Step-by-Step Guide to Opening a Company in JAFZA Free Zone

If you’re planning your business setup in UAE, choosing the right free zone is crucial for long-term success. The Jebel Ali Free Zone (JAFZA) is one of the most prominent and investor-friendly zones in the UAE, offering a strategic location and a host of business benefits to entrepreneurs aiming to start a company in UAE. In this guide, we’ll walk you through all the essential steps for setting up a business in JAFZA efficiently and compliantly.

Why Consider JAFZA for Your Business Setup in UAE?

JAFZA is home to over 8,000 companies, including Fortune 500 firms, and offers modern infrastructure and direct access to the Jebel Ali Port—making it an ideal hub for international trade and logistics.

100% foreign ownership
Zero corporate and personal income tax
No currency restrictions
Easy access to global markets via sea, air, and land

Key Requirements for Business Setup in JAFZA

Before you begin the process, ensure you meet the following requirements:

A clear business activity category
Chosen legal structure (FZE, FZCO, or branch office)
Initial capital declaration (for specific company types)
Office or warehouse leasing within JAFZA

Step 1: Choose Your Business Activity

Start by identifying the exact nature of your business. JAFZA supports a variety of activities, including:

Trading
Manufacturing
Service-oriented businesses
E-commerce

Each business activity may have specific license requirements and regulations.

Step 2: Select the Right Legal Structure

JAFZA offers several types of entities, and your decision will affect ownership, liabilities, and compliance. The main options include:

Free Zone Establishment (FZE): Single shareholder entity
Free Zone Company (FZCO): Multiple shareholders (2–50)
Branch of a Foreign or Local Company: Fully owned by the parent firm

Step 3: Register a Trade Name

Reserve a trade name relevant to your business and follow JAFZA naming rules. The name must not conflict with existing companies and should reflect your business type.

Step 4: Apply for Initial Approval

Submit your business plan along with passport copies, shareholder documents, and NOC letters (if required) to receive initial approval from JAFZA authorities.

Step 5: Lease Office Space in JAFZA

Every company must lease a physical space within the Free Zone. Options include flexi desks, office units, or warehouses, depending on the business type.

Step 6: Submit Documentation

Compile and submit all mandatory documents, including but not limited to:

Application form
Passport copies of shareholders/directors
MOA and AOA
Board resolution
Bank reference letter
Leasing agreements

Step 7: Obtain Business License

Once approved, JAFZA will issue your license based on your business activity. License options include:

Trading License
Service License
Industrial License
Logistics License

Step 8: Open a Corporate Bank Account

After licensing, you can open a local corporate bank account. Popular choices include Emirates NBD, Mashreq Bank, and HSBC.

Step 9: Register for Immigration and Employee Sponsorship

Costs Involved in Business Setup UAE (JAFZA Edition)

The cost to start your business in JAFZA depends on multiple factors, such as office size, company type, and activity. Here is an estimated breakdown:

Business license: AED 5,500–15,000/year
Office lease: AED 15,000–50,000/year
Registration fee: AED 10,000 one-time
Visa charges per employee: AED 3,000–5,000

These are approximate costs, and we recommend checking with the UAE Government Portal for up-to-date information.

Documents Required for Business Setup in UAE (JAFZA)

For hassle-free registration, prepare the following:

Duly filled application form
Copies of passports (shareholders/directors)
Business plan
Company profile
Board resolution (for foreign companies)

Advantages of Setting Up Your Business in JAFZA

JAFZA is attractive due to its business-friendly policies and global access points. It offers advantages such as:

Proximity to world-class logistics infrastructure
Wide range of business facilities
Simple customs and clearance procedures
Robust investor protection laws

Related Resource: Setting Up a Business in Dubai

Interested in exploring other areas apart from JAFZA? Check out our detailed guide to opening a company in Dubai.

Final Thoughts on Business Setup in UAE via JAFZA

Embarking on a business setup in UAE journey through JAFZA can be a highly rewarding endeavor if you follow the steps above carefully. JAFZA’s competitive advantages, easy processes, and strategic location make it a smart choice for local and global entrepreneurs. Ensure you comply with all regulatory requirements, and seek professional advice if necessary, to make your launch seamless.

For a deeper understanding of UAE’s free zones and legal frameworks, visit the UAE Government Portal.

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