JAFZA has all the resources under one roof. It is a place where suppliers, trade partners and logistic service providers meet at one place, which reduces the cost and increases efficiency and profits. It is a centre of trade and a unique system that offers end to end solutions and growth opportunities to the different types of business that operate locally and globally. It had 19 companies in 1979 and the extraordinary growth which it saw; now it has more than 7500 companies including more than 100 from the Fortune 500. JAFZA has its own set of rules and regulations which was created for the sole purpose for foreign investment. It is a prime location for the investors to start a business because of several advantages it carries, some of these are:
- It is a famous global hub for trade and manufacture; it has the positive notion of bringing more business
- The company gets a legal status for carrying on business, and it is easy to operate in Middle-East from JAFZA, once registered
- A company can own property on its name or through any other company registered in the UAE if it is an offshore company registered in UAE
- It is relatively more straightforward for an Offshore company which is registered in JAFZA to open a bank account in the UAE
- The companies which are registered in JAFZA enjoy the perk of tax-free status including a 100 per cent repatriation of capital and profit
- There is assistance available for the other functions such as banking, accounting and auditing, legal processes by the business consultants
- It is free from red-tapism and free from restrictions, provides an environment for growth
- There is no restriction on hiring foreign employees in JAFZA, and it also does not have any restrictions on currency and allows the transfer of capital
Business setup in JAFZA
Considering the type of business and the nature of the market, these are the types of business formations in JAFZA, which are:
- Multiple Shareholder Company
- Single Shareholder Company
- Branch Company
- Offshore company
- Public Listed Company
Multiple Shareholder Company
Two to fifty shareholders can set up a free zone company JAFZA. These shareholders can be individuals, non-individuals(companies) or a combination of both. A Free Zone company is a limited liability partnership within the free zone where the liability of the company is fixed to the paid-up capital.
Single Shareholder Company
Whether an individual or a company, a single share can form a free zone company. Like multiple shareholder company, it is a limited liability company within the Freezone with the liability up to the paid-up capital.
A branch company means a business entity which is the subordinate of its parent company. Any company which is established outside the JAFZA can create a branch company in JAFZA. It is mandatory.
It is a company with a minimum of one shareholder, and there is no restriction on the maximum number of shareholders, it can be individuals, non-individuals or a combination of both. It is also a limited liability company.
Public Listed Company
A public liability company is an LLC in Freezone which has two or more shareholders; it has a separate legal entity, legal capacity, rights of a person. It has to list its share on a stock exchange to invite the public to subscribe to its capital.
Procedure to Set Up Business in JAFZA
There are some steps to follow to start a business in any Free Zone, and it may vary accordingly. To start a business in JAFZA, one has to follow the following steps:
- Fill the required application form
- Once the application is approved, then the authority will issue an initial approval
- Then there is a selection of office space from JAFZA Selection
- Once the office is selected, lease documentation is processed
- Legal documentation is done for the company registration and submitted to JAFZA Authority
- License is issued with 2-4 weeks, and after that, the business operation starts.
We at Business Setup Worldwide assist small, medium and large business entities in setting up and expand their business. We can help you in setting up a company in JAFZA, from incorporation to the end. Our team has expertise in company consultation. We also handle the legal and documentation matters. Contact us for assistance on setting up a business in JAFZA.