Company Formation in JAFZA: Setting up Success

With over 10,000 businesses residing in the Jebel Ali Free Zone Authority (JAFZA), JAFZA stands as a cornerstone of business excellence in Dubai, renowned for its strategic location, robust infrastructure, and business-friendly environment. As one of the largest free zones in the UAE, JAFZA provides a comprehensive regulatory framework designed to foster economic growth and attract global enterprises.

This guide offers a detailed overview of the process for setting up a company in JAFZA, including the types of entities available, the registration process, and the advantages of establishing a business in this premier free zone.

JAFZA accommodates a diverse range of 5 business structures to cater to various operational needs. Below is a detailed look at the types of entities you can establish in JAFZA:

1. Free Zone Establishment (FZE)

An FZE is essentially a Limited Liability Company (LLC) for single shareholders. It is governed by an independent Free Zone Authority (FZA) and provides the flexibility of no foreign ownership restrictions and limited liability.

2. Free Zone Company (FZCO)

An FZCO is essentially a Limited Liability Partnership (LLP) for up to 2-50 shareholders. Like the FZE, it offers no foreign ownership restrictions and limited liability, but with the added advantage of multiple partners sharing responsibilities and investments.

3. Public Listed Company (PLC)

A PLC is an incorporated business for 2 or more shareholders. Unlike a privately held company, a PLC sells a portion of or all its assets to the public via an initial public offering (IPO) to the stock exchange, while adhering to market laws. It provides limited liability and is a separate legal entity to its shareholders.

4. Branch of a Company

A Branch of a Company is a legal entity of the parent company, where the parent company has been established outside of JAFZA. This legal entity must be 100% owned by the parent company, conducting the same business activities while under the same name. Existing companies can benefit from JAFZA branches as it allows for companies to seamlessly expand without any operational changes.

5. Offshore Company

Like a FZCO, an Offshore Company is essentially a FZCO for 1 or more shareholders who’ve incorporate their business overseas. This legal entity is enabled to conduct business activities provided it is permitted by the Registrar on occasion.

Setting up a company in JAFZA involves several essential steps. Here’s a simple guide to the registration process:

1. Determine the Type of Legal Entity

Select the entity type that best aligns with your business objectives and operational needs.

2. Complete an Online Form

Begin by registering your interest in starting a business with JAFZA’s online form. After some time, JAFZA’s sales team will contact you to further verify your application.

3. Prepare Documentation

Prepare the necessary documentation, which typically includes the application form, a business plan, copies of shareholder passports, and proof of address.

4. Submit Application

Submit the completed application along with the required documents to the JAFZA Authority. This application will be reviewed to ensure compliance with JAFZA regulations.

5. Pay Fees

Pay the applicable registration fees. The fees will vary depending on the type of entity and the scope of business activities.

6. Receive License and Solution

Once your application is approved and fees are settled, you will receive the commercial license as well as the business’ solution to move into.

Establishing a company in JAFZA offers a range of significant advantages:

• Strategic Location: Positioned in Dubai, providing easy access to global markets and major transport hubs.
• Tax Benefits: Enjoy 0% corporate tax, no import or export duties, and no restrictions on profit repatriation.
• Business-Friendly Environment: Benefit from a comprehensive range of services and a supportive infrastructure tailored to facilitate business growth.
• Regulatory Support: Operate under a streamlined regulatory framework designed to meet international standards.
• High-Quality Infrastructure: Access state-of-the-art office spaces, warehouses, and facilities.
• Logistical Advantages: Leverage proximity to Jebel Ali Port and Al Maktoum International Airport for efficient trade and transport.

For expert guidance and efficient support with JAFZA company formation, consult with us to ensure a smooth and successful setup process. Contact us at: enquiries@cbdcorporateservices.com for tailored assistance and further information.