Sunday, 9 February 2014

JAFZA ( Jebel Ali Free Zone Authority ) Company Formation a Brief

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.
Jafza’s vision, inline with the vision of His Highness Sheikh Rashid Bin Saeed Al Maktoum, is to be the leading provider of sustainable industrial and logistics infrastructure solutions. We are dedicated to our customers, our employees, our shareholders and our community, and uphold our commitment to each one of our stakeholders.

Activities Allowed By Free zone

Any activity may function in jafza after the approval of the environment, Health , Safety,  and security department (EHSS)
Most of the jafza –based companies fall under the activity heading of trading , Manufacturing and services industries. In order from most to least numerous, companies in jafza come from the Middle east , Europe, the Indian sub continent, Americas, far East, Africa and others.

Light industrial units/warehouses:

Jafza purpose built warehouses and light industrial units (LIU)offer spacious, high quality thermally insulated facilities suitable for a wide range of applications, Convenient 24 hours access includes two entry/exit points: a ramp for light vehicles, and a loading dock for containers and trucks. Every LIU is also equipped with an office.
High quality., thermally insulated, purpose-built units are available to clients on an annual rental basis. some LIU have provision  for construction  additional offices at a mezzanine  floor level. There are two exist  at the rear , one for forklifts and an other for containers trucks.The Liu,s can be used either’s ware house for storage  and distribution of products, or as a factory for assembly and light production. The client can opt for multiple units(subject to availability) or of course leas a plot  of land else ware in the free zone, too meet their needs.

                          556 m2 warehouses/LIU,                          313m2 warehouses
Storage area of unit
512 m 2(17m wide x 30m long)
Or 5,489 ft 2
267m2(13m wide x 20m long) or 2,873 ft2
Unit Height
7.8m at the ridge, 5.8m at the valley   
Area Of office / reception
46m2(4.2m wide x11m long)0r 495 ft2
46m2(4.2m wide x 11 m long) or 495 ft2
Rental rate


Electricity & water
Both billed directly to client

Public healthy levy
(PHL) services
 Dhs 195,000-220,000
Us$ 53,133-59,945 per year,
Based ob specification
 Dhs 300 or Us$ 82 per unit.

Electricity rate Dhs 20 or Us$5.4 per 100 KWH. water rate Dhs 30 or US$8.2 per 1000
Gallon per connection charges.

A charge of 20 % of annual rentals is applied at a maximum of Dhs 10,000 or US$2,725 per year
Dhs 120,000 or Us$32,697 per year

Dhs 300 or Us$82 per unit.

Electricity rate Dhs.20 per US$5.4per 100 KWH. Water rate DHs 30 or US$8.2per 1000 gallon per connection charges.
A charge of 20 % off annual rentals is applied at maximum of Dhs 10.000 US$ 2,725 per year

The LIU can be used in one of two ways: as the ware house for the storage  and distribution of products  or as factory for  assembly and light production. Depending on their specific needs, companies may choose individual or multiple units, subjects to availability. Upon request and with the approval o f jafza modifications to original units can be carried out to fit specific needs, and budgets however every slandered warehouse is well equipped with minimum features, as shown below.


Payment terms

Lease terms


The ware house unit has standard electrical capacity of 10 KVA

Annually in advance

One year renewable annually( with  a three month notice period)

No storage out side  the building is permitted

Ample space available in front or close to each warehouse and LIU, offering covered parking for two cars

Land site (plot of lands)

 Jafza provides plots various size fro short and long- term leas.
This extremely popular option is ideal for companies wishing to construct their own facility weather it is a warehouse or an industrial factory in order to preserve the appearance and infrastructure of jafza, not more then 60% of the allotted land may be utilized for the facility itself. the remaining areas is to be landscaped, allocated for parking areas or loading and unloading zone subject to jafza approval.
Whatever the type of cargo, companies in the jafza  can avail of the DPA, s ample storage facilities. at jafza,s plot of land of various size are available for lease. These sites are ideal if the company wishes to construct its own facility for ware house or factory requirement(minimum area for lease is 2,500m2)

Area  of plot
From 2,500m2
Rental rate

Electricity and water

Public health levy(PHL) service

Industrial Effluent Disposal
From Dhs 20-80 or US$ 5.45-21.8 per m2, based on the location,
Electricity rate calculated at Dhs 20 or US$ 5.4 per 100 KWH. water rate calculated at 30 or US$ 8.2 per 1000 gallons plus connection charges.
Electricity and water consumption charges are billed directly to the tenant.
A charge 2 % of annual rental and maximum of Dhs10,000 or US$2,725 per year is applied

Dhs 25,000 or US$ 6,812 for the first connection, then calculated at 5 or US$ 1.4 per 1,000 imperial gallon, for discharge lines.

Once jafza issues a building completion certificate, Dubai electricity and water authority (DEWA)will supply main service to the premises. any machinery installed with then be checked and the company awarded an operation fitness certificate by jafza before operation. As the construction progresses, the company may initiate the process for entry premises for operative sponsored by jafza will be accepted only after the  building completion and operation fitness certificates have been issued.

Types of trade licenses available and fees per annum

Companies accepted for operation in jafza  will be granted either a trade license, service license or industrial license, service license or national industrial license by the free zone authority. these license will remain valid for however long that company maintenance a current lease agreement with the free zone authority, and license are renewable annually so long as the lease agreement is in force.
Companies practicing several categories of activities should obtain a license for each category of activity ,I. trading, manufacturing, services, etc, A special agreement will have to be made for each of these activities.
If such a company wishes to conduct business and sell its product within the U A E. it may do so bye the appointment of the official distribute or any other company holding a valid trade license However such a company can obtained the services or products from firms operating in a U A E by itself without the need of a go- between. the most important of these license and condition for obtaining each type are as follows:
General trading license:
Allow the holder to import, distribute and store all item as per jafza rules and regulations

Trade  license.

Issued to companies established within the free zone or legally incorporated outside the
U AE who wish to conduct business with in the free zone in the field of trading, importing and exporting. in such cases, a license by the economic department or any other authority is not required and ownership of the company’s capital may remain 100%foriegn.Industrial license: A license issued to companies established in the free zone or legally in corporate out side the U A E

Industrial license

A license issued to companies established in the free zone or legally in corporate outside the U A E and who wish to conduct industrial production activities such as
Manufacturing, canning, and packaging re-assembly. Other Conditions applying to trade license are applicable to industrial licenses.

Service license:

 A license issued to companies established within the free zone or registered either within out side the U A E. The share capital of the company must be atleast51%GCC and the value added to the products manufactured in the free zone must amount to minimum of 40 %of the sale value.

National Industrial license

This is a license issued to companies established within the free zone or registered either within or out side the U A E. the share capital of company must be at least 51%GCC and the value added to the products manufactured in the free zone to a minimum of 40% of the sale values
This license provides the holder the same statues as local or  GCC companies inside the U A E Holding a  a national  trade license  Qualify for costume duties exemption  on their products  with the exported to other GCC states. The authority under take the administrative negotiation needed to obtain industrial registratioan  with the U A E ministry  of finance and on behalf of the company.

Establishing a jafza -based company

Setting up a company in jafza  is simple and the procedure  are steam lined, quick and hassle free. To quality for establishing  a branch of an already established company, you merely needed to either  have a company already registered in U A E or overseas- including offshore companies.
If u are a new company  you could register a legal entity or company in jafza by applying and completing some simple  but essential documentation, a separate legal entity  called the free zone Establishment(FZCO)with limited liability can be formed with its head quarter in jafza.its affairs are completely separately from those of its share holders. It can have its own board of directors and its own bank account. Having a (FZE or FZCO has may in he rent benefits. For instance, since it is independent of its share holder ( individual or non- individual),it can retain it profits. this play an important role in international business planning.

        Cost up set up ( At a glance)
Minimum capital requirements

License fee for all activities:
General trade license:
Registration branch office:
Registration( free zone establishment)
Registration (fee zone company):
FZCO- DHs 500,000(US$136,091)(minimum2 shareholders each one holding DHs 100,000).FZE DhS 1,000,000(US$272,183)(no shareholders)
There is no minimum capital requirement for branch offices.
Dhs 5,500(US$1,497)per annum
Dhs 15,000(US$4,083)per annum
Dhs 10,000(US$2,722)(on time fee)
Dhs 15,000(US$4,083)(one time fee)

    Documents Required for  Registration
Logical documents required for establishing a branch company
1.      Certificate for registration of the company and original certification  of good standing of the company.
2.      Memorandum  and articles of association of the company
3.      The company bored resolution  calling for the establishment of the branch in jafza and guaranteeing  full financial commitment AND Appointment of negotiator or legal Representative (together with point 3) (power of a attorney)(spice men  of signature)(Passport Copy)
4.      Appointment letter of manager of representative specimen of signature(passport copy)

(Both must be attested notarized)

(Attested and non notarized)





1.      Jafza reserve the right to call for  any extra documents if necessary  or ask for  attestation by the UAE Embassy  or consultant.
2.      The documents should be notarized and attested by the  embassy or consulate  or any Arab embassies if necessary .some documents can be notarized at jafza
3.      Each legal documents has to be sealed, it more then one page is submitted.

 List of documents required for formation of free zone establishment (FZE)

a. Individual Applicant
1.      Application’s personal details, e,d-business background. specimen of applicant’ signature and valid passport copy. the original banker’ reference
2.      Appointment of the Negotiator or legal representative(optional)
           Power of attorney
            Specimen of signature
               Passport copy



b. Non – individual applicant

1.      Certificate of registration of the company or original
       Certificate of good standing of the                            Memorandum& article of association.
2.      Board resolution calling for the establishment of a FZE/FZCO and appointment of the  following:
           Appointment of the negotiator
          Or legal representative manager Specimen of the signature+ passport Copy
Directors and specimen of signature + passport copy.
Secretary and specimen of signature + passport copy     


Attested/ Notarized


1.                  Jafza reserve the right to call any extra documents if necessary or asked for attestation by the U AE Embassy or consulate.
             Some documents can be notarized in jebel ali
2.                   Each legal document has to be sealed, if more then one page is submitted. 

              List of Documents required for formation of the free zone company         (FZCO)

 a. Individual Applicant

Applicants personal details e.g. -            valid passport profile.
Specimen of applicants signature
Valid passport copy
The original bankers reference
Appointment of the Negotiator or Legal Representative(optional)
Power of attorney
Specimen of signature
Valid passport copy
b. Non individual Applicant
Certificate of registration of the company or original certificate of good standing of the company.
Memorandum & Article of Association.
Board Resolution of the non individual calling for the establish of the FZ company in jafza.
Appointment of the negotiator or legal representative.
Power of attorney.
Specimen signature
Valid passport copy









FZCO Board of directors
(for individual & Non individual)
Appointment of the following:
Manager& specimen of signature+ passport copy
Directors  & specimen of signature passport copy
Secretary &  specimen of signature passport copy





1.      jafza reserve the right to call for extra documents if necessary or ask for
          Attestation by the u a e.  embassy  or consulate
   2.      He documents should be Notarized & Attested by UAE Embassy or                            Consulate or any Arab embassies if necessary.
   3.      Each legal document has to be sealed, if more then one page is submitted.

           Types of companies legally permitted in the zone
Overseas branch, local branch,  free zone Establishment and free zone Company.

Application Process   Obtaining a license and jafza facility

Applicant                                                                               jafza
Submits Application for license from.

Submits legal documents.

Sign Performa lease Agreements.

Review application from and documents. proves/rejects application. inform clients of decision
Rejection or provisional approval) in case of provisional approval, asks for legal documents to be submitted. Also send prospective company specimen,
lease agreement, personal secondary agreements free zone rules and the copy of the implementing regulation(for FZE or FZCO only)
“ formation and process.

Prepares and dispatches
 Lease Agreement

Sign lease agreement.

Client to sign the lease and pay the dues.
Invoice client.
Males payments as per Notification letter
 Prepares lease and personal secondary agreement and informs
 The  company(Notification letter)

Prepares License

 Registering ‘Free zone establishment (FZE) or’ Free zone company’(FZCO)

Submits FZE or FZCO application from  together with application for license from

Submits legal documents as per the
Check- list provided.

Deposits the required share capital (minimum DHs 1 million for FZE, or minimum Dhs.5000,000 for FZCO in the bank and pays jafza the Dhs.
10,000 towards FZE or Dhs 15,000 towards FZCO Registration charges
If Application for License is approved, jafza asks for legal documents required for FZE orFZCO formation.

Check legal Documents.
Send approval letter together with a letter to a local bank and the postal authority for opening of the bank accounts to deposit the required share capital and obtaining registered address respectively.

Issues the certificates of formation and share certificates.

Kind Regards,

Vithul V Murali
Al Zaeim Corporate Services
Dubai Mobile : +971 50 55 73 538
Email  :
Skype : Vithul.murali


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