Dubai is now the world’s center for trade because of the visionary perspectives adopted in infrastructure and policy-making. Among the various economic zones in Dubai, Jebel Ali Free Zone (JAFZA) is one of the oldest, most successful, and most conveniently located free zones in the region. More than 100 countries have over 8,000 companies present at JAFZA, creating a reputation as an international trade powerhouse. For entrepreneurs planning a business setup in UAE, JAFZA is the best place to kickstart.
This blog on How to start a business in Jebel Ali Free Zone guides the readers about the basic steps, benefits, and requirements to be initiated in JAFZA.
Why JAFZA?
JAFZA was established in 1985 and is located at the western end of Dubai, adjacent to the Jebel Ali Port—the largest marine port in the Middle East. This strategic location gives businesses in JAFZA access to global trade routes, making it especially attractive to logistics, manufacturing, and export-import businesses.
As a thriving cluster around state-of-the-art infrastructure, regulatory advantages, and more globally linked than that, JAFZA has companies from electronics, automotive, logistics, e-commerce, and food and agriculture to name just a few.
Advantages of Establishing a Business in JAFZA
- Ownership to the extent of 100% Foreign: allow investment by investors to fully own his establishment without the necessity of a local sponsor.
- No corporate tax or personal income tax: Companies can avail themselves for 50 years, which are renewable, of a tax-free environment.
- Repatriation of Profits: No restrictions for remittances of profits or any capital to the home country.
- Strategic Location: This is between Asia, Africa, and Europe, with more than 2 billion potential consumers within reach.
- No Currency Restrictions: Investors can deal freely in any currency.
- World-Class Infrastructure: Pre-fabricated warehouses for business parks, and customs.
- Visa Flexibility: Businesses may apply for several visas in certain cases without a physical office space.
- Simplified Business Procedures: More streamlined and simple setup processes through the system offered by JAFZA; No great bureaucracy at all.
Step-by-Step Process to Start a Business in JAFZA
1. Choose the Type of Company
JAFZA allows various types of company structures based on your business needs:
- Free Zone Establishment (FZE): Single shareholder.
- Free Zone Company (FZCO): 2 to 50 shareholders.
- Branch of an existing company: Ideal for expanding international or local businesses.
Each structure has its own set of requirements regarding capital and documentation.
2. Select the Right Business Activity
From trading and manufacturing to logistics and services, JAFZA accommodates a wide range of commercial activities. It’s crucial to select your business activity accurately, as it will determine the type of license and facility required.
3. Reserve a Company Name
Business names in Dubai are regulated. The name should reflect your activity, avoid offensive or religious terms, and must be available for registration. If you’re naming the business after a person, the full name (not just initials) should be used.
4. Submit Required Documents
Typical documents required include:
- Passport copies of all shareholders and managers
- Passport-sized photographs
- Entry visa copy and stamped pages
- Business plan (depending on the activity)
- Parent company documents (in case of a branch)
Document requirements may vary slightly based on company type and activity. Working with a business consultant or a company formation specialist can simplify this step.
5. Apply for Initial Approval
This step includes reviewing your application, business activity, and proposed structure. Once approved, you can move ahead with office selection and licensing.
6. Lease Office or Facility
JAFZA offers a variety of commercial spaces—from virtual offices to fully equipped warehouses and retail units. Choose a space that fits your operational scale. The cost of leasing depends on the type and size of the facility.
7. Apply for a Business License
JAFZA issues several types of licenses:
- Trading License
- Industrial License
- Service License
- Logistics License
- E-commerce License
- Innovation License (for R&D-driven businesses)
Licenses are usually valid for one year and are renewable.
8. Finalize Company Registration
Once all documents are approved, lease agreements signed, and the license issued, your business will be legally registered. You will receive your Certificate of Incorporation and Business License.
9. Open a Corporate Bank Account
After getting the incorporation documents, you can open a corporate bank account in the UAE. Some popular banks include Emirates NBD, Mashreq, ADCB, and international banks like HSBC. Most banks require an in-person visit and detailed documentation.
10. Apply for Visas
Depending on your license type and office space, you’ll be eligible for a specific number of visas. These can be issued to business owners, employees, and dependents. JAFZA also offers visa packages for startups and small teams.
Cost of Starting a Business in JAFZA
The total cost of company formation in JAFZA depends on factors like:
- Type of license
- Office or warehouse space
- Number of visas
- Company structure
While basic setups may start around AED 25,000 to AED 40,000, more complex operations involving warehouses or trading licenses can cost significantly more. It’s advisable to get a tailored quote based on your business needs.
How Long Does It Take?
Company formation in JAFZA typically takes 2 to 3 weeks, depending on document readiness and approvals. Partnering with experienced business setup consultants can help reduce delays and ensure smooth processing.
Why Work With Damaar?
Starting a business in a dynamic zone like JAFZA is full of potential—but it also comes with intricate regulations, paperwork, and time-sensitive procedures. That’s where Damaar comes in.
As one of the top business setup consultants in Dubai, Damaar specializes in making the process of company formation smooth, stress-free, and efficient. Their team is well-versed in UAE free zone regulations and offers end-to-end support, from choosing the right business structure to obtaining licenses, visas, and opening bank accounts.
What sets Damaar apart is not just their expertise, but their commitment to personalized support. They take the time to understand your vision and tailor solutions accordingly—whether you’re a startup looking for a flexible workspace or an established business entering the region with a large-scale operation.
Here’s what you can expect when working with Damaar:
- Transparent Guidance: No hidden fees or vague answers—just clear, honest advice.
- Complete Legal & PRO Services: From trade name registration to license renewals and amendments.
- Bank Account Assistance: Help navigating complex UAE banking protocols.
- Visa Processing: Efficient handling of investor, employee, and dependent visas.
- Time & Cost Efficiency: Save time and avoid delays with their streamlined approach.
With a proven track record and a deep understanding of JAFZA procedures, Damaar, a business consultant in Dubai, is the ideal partner for entrepreneurs who want to launch with confidence and scale with clarity.