150 countries, reflecting its global appeal and strategic importance.
JAFZA is governed by the Jebel Ali Free Zone Authority and aligns with the Dubai Department of Economy and Tourism. It is designed to accommodate a wide range of business activities, making it a versatile choice for global firms. The authority provides various licenses, including trading, general trading, service, industrial, logistics, and e-commerce licenses, each tailored to different business needs.
Business Setup and Regulations in JAFZA
Setting up a business in JAFZA involves choosing the appropriate company type and obtaining the necessary licenses. Businesses can opt for a Free Zone Establishment (FZE) with a single shareholder, a Free Zone Company (FZCO) with multiple shareholders, a Public Listed Company (PLC), or establish a branch of a foreign company. JAFZA also offers the option to set up offshore companies, which, although not free zone companies, benefit from the zone’s prestigious address and services.
The process begins with the approval of the company name by the Registrar, ensuring it does not infringe on intellectual property rights or UAE laws. Companies must meet minimum share capital requirements, which vary depending on the type of business and license. Importantly, foreign investors can own 100% of the company in JAFZA, a significant advantage for international businesses.
Operational Requirements and Facilities
Companies in JAFZA are required to maintain a physical office within the zone that suits their business activities. The minimum requirement is a rented workspace, which JAFZA facilitates through various office solutions tailored to different business sizes and types. Each company must appoint at least one director and a manager responsible for daily operations. Additionally, a secretary must be designated to handle administrative duties.
JAFZA companies are also obligated to prepare and file audited financial statements annually. The appointed auditor must be approved by JAFZA, ensuring compliance with the highest standards of financial transparency and accountability.
Taxation and Financial Incentives
One of the most attractive aspects of establishing a company in JAFZA is the favourable tax regime. Companies that qualify as “free zone persons” enjoy a zero corporate tax rate on qualifying income, making JAFZA an enticing option for businesses aiming to optimize their tax liabilities. This benefit is a significant draw for international corporations and small enterprises alike, providing a substantial financial incentive to operate within the free zone.
Annual Renewal and Business Continuity
From the second year of operation, companies in JAFZA must renew their licenses and immigration cards, incurring associated fees. Annual expenses also include office lease renewals and residence visas, which must be renewed as they expire. Additionally, companies must consider the fees for corporate service providers, which play a crucial role in ensuring compliance and smooth operations within the free zone.
JAFZA also supports business continuity through its provision for redomiciliation, allowing foreign companies to continue their operations in JAFZA as free zone entities. This flexibility is particularly valuable for businesses looking to relocate their base to a more strategic or economically beneficial location.
Why Choose JAFZA for Your Business?
Jebel Ali Free Zone offers a robust platform for businesses looking to expand in the Middle East and beyond. With its flexible company structures, wide range of business activities, and attractive tax incentives, JAFZA stands out as a top choice for global businesses. Whether you are starting a new venture or expanding an existing one, JAFZA provides the tools and environment needed for success.
For more detailed information on setting up your business in JAFZA, please visit our detailed guide on company formation in JAFZA.
