Investing in Jebel Ali Jafza .. It is one of the most important economic zones in the Middle East and plays a pivotal role in supplying global markets with goods. It also contributes significantly to the UAE economy.
In this free zone, there are more than 5,000 warehouses for international companies, through which all types of goods are displayed, starting from precision products to heavy equipment. It also contains Jebel Ali Port (Jafza), which is the largest seaport in the Middle East and is ranked among the top 10 ports in the world, and through which goods are shipped and exported to more than 180 ports around the world.
Company formation in Dubai
How to set up a company in Jebel Ali Free Zone JAFZA
- Seek advice on company formation procedures, international taxation, corporate structuring, asset protection or wealth management guidance.
After this stage, we will send a quote for approval and based on approval, we will send an invoice for payment. We will start work as shown below after receiving the payment.
- Reserve and approve the trade name.
- Gaining legal status and initial approval.
- Rent a commercial facility (e.g. store, office, warehouse).
- Drafting agreements and legal applications.
- Documentation, legalization and submission of final approval request.
- Follow up and receive the commercial license from the JLT authorities.
- Company seal.
- Interview with the person responsible for opening the bank account.
Documents and licenses required to establish companies in the free zones in Dubai
Every investor who wishes to establish a company in the Dubai Free Zone must submit an application that includes a set of documents and papers, the most important of which are:
- Passport copy
- Project Summary
- Required legal documents
- Trade name
After the application is approved, the investor must begin the process of identifying the required licenses and products.
Payment of fees and costs ranging from AED 2,500 to AED 9,000 depending on the number of shareholders involved.
If the company has a wider range of products and services to offer, the fee costs may reach up to AED 30,000 to obtain a general trading license.
Time frame for establishing companies in Dubai free zones:
The time period required for an investor or businessman to establish his company in a free zone ranges between one and two months. The possibility of accelerating this process depends on the speed of providing the required papers and documents as well as paying the fees and costs by the owner or investor.
Financial cost of setting up companies in Dubai free zones:
Expenses and costs added to the permit fees, such as: annual rent, residence and sponsorship fees that may start from AED 1,000 and reach AED 3,000. The cost of establishing a company in the free zone naturally includes the amount that must be paid as rent for the property that will be the company’s headquarters, and this amount varies according to the location, area and type of the property (offices, showrooms, or vacant plot of land).
It should be noted that the costs of obtaining licenses and residence visas are paid only in the first year, as they are valid for three years, while the investor must pay rent and the value of services and utilities on an annual basis. However, it should be noted that the costs of establishing a company in the free zones in Dubai during the first year are higher than in the case of establishing the company outside the free zones. Incentives to encourage investors and businessmen to take the initiative to establish a plan to establish companies within the free zones in Dubai.
- Enjoy 100% foreign ownership
- Benefit from the possibility of importing and recovering capital and profits in full from and to the company owner’s home country.
- Tax exemption for both companies and individuals.
- You can avail the business community/network through which you can avail the services of those free zone authorities in terms of support services, sponsorship, etc.
Free Zones in the United Arab Emirates
The UAE is considered one of the best commercial markets for investment in the world due to the facilities and advantages it offers to foreign investors and Gulf investors in particular. The UAE and Dubai in particular are distinguished by free zones, so investors aspire to establish a company in Jebel Ali in Dubai and other free zones in the UAE.
Dubai is the first emirate to implement the free zones model, which offers foreign companies attractive privileges and many investment incentives. Free zones in Dubai seek 100% ownership for foreigners in addition to complete tax exemption.
There are currently 23 free zones operating in the emirate, established to serve specific sectors and industries, including information technology, real estate, telecommunications, media, finance, gold and jewellery, and healthcare. With this number of free zones in Dubai, each offering different advantages and capabilities, it is important to be aware of all the terms and conditions for establishing companies in these zones, and to review all the possibilities and offers and calculate all the costs before making a decision to invest in one of them.
Steps to invest in Jebel Ali Jafza
The steps for investing in Jebel Ali Jafza Free Zone are as follows:
Determine the type of company activity
One of the first steps to investing in Jebel Ali Jafza is to obtain a license and determine the type of activity desired for the company, because determining the type of activity helps in identifying all parties associated with this activity and also the legal forms permitted for this activity.
Determine the legal entity of the company, which may be either:
- Free zone and limited liability.
- Free zone establishment.
Also, the difference between the two depends on the number of shareholders or the nature of the shareholder, whether he is a natural or legal shareholder. Therefore, the client must refer to the relevant authorities to find out the appropriate legal entity for the activity he wants to establish. There are also branches of establishments in the free zones, where branches of local and foreign companies can be established in all free zones.
Choosing a suitable trade name for the project
When the legal entity for establishing the company is determined, its trade name is chosen, and an appropriate and suitable name for the company must be chosen. Before choosing the trade name, the investor must refer to the relevant authorities in the free zone to verify the trade name used and whether it has been used before or not, and that it does not violate public morals in the zone and is not used for the same type of activity and is compatible with the nature of the company’s activity and also its legal entity and does not include any names or logos of local, Arab or international bodies and institutions, and finally, it is not identical to any local or international trademark of the Ministry of Economy.
Apply for a commercial license
The investor obtains a license to practice the project according to the primary activity on which the project is based. The investor then obtains the initial approvals for establishing the company from the relevant authorities and then pays the registration fees and license fees, which vary according to the type of license required.
Licensing and work permit procedures:
- Where agreements for the rental of the work site are prepared by the relevant authorities.
- Then the investor issues the commercial license.
- After that, he issues the required work permits and visas in order to start working properly.
Establishing a company in Jebel Ali JAFZA
Establishing a company in Jebel Ali Jafza, which is considered a free zone, is one of the most sought-after goals by many Arab and international countries, due to the great facilities that this region provides to investors to establish their companies, as well as the services that have been designed alongside the project sites, which helps customers meet all their needs, as these regions are distinguished by their design on paved roads for the possibility of establishing a company in them, such as establishing a company in Jebel Ali Jafza.
Successful project in Dubai
The cost of establishing a company in Jebel Ali Free Zone (JAFZA) and in the free zones in general is not high, but it is also profitable for clients due to the ease of procedures in these areas, as there are no restrictions or 100% taxes imposed on clients’ income.
Establishing a company in free zones such as Jebel Ali Jafza also represents a major economic development and growth in the United Arab Emirates due to the ease of laws that regulate and manage commercial businesses within these zones, which made establishing these companies in free zones a major reason for major development and growth in the UAE economy for Arab and international countries, as the free zone is considered a separate entity that is not governed by any laws or restrictions on Emirati work due to the absence of any customs fees, which makes it easy for the investor to establish a company in it.
