With five different company formation types, Jafza has something for everyone

Company Formation Type is the legal structure of a business. This governs the structure and defines the number of shareholders of a company.

A Business License governs the activities and operations of a business. A license first and foremost defines if the company is legally allowed to manufacture, trade in goods or provide a service only. Each specific license type has a set of activities that must be selected by the company that further determines what specific business activity the company may conduct.

An FZE (Free Zone Enterprise) is essentially a single shareholder or a sole proprietorship company. In this type of company formation, the shareholder can be an individual (a person) or a non-individual (a company). Read about setting up an FZE company in our guide

An FZCO (Free Zone Company) is essentially a multiple shareholder or a partnership firm where there is more than one shareholder in the company. In this type of company formation, the shareholders can be individuals (a person) or non-individuals (a company). Read about setting up a FZCO company in our guide

Both company formation types allow for all licence types and can be used to execute business within the freezone.

Yes, a non-individual (a company) can be considered as a shareholder in an FZE, FZCO & PLC formation type. In the case of an FZCO or PLC formation type, there has to be more than 1 shareholder. Hence these formation types may have a combination of individuals and non-individuals as shareholders too.

Yes, an entity may apply for multiple business formation within the free zone. Each formation would be treated as a separate company name, however, the shareholders may be the same person or company. There is no limit on the number of businesses that can be incorporated within Jafza with similar shareholders.

Jafza does not have an option to transfer a business from the mainland of Dubai to a free zone. You may, however, opt to dissolve the mainland company and apply for a new company formation and license at Jafza. After this step, you may continue to issue the necessary visa for shareholders, directors and employees.

You may also opt to create a branch of a company at Jafza thereby retaining the mainland company as the parent company.

The first step is to decide on the formation type. This is the legal structure of your company. Along with the decision of the formation type, you must also decide on the type of license. The license type provides you with the set of activities that govern your business.

The quick and easy steps are:
1. Select a formation type and business license. Submit all required documents based on the formation type and business license.
2. Select of or more solutions that Jafza offers on a lease. Have a lease contract in place.
3. Make payments towards the company setup based on choices you have made.
4. Receive the keys to your premises and start conducting your business.

The estimated time to have the company set up completed is between 3 to 14 business days from the time all required documents are submitted based on the company formation type, license and categories of business within the license.

It is also essential to have a lease agreement in place at the time of the set up of the company.

The Jebel Ali Free Zone Authority - Regulatory is responsible for issuing all licenses for companies set up within Jebel Ali Free Zone. According to Ministerial Decision No. 100 of 2020, all companies must submit the Economic Substance Report. Existing companies were urged to submit this report no later than 31st Dec 2020. From this date onwards, any new company set up with Jafza is requested to submit this report at the time of setting up the company.

Apart from this, certain categories will require approvals from other regulator authorities - for example, if you need to import or export any goods that fall within the Food and Agriculture industry, you may need additional approvals and certifications from relevant authorities within UAE.

Speak to your account manager or approach the Customer Service Desk at Jafza to learn more about which categories may require additional regulatory approvals.

Prior to 2017, Jafza FZE companies were required to have a minimum share capital of AED 1,000,000 while an FZCO company was required to have AED 500,000 per shareholder when there were 2 shareholders of an FZCO company.

This is no longer the requirement. Jafza does not prescribe a minimum share capital for an FZE or FZCO, but require that a company must have a share capital that is sufficient for the activities for which it is licensed. This is in line with the UAE Commercial Companies Law.

It is always recommended to speak to our Sales team at the time of setting up your company who shall guide you on the best practices regarding financial commitments to starting your business with Jafza.

Every issued license at Jafza is valid for 1 year from the date of its issue. A license must be renewed each consecutive year from its issue date.