Company formation in Jebel Ali

Cost of a commercial license in the Dubai Free Zone

٢٥ فبراير Company formation in Jebel Ali

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Establishing a company in Jebel Ali is a great investment option for investors and entrepreneurs seeking to expand into regional and global markets. Jebel Ali Free Zone (JAFZA) offers an ideal investment environment, offering companies numerous benefits such as tax exemptions, 100% foreign ownership, and ease of business formation compared to other options in Dubai. Jebel Ali’s strategic location near Jebel Ali Port, the largest seaport in the Middle East, enhances the success opportunities for companies operating in trade, manufacturing, and logistics. If you are considering establishing a company in Jebel Ali, it is essential to understand the steps and legal and administrative requirements to ensure a smooth process and maximize the benefits offered by the free zone. In this article, we will detail how to establish a company in Jebel Ali and what you need to know before starting your business in this vital region.

Table of Contents

Steps to Establish a Company in Jebel Ali

Jebel Ali Free Zone (JAFZA) is one of the largest free zones in Dubai and provides an ideal environment for local and international investors. Establishing a company in Jebel Ali requires following several basic steps. Here are the main steps to establishing your company in the free zone:

1. Choose the type of company and business activity
The first step is to determine the type of company you wish to establish in Jebel Ali (such as a limited liability company, a branch of a foreign company, a sole proprietorship, etc.) and the business activity you will engage in, whether commercial, industrial, or service-related.

2. Choose a company name
You must choose a company trade name that complies with the free zone regulations. You can search for available names through the free zone’s electronic system and ensure that it does not duplicate or conflict with other activities.

3. Submitting the Required Documents
When choosing a company name, you must submit a set of basic documents required for company registration, such as:

Passport and personal photos of the founders and directors
Business plan or description of the business activity
Application form completed online
4. Submitting the Application for Initial Approval
After preparing the documents, you must submit an application for initial approval to the Jebel Ali Free Zone Authority. This application determines whether the business activity complies with local laws.

5. Determining a Business Location
The free zone requires you to select an office or office space within the free zone. Offices or spaces can be leased depending on business needs. You will then be required to sign a lease agreement for the office.

6. Issuing the Trade License
After obtaining initial approval and signing the lease agreement, the authority can issue the company’s trade license. This includes paying the required license fees.

7. Opening a Bank Account
After issuing the trade license, you need to open a business bank account with one of the local or international banks accredited in the free zone to ensure financial transactions are possible.

8. Hiring and Starting Operations
After receiving all the necessary documents and financing, you can hire employees (if necessary) and begin your business activities.

9. Complying with Local Laws and Regulations
Ensure compliance with all applicable local laws in Jebel Ali, including any additional licenses or permits that may be required based on the business activity.

Documents Required for Jebel Ali Company Registration
Registering a company in the Jebel Ali Free Zone (JAFZA) requires the submission of a set of official documents depending on the type of company and business activity. Below is a list of the basic documents required:

1. General Documents (for individuals and companies)

A copy of the passport of all partners, shareholders, and directors.
A copy of the residence visa or UAE entry stamp (if the applicant is a UAE resident).
A copy of the Emirates ID card (for expatriates).
A business plan outlining the nature of the business activity and the services the company will provide.
Proof of residential address for partners or shareholders (such as a utility bill or bank statement).
2. Documents Required for New Companies

A company registration application form signed by the partners or shareholders.
The company’s articles of association and memorandum of association.
Preliminary approval of the trade name from the Jebel Ali Free Zone Authority.
A decision appointing the company’s general manager.
Legal powers of attorney (if one shareholder is applying on behalf of others).
3. Documents required for existing companies wishing to open a branch in Jebel Ali:

A copy of the current trade license.
A registration certificate of the parent company authenticated by the relevant authorities.
A resolution from the board of directors to open a branch in Jebel Ali.

The parent company’s articles of association and memorandum of association.
A list of the names of the board members and shareholders.

The Expected Cost of Incorporating a Company in Jebel Ali

Establishing a company in the Jebel Ali Free Zone (JAFZA) is an ideal option for investors seeking a flexible business environment and competitive advantages. Costs vary based on several factors, such as the type of company, business activity, office size, and the number of visas required. Below is an overview of the expected costs without mentioning specific figures:

1. Company Registration Fees
Upon incorporating a company, registration fees must be paid. These fees vary depending on the type of legal entity you choose, whether a free zone limited liability company (FZCO or FZE) or a branch of a foreign or local company.

2. Trade License Issuance Fees
Trade license fees depend on the activity you will be conducting, whether commercial, industrial, or service. Costs vary between activities with different regulatory requirements, such as industrial activities that require additional permits.

3. Office Rental Costs or Operational Space
It is necessary to provide an official address for the company within the free zone, whether it is a small office, showroom, warehouse, or factory. The cost varies depending on the chosen space and its location within the free zone.

4. Visa and Residence Permit Fees
If you require residence visas for investors or employees, there are fees associated with issuing each visa, in addition to Emirates ID fees and medical examinations.

5. Additional Service Fees
There may be additional costs associated with establishing a company, such as opening a bank account, legal service fees, and special activity permits such as importing and exporting goods.

6. Annual Renewal Fees
In addition to the initial establishment fees, there are annual operating costs, including trade license renewals, annual office rent, and visa fees, which should be considered when planning your company’s finances.

Tax and Investment Benefits in Jebel Ali
Jebel Ali Free Zone (JAFZA) is one of the most prominent free zones in Dubai, offering numerous tax and investment benefits that make it an ideal destination for investors from around the world. The most prominent of these benefits are:

1. Tax Exemptions
Corporate Tax Exemption: Companies established in Jebel Ali enjoy a complete exemption from income tax for up to 50 years. This includes all taxes on profits and revenues.
Value Added Tax (VAT) Exemption: Companies in Jebel Ali are allowed to avoid VAT on many services and products, making the area more attractive to commercial and industrial companies.
Salary and Wage Tax Exemption: Companies also exempt from taxes on salaries paid to their employees, helping to reduce operating costs.
2. Flexibility in Repatriating Capital and Profits
Free Repatriation: Investors can repatriate profits and capital to any country without any restrictions or additional taxes, allowing them to manage their funds more flexibly and effectively.
3. Sustainable and Thriving Business Environment
Strategic Location: Jebel Ali is located near Jebel Ali Port and Dubai International Airport, making it an ideal location for international trade and transportation.
Access to Huge Markets: The free zone provides access to GCC markets and other markets in the Middle East and Asia, opening up multiple opportunities for investment and expansion.
4. Ease of Procedures and Administration
Simplified Incorporation Procedures: Establishing a company in Jebel Ali features fast and flexible procedures, with significant support from the Free Zone Authority to facilitate all stages of establishment.
Continuous Government Support: The Dubai government provides support and guidance to investors, in addition to a stable legal environment that contributes to enhancing the business environment.
5. 100% Ownership for Foreign Investors
Full Ownership: Jebel Ali allows foreign investors to have full ownership of their companies without the need for a local partner, giving them complete control over their business.
6. Modern Infrastructure
Advanced Facilities: The free zone offers high-quality infrastructure, including modern offices, warehouses, and logistics facilities, enhancing companies’ ability to grow and innovate. 7. Diverse Investment Opportunities
Diverse Commercial and Industrial Activities: Jebel Ali offers a wide range of diverse commercial and industrial activities for investors to choose from, including import and export, manufacturing, logistics, and e-commerce.

Ultimately, establishing a company in Jebel Ali is a strategic step that opens up new business horizons for investors, as the free zone provides an integrated environment that supports the growth and expansion of companies. Following the correct procedures and adhering to legal and administrative requirements helps facilitate the registration process and obtaining all necessary licenses. The competitive advantages offered by Jebel Ali Free Zone, such as advanced infrastructure, customs exemptions, and easy access to international markets, make it an ideal destination for anyone seeking business success. If you want to take advantage of these opportunities, establishing a company in Jebel Ali can be the first step toward achieving your investment goals in one of the most prosperous economic environments in the region.