Setting Up a Company in JAFZA: A Comprehensive Guide

The Jebel Ali Free Zone Authority (Jafza), offers a host of company structures and business models with pre-built office spaces, warehousing facilities and cross-border business opportunities. Coupled with the proximity to seaport and airport, JAFZA is a premium location to set up industrial and trading businesses. It offers multiple benefits for entrepreneurs and businesses. The jurisdiction is renowned for being one of the pioneer freezones in the UAE and for ease of doing business.

This article provides a detailed guide on setting up a company in Jafza, including the necessary steps, requirements, and advantages. Depending on the number of shareholders and the nature of business, JAFZA offers five formation types in addition to a variety of licence types and licence activities such as freezone establishment (FZE), freezone company (FZCo), public listed company (PLC), branch of a company, and offshore company.

This blog is a part of UAE Business Setup Guide: Mainland and Freezones Services

Table of Contents

Benefits of Setting Up a Company in JAFZA

Offshore companies are ideal for various business activities, including:

International Trade

Offshore companies can engage in global trading activities with minimal tax obligations and administrative burdens.

Holding Companies

These entities can hold shares in other companies, allowing for streamlined management and asset protection.

Owning Real Estate

Offshore companies can own real estate, providing flexibility in property management and investment.

Intellectual Property Registration

 They can register copyrights, patents, and trademarks, protecting intellectual property on an international scale.

Consulting Services

 Offshore companies can offer consulting services worldwide, leveraging Dubai’s strategic location and business-friendly environment.

Legal Framework and Business Activities

An offshore company in Jafza can engage in lawful business activities permitted by the Registrar. This includes international trade, investment holding, and intellectual property management, among others. However, these companies are not permitted to conduct business within the UAE market directly. They are designed to facilitate international business activities, providing a favorable environment for entrepreneurs.

Steps to Register a Company in Jafza

A critical aspect of establishing an offshore company is appointing a registered agent. This agent acts as an intermediary between the proposed owners and Jafza, handling all administrative duties and ensuring compliance with regulations. The registered agent’s responsibilities include:

Communication with Authorities: All official communication with Jafza and other relevant entities is managed by the registered agent.

Document Submission: The agent is responsible for submitting the required documents, including the application form, shareholder information, and other necessary paperwork.

Once the registered agent is selected, they will guide the company through the final steps, including the submission of a signed application form and a list of required documents. These documents typically include:

Identification Documents: Passports and other identification documents of shareholders and directors.

Company Information about the company’s structure, including the names of shareholders, directors, and the registered agent.

Requirements for Setting Up a Company in JAFZA

To establish an offshore company in Jafza, the following key requirements must be met:

Shareholders

 A minimum of one shareholder is required, with no restriction on the maximum number. Shareholders can be individuals, non-individuals (companies), or a combination of both.

Registered Agent

 As mentioned earlier, appointing a registered agent is mandatory. This agent must be approved by Jafza and is responsible for all administrative tasks.

Directors

 The company must appoint at least one director.

Secretary

 A secretary must also be appointed, who may or may not be the same as the director.

Advantages of Setting Up a Company in JAFZA

Confidentiality : Shareholder and director information is kept confidential, providing a high level of privacy.

Asset Protection : Offshore companies offer robust protection of assets against potential legal claims and liabilities.

Access to Global Markets: Dubai’s strategic location offers easy access to markets in Europe, Asia, and Africa.

Setting up an offshore company in Jafza is an excellent choice for businesses seeking a confidential and strategically located base for international operations. By following the straightforward steps outlined above and meeting the requirements, entrepreneurs can take advantage of the many benefits offered by this jurisdiction. With the assistance of a registered agent, the process is efficient and hassle-free, allowing businesses to focus on their core activities and growth.

Disclaimer

The opinions expressed in this blog are those of the respective authors. ATB Legal does not endorse these opinions. While we make every effort to ensure the factual accuracy of the information provided in our blogs, inaccuracies may occur due to changes in the legislative landscape or human errors. It is important to note that ATB Legal does not assume any responsibility for actions taken based on the information presented in these blogs. We strongly recommend verifying information from official sources and consulting with professional advisors to ensure its accuracy and relevance to your specific circumstances.

About ATB Legal

ATB Legal is a full-service legal consultancy in the UAE providing services in dispute resolution (DIFC Courts, ADGM Courts, mainland litigation management and Arbitrations), corporate and commercial matters, IP, business set up and UAE taxation. We also have a personal law department providing advice on marriage, divorce and wills & estate planning for expats.

Please feel free to reach out to us at office@atblegal.com for a non-obligatory initial consultation.