Jebel Ali Free Zone (JAFZA) has established itself as one of the most prominent free trade zones in the UAE, offering a range of world-class business services and state-of-the-art facilities to both local and international companies.
In 2022, JAFZA reported an impressive 30% growth rate in customer registrations, a testament to its reputation as a leading business hub in the region. In this article, we will discuss why entrepreneurs continue to choose JAFZA as a business destination, along with the benefits that come with setting up a company here. We will cover the following topics:
- Benefits of starting a business in JAFZA
- JAFZA Offshore Company and Special Purpose Company (SPCs)
- Steps to start a business in JAFZA
- Cost of starting a business in JAFZA
- How Creative Zone can help
Benefits of Starting a Business in JAFZA Free Zone
Besides being a flagship project of DP World, one of the world’s largest port operators and logistics companies, JAFZA offers several key benefits for businesses looking to establish themselves in the UAE:
- 100% foreign ownership: JAFZA Free Zone permits businesses to have 100% foreign ownership.
- Low tax rate: Businesses operating within JAFZA Free Zone can benefit from a low corporate tax rate of 9% if their profits exceed 375,000 AED.
- Strategic location: Located at the intersection of Asia, Europe, and Africa, JAFZA is an ideal location for companies looking to expand into other countries. It also gives easy access to Jebel Ali Port, one of the world’s largest container ports.
- World-class infrastructure: JAFZA Free Zone provides modern infrastructure and top-notch facilities, including state-of-the-art warehousing, manufacturing facilities, and office spaces.
- Simplified procedures: JAFZA Free Zone offers a simplified and streamlined process for setting up and operating a business, with minimal paperwork and quick registration times.
- Access to skilled workforce: JAFZA Free Zone provides access to a large pool of highly skilled and educated workers from around the world.
Offshore companies are non-residents that can do business outside UAE but not within the country. These companies are exempted from tax. However, they must maintain a registered office and designated registered agent within the JAFZA jurisdiction. Offshore companies usually participate in activities such as asset holding, investment management, and consultancy services.
On the other hand, SPCs are established for specific purposes such as owning assets, conducting a project, or holding shares in another company. They can be registered as FZCOs, FZEs, or branch offices.
Steps to Start a Business in JAFZA
Here are the key steps you can follow in starting a business in JAFZA.:
Choose your company type: JAFZA offers a variety of company formations, such as Free Zone Company (FZCO), Free Zone Establishment (FZE), Branch Office, or Offshore company.
Select your business activity: Ensure that your business activity is allowed within the free zone. Additionally, this will determine the type of trade license you’ll be eligible for.
Decide on a trade name: Choose a name that aligns with your company and is not offensive.
Submit your application: Provide the required documents, including passport copies, proof of address, and a business plan, with your application for company formation.
Our team from Creative Zone will assist you in obtaining all these documents to ensure a fast and efficient company formation.
Secure a physical space: Regardless of what type of company setup you choose, it’s important to have a physical location when starting your business in JAFZA. Make sure to find a space, sign a lease agreement, and pay for the facility as needed.
Open a corporate bank account: Deposit the minimum capital required for the company in a UAE corporate bank account. Again, our business professionals from Creative Zone will help you in choosing the most suitable banking partner that best fits your needs.
Cost of Setting up a Business in JAFZA
Obtaining a trade license in JAFZA can cost as little as AED 5,500, but the overall cost of setting up a company in the jurisdiction can range from AED 20,000 to AED 100,000 due to other fees like visas, registration, and miscellaneous expenses.
However, Creative Zone provides customized business packages that can be tailored to your specific needs. To find out more about our services, please click here.
How Creative Zone can Help
Creative Zone understands that starting a business in JAFZA can be a daunting task. That’s why our team of business experts is here to guide you throughout the whole process. With over 13 years of experience in the UAE business landscape, https://www.creativezone.ae/contact-us/Creative Zone offers tailored business services – from company registration to licensing, visa processing, bank account opening, and office space rental tailored to meet your business needs. To begin your JAFZA business journey, call us at 800-LICENCE (5423673) to speak with one of our experts.