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Jebel Ali Free Zone business setup

Company Formation in JAFZA, Dubai

KGRN Chartered Accountants provides professional guidance for company formation in JAFZA, the Jebel Ali Free Zone beside Jebel Ali Port in Dubai, UAE. We help trading, logistics, manufacturing and service businesses plan their JAFZA business setup: choosing the legal entity and licence, matching the facility to visas and storage, and preparing the documents JAFZA requires.

JAFZA ties licence renewal to audited accounts, so we also plan the bookkeeping, customs records, Corporate Tax and VAT that follow from day one.

  • Entity, licence tier and facility planned together
  • Visa quota matched to your facility
  • Customs and VAT mapped for your goods
  • Advisors based in Business Bay, Dubai

Speak with a KGRN business advisor on +971 54 586 4906, or send your requirements through our contact page.

JAFZA setup advice from a chartered accountancy firm

KGRN Chartered Accountants is a UAE professional services firm providing audit, accounting, tax, advisory and business setup services from its office in Business Bay, Dubai.

  • Chartered accountancy backgroundSetup choices checked by people who also prepare and audit accounts.

  • UAE professional servicesWorking knowledge of JAFZA, other free zones and the mainland.

  • Dubai-based advisoryMeetings in Business Bay, or by phone and WhatsApp.

  • Business setup guidanceEntity, licence tier and facility explained first.

  • Accounting and tax knowledgeAudit, Corporate Tax, VAT and customs records planned early.

  • Compliance-focused approachUBO, AML and renewal dates kept on track.

Overview

What Is JAFZA Company Formation?

In short

JAFZA company formation is the process of setting up a free zone establishment (FZE), free zone company (FZCO) or branch in the Jebel Ali Free Zone, Dubai, leasing a facility there, and obtaining a licence from the Jebel Ali Free Zone Authority for approved trading, service, industrial or logistics activities.

JAFZA is DP World's flagship free zone and describes itself as the largest customs bonded zone in the Middle East. Investors who only need a holding vehicle may prefer a JAFZA offshore company.

How JAFZA company formation works

Most JAFZA companies are FZEs or FZCOs with a director, manager and secretary, and a leased facility in the zone. The licence is valid for one year and renewed annually.

Why business activity selection matters

Activities set the licence tier, appear on customs declarations and decide whether another authority must approve your goods, as with food and agricultural products.

Why licence selection matters

Licence types differ in scope and cost, and trading licences add tiers by activity group. A tier that is too narrow means amendments later.

Key considerations

Why Consider JAFZA for Company Formation?

JAFZA suits businesses that trade, store, make or move goods through Dubai. Each point below depends on JAFZA's current rules, the facility you lease and authority requirements.

  • Dubai business environment

    Jebel Ali Port and Al Maktoum International Airport sit close by, supporting regional and global trade.

  • Free zone company structure

    An FZE, FZCO or branch, formed under JAFZA's Companies Implementing Regulations 2016.

  • Ownership considerations

    No foreign ownership restrictions, and no fixed minimum capital, though capital must suit the licensed activities.

  • Activity flexibility

    Trading licence tiers scale from one activity group up to general trading.

  • Setup convenience

    Applications start online, and later services run through the Dubai Trade portal.

  • Visa considerations

    Visa quotas follow the facility you lease, from a workstation to a land plot.

  • Facility options

    Workstations, offices, showrooms, warehouses, land plots and staff accommodation.

  • Dubai commercial ecosystem

    JAFZA reports more than 11,000 companies in the zone, with customs on site.

Suitability

Who Can Consider JAFZA Company Formation?

JAFZA usually suits businesses that move, store or make physical goods near Jebel Ali Port. Service companies serving logistics and industrial clients also set up here.

Which JAFZA entity fits?

  • FZE

    One shareholderAn individual or a company as sole owner.

  • FZCO

    Two to fifty shareholdersIndividuals, companies or a mix of both.

  • Branch

    An existing companyWholly owned, with the parent's name and activities.

  • Offshore

    Holding or international useCannot trade with persons in the UAE.

  • EntrepreneursProduct businesses that need import routes and storage

  • StartupsStarting with a workstation before taking a warehouse

  • SMEsA regional distribution hub beside an existing business

  • ConsultantsTechnical and supply chain consultancy under a service licence

  • Professional service providersLogistics, maintenance and engineering services

  • International foundersA Gulf base for an overseas manufacturer or brand

  • InvestorsHolding structures, including offshore companies

  • Digital businessesE-commerce that ships physical goods across the region

  • Trading or service businessesImport, export, re-export and general trading

Licensing

JAFZA Business Activities and Licensing

JAFZA issues trading, service, industrial and logistics licences. The appropriate licence depends on your business activity, business model, company structure, facility requirements, visa requirements and the applicable authority rules.

  • Trading licence

    Buying, selling, importing, storing and re-exporting goods. JAFZA's most common licence.

  • Service licence

    Services provided without holding stock, such as consultancy or maintenance.

  • Industrial licence

    Manufacturing or producing goods within the UAE.

  • Logistics licence

    Logistics and supply chain services for other businesses.

Licence tiers by activity group

Trading and service licences are graded by how many activity groups you need.

  1. Type 1

    One activity group, up to seven activities.

  2. Type 2

    Two or more groups, up to twelve activities.

  3. Type 3

    Three or more groups, unlimited activities. This is general trading.

Type 3 applies to trading licences only.

What decides your licence

  1. Business activityThe goods or services you list, and their activity groups.

  2. Business modelRe-export, distribution, manufacturing or services.

  3. Company structureFZE, FZCO or branch; individual or corporate owners.

  4. Facility requirementsWorkstation, office, showroom, warehouse or land.

  5. Visa requirementsStaff numbers, which the facility must support.

  6. Authority rulesJAFZA rules and approvals from other regulators.

Some goods, such as food and agricultural products, also need approvals from other UAE authorities. We check this before you apply.

Process

How Company Formation in JAFZA Works

JAFZA company formation typically follows nine steps in three phases. Timing depends on JAFZA's review, your documents, the facility and any other approvals, so treat any timeline as an estimate.

Phase 1

Plan the setup

Decisions that shape the licence, facility and visas.

  1. Understand the business activity

    List your goods or services, suppliers and customers, and flag anything needing another regulator's approval.

  2. Select the appropriate licence

    Trading, service, industrial or logistics, plus the tier that covers your activity groups.

  3. Determine the company structure

    Choose an FZE, FZCO or branch, and confirm shareholders, director, manager and secretary.

Phase 2

Register with JAFZA

Application, facility lease and incorporation.

  1. Prepare documentation

    Passports, KYC-UBO and application forms, a short business plan and any corporate documents.

  2. Submit the application

    Register your interest, then complete JAFZA's online application for review.

  3. Complete authority requirements

    Choose a facility, sign the lease or sublease, pay fees and obtain any other approvals.

  4. Receive formation and licensing documents

    JAFZA issues the licence and incorporation documents, and hands over facility access.

Phase 3

Start operating

Visas, customs and compliance.

  1. Proceed with visas and related steps

    Obtain the Computer Immigration Card, process visas through Dubai Trade and register with Dubai Customs if you move goods. See our visa services in Dubai.

  2. Set up accounting and ongoing compliance

    Register for Corporate Tax, assess VAT, appoint an auditor and keep books ready for the annual audit.

Documentation

Documents Required for JAFZA Company Formation

JAFZA asks every applicant for KYC and beneficial ownership details. Corporate shareholders and branches add documents about the company behind the application.

Documents typically required for JAFZA company formation, by applicant type
Document or informationIndividual shareholderCorporate shareholderBranch of a company
Passport copy, valid for at least six monthsRequiredFor officers and beneficial ownersFor officers
JAFZA application, EHS and KYC-UBO formsRequiredRequiredRequired
Short business plan and shareholder profileRequiredRequiredWhere requested
No objection letter from a current UAE visa sponsorIf UAE residentFor UAE-resident officersFor UAE-resident officers
Officer appointmentsDirector, manager and secretaryDirector, manager and secretaryPower of attorney for the manager
Resolutions, memorandum and articlesShareholder resolution, memorandum and articlesBoard resolution, memorandum and articlesParent board resolution
Certificate of incorporation and constitutional documentsNot neededRequiredRequired, for the parent
Specimen signaturesRequiredRequiredRequired

Exact documentation requirements can vary depending on the company structure, business activity, shareholder profile and current authority requirements.

Documents issued outside the UAE may need notarisation and attestation, and JAFZA can ask for more for regulated goods or complex ownership.

Cost and visas

How Much Does JAFZA Company Formation Cost?

There is no single fixed price. The total depends on the legal entity, licence type and tier, business activity, facility, visa requirements, additional approvals and other applicable authority charges, plus professional fees.

Your facility drives cost and visas

Each JAFZA free zone company leases a facility, and JAFZA links visa quotas to it.

  • WorkstationTwo visas per workstation

  • OfficeVisas depend on office size

  • ShowroomUp to five visas, whatever the size

  • Warehouse or light industrial unitVisas depend on the area

  • Land plotAn initial quota of 20 visas

Based on JAFZA's published visa guidance. Confirm current quotas before you lease.

At setup

  • Licence feesBy licence type and tier.
  • Registration chargesIncorporation and company documents.
  • Business activityThe activity groups you need.
  • Professional service feesAdvisory, documents and coordination.

Every year

  • Licence renewalDue annually.
  • Facility rentLease or sublease of your space.
  • Audit and accountingAudited accounts support renewal.
  • Other authority chargesAmendments, letters and certificates.

As you operate

  • Visa requirementsImmigration card, permits and visas per person.
  • Additional approvalsFor regulated goods or activities.
  • Customs duty and import VATOn goods released to the mainland.

Discuss Your JAFZA Setup

Share your goods, customers, shareholders and visa plans, and we will map the licence, facility and likely cost items before you commit.

Comparison

JAFZA vs Dubai Mainland

A JAFZA company is licensed by the Jebel Ali Free Zone Authority; a mainland company is licensed by Dubai's Department of Economy and Tourism (DET) and trades directly across the UAE. The right choice depends on your goods, customers and supply chain.

Comparison of company setup in JAFZA and Dubai mainland
FactorJAFZADubai Mainland
Business structureFZE, FZCO or branch, registered with the Jebel Ali Free Zone Authority.Commonly an LLC, sole establishment or branch, registered with DET.
LicensingTrading, service, industrial or logistics licence, renewed every year.Issued by DET, with added approvals for regulated activities.
OwnershipNo foreign ownership restrictions in the free zone.Full foreign ownership is permitted for many activities; some remain restricted.
Office requirementsA leased JAFZA facility, from a workstation to a warehouse or land plot.Registered premises, usually with an Ejari tenancy contract, depending on activity.
Market accessFree zone and international trade. Mainland activity needs a DET permit (Executive Council Resolution No. 11 of 2025) or a mainland distributor.Can trade directly across the UAE, including with government entities, subject to their requirements.
Visa considerationsQuota linked to the facility type and size, subject to eligibility.Depends on eligibility, business premises and approvals.
Customs and VATCustoms bonded zone and VAT designated zone; goods released to the mainland are treated as imports.Imports pay customs duty on entry, and standard VAT rules apply.
Corporate TaxA Qualifying Free Zone Person (QFZP) may apply 0% to qualifying income if every condition is met.0% on taxable income up to AED 375,000 and 9% above that.

This comparison is general; confirm current rules before deciding. See also our mainland company formation in Dubai service, or compare other zones on our free zone business setup page.

Why KGRN

Why Work With KGRN for JAFZA Company Formation?

JAFZA companies renew their licence against audited accounts every year. As chartered accountants, KGRN tests each setup choice against how the company will record stock, clear goods, pass its audit and file its tax returns.

Choose the facility and licence with your first audit in mind.

Talk to our business setup team
  • Practical setup guidance

    Entity, licence tier and facility recommended, with the trade-offs explained.

  • Accounting perspective

    Inventory and customs records kept so the annual audit runs smoothly.

  • Corporate Tax awareness

    Qualifying income tested against your export and mainland sales.

  • VAT considerations

    Designated zone rules and import VAT checked for your goods flows.

  • Compliance awareness

    UBO details, AML duties and renewal dates tracked.

  • UAE business knowledge

    JAFZA weighed against other free zones and the mainland for your plans.

  • Professional advisory approach

    Advice based on your facts, including when JAFZA may not suit.

  • Clear communication

    Plain-language updates and written next steps at each stage.

Scope of support

How KGRN Supports Your JAFZA Setup

JAFZA, other regulators, UAE immigration, Dubai Customs, the Federal Tax Authority and banks make the formal decisions. KGRN assists around those processes so applications are complete and obligations are clear.

Authority-controlled

Decided by authorities and third parties

  • Licence, lease and company registrationJebel Ali Free Zone Authority (JAFZA)
  • Approvals for regulated goods and activitiesThe relevant UAE authority
  • Immigration card, visas and Emirates IDJAFZA and UAE immigration authorities
  • Customs registration and declarationsDubai Customs
  • Corporate Tax and VAT registrationFederal Tax Authority
  • Corporate bank account approvalThe bank, under its own due diligence

KGRN professional assistance

Where KGRN assists

After formation

What Happens After Setting Up Your JAFZA Company?

Incorporation is the first stage. A JAFZA company then takes on accounting, customs, tax, audit and renewal obligations, starting with Corporate Tax registration.

Within 3 months

Corporate Tax registration

Register with the Federal Tax Authority, even if you expect to pay 0% (FTA Decision No. 3 of 2024).

From day one

Accounting, stock and records

Record transactions and inventory monthly, and keep records for at least seven years.

Before the first shipment

Dubai Customs registration

Register the company with Dubai Customs so it can clear goods into and out of the zone.

As revenue builds

VAT registration, where applicable

Mandatory above AED 375,000 of taxable supplies and imports over 12 months; voluntary above AED 187,500.

Every year

Audit and licence renewal

FZEs and FZCOs submit audited financial statements through Dubai Trade, and JAFZA ties renewal to audited accounts. See our JAFZA audit services.

Within 9 months of year end

Corporate Tax return

File the return and pay any tax due for the period.

Ongoing

UBO and AML compliance

Keep beneficial ownership details current with JAFZA. Designated businesses, such as dealers in precious metals and stones, register on goAML. See AML compliance.

2026 to 2027

eInvoicing readiness

Businesses with revenue of AED 50 million or more appoint an Accredited Service Provider by 30 October 2026 and go live by 1 January 2027; others by 31 March 2027 and 1 July 2027. See eInvoicing for JAFZA companies.

Avoid rework

Common Mistakes to Avoid When Setting Up a JAFZA Company

A JAFZA setup has more moving parts than most free zones, because the facility, the goods and customs are part of the plan.

  1. Selecting the wrong business activity

    Activities that miss some of your products cause problems with customs declarations, banks and tax.

  2. Choosing a licence without considering the business model

    A Type 1 trading licence covers one activity group; a wide product range may need general trading.

  3. Ignoring future visa requirements

    Visa quotas follow the facility, so a workstation that suits year one can limit hiring later.

  4. Not considering office or facility requirements

    Storage, handling and safety needs decide whether you need an office, warehouse or land.

  5. Looking only at initial setup costs

    Rent, renewal, the annual audit, visas and customs duty on mainland sales all recur.

  6. Ignoring accounting requirements

    Renewal depends on audited accounts, which need clean monthly books and stock records.

  7. Ignoring Corporate Tax and VAT considerations

    Mainland sales can be non-qualifying income, and designated zone VAT rules are narrow.

  8. Assuming all free zones have identical rules

    Licence tiers, visa quotas, customs and audit rules differ between JAFZA and other zones.

  9. Not verifying current authority requirements

    JAFZA's rules, fees and procedures change, so rely on current information rather than older guides.

FAQs

Frequently Asked Questions About JAFZA Company Formation

Straight answers to common JAFZA questions. For advice on your goods, structure and facility, speak with our team.

Ask a question through our contact page

JAFZA, the Jebel Ali Free Zone, is DP World's flagship free zone beside Jebel Ali Port in Dubai. The Jebel Ali Free Zone Authority, established by Decree No. 1 of 1985, licenses FZEs, FZCOs and branches for trading, service, industrial and logistics activities.

Register your interest, complete JAFZA's online application and submit the documents. Once approved, you choose and lease a facility, pay the fees, and receive the licence, incorporation documents and facility access. Visas and Dubai Customs registration follow.

There is no single price. Cost depends on the entity, licence type and tier, facility lease, visas, approvals and professional fees, plus yearly renewal, rent and audit. Customs duty on goods sold into the mainland also affects margins.

Individual shareholders usually provide a passport copy, JAFZA's application and KYC-UBO forms, a short business plan and, if UAE resident, a no objection letter from their visa sponsor. Corporate shareholders and branches add incorporation documents and board resolutions, attested where required.

Yes. JAFZA states there are no foreign ownership restrictions in the free zone, and an FZE can be wholly owned by one foreign individual or company. Ownership remains subject to JAFZA's KYC and beneficial ownership checks.

JAFZA issues trading, service, industrial and logistics licences. Trading and service licences come in tiers by activity group, and a Type 3 trading licence covers general trading. Some goods, such as food, also need approval from other UAE authorities.

Yes, subject to eligibility. After incorporation, the company obtains a Computer Immigration Card and applies for visas through Dubai Trade. The quota depends on the facility, for example two visas per workstation or an initial 20 for a leased land plot.

You need a leased facility, though not necessarily an office: options run from a co-working workstation to an office, showroom, warehouse or land plot, and affect visas and cost. A JAFZA offshore company works differently and cannot trade with persons in the UAE.

A JAFZA company is licensed by the Jebel Ali Free Zone Authority and mainly trades within the zone and internationally. A mainland company, licensed by Dubai's Department of Economy and Tourism (DET), trades directly across the UAE. Eligible JAFZA companies can apply for a DET permit to operate on the mainland.

Yes, even if it expects the 0% rate. Companies incorporated on or after 1 March 2024 must register with the Federal Tax Authority within three months of incorporation. Whether 0% applies depends on meeting every Qualifying Free Zone Person condition, including audited accounts.

It depends on turnover. Registration is mandatory once taxable supplies and imports exceed AED 375,000 in 12 months, or are expected to in the next 30 days, and voluntary above AED 187,500. JAFZA is a VAT designated zone, which changes the treatment of some goods supplies.

Yes. FZEs and FZCOs submit audited financial statements to JAFZA every year through the Dubai Trade portal, and JAFZA's rules make audited accounts a condition of licence renewal. A Qualifying Free Zone Person also needs audited statements for Corporate Tax.

Yes. KGRN Chartered Accountants helps choose the entity, licence tier and facility, prepares documents and coordinates JAFZA's steps, then supports accounting, the annual audit, Corporate Tax, VAT and compliance. Licences, approvals and visas are issued by the authorities. Call or WhatsApp +971 54 586 4906.

This page provides general information about company formation in JAFZA and is not legal, tax or customs advice. Requirements, fees and procedures are set by JAFZA and other authorities and may change.

Next step

Planning to Set Up Your Business in JAFZA?

Speak with KGRN Chartered Accountants before you sign a lease. We will help you understand JAFZA's setup requirements, licensing considerations and documentation, and the accounting, tax and compliance obligations that follow.

  • Setup requirements
  • Licensing considerations
  • Documentation
  • Accounting
  • Tax
  • Compliance

Speak with a KGRN business advisor

Tell us about your goods, customers and visa plans, and we will outline your JAFZA options.

KGRN Chartered Accountants
Oxford Tower 1005, Business Bay, Dubai, UAE
Phone and WhatsApp: +971 54 586 4906
Prefer to write? Use our contact page.

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