What is JAFZA?
The Jebel Ali Free Zone (JAFZA) is one of the most well-established Free Zones in the UAE. It’s home to thousands of businesses and serves as a leading hub for trade, logistics, and manufacturing businesses. Setting up a business here comes with a wide range of perks and can be incredibly lucrative for the right business-oriented investor.
If you're looking to start a business with broad trading capabilities, a general trading license in JAFZA is a fantastic option. Businesses operating in JAFZA take advantage of 100% foreign ownership, tax benefits, and modern infrastructure that makes taking care of business easy.
Types of JAFZA Licenses
JAFZA offers several types of business licenses that cater to different industries, including:
- Trading License: A trading license is for businesses that want to import, export, distribute, and store specific goods.
- General Trading License: A general trading license provides broader trading capabilities and allows businesses to deal with a wide range of products.
- Service License: This option is ideal for companies that offer consulting, legal, IT, and other services.
- Industrial License: An industrial license covers manufacturing, production, and packaging businesses operating in JAFZA.
- E-Commerce License: E-commerce licenses cover businesses engaged in online sales and digital transactions.
- Logistic License: Designed for freight forwarding, warehousing, and supply chain services.
The Benefits of a General Trading License in JAFZA
A General Trading License in JAFZA gives you the flexibility to trade a variety of goods without strict limitations. Here’s why it’s a great choice:
- Full Foreign Ownership - No need for a local partner; you retain 100% control over your business.
- Tax Advantages - Enjoy 0% corporate tax and no customs duties on imports and exports within the free zone.
- Strategic Location– With access to one of the busiest ports in the world, trading is seamless and efficient.
- Minimal Restrictions– Unlike other licenses, a General Trading License allows you to deal with multiple product categories under one license.
- Easy Business Expansion– If you decide to scale your operations, JAFZA makes it simple with straightforward upgrade options.
Steps for Applying for a General Trading License
Starting your business in JAFZA is a structured process, but it’s not that complicated when you know what to expect. Here’s how to get your General Trading License:
JAFZA offers several types of business licenses that cater to different industries, including:
- Select Your Ideal Business Name: Choose a name that reflects your brand and complies with UAE naming regulations.
- Prepare All Required Documents: Gather all the necessary paperwork to avoid delays in your application.
- Submit Application: Once your documents are ready, you can submit your application to JAFZA authorities. This can be done online or in person at their office. At this stage, officials will review your paperwork and provide initial approval, allowing you to move on to the next steps.
- Pay Required Fees: Pay for licensing and administrative fees.
- Establish an Office Space: Your options range from flexi-desks and executive offices to full-scale warehouses, depending on your business needs.
- Obtain Your License: Once everything is approved and all fees are paid, you’ll receive your General Trading License and can officially start your business operations.
Documents Required for a General Trading License in JAFZA
These are the documents you’ll want to include with your licensing application:
- Copies of passports for all shareholders
- Copies of UAE visas
- Proof of residence
- Trade name reservation certificate
- Initial approval certificate
- Memorandum of Association (MOA)
- Lease agreement for office space
- No Objection Certificate (NOC), if applicable
The Estimated Cost of a General Trading License in JAFZA
The total cost of obtaining a General Trading License in JAFZA will hinge on multiple factors. Here’s what you should budget for:
| Services | Charges |
|---|---|
| Licensing Fee | AED 5,000 to AED 30,000 |
| Administrative Fees | AED 3,000 |
| Office Space Costs | AED 3,000 per square meter |
| Visa Fees | AED 3,500 to AED 6,000 |
- License Fees: A General Trading License in JAFZA typically starts at around AED 5,000 to AED 30,000 per year. This exact fee depends on the scale of your business, the number of shareholders you have, and whether you opt for additional activities under the same license.
- Prepare All Required Documents: Gather all the necessary paperwork to avoid delays in your application.
- Administrative Fees: Beyond the licensing cost, there are administrative fees for company registration, legal approvals, and processing charges. You can expect these to cost around AED 3,000, depending on your company structure and the number of approvals required.
- Additional Costs: Depending on your business requirements, there may be extra costs, including:
- Visa Fees: If you need a residency visa, expect to pay AED 3,500 to AED 6,000 per visa
- Initial Deposits: Some banks require an initial deposit of AED 10,000 to AED 50,000 to open a corporate bank account
- Customs Fees & Import Permits: If your business deals with import/export, additional customs fees may apply
- Renewal Fees: License renewal costs are similar to initial licensing fees, so you’ll need to budget for annual expenses.
Total Estimated Cost
For a small to mid-sized trading company, the total cost of setting up a General Trading License in JAFZA, including licensing, office space, visas, and bank setup, can range between AED 50,000 to AED 150,000 in the first year. Larger operations with warehouse requirements or multiple employees may see costs exceeding AED 200,000.
Renewing Your General Trading License in JAFZA
A General Trading License in JAFZA is typically valid for one year and needs to be renewed annually. This renewal process is straightforward, and you’ll need to have updated documentation, a valid lease agreement, and payment of renewal fees handy when submitting. Staying on top of your renewal will keep your business legally active and uninterrupted.
MSZ Consultancy Can Help You Obtain Your General Trading License
With years of experience in business formation in the UAE, MSZ Consultancy is proud to help investors and entrepreneurs get their investments up and running. Whether you're seeking a general trading license or forming a service-based business, we make the process easy for you.
We can assist you with licensing and visa applications, help manage renewals, establish legal structures, and empower you to focus on the real business that lies ahead.
Call our experts at +971 52 544 1248for more information about the range of services we offer. We’ll provide you with a FREE quote and a personalized road map for your success in the UAE.
