Company Formation Services in Jebel Ali Free zone

Jebel Ali Free Zone is located in Dubai, United Arab Emirates, and is considered one of the biggest free zones globally, providing a strategic platform that allows businesses to expand into the Middle East, Africa, and South Asia. Established in 1985, the free zone has grown into a thriving business community with over 7,000 firms in various sectors like logistics, manufacturing, trading, and services. Its strong position by the side of one of the world's busiest ports, Jebel Ali Port, provides unparalleled access to global markets.

The advantages of forming a company within the Jebel Ali Free Zone include many. It is a popular destination for entrepreneurs, investors, and multinationals. The ease with which companies can operate in JAFZA, with 100 percent foreign ownership, exemption from taxes, and streamlined regulations, makes this a very attractive business-friendly environment. With a company in JAFZA, one would enjoy state-of-the-art infrastructure, world-class logistics, and a considerable talent pool - all of these facilities are made possible by the free zone. Businesses that wish to expand into new markets, diversify their operations, or optimize supply chains can also do so with company formation in JAFZA, thereby providing them with an excellent opportunity for growth, innovation, and success within the region.

Benefits of Company Formation in JAFZ

• Tax Benefits and Incentives: Jebel Ali Free Zone offers extensive tax benefits like exemption of corporate tax and income tax for quite a few years. Such a favorable tax atmosphere enhances the overall profitability of business operations so that the company can invest its savings in growth and expansion activities.
• 100% Foreign Ownership: Perhaps one of the greatest lures in the formation of a company in JAFZ is that it allows 100% foreign ownership. Entrepreneurs can go ahead and form and operate their businesses without having to settle for a local partner guarantee of complete control over operations and decision-making processes.
• No Customs Duty: Companies operating within JAFZ enjoy exemptions on customs duty for goods imported into the free zone. This saves companies huge amounts of money as the operational costs become relatively low and help businesses manage their supply chain as profitability increases.
• Access to World Markets: JAFZ is strategically located near one of the world's largest ports, Jebel Ali Port, making it easy to reach any global market. This strategic location affords the companies an opportunity to export their products and services with minimal hassle thereby promoting them further and efficiently in the global market.
• Infrastructure: Free zones have state-of-the-art infrastructure designed to house a wide range of business activities, including modern offices, warehouses, and logistics facilities. The environment induces guaranteed efficient operations and allocates the resources required for business success in today's fast-changing business world.
  
  

Types of Companies in JAFZ

• Free Zone Establishment (FZE)

A Free Zone Establishment (FZE) is a company with one shareholder and has 100% foreign ownership. Such a company is suitable for small entrepreneurs or businesses that would like to participate in the Jebel Ali Free Zone. An FZE is entitled to engage in any business and offers limited liability to the owner.

• Free Zone Company (FZC)

A Free Zone Company (FZC) has a minimum of two shareholders, although it can have up to 50 shareholders. Like FZE, it boasts 100% foreign ownership and limited liability. The FZC is well-suited for partnerships or an entity of investors who would like to go into business endeavors together inside the free zone.

• Branch Office

A foreign or local company that wants to operate in JAFZ but maintain an identity different from a parent company can establish a branch office. The branch office is a wholly owned and operated subsidiary of the parent company, and it should carry on identical business activities. This structure enables companies to expand operations without having a separate legal entity.

• Representative Office

The representative office is considered as an extension of a foreign company mainly for marketing and promotional purposes. It cannot enter into direct commercial transactions or generate revenues for the firm but can facilitate communication with potential clients and promote the products or services of the parent company. 

Company Formation Process in JAFZ

How to Start a Business in the UAE : A Complete Guide

• Select Business Activity: Select the kind of business activity you would like to engage in. This will determine the type of license you would need.
• Select Legal Form: Choose a legal form for your business: Free Zone Establishment (FZE), Free Zone Company (FZC) or branch office or representative office
• Trade Name Approval: Submit your desired trade name to JAFZA for approval, which meets the naming requirements and is not used by anyone.
• Initial License Approval: Apply for primary approval from JAFZA and get permission to continue with the registration process
• Submitting Documents: Submission of documents required, such as passport copies of the shareholders and directors, project summary, or any other form as necessitated by JAFZA.
• Choosing an Appropriate Facility: Office or warehouse space selection is available within JAFZA that fits your business requirements.
• License Issuance: Following the verification and approval of the documents, you will be issued with your business license, which will allow you to operate your business lawfully.
• Company Bank Account Opening: You have to open a corporate bank account as it would help you manage the business finances of your company professionally.
• Labour File Development: A labour file would be created with the Ministry of Human Resources and Emiratisation (MoHRE) for you to maintain employee data and work visas.
• Process Work Visas: Apply for work visas for yourself as well as your employees, to live and work in the UAE legally.

Documentation Requirements

• Application Form: Duly filled application form for the company's setting up.
• Passport Copies: Original and photocopies of passports of all shareholders and directors.
• Project Summary: A short description of business activities to be carried on.
• No Objection Certificate (NOC): From the existing sponsor for UAE resident shareholders.
• Environment Health and Safety (EHS) Application Form: Where there is a prospect of necessities to comply with local regulations
• Know Your Customer (KYC) Forms: To establish ultimate beneficial owners.
• Memorandum and Articles of Association (MOA & AOA): Incorporated in the incorporation procedure.
• Board Resolution: In the case of a company having more shareholders, this states that the company has been formed.

Licensing and Registration Procedure

The steps involved in licensing are as under:

• All the required documents should be submitted to JAFZA and processed for approval
• After getting the approval, a facility shall be selected along with the finalization of the lease agreements
• Registration fee as applicable, shall be paid
• After proper verification of the documents, the business license will be issued

Timeline and Costs

Timeline: Normally, the time taken for the formation of the entire company in the JAFZA would lie within 7 to 10 days, subject to the available completeness of documentation and approvals.

Costs: Setup costs vary according to the nature of the business but usually include

• Registration Fees are between AED 10,000 and AED 20,000.
• Renewal fees usually range between AED 5,000 and AED 10,000 annually

Other costs may also include legal fees, office rental, and other expenses to obtain the visas.

Types of Licenses (Trade, Industrial, Service)

• Trade License: Those businesses that are engaged in the purchase and sale of products. The trade license is provided to companies for doing business in their state, country, or even abroad.
• Industrial License: These licenses are provided to those firms whose principal business activities include manufacturing or processing. This is necessary because industrial activity needs to be regulated by the authorities.
• Professional License: These are also called consultancy, health, and education licenses. These licenses are provided to individuals or firms who have specialization in some areas.
• Service licence: Required by businesses offering operations or maintenance services, including logistics and hospitality

License Fees and Renewal Process 

• License Fees: The license to conduct business in the UAE can range from as little as AED 10,000 to as high as AED 50,000, depending on the specific license type and the emirate.
• Renewal Procedure: All business company licenses have to be renewed annually. Renewal of a license is typically administered by submitting an application for renewal and any additional supporting documents that may be necessary as well as paying the necessary fees. Upon expiry, if left unrenewed, the company may be liable to fines or penalties.

Legal and Regulatory Compliance

Conformity with UAE Laws and Regulations

Any business being operated within the UAE, in compliance with the local laws and regulations that are imposed by the various authorities, including but not limited to, the Department of Economic Development or even other state ministries, in following labor laws, tax policies, and industry-specific policies.

AML and KYC Requirements

Businesses will have AML measures and KYC protocols in place to prevent the commission of financial crimes. This includes customer identification, record-taking, and reporting suspicious transactions to the appropriate authorities.

Protection of Intellectual Property

Companies in the UAE also need to know something about IPR. Trademarks, patents, and copyrights need protection because the interest there lies with the business. Intellectual property can be registered with the Ministry of Economy, and therefore, there is legal protection against infringement.

Setting Up a Business in JAFZ

Selecting the Business Location

Selecting a perfect business location for your company can either make it or break it. For any business in Jebel Ali Free Zone, JAFZ provides office spaces, warehouses, and flexi-desk options that can meet the operating needs of the various businesses. The strategic location of JAFZ along one of the world's largest ports makes it easy to transport goods to other global markets, hence impacting logistics and supply chain efficiency.

Registration for Taxes and Visas

Having identified your business location, you would then go about the registration of taxes and working visas. In JAFZ companies benefit from a zero percent corporate tax rate and no personal income tax, making it a preferred choice for many entrepreneurs. With your license in place, you then apply for an establishment card from the Ministry of Human Resources and Emiratisation (MoHRE) in order to ease the process for your workers' visa application.

Opening a Corporate Bank Account

Opening a corporate bank account is the heart of maintaining the finances of your business. After you successfully obtain your business license and documentation, you can go to any local bank to open up an account. Such procedures entail proof of registration of the company, and identification papers from the shareholders, among other documents. A corporate bank account gives one an easier way of conducting transactions and handling their finances.

Hiring Employees and Sponsorship

Hiring staff in JAFZ is relatively easy. Companies can sponsor work visas for their employees to enable them to live and work in the UAE. The process involves the submission of visa applications accompanied by employment contracts and copies of passports. Hiring expatriate employees seems easy in JAFZ, and this helps attract global talent.

Conclusion

The corporation formation in the Jebel Ali Free Zone (JAFZ) offers unprecedented benefits in terms of foreign ownership, tax exemptions, and direct access to the global marketplace. JAFZ offers a simplified setup process, strong infrastructure, and a business-friendly environment appropriate for any new ventures or expanding business.

An effortless and streamlined establishment in JAFZ can be achieved with the undisputed support of Reyson Badger, an expert at each step. The company has gained a lot of experience in the formation of businesses in the UAE. also, it will provide you with personal guidance in order to benefit from the business establishment in JAFZ. Contact Reyson Badger today for professional help in initiating your business in the UAE.