How to Start a Business in Jebel Ali Free Zone (JAFZA)

Jebel Ali Free Zone (JAFZA) is one of the most established and respected free zones in the UAE, offering global investors a gateway into the Middle East, Africa, and Asia. If you’re considering setting up a business in Dubai, JAFZA offers strategic advantages—from world-class infrastructure and tax exemptions to seamless logistics and customs operations.

This complete guide walks you through everything you need to know about how to start a business in JAFZA, including legal structures, licenses, costs, and regulatory compliance.

What is the Jebel Ali Free Zone (JAFZA)?

JAFZA was established in 1985 and is managed by DP World, one of the world’s largest port operators. Located adjacent to Jebel Ali Port, the largest deep-sea port in the Middle East, JAFZA serves as a logistics and business hub connecting over 3.5 billion consumers across the GCC, Africa, Europe, and Asia.

It’s home to more than 8,000 companies from over 140 countries, including Fortune 500 firms like Samsung, Unilever, and Nestlé.

JAFZA company setup is ideal for businesses in:

• Logistics and supply chain

• Manufacturing and industrial services

• E-commerce and trading

• Maritime and shipping

• Electronics, automotive, FMCG, and chemicals

Why Choose JAFZA for Business Setup in Dubai?

There are several compelling reasons why investors prefer JAFZA over other free zones in the UAE:

Strategic Location

JAFZA is located near Al Maktoum International Airport and Jebel Ali Port, providing unmatched air-sea connectivity. This is perfect for import/export businesses and international logistics companies.

100% Foreign Ownership

Companies in JAFZA enjoy full foreign ownership with no need for a local sponsor.

No Corporate or Personal Income Tax

JAFZA offers 0% corporate tax, 0% personal income tax, and no currency restrictions.

Repatriation of Profits and Capital

Investors can repatriate 100% of their capital and profits freely.

Business Support Services

From customs clearance to visa processing, JAFZA provides a full suite of one-stop-shop business services.

Flexibility in Company Structures

You can set up as a Free Zone Establishment (FZE), Free Zone Company (FZCO), or as a branch of an existing business.

No Import/Export Duties within JAFZA

Goods imported, stored, or manufactured within JAFZA and exported out of the UAE are exempt from customs duties.

Types of Companies You Can Form in JAFZA

JAFZA offers flexible legal structures based on the ownership and business model:

Free Zone Establishment (FZE)

• Single shareholder (individual or corporate)

• Independent legal entity

• Ideal for sole owners

Free Zone Company (FZCO)

• Two or more shareholders

• Can be individuals or corporate entities

• Separate legal identity

Branch of an Existing Company

• Can be a branch of a UAE or foreign company

• No separate legal entity

• Operates under the parent company’s name and business license

Each structure has its own registration requirements, capital, and licensing procedures, depending on the activity.

Step-by-Step Guide to Start a Business in JAFZA

Starting your business in JAFZA involves several coordinated steps:

Step 1: Select Business Activity

Choose your primary business activity from JAFZA’s list of approved commercial, industrial, service, or e-commerce activities.

Step 2: Choose a Legal Structure

Decide whether you’ll form an FZE, FZCO, or open a branch office.

Step 3: Reserve Trade Name

Select and register a unique company name through the JAFZA portal.

Step 4: Apply for Initial Approval

Submit your application form with passport copies, shareholder details, and your proposed business plan for pre-approval.

Step 5: Sign Lease Agreement

Choose from flexible workspace options—from flexi-desks and offices to warehouses and plots.

Step 6: Submit Legal Documents

Complete and submit the required documents for registration (outlined below).

Step 7: Pay License Fees

Pay the necessary JAFZA license and registration fees.

Step 8: Obtain Your JAFZA License

Once all documents and payments are cleared, you’ll receive your official business license.

Business Activities Allowed in Jebel Ali Free Zone

JAFZA supports a wide variety of permitted business activities, including:

Commercial Activities

• Import/export

• General trading

• Distribution

• Retail and wholesale services

Industrial Activities

• Manufacturing

• Assembly

• Processing

• Packaging and re-packaging

Service Activities

• Consultancy

• Logistics and warehousing

• E-commerce

• IT services

• Maritime services

Some activities may require additional approvals from Dubai Municipality, Civil Defense, or Dubai Customs.

Documents Required for Company Formation in JAFZA

The following documents are mandatory to register your business in JAFZA:

For Individuals:

• Passport copy of each shareholder and manager

• Personal information sheet

• Proof of residential address

• Bank reference letter (in some cases)

For Corporate Shareholders:

• Certificate of incorporation

• Memorandum and Articles of Association

• Board resolution authorizing company formation

• Power of attorney to appoint company representatives

• Parent company’s trade license (for branches)

All documents must be attested and notarized in the country of origin and legalized by the UAE embassy.

JAFZA License Types and Their Uses

JAFZA offers multiple license types, depending on your business activity:

Trading License

For businesses dealing in buying and selling goods.

General Trading License

Allows for trading in a wide range of unrelated products.

Service License

Issued to companies providing consulting, marketing, IT, and other professional services.

Industrial License

Permits manufacturing, processing, or assembling of goods.

Logistics License

Designed for freight forwarding, storage, distribution, and supply chain businesses.

E-commerce License

Allows selling of goods and services online, including local and international platforms.

Cost of Setting Up a Business in JAFZA

The cost of starting a business in JAFZA depends on:

• License type

• Office/warehouse size

• Number of visas required

• Legal structure (FZE/FZCO/branch)

Estimated Cost Breakdown (AED):

Total cost can range from AED 35,000 to AED 100,000+ depending on your setup.

Office and Warehouse Facilities in JAFZA

JAFZA provides tailored infrastructure for every business model:

Office Spaces

• Flexi-desks (shared workspace)

• Executive offices

• Built-to-suit offices for larger companies

Warehousing

• Pre-built units available for storage and logistics

• Customizable warehouse plots

• Temperature-controlled storage

Land and Industrial Plots

• Long-term lease options

• Ideal for large factories, assembly units, or distribution centers

How to Open a Corporate Bank Account in JAFZA

After obtaining your license, you can open a corporate bank account in Dubai to manage business transactions.

Requirements:

• Valid JAFZA license and trade name

• MOA and AOA

• Passport copies of shareholders

• Proof of address and UAE phone number

• Business plan and initial contracts (some banks)

Recommended banks: Emirates NBD, RAKBANK, Mashreq, ADCB, HSBC UAE

Taxation and Compliance in JAFZA

JAFZA companies enjoy significant tax exemptions, but some compliance rules apply.

Tax Benefits:

• 0% personal income tax

• 0% corporate tax (until June 2023; now subject to UAE’s 9% corporate tax law if applicable)

• No customs duties on re-exported goods

VAT Registration:

If annual turnover exceeds AED 375,000, you must register for VAT with the Federal Tax Authority (FTA).

Annual Compliance:

• Annual audit report

• Renewal of license and lease

• Updated shareholder and manager records

Conclusion

JAFZA is one of the most strategic and business-friendly free zones in the Middle East, offering everything an investor needs to set up a company in Dubai—connectivity, infrastructure, tax advantages, and simplified business processes.

With the right setup support, you can establish your business in JAFZA smoothly and start benefiting from Dubai’s thriving economy.

If you’re ready to expand your operations or launch a new venture in the UAE, partner with experts in Business Setup in Dubai to guide you through the licensing, registration, and compliance process.

FAQs 

Can I own 100% of my company in JAFZA?

Yes. JAFZA allows 100% foreign ownership for all company types.

How long does it take to set up a company in JAFZA?

Company registration and licensing in JAFZA usually takes 7 to 14 business days, provided all documents are in order.

Do I need a local sponsor in JAFZA?

No. Free zone businesses in JAFZA do not require a local Emirati sponsor.

Can I do business outside the UAE with a JAFZA license?

Yes. JAFZA companies can conduct international trade and exports freely, but to trade directly in the UAE mainland, you must appoint a local distributor.

What’s the minimum capital required to start in JAFZA?

Capital requirements vary, but most FZEs require a minimum paid-up capital of AED 50,000.