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Establishing a company in Jebel Ali Free Zone

٠٥ مايو Establishing a company in Jebel Ali Free Zone

Learn about the steps to establish a company in the Jebel Ali Free Zone, because the Jebel Ali Free Zone is one of the most prominent free zones in Dubai, as it provides an ideal business environment characterized by flexibility and effectiveness. Since its inception, this region has become a vibrant hub for innovation and trade, making it a favorite destination for local and international investors. Thanks to the facilities and supportive measures it provides for entrepreneurs, establishing a company in Jebel Ali offers broad opportunities for success and growth. In this article, we will review the most important steps and advantages related to establishing a company in the Jebel Ali Free Zone , in addition to providing practical advice to ensure that you make the most of the available opportunities.

Establishing

Establishing a company in Jebel Ali Free Zone

Jebel Ali Free Zone

Jebel Ali Free Zone (Jafza) is one of the most prominent free zones in the UAE, strategically located near Jebel Ali Port and Al Maktoum International Airport, making it a major hub for trade and logistics services globally. Jafza was established in 1985 with the aim of promoting trade and industry in Dubai, and today it hosts more than 7,000 companies from various sectors. Jebel Ali Free Zone provides an integrated business environment that includes advanced infrastructure, fast company establishment procedures, and attractive tax incentives such as complete exemption from corporate income tax, and not imposing duties on exports and imports. The region also provides a flexible investment environment that allows foreign investors to fully own their companies, which encourages attracting more global investments. In addition, Jafza provides integrated services that include government support, commercial licensing services, and customized solutions to meet the needs of small, medium and large companies alike. Thanks to these advantages, Jafza has become a pivotal hub for companies looking to expand into the Middle East, Africa and Asian markets, making it the ideal choice for many global investors.

Conditions for establishing a company in Jebel Ali Free Zone 

Establishing a company in the Jebel Ali Free Zone requires compliance with a number of conditions and requirements. Here are the main conditions to consider:

  1. Determine the type of business activity : The business activity you wish to engage in must be compatible with the activities permitted in the Jebel Ali Free Zone.
  2. Select Legal Entity Type : Choose the appropriate legal entity type, such as limited liability company (LLC), sole proprietorship, or branch of an existing company. Each type has its own conditions and requirements.
  3. Minimum capital : In some cases, proof of the existence of the required capital may be required depending on the type of activity and the type of company.
  4. Providing the required documents : Submitting passports, personal photos, proof of address, and copies of incorporation documents such as the company contract and incorporation agreement.
  5. Choosing an office or work space : Establishing a company in the free zone requires choosing an office or work space that is commensurate with the size and activity of the company. You may need to rent a physical office or sign up for a virtual office.
  6. Obtaining a commercial license : Submit an application to obtain a commercial license from the Jebel Ali Free Zone Authority. This includes filling out the necessary forms and submitting the required documents.
  7. Compliance with environmental and health standards : In some activities, compliance with specific environmental and health standards may be required to ensure compliance with local regulations.
  8. Opening a bank account : Opening a bank account in the name of the company in one of the approved banks in Dubai.
  9. Tax and Fee Compliance : Pay all fees related to registration and licensing, and comply with any tax requirements if they apply.
  10. Registration with government agencies : Register the company with other government agencies as needed, such as the Department of Economic Development, to obtain additional permits or commercial permits.
  11. Obtaining insurance : In some cases, you may need to obtain special insurance according to the type of activity and the requirements of the free zone.

Make sure to check the specific terms with Jebel Ali Free Zone management or consult a legal advisor to ensure you comply with all necessary requirements.

Cost factors for establishing a company in the free zone

The costs of setting up a company in Jebel Ali Free Zone vary based on several factors. Here are the most important factors that affect establishment costs:

  1. Type of business : Establishment costs may vary based on the type of business you will be involved in. Some activities may require special licenses or additional permits, which may increase the cost.
  2. Company type : Costs vary based on the type of legal entity, whether it is a limited liability company (LLC), a sole proprietorship, or a branch of an existing company. Each type may require different requirements and fees.
  3. Office space : The rental cost depends on the size of the office and its location within the free zone. There are multiple options from virtual offices to physical offices, and each has a different cost.
  4. Licensing costs : These include the costs of obtaining a business license, which can vary based on the type of activity and company.
  5. Additional services : You may need additional services such as legal advice, accounting services, or translation. These services may add to your overall costs.
  6. Financial guarantees : Some free zones require the provision of a financial guarantee or insurance as a condition for establishing a company. These costs may be part of the overall budget.
  7. Government fees : include registration fees, license application fees, and any other government fees that may be required.
  8. Labor and Staffing : The costs of hiring employees, including their salaries and benefits, can be part of the overall costs of starting a company.

It is advisable to conduct a detailed feasibility study and consult with stakeholders in Jebel Ali Free Zone to obtain an accurate estimate of costs based on your company’s specific requirements.

 

Types of companies in Jebel Ali Free Zone

Here is a table showing the types of companies that you can establish in the Jebel Ali Free Zone :

TypeDescriptionAdvantages
Limited Liability Company (LLC)A legal entity with an independent legal personality, where the partners’ liability is limited to their shares in the capital.Personal liability protection, flexibility in company management.
Sole proprietorshipA company owned by one individual who is responsible for all aspects of the business and its liabilities.Ease of establishment, complete control over decisions.
A branch of an existing companyA unit of a parent company located elsewhere that conducts business activities in the name of the parent company.Benefiting from the reputation of the parent company, ease of expansion.
Private joint stock companyA company that includes a group of shareholders and whose shares are not publicly traded, with the potential to attract multiple investors.Wide financing capabilities, flexibility in expansion and growth.
A company with joint capitalA company co-founded by several investors who share capital, profits and losses.Distribution of risks, possibility of attracting additional investors.
Private limited liability companyA type of limited liability company limited to a specific number of partners or investors.Protection of personal liability, easy management of affairs.

Each type of company offers different benefits based on your business needs and goals. It is important to choose the type that suits the nature of your business and the future strategies of your company.

 

Documents required to establish a company in Jebel Ali Free Zone

To establish a company in Jebel Ali Free Zone, you will need to submit a set of basic papers and documents. These papers include:

  1. Passport : A color copy of the passport of all founders and directors.
  2. Personal photos : Recent personal photos of the founders and directors.
  3. Proof of address and residence : Documents proving the residence address, such as a utility bill (water, electricity) or a rental contract.
  4. A copy of the business plan : A detailed business plan that explains the company’s activity, goals, and strategies.
  5. Company incorporation documents : the incorporation agreement and social contract if the company is a limited liability company (LLC).
  6. Legal powers of attorney : Legal powers of attorney if there is an agent representing the founders or managers.
  7. License application form : Fill out and submit the license application form available at the Jebel Ali Free Zone Authority.
  8. Proof of compatibility with activities : Documents proving that the business activity you wish to practice is compatible with the activities permitted in the free zone.
  9. Experience certificates or commercial register : In the event of establishing a branch of an existing company, you may need to submit the parent company’s certificate of incorporation and its commercial register.
  10. Letter from the bank : A letter from one of the accredited banks in Dubai confirming the opening of a bank account in the name of the company (if required).
  11. No objection certificate : In some cases, you may need a no objection certificate from some entity or authority.

Requirements may vary slightly depending on the type of activity and company, so it is best to check the exact details with Jebel Ali Free Zone management or consult a legal advisor to ensure that all requirements are met.

 

Procedures for establishing a company in the free zone

Establishing a company in Jebel Ali Free Zone requires following a set of procedures to ensure compliance with all legal and administrative requirements. Here are the main steps:

  1. Choose the type of company and commercial activity :
    • Determine the type of legal entity that best suits your business, such as a limited liability company (LLC), a sole proprietorship, or a branch of an existing company.
    • Choose the business activity you want to practice, and make sure that it is compatible with the activities permitted in the Jebel Ali Free Zone.
  2. Preparing the required documents :
    • Passport for individuals and partners.
    • Personal photos.
    • Proof of address and residence.
    • A copy of the business plan (some free zones may request a detailed business plan).
  3. Submit a license application : Submit an application to obtain a commercial license from the Jebel Ali Free Zone Authority. The application usually includes submitting all required documents and filling out the necessary forms.
  4. Choosing an office location : Choose the office space or offices that best suit your company’s needs. You can choose from virtual offices or physical offices within the free zone.
  5. Completing financial procedures :
    • Open a bank account in the name of the new company in one of the approved banks in Dubai.
    • Pay the establishment fees and required licenses.
  6. Completion of company registration procedures : After reviewing and approving the documents, you will receive the business license and certificates necessary to register your company.
  7. Registration with government departments : Register your company with other government agencies as needed, such as the Department of Economic Development, to obtain any additional permits that may be required.
  8. Obtaining the necessary insurances : You may need to obtain specific insurances depending on the type of activity and the company’s requirements.
  9. Starting business operations : After completing all procedures and obtaining the final license, you can start practicing your business activity and activating the company’s operations.

It is important to contact local authorities or legal advisors for precise guidance and details about any updates to procedures or requirements.

 

Types

Types of companies in the free zone

Advantages of establishing a company in the free zone

Establishing a company in Jebel Ali Free Zone provides many advantages that make it a preferred destination for investors and businessmen. Here are the most prominent advantages:

  1. Tax exemptions :
    • Exemption from income tax : Companies in free zones enjoy exemption from corporate income tax and profits.
    • Exemption from value added tax (VAT) : Tax exemptions can be used on some activities.
  2. Full Foreign Ownership : Foreigners are allowed to own the entire company without the need for a local partner or local agent.
  3. Ease and simplified registration procedures : Procedures for establishing companies in the Jebel Ali Free Zone are faster and simpler compared to some other regions, which reduces the time and effort required to establish the company.
  4. Facilitations in transferring funds : Freedom to transfer funds abroad and import and export goods without restrictions, which enhances the ease of financial and commercial transactions.
  5. Advanced infrastructure services : Jebel Ali Free Zone provides excellent infrastructure that includes storage facilities, warehouses and modern offices.
  6. Ease of obtaining visas : Facilitations in issuing work and residence visas for employees and workers, which helps attract and employ talent.
  7. Strategic location : Jebel Ali Free Zone is located in a strategic location near Jebel Ali Port, which facilitates access to international markets and provides low costs in shipping and transportation.
  8. Stimulating work environment : Provides a professional and business-friendly work environment, with a wide network of international and local companies.
  9. Cooperation opportunities : The possibility of benefiting from the commercial relationships and networks existing in the free zone, which helps enhance opportunities for growth and expansion.
  10. Security and stability : The free zone provides a safe and stable environment, with continuous government support and measures to ensure business safety.

Establishing a company in Jebel Ali Free Zone can be a strategic step towards achieving success and growth in the international market.

Itqan Company services in establishing companies in the free zone

Itqan Company provides a comprehensive range of services specialized in establishing companies in the Jebel Ali Free Zone (Jafza), which makes it easier for investors to enter the UAE market and benefit from the available investment opportunities. Itqan services begin by providing initial consultations on the best options and legal structures suitable for the type of business activity that the investor wishes to establish. The company also carries out registration procedures and obtains the necessary licenses, which ensures that the company is established quickly and effectively.

In addition, our company provides integrated services that include preparing contracts and legal documents, arranging meetings with government agencies, and providing support in choosing the ideal location within the free zone. The company also facilitates the process of opening bank accounts and preparing the necessary infrastructure such as offices and warehouses.

The company’s services are flexible and adapt to the needs of customers, whether they are small companies or large institutions, enabling them to start their businesses in a safe and stable work environment. Thanks to its extensive experience in the UAE market, our company ensures the provision of effective solutions that help companies make the most of the incentives and benefits offered by Jafza, making it a reliable partner for investors seeking success in the Jebel Ali Free Zone.

At the conclusion of this article, it is clear that establishing a company in the Jebel Ali Free Zone represents an exciting and promising opportunity for investors and businessmen. The free zone provides an ideal environment characterized by flexibility, transparency, and facilities that enhance business success and open broad horizons for growth and expansion. Through tax exemptions, full foreign ownership, simplified incorporation procedures, unique strategic location and advanced services, Jebel Ali Free Zone represents a preferred destination for those wishing to enter international markets effectively and efficiently.

Frequently asked questions about establishing a company in the free zone