Jebel Ali Freezone (JAFZA), one of the world's largest freezones specialising in industry, trade, and logistics, has played a key role in attracting international partners to the country. By doing so, building a community of trust and smooth operation that has boosted both Dubai's and the UAE's economies. JAFZA began with 19 companies in 1985 and has since grown to more than 500 in 1995 and more than 7,500 now, including approximately 100 Global Fortune & 500 business enterprises.
Currently, the area that contains enterprises, manufacturing buildings, storage facilities, and berths for a number of shipping lines accounts for around 23.9 percent of the country's total Foreign Direct Investment.
JAFZA offers three formation types, a range of licencing, and licence activities, depending on the number of shareholders and the nature of the business, allowing firms to connect directly to a market of over 3.5 billion people. The type of company formed in the Jebel Ali Freezone is determined by the number of shareholders.
JAFZA Allows a Variety of Legal Entities
In the Jebel Ali Freezone, an individual or a corporate organisation can establish a business in one of the following ways:
Freezone Establishment (FZE).
In JAFZA, a single stakeholder can organise a free zone establishment. An individual or a corporation can be a shareholder. It is a limited liability partnership in which a shareholder's liability is restricted to his FZE shares. In a FZE, the shareholder's personal assets are safeguarded.
Freezone Company (FZC/FZCO).
Freezone company in JAFZA can be founded with a minimum of two shareholders and a maximum of five. Individuals, companies, or a mixture of both can be shareholders. FZCO is a limited liability partnership, which means that shareholders' liability is restricted to the company's assets. Individuals, corporations, or both might be shareholders.
Branch Company Formation
Companies with a valid registration and licence that were created outside of JAFZA can open a branch within JAFZA. The parent firm will own its branch 100 percent, and the branch will operate under the parent firm's name and conduct the same business.
Non-Resident Offshore Company with Special Status
An individual or a firm can form an offshore company under the JAFZA Companies Regulations Act 2013. It will be a non-resident corporation with legal status.
Types of Licenses Provided in JAFZA
General Trading License
This licence entitles the holder to import, distribute, and keep any item in accordance with JAFZA laws.
It allows the holder of a trading licence to import raw materials, export, distribute, and store commodities specified in the licence to any country.
It allows the licence holder to perform the services (such as legal advice, accounting, and business consulting) that are defined in the licence within the freezone. The sort of service must be in compliance with the parent company's licence, which is issued by the relevant Emirate's Economic Department or Municipality.
It gives the licence holder the ability to import raw materials, manufacture, process, assemble, package, and export completed goods to any country.
National Industrial License
It grants the licence holder the same rights as a UAE resident and requires manufacturing enterprises to own or control at least 51 percent of the Arabian Gulf Co-operation Council.
Why should you start a business in JAFZA?
Jebel Ali Freezone has a lively networking environment, a welcoming business climate, and good logistical matrices. JAFZA has the distinction of being the world's only freezone located between a seaport and an airport. Apart from being one of the world's most efficient sea-air hubs, the following qualities make JAFZA a great place to start a business:
- There is no need to pay for a share capital up front.
- There is available land, warehouses, and office space.
- Access to a market of over 2 billion people.
- On-site residential complexes and facilities such as the conference centre.
JAFZA can claim of some of the most well-known names in the business world. Some of the enterprises in the Jebel Ali Freezone include Exxon Mobil, General Electric, Proctor & Gamble, Nestle, Toshiba, Rolls Royce, and others. JAFZA is home to more than 50 of the world's best logistics companies, providing massive outsourcing potential. These businesses are the driving factor behind any entrepreneur's decision to open a firm in Dubai's freezone. However, if you want to start a business in Dubai, you'll almost certainly need the services of a business consultant, who can provide you with crucial information for your Jebel Ali Freezone Authority firm.
How will Dhanguard assist you?
Dhanguard has been assisting small and medium-sized enterprises as well as global corporations in investing in JAFZA, an unrivalled Middle Eastern business location. Our value-added services enable our clients to take advantage of the freezone's cutting-edge amenities and world-class logistic infrastructure, as well as create the ideal environment for their business to thrive in this tax haven.
We assist our clients in forming businesses in the Jebel Ali freezone, which represents entrepreneurial dynamism, innovation, operational transparency, and customer-centric procedures. Dhanguard understands that forming a company in Dubai or any other new location might be difficult. Not only does one need to be aware of the local possibilities available, but also of all processes. What if you could obtain hassle-free support or a service where someone takes all of the stress off your shoulders and looks after your Dubai freezone business?
JAFZA is one of the best places to start a business because of its outstanding location, numerous benefits, and offerings. Do you have any questions? Contact us and our team of experts will gladly assist you with the formation of your JAFZA Company.
We provide a complete business solution for free zone formation, including document preparation, submission to authorities on your behalf, visa applications, legal document drafting as well as support with bank account opening.