Why you Should Set up Your Company in JAFZA?.

Dubai is a flourishing cosmopolitan city which offers excellent living conditions, making it an ideal location for starting a business and having a comfortable family life. Known as the business capital of the Middle East, starting a company in Dubai is relatively easy and hassle free. Its strategic location, liberal economy, presence of special economic zones, and solid financial infrastructure availability make it attractive as a business hub.

Dubai’s progressive thinking Government realized early on, the advantages of attracting foreign investment for the purpose of their own growth, and so they have always encouraged company setup in Dubai by foreign businesses. Towards this goal, they set up several free zones with special, easy rules – absence of taxation being the most attractive feature.

    Setting up a business in JAFZA:

    Let’s examine one of the first, most popular and flourishing free zones in this Emirate, the Jebel Ali Free Zone, or JAFZA. Setting up a business in JAFZA involves three simple steps:

    1. Submitting your application

    2. Selecting the products, registration, and payment of fees

    3. Receiving licences and products

    Yes, that’s all it takes. The headaches connected to acquiring land, office space, warehousing, power connections, even visas – is all handled by the Zone authorities. Paperwork is minimal – no wonder that investors are keep to setup company in JAFZA.

    Starting its operations way back in 1985, JAFZA allows businesses to be set up as one of the following legal entities – Free Zone Company, Free Zone Establishment, Branch of a Foreign Company, or as a Branch of a Local Company, in one of the following industry segments – logistics, service manufacturing, assembling or trading. Today, more than 7000 companies are successfully conducting their business within JAFZA.

    The infrastructure facilities at JAFZA ensure that you get all that you need for a business set up Dubai might require, like land plots, office spaces, warehousing facilities, showrooms, on-site accommodation, tailor-made development solutions, and so on. Everything has been created to suit the precise requirements of manufacturing and trading businesses.

    Advantages of company setup in Jebel Ali Free Zone:

    Let’s take a quick look at the advantages of company setup in Jebel Ali Free Zone:

  • 100% foreign ownership is possible
  • Exemption from income and corporate tax payment up to 50 years, extendable
  • 100% capital repatriation allowed
  • Exemption from import and re-export duties
  • No restriction on currencies
  • Ability to hire 100% foreign employees
  • Premises can be mortgaged to banks or finance companies
  • Customs can be arranged onsite
  • Authorities help in obtaining visas
  • Banking, finance, insurance and other necessary services are easily accessible
  • Opening corporate bank accounts is easy
  • Convenient location near Jebel Ali port and Dubai airport allows convenient logistics to transport hubs
  • Authorities provide water and electricity connections and supply at reasonable rates.
  • However there are a couple of drawbacks: JAFZA has one of the highest capital requirements of all company setup free zones in Dubai, and rentals and one time fees are also on the higher side. There is also a pretty long list of companies applying to do business in JAFZA, so you may have to plan well in advance, if you are interested.

    It must be said though, that the solid infrastructure, liberal regulations, and ease of doing business in JAFZA, makes it a great place for Dubai company setup.

    Here is the infographic that accompanies the article about setting up company in JAFZA:



1Why UAE Is A Good Place To Start A Business?

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