Start Your Business in JAFZA 2025 | Step-by-Step Guide

One of the most attractive places to get established in the Middle East today is the Jebel Ali Free Zone (JAFZA).

It sits at the point where East meets West. More than 9,500 companies are currently based in this zone.

Business setup in JAFZA offers optimal strategic advantages: location next to Jebel Ali Port and Al Maktoum International Airport, superior infrastructure, 0 per cent corporate tax, full foreign ownership in a company, and maximum freedom with no currency restrictions.

The business-friendly atmosphere, combined with clearly defined regulatory regimes, puts JAFZA in the front row as a prime location for local and international expansion.

JAFZA has the necessary infrastructure and licensing options to support the growth of any company, whether in logistics, manufacturing, trading, or services.

Business Activity and License Types

The first thing that needs to be done is to identify your business activity and determine your license type. JAFZA has different license categories:

Trading License

Type 1: One product group

Type 2: Two product groups

General Trading: Broader scope across multiple categories

Service License: For service-based companies such as consultancy, IT, or media.

Industrial License: For manufacturing or light industrial activity.

Logistics License: Tailored for supply chain and logistics providers

Each license type has a different context and grouping rule. Inaccurately classifying an activity causes many delays in approvals; hence, choosing the right one from the start is critical.

3. Choosing a Legal Entity Structure

JAFZA provides various legal structures, depending upon the number of shareholders and the requirements of the business:

• Free Zone Establishment (FZE): Single shareholder entity
• Free Zone Company (FZCo): Two or more shareholders, either individuals or corporations
• Branch of an Existing Company: For those extending their local or international business into JAFZA
• Offshore Company: Used primarily for holding and asset management, not allowed to trade within the UAE

The right structure decides your governance, documentation, and visa allocation; hence, it should be aligned with your growth plan.

• How to Setup a Business in Dubai Free Zone?

4. Eligibility and Document Requirements

To set up a company in JAFZA, a business will need to draw up and submit several documents:

• Passport copies of all shareholders and directors
• No Objection Certificate if the shareholder resides in the UAE
• Updated CV of the applicant
• Business plan outlining your intended activity
• Memorandum and Articles of Association
• Board Resolution for corporate shareholders
• Specimen signatures
• Bank reference letters, if requested

Accuracy and completeness are the keys, because one missing document may delay the Business setup in JAFZA.

Also Read:

• Documents required for Business Setup in Duba

5. Step-by-Step Setup Process

This is a very basic roadmap to take your business down the JAFZA path:

1. Reservation of trade name
2. Submit application and documents
3. Selection of facility and lease
4. Do the payment
5. Issuance of a license
6. Allocation of the visa quota
7. Open a bank account

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6. Workspace and Facility Options

JAFZA caters to businesses of every size with a variety of leasing options:

• Flexi-desk: Ideal for beginning companies, shared desks with basic services.
• Office Units: Available in various sizes throughout the JAFZA Business Park
• Warehouses: For storage and logistics, pre-built or customized
• Land Plots: For a large-scale operation requiring bespoke facilities

Leases are flexible but usually given on an annual basis with terms of renewal.

7. Cost Breakdown

Setting up a business in JAFZA will involve a mix of up-front and recurring costs. The following is a general breakdown:

• Registration Fee: AED 5,000 to 15,000 (one-time)
• License Fee: AED 5,000 to 15,000 annually
• Office Lease: Starting from AED 15,000 per year
• Warehouse Lease: Based on size and location, from AED 40 to 80 per square foot
• Visa Costs: AED 3,500 to 8,000 per visa
• Establishment Card: AED 1,500 to 2,000 annually
• Document Attestation: Varies depending on document origin

8. Timeline and Processing Duration

The entire process from name reservation to license issuance usually takes between 7 and 14 working days. It may take longer if documents are missing or approvals need to be secured externally.

9. Annual Renewal and Compliance

Your establishment card and license require renewal every year. Important compliance rules include:

• Renew before the due date to avoid a penalty of AED 1,000.
• Submit audited financial statements within 90 days post-financial year-end.
• Ultimate Beneficial Owner disclosures must be filed as per UAE regulations.

10. Banking and Trade Finance Considerations

Establishing a corporate bank account can take between 2 and 6 weeks, depending on the KYC process at the bank. Be prepared to provide:

• Business license and MOA
• Passport copies and visa page
• Utility bill or tenancy agreement
• Business plan and sample invoices
• Minimum deposit, often AED 25,000 to 100,000

Because some local clients are served, some banks may also require VAT registration.

Also Read:

• How to Open a Business Bank Account in Dubai Without a Trade License

11. Risks and Common Pitfalls from Real Users

Precautions, based on what everyone in the community has discussed, and from actual user experiences, include:

• Do not pay all setup fees in advance without JAFZA-issued receipts.
• Do not give a cent to agents who reject any contracts or paperwork.
• Be careful about promises associated with visas that sound too good to be true or cheap.
• Always validate the consultant’s license or track record before hiring.

12. Operational and Additional Cost Considerations

Apart from licensing and leasing, the following operational costs vary according to:

• PRO Services: AED 500 to 2,000 per month for visa and documents handling
• Utilities: Dependent on usage and facility size
• Insurance: Both health and business liability insured
• Payroll and WPS: Under Wage Protection System Compliance
• Labour Cards: About AED 2,000 to 2,500 per employee
• Business’s Support Services: May include bookkeeping, HR, and IT.

13. Why Use a Consultant or Agent

While business establishment in JAFZA is a fairly formalistic exercise, it becomes much smoother when it is endorsed by a licensed consultant.

Benefits include:

• Accurate application and documentation
• Reduced processing time
• Guidance on legal setup structures and licensing
• Assistance with bank account setup and visa applications

However, consider the additional cost and always check into the experience and legitimacy of a consultant before using his or her services.

14. Scaling and Expansion Pathways

JAFZA facilitates scalability. Different ways through which businesses can grow are:

• Adding further business activities with approvals from JAFZA
• Increased quota of visas against upgraded or newly taken office or warehouse spaces
• Leasing more warehouses or land plots
• Setting up new branches or separate FZE or FZCo entities

Paperwork and approvals will be required for each expansion.

15. Conclusion and Action Checklist

JAFZA remains one of the UAE’s most dynamic and accessible free zones for global businesses. With strategic positioning, streamlined regulations, and full foreign ownership, it provides a solid foundation for success in the GCC and beyond.

JAFZA Setup Checklist

• Select business activity and license type
• Choose a legal entity structure
• Prepare required documents
• Reserve trade name
• Apply for and lease a facility
• Complete payments
• Receive license
• Apply for visas and open a bank account
• Stay compliant with UBO and renewals

How Arnifi Can Help?

To help with global business expansion
make sure you choose us.

Get in touch with our team to find out about our approach

BOOK FREE CONSULTATION

Response within 24 Hours

Setting up your business in JAFZA takes a long and tedious time if you have no real concern with the process. Arnifi offers excellent advisory and execution assistance for all document-related tasks, right from company formation registrations to license and visa processing, and specialises in company registration in the UAE free zones. The team makes regulatory compliance faster and efficient approvals and avoids costly delays as well as errors. With its up-to-date knowledge of JAFZA rules and direct coordination with authorities, Arnifi presents a reliable, transparent, and cost-efficient business setup in JAFZA for startups, SMEs, and large enterprises alike.

Get ready to open your business at JAFZA? Get a free consultation from Arnifi today about professional setup assistance.