Jebel Ali Free Zone Authority (JAFZA) – All you need to know
Jebel Ali Free Zone Authority (JAFZA)
The JAFZA / Jebel Ali Free Zone Authority is among the most well-known free zones in the United Arab Emirates. It contributes 23.8% to Dubai’s GDP, employing 135,000 people. There are over 7000 existing businesses in JAFZA. A hundred of them are listed in the Fortune Global 500. The UAE is working to reduce the country’s reliance on oil for economic development. As a result, these Free Zones, which promote economic development, were created. JAFZA receives 32 percent of the country’s foreign direct investment, making it an important part of the economy. The legal structure, venue, and services of the Jebel Ali free zone are few of the reasons for its popularity. Companies in the Jebel Ali Free Zone have the opportunity to network with world leaders. Dubai is a staunch supporter of business growth, and JAFZA is the best location for running a business and for residing.
Introduction to JAFZA company formation
JAFZA gives you easy access to a consumer base of over 3.5 billion people. If you establish your company in JAFZA, you will be able to expand your global reach. A business has many components, but the JAFZA free zone has worked to simplify things for investors. It primarily divides a company’s aspects into three major sections, making it easier for an investor to start and run a business here.
Only a registered agent can establish an offshore company in Jebel Ali. It means you cannot deal exclusively with the government authority on your own. The licenced agent can be a Dubai-based business setup company that will handle all the paperwork and registration. JAFZA provides three formation forms, a range of licence types, and licence activities, based on the number of shareholders as well as the nature of the company, enabling businesses to link instantly to a market of over 3.5 billion people.
Types of companies you can set up in Jebel Ali Free Zone Authority
• Free zone establishment (FZE)
The creation of a Free Zone allows for 100% foreign ownership and eliminates the need for a local sponsor. You will require a certificate of incorporation and a trade licence to start a company in the UAE. The firm is a limited-liability corporation, which ensures that investors' liability is limited to their investment in the free zone establishment body. It is also possible to turn a free zone institution into a free zone company.
•Free zone company (FZCo)
All free zones in the UAE provide the establishment of a Free Zone Company (FZCo), which may have several stakeholders. Exclusive advantages are given to the firms, rendering it one of the most advantageous systems. To get going, the company should have two directors and a company secretary. The institutions of the free zones are permitted to import and export products across national borders. These businesses, however, are not permitted to sell their products specifically in the UAE market.
•Public listed company (PLC)
A limited liability company (LLC) is a publicly traded company in Dubai that offers investors liability protection. Personal assets are protected since liability is confined to one's share capital holdings. Companies operating in the free zones in UAE that are publicly traded must list their shares on the stock market. It offers the company with an unrestricted source of capital. There may be a minimum capital requirement for creating a business, which varies according to the free zone. For example, the cap in Dubai free zones can vary from the limit in Sharjah free zones, or even between separate free zones in the same emirate.
• Branch of a company
There are a variety of reasons why a business would need to open a branch office. They have the option of establishing the branch office on the UAE mainland or from one of the UAE free zones. Having a business branch in a free zone in the UAE has its own set of advantages. Depending on your needs and the parent business, you can open several types of branches.
•Branch Office of a Foreign Company
In this situation, the parent company owns the branch in its entirety. This office will serve as the region's headquarters. When a business needs to import products, it must do so via a local trading firm.
•Branch Office in the United Arab Emirates
Free zones in the UAE enable you to have a branch of your parent company on the mainland of UAE. Via free zone trading licences, the company can engage in further operations.
•Branch of the Free Zone Company
Since you own a business from one of the free zones, you can open a free zone company branch. It helps the company extend its scope into other Dubai free zones.
Different activities and types of licenses at Jebel Ali Free Zone Authority
JAFZA Free Zone offers a variety of licences from which you can choose the ones that are needed for your business-related activities. There are three main types of licences: trading, services, and manufacturing.
• Trading Activity in JAFZA: A company may obtain a Trading or General Trading License if it needs to perform trading-related activities.
• Service Activity in JAFZA: Businesses that solely provide services must obtain a service licence.
• Industrial Activity in JAFZA: This category includes manufacturing-related activities, such as export, import, processing, and logistics-related activities.
You must define the goods you want to import, export, or sell in this licence. Only after you have obtained the licence will you be able to carry out these activities. Conducting these activities is prohibited if an object is not listed on the certificate.
General Trading license
A General Trading License is required to obtain approval for a wider range of practises and goods.
This licence is required if your company provides any services, as the name implies. It is worth noting that in the service category, there is only one licence that encompasses everything.
When you need to manufacture goods, you will need an Industrial License. This licence allows for the import of raw materials, the production of products, and the export of finished products. One must determine the raw materials he wants to import as well as the goods he intends to produce and export.
Industrial License for the United States
It is a one-of-a-kind licence that is granted based on the company's ownership rather than its operations or goods. It is issued to manufacturing companies that own at least 51 percent of the GCC (Gulf Cooperation Council).
There are a variety of logistics services available, and if you want to perform them in JAFZA Dubai, you must first obtain a Logistic License. This licence allows you to do things like storage, delivery, forwarding, inventory control, and transportation.
Most businesses in today's world use an e-commerce site to increase their revenue. If you want to buy and sell things online in the Jebel Ali Free Zone, you will need an e-commerce licence.
Steps to register a business in JAFZA
The JAFZA Company Formation process has been simplified to make it as simple as possible for companies to get going. This is also one of the reasons why companies choose the JAFZA free zone because the procedure is simple and requires little effort. It also does not take up a lot of their time. These three primary measures will lead you through the process of reactivating your company in JAFZA:
• Application Submission
The submission of the application form is the very first task to remember, as it is required in every phase. When establishing a business in JAFZA Dubai, applicants must apply and submit supporting documentation for verification. It is also necessary to obtain approval from different government bodies for the operation that the company may engage in. This stage also includes the registration of a business name.
• Product selection, company registration, and payment
It is important that you first choose the goods and services for which your company will be doing business. Then, including the articles of association, sign and attest the memorandum. Following that, you must pay all the primary fees, which include the lease fee, registration fee, licence fee, and ad processing fee. Finally, you sign all the papers and call it a day.
• Obtaining a License and Products
Finally, JAFZA will provide you with the product key. You must first register and enable your account on the Dubai Trade Online Portal.
Benefits of setting up business in Jebel Ali Free Zone Authority
JAFZA offers a forum for connecting with other industry players since it has attracted many well-known businesses. Furthermore, the role of the Jebel Ali Free Zone Companies, the tax payment provision, and the legal structure are all lenient, allowing businesses to expand without hindrance.
• Create a JAFZA Company in the shortest amount of time possible.
• Capital repatriation is not limited.
• 0% duty on imports or re-exports
• There is no personal income tax.
• There are no currency restrictions.
• Employees and international talent are not subject to any restrictions.
• Customs on the spot
• Own the company outright; no local sponsorship is needed.
• 0% income tax for the next fifty years with a green concession
• Potential to mortgage the property (minus the land) as collateral for a loan.
Know about JAFZA’s properties and solutions
JAFZA is well-known for its infrastructure, which includes several specially built buildings that can serve a wide range of companies and their requirements.
• JAFZA One is a one-of-a-kind commercial complex.
The JAFZA One, situated in the centre of JAFZA, is known for being a one-stop solution for all your needs. It has over 100 offices and over 100,000 square metres of leasable space.
• Plots for building your own facility
In JAFZA, a variety of plots of different are available. It is ideal for businesses that need to build their own facilities. The plots come with ready-to-use road infrastructure, as well as power, water, and telecommunications facilities.
JAFZA's warehouses are ideal for industries that need a large amount of storage space. The warehouse has built-in offices and basic and advanced level amenities like stairs, loading docks, and fire escapes.
• Showrooms of enticing architecture
With a glass façade that could be used as a showroom, you get more space at the back end of the warehouse. The showrooms too are air-conditioned and come in a variety of sizes.
• Offices that have a productive working environment
JAFZA Dubai provides unfurnished offices with state-of-the-art spaces that can be customised to meet the needs of any business. It offers flexible leasing options, allowing you to rent a single floor or the entire house.
• Retail Outlets in High-Traffic Areas
For people employed and living in JAFZA, there have been retail outlets located in the free zone. You could directly sell your goods to people and enter the market through retail outlets. There are several food outlets available for sale, each with its own size and venue.
• On-site lodging with top-of-the-line amenities
JAFZA is built in a modern way, and as a result, it includes a massive accommodation facility with 10,000 rooms. These have all the basic facilities that your workers need, allowing them to maintain a healthy work-life balance.