Over its 27 year history, Jafza has evolved into a dynamic trade catalyst ecosystem that enables business and creates new opportunities for growth. From a modest start in 1985 with just 19 companies, Jafza today flourishes as a business community with over 7,100 companies including 100 of the Fortune 500s.

The Free Zone Authority in Dubai is the government organization that handles registration formalities and issues business licenses to non-resident companies or foreign-owned businesses for company formation in Dubai free zones. Business setup in Dubai free zone brings a sea of opportunities for networking, collaborating and extensive growth in the business. The appealing tax regime and many incentives offered by the free zone authorities make Dubai the most preferred nation by an investor for company formation.

Benefits of Setting up a Business in Dubai Free Zone

Free zones are the most favorable locations for business setup equipped with state-of-the-art infrastructure, duty and tax exemptions, world-class business amenities, flexible government policies, and unmatched facilities.

These are not the only factors that drive Dubai free zone company formation; there are many more benefits of forming a Dubai free zone company, like:

• 100% ownership for investors, regardless of their nationality and country of origin
• 100% tax exemption on personal or corporate income or gains
• 100% repatriation of capital and profits
• Exclusion from all import and export duties
• Handy office and warehouse facilities
• Option for a company set up by an individual
• Exemption on corporate tax for 15 years, renewable for another 15 years
• Complete secrecy of operations
• Flexibility to engage in international business
• Fewer renewal charges
• Flexibility to hold properties, participate in multiple activities, and open a bank account in Dubai
• The option of liquidating anytime
• Assistance in housing facilities, staff visas, and other support services

Types of Licenses Available for Business Setup in Dubai Free Zone

It is important to be aware of the various incentives that free zones in Dubai provide for license holders like Dubai Airport Free zone is allowing a dual license for its investors. The following licenses are offered by free zone authorities for Dubai free zone company setup:

1. Trading License

This type of license, if acquired, allows one to carry out trading activities like buying, import & export, and selling of a limited number of commodities.

2. General Trading Activities

One can deal with the trading of all types of goods, with an exemption on a few banned products which need special approval with this license.

3. Service License

Companies that want to deal with activities like consulting, accountancy, etc. can acquire this license.

4. Industrial License

A company can carry out manufacturing, packaging and processing activities after obtaining this license.

Types of Business Entities Allowed in Dubai Free Zone

1. Free Zone Establishment (FZE)

This type of company can be registered with 1 individual or corporate shareholder.

2. Free Zone Company (FZC)

This type of company can be registered with 2 or more shareholders. A shareholder can be an individual or a company.

3. Branch Office

A business that has a company in the UAE or a foreign land can have a branch in one of the free zones of Dubai.

How to Open a Company in Dubai Free Zone?

Dubai offers rewarding options for company formation to investors, to set up their business anywhere in the Emirates depending on the type of their business, location (free zones, mainland or offshore), budget, ownership preferences (100% ownership or local sponsorship), and other such factors. There are certain formalities and procedures to be completed in order to set up a business in Dubai free zones. These need acute planning, knowledge of local culture and government norms, and elaborate decision-making, through different business setup phases.

Procedure to Set Up a Business in Dubai Free Zone

There are 6 simple steps included in the Dubai freezone company setup.

1. Choose a Business Activity
2. Find a Suitable Free Zone
3. Choose a Trade Name
4. Gather Important Documents
5. Apply for a License
6. Open a Business Bank Account

The steps are explained as under -

1. Choose a Business Activity

Decide a business activity you wish to carry out, as the type of license you apply for will depend upon the nature of the business activity. Many Dubai zones allow for multiple business activities, so have many options to explore.

2. Find a Free Zone

Once you have decided on a business activity, the next step is deciding which free zone is right for you. Basically, there are sector-specific zones like IT, healthcare, commerce, trading, etc., therefore, research before choosing one particular zone.

3. Choose a Company Name

Before finalizing a name, you need to ensure that your business name is available to be registered on the Dubai free zone authority portal. There are also certain standards that the name must adhere to, including avoiding any blasphemous language or references to religious or political organizations.

4. Gather all the Documents and Apply for a License

After deciding the business activity and registering the trade name at the portal, the next crucial step is to apply for a license. The type of license depends on business activity. To apply for the same, you need to first fill the application form and gather the documents, as mentioned in the form. Also, you can make a visa application during this process.

5. Open a Corporate Bank Account

Opening a bank account is an easy process. But to do so, you have to again gather the documents as well as your business license and provide it to the chosen financial institution.

After the 4^th step, you will get a valid license within 2-4 weeks, and you are good to go.

Documents Required for Dubai Free zone Company Formation

For a business license:

• Color copy of shareholder(s)’ passport and visa, if applicable
• Application form
• Business plan
• Board resolution
• Memorandum and Articles of Association (MAA)

For opening a bank account:

• A corporate account opening form
• A board of directors’ resolution sanctioning the opening of the account, and the signatories to the account
• A copy of your company’s certificate of incorporation
• A copy of your share certificate
• A copy of the company’s Memorandum and Articles of Association (MAA)
• Copies of passports for all partners in the company

Dubai Free Zone License Cost

It is not easy to tally the total cost of Dubai free zone company formation as the final figure is made up of several components. Along with the cost of the free zone license itself, one also needs to consider the cost of premises if required as well as visa costs.

It is possible to pay all of these costs at once, however. Most Dubai free zones offer packages that include a trade license, the use of workspace and one or more visas for you and your employees. A company formation expert can help you in your search, understanding your needs and your budget before finding a package that fits the bill.

Why Set Up a Business in Dubai Free Zones?

Dubai's free zones are extremely popular among entrepreneurs and business owners for company setup due to their reputation of being tax-free zones with free trading ports that can be solely owned by the person who sets it up (irrespective of the nationality). Additionally, Dubai free zone company formation does not have a restriction that mandates the presence of a local sponsor to act as a point of liaison, which acts as a catalyst for increased foreign investment. Dubai free trade zone company registration process is quite smooth and requires only that the share capital arrangements are made prior to applying for a license.

Set up a Business in Dubai Free Zone with Commitbiz

Freedom of doing business, huge tax savings, and favorable government policies lead investors and businessmen to set up their operations in Dubai free trade zones. Commitbiz has the experience and resources to help you realize your company setup dreams without worrying about the red tape, visa applications, documentation, and licensing formalities, residence permits, banking details, etc., as our experts take care of all these requirements.

Contact us for free zone company registration in Dubai and our specialized team will be glad to assist you with all the details.

 

INTRODUCTION TO THE FREE ZONE

The Free Zone was established in 1980 with the key objective of encouraging companies to benefit from

various attractive incentives that the Free Zone offers, such as:

(a) zero tax regime in force;

(b) no limit on foreign ownership of companies;

(c) no requirement for a United Arab Emirates national as a local partner / shareholder; and

(d) freedom to employ whoever, as per the authorities concerned, with the Free Zone acting as nominal

sponsor for residency purpose.

In order to incorporate an entity in the Free Zone, a Customer requires, amongst other things, a Licence

issued by Jafza appropriate for the intended business activities in the Free Zone, as well as a Lease for

Premises suitable for the nature and scope of its operations. Jafza provides a variety of Premises for Lease

for various purposes.

The Free Zone has ready built facilities, such as warehouses, light industrial units, showrooms, offices,

workstation, on-site residence, food outlets and retail stores available for leasing to its Customer. A Customer

wishing to construct facilities to its own specification and design can do so by leasing a Plot of prepared land

of the required area.

Operation in the Free Zone is subject to the rules and regulations promulgated by Jafza,

including these Free Zone Rules, as well as the prevailing procedures and practices of Jafza.

Service providers for telecommunications services, electric works, water works and postal services are

present in Jafza, and they offer a wide range of services to Customers, be it at the time of a Customer’s

incorporation or thereafter, such as obtaining phone lines, water and power connections and a post office box

number.

4. POWERS OF JAFZA

Jafza is the regulatory authority charged with the supervision of the Free Zone, and its responsibilities, as laid

down in Decree No 1. of 1985 “Establishment of The Free Zone Authority In Jebel Ali Port”, as amended,

include, to develop the infrastructure of the Free Zone and to issue rules and regulations, to regulate

Customers and their activities in the Free Zone, and in doing so to issue Licences and to Lease different

Premises on short term and long term basis. Jafza may also assist Customers to recruit managers, officers,

technicians, professionals and other Employees. Jafza has issued these Free Zone Rules based on the

authority granted to it.

Jafza may waive a Rule contained in these Free Zone Rules, for one or more than one Customer, subject to

terms and conditions that Jafza may prescribe.

Jafza may issue a notification in relation to any matter provided in these Free Zone Rules.

Jafza may appoint an authorised representative, as it may deem necessary, for the implementation of any part

of these Free Zone Rules

 

5. AVAILABILITY OF THESE FREE ZONE RULES

These Free Zone Rules are available on Jafza’s website and can also be obtained on request from Jafza.

These Free Zone Rules are routinely handed to a Customer on the provisional approval of the Customer’s

application and / or at the time of signing a Lease

GENERAL REQUIREMENTS

6.1. A person working or operating in the Free Zone, be it a Customer, Employee or a contractor working for a

Customer, is required to comply with these Free Zone Rules.

6.2. A Customer shall have a valid Lease and a valid Licence to operate in the Free Zone. A client occupying a

Workstation space in a business centre / incubator may be subject to different requirements. In addition,

entities incorporated and licensed by other free zones authorities or competent authorities in the United Arab

Emirates may lease a premises in the Free Zone subject to a permit issued by Jafza.

6.3. A Customer is required to renew its Lease and Licence within the time frame set by Jafza.

6.4. Payment for services rendered by Jafza is required to be made in advance, according to the established

Tariff.

6.5. Movement of goods within the Free Zone shall be by a Customer’s own transport, or by a transportation

company registered in the United Arab Emirates.

6.6. United Arab Emirates local decrees, regulations, rules and practices are applicable within the Free Zone, and

shall be applied to the Free Zone and its Customers in addition to these Free Zone Rules. Violation of United

Arab Emirates local decrees, regulations, rules and practices will be notified to the appropriate authorities.

6.7. Without prejudice to the generality of Rule 6.6 above, a Customer is required to at all times abide by all

international treaties entered into by United Arab Emirates as well as all United Arab Emirates federal and

local laws, decrees, regulations, rules and practices in relation to intellectual property rights and any other

obligation on the part of the United Arab Emirates. Jafza may take appropriate action, in its own discretion,

against a Customer found to be in violation of this Rule.

6.8. Violation of these Free Zone Rules is subject to such procedures and penalties as prescribed in Rule 14

Herein

 

TYPES OF LICENCES

7.1. Licenses are categorized by the nature of business activity, as follows:

License category	Nature of activity
Trading License	To carry out trading activities
Industrial License	To carry out manufacturing activities
Service License	To carry out services activities
General Trading License	To carry out trading activities as per General Trading terms and conditions
Logistic License	To carry out third party logistic activities E-
Commerce License	To carry out buying and selling of goods and services over electronic networks via any electronic means.
National Industrial License	To carry out manufacturing activities where at least 51% of the ownership of the Customer is of national(s) of the GCC countries
Innovation License	to carry out development of new products and services

 

Setting up an FZE company.

There are four simple steps to register your company in Jafza:

1. Register your interest online. You can start your journey online by registering your interest. Once you have completed our online form, you will be contacted by our sales team to further verify your application.
2. Submit your signed application form along with the list of all required documents.
3. Select an offering from our listed solutions, license type and make the payment towards the business setup process. Make sure you review our Activity List for your license type.
4. Receive your license and move into your selected solution (warehouse, office space …etc)

What documents are required to set up an FZE company by individuals?

An FZE is essentially a single shareholder company, also known as a sole proprietorship. 

Once you have registered your interest in setting up your company online, you will need the following documents at the time of submitting your application to set up an FZE company in Jafza.

• The Jafza Application Form.
• Environment Health and Safety (EHS) application form.
• Project summary or a Business Plan. You will find a sample template of this on page 22 of the application form. You must limit this to one page.
• Know your customer (KYC) form to be filled in and submitted along with the application form.
• Ultimate Beneficiary Owner (UBO) Form to be filled in and submitted along with the application form. Cabinet Decision No. (58) of 2020 requires all companies in the United Arab Emirates to declare the Ultimate beneficiary of a business. In simple words, an ultimate beneficial owner (UBO) is an individual who is the ultimate beneficiary of a company.
• Appointment letter of Director / Manager / Secretary.
• Passport copy of the designated person as shareholder, manager and secretary.
  • The passport must be valid for at least six months.
  • Director/Manager/Secretary should be 21 years and about.
  • If the Shareholder, Manager or Secretary has an existing residence visa in UAE, then a No Objection letter on the company letterhead duly signed by the Local Sponsor must be included. You will also need to include a copy of their current visa.
• Business profile of the shareholder. A sample template of this is available on page 25 of the application form.

In an FZE company formation, the director and shareholder is the same person. You may elect to include a manager as a separate person or entity.

If any of the documents need attestation, Jafza will advise you regarding this. Please note, Jafza reserves the right to request any additional documentation that is deemed necessary. This will be communicated by the sales and registration team in person or via email.

What documents are required to set up an FZE company by non-individuals?

The single shareholder in an FZE can also be a non-individual.

If a non-individual (essentially, a company) wants to register an FZE in Jafza, the following Legal documents are required (duly Notarized and Attested by UAE Embassy/Consulate) for Registration of the Company. These are documents that are required – further to the details listed as the documents required for individuals.

• The Original Certificate of Incorporation or the Original certificate of Good Standing.
• Memorandum and Article of Association (MOA and AOA) of the shareholding company duly notarized and attested.
• Shareholder/Director/Board resolution calling for the following:
  • the establishment of the FZE in Jafza
  • details of the Share Capital allocated
  • appointment of Director / Manager / Secretary
  • Appointment of a Legal representative (if any)
  • Power of attorney (POA)

If the non-individual parent company is based outside the UAE, attestation of all documents is required at the UAE embassy. In case of absence of UAE Embassy in the Country of Origin of the Parent Company, the documents will be accepted if it is Notarized & Attested by any GCC/Arabic Embassy/Consulate in the Country of origin of the Parent Company and the documents have to be further attested by UAE Ministry of Foreign Affair.

Investing in Jafza opens up a whole new world of options and possibilities. while giving you the opportunity to benefit from a wide range of economic Strategic and marketing advantages, it places you on the Jafza umbrella of sponsorship and encouragement where thousands of companies enjoy the freedom to do business around the world's man-made Port.

At Jafza the focus is on ease and speed. So from opening or expanding a business to easy and quick documentation, being the part of Jafza means that your life just got easier. Sohatoos Company showcases all the facilities on offer and shows you how to become a part of this dynamic fraternity.

Land sites. Jafza provides lots of various sizes for short and long-term lease this extremely popular option is ideal for companies wishing to construct their own facility, whether warehouse or industrial factory.

In order to preserve the appearance and infrastructure of Jafza, not more than 60% of the allotted Land may be utilized for the facility itself. the remaining area is to be landscape and allocated for parking areas or loading and unloading zones subject to approval.

Refrence: https://www.jafza.ae/

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