How to Start a Logistics Company in Jebel Ali Free Zone? | JAFZA Logistic License

Establish your logistics firm in Jebel Ali Free Zone with 100% ownership, tax advantages, port, and airport access. Know about the license procedure, pricing, and installation methods. Reach out to Arnifi for professional assistance with the JAFZA Logistics License setup.

1. Introduction | Why is Jebel Ali Free Zone a Logistics Hub?

With Jebel Ali Free Zone (JAFZA) standing as one of the most convenient and business-friendly logistics zones in the world, it has become an integral part of DP World, fully transformed into the premier logistics and trading centre of the UAE, with more than 8700 companies from over 100 countries setting up base here. The companies in the facility truly have an edge with the world-class Jebel Ali Port, the largest container port in the Middle East, and the Al Maktoum International Airport, all strategically located to ensure direct access of the companies in the facility to the global supply chain. This blog will take you through all the details from the advantages and activities allowed to license types, costs, documents, and step-by-step registration, enabling you to commence business with JAFZA. Whether you intend to operate as a freight forwarder, warehousing provider, or supply chain company, JAFZA provides unmatched potential.

2. Benefits of Starting a Logistics Company in JAFZA

Setting up a logistics company in JAFZA from just being a location to an entire logistics ecosystem configured towards international trade and distribution. Great benefits of setting one up in JAFZA include:

• Strategic Location: Connects the East and West trade routes, sitting right in between Dubai and Abu Dhabi.
• Multimodal Access: A direct link between Jebel Ali Port and Al Maktoum International Airport ensures uninterrupted sea-air connectivity.
• 100% Foreign Ownership: Entrepreneurs and investors starting their logistics company in Jebel Ali Free Zone can enjoy full ownership with no need for a local sponsor.
• Customs Exemptions: Customs duty is zero within the free zone on imports, re-exports, and transhipment.
• Tax Benefits: Zero personal and corporate income tax for 50 years with the option of renewal.
• Global Business Ecosystem: A workplace for major logistics and supply chain companies like DHL, Aramex, FedEx, and Maersk.

The above-mentioned advantages further make starting a logistics business in JAFZA highly attractive for global and regional investors.

3. Types of Logistics Activities Allowed in JAFZA

JAFZA caters to a broad spectrum of logistics-related activities, thereby allowing companies greater flexibility in operating in diverse verticals. You can choose from the following logistics services when applying for your license:

• Freight Forwarding Services
• Warehousing and Storage Solutions
• Cargo Handling & Packing
• Distribution and Supply Chain Management
• Third-Party Logistics (3PL)
• Courier and Parcel Delivery Services
• Cold Chain and Temperature-Controlled Logistics
• Transportation & Transit of Goods

Depending on your intended business model, you can select single or multiple activities under your Jebel Ali Free Zone logistic license.

4. Understanding the JAFZA Logistics License

To be able to work legally as a freight forwarding company in JAFZA, the company must obtain a specific kind of logistics license in the Jebel Ali Free Zone. That license is granted by the JAFZA under the overall Dubai World umbrella and permits a company to carry out freight, cargo, warehouse operations, and distribution activities.

Generally, the license can belong to one of the following categories:

• Freight Forwarding License
• Warehousing and Distribution License
• 3PL (Third-Party Logistics) License
• Cold Storage and Perishable Goods Handling License

Each license is tailored to the operational needs of your business. Given the varied logistical requirements, Arnifi exerts a superior capacity in speedily getting its clients their JAFZA logistics licenses, handling the filings, compliance issues, and approvals.

5. Step-by-Step Process to Get a Logistics License in JAFZA

For logistics-based companies in Jebel Ali Free Zone, the procedure address:

Choose a Business Structure

Free Zone Establishment (FZE), Free Zone Companies (FZCO), or a Branch of an existing company.

Select Logistics-Related Activities

Select from the listed JAFZA-approved logistics services that are most relevant.

Reserve a Trade Name

Provide a distinct business name that needs to be reserved.

Submit License Application

Fill the application form along with the selected activities in JAFZA.

Provide Required Documents

Submit identification and business documents (see next section).

Lease a Warehouse or Office Space

Depending on the size and nature of your logistics operations.

Pay Fees & Obtain License

Pay the appropriate fees and receive your official Jebel Ali Free Zone Logistics License once approved.

Each of the above steps must be done as per JAFZA rules to avoid any delays or rejection. Hence, the role of Arnifi becomes quite essential at this time.

6. Documents Required for JAFZA Logistics License

These are the major documents required for the acquisition of a logistics license in JAFZA:

• All shareholders’ passport copies.
• A business plan explaining what logistics services are offered:
• Application Form with the selected activities.
• No Objection Certificate if applicable: Proof for UAE Address or Lease Agreement:
• Emirates ID (for UAE residents)
• Power of Attorney (if applicable)

All documents should be in order and translated into Arabic (if required) before submission.

7. Cost of Logistics License in JAFZA

The cost of logistics licenses in JAFZA is highly variable, and license installation costs depend on several factors:

• Type of license (freight, 3PL, cold chain, etc.)
• Extent of warehouse/office space leased
• The number of visas required (visa quota)

The business structure under which it is established (FZE, FZCO, or branch). The estimated license cost ranged from AED 15,000 to AED 50,000, excluding warehouse lease, visa charges, and setup services, at a glance. These will vary your overall allocation considerably.

Given the greater degree of likelihood of an accurate cost estimation and budget planning, the company representatives should consult Arnifi, who will make sure that everything relating to the license fee, visa packages, and leasing options comes in a packaged solution.

8. Why Work with Arnifi for JAFZA Logistics License Setup?

Setting up a logistics company in Jebel Ali Free Zone turns out to be more like a high-stakes affair where all documentation needs to be properly executed, with a good selection of licensing and coordination with JAFZA authorities.

Arnifi can assist you with the following:

• Complete Setup Services: From name reservation to visas
• Experience with JAFZA Authority: Our local experts grasp the intricacies of JAFZA laws and regulations
• Faster Turnaround Time: No more application rejection; fast-track approvals
• Customized Guidance: Matches your logistics goals with the correct license and warehouse options

Talk to Arnifi to start your logistics company in JAFZA today. Save time, save costs, and ensure compliance with regulations.

9. Frequently Asked Questions (FAQs)

Q1. What is the validity of a JAFZA logistics license?

It is one year, and it is renewable every year

Q2. Can I operate outside Jebel Ali Free Zone with this license?

No, a JAFZA logistics license only allows for operations within the free zone. Additional approvals are required for outside operations in the mainland UAE

Q3. How long does it take to get a logistics license in JAFZA?

With proper documentation, it takes 7–14 working days to complete the process

Q4. Can foreign investors own 100% of the company?

Yes. JAFZA allows 100% foreign ownership without the necessity of a local partner

Q5. Is warehouse space mandatory for a logistics license?

Yes. You must lease an approved warehouse or office space based on the said activity type

10. Conclusion

Though Jebel Ali Free Zone is still the first choice for logistics and supply chain companies, there is a more compelling contention that the logistics company in Jebel Ali Free Zone offers world-class infrastructure and multimodal access, which guarantees future expansion globally through total foreign ownership.

The process of obtaining a Jebel Ali Free Zone logistics license may be easy, but expertise is guaranteed for a smooth sail. This is why all entrepreneurs and logistics stakeholders are comfortable trusting Arnifi with every aspect of company formation, licensing, leases, and visa services within JAFZA. 

Get in touch with Arnifi today to kick-start your logistics venture in the UAE’s most dynamic free zone!