Jebel Ali Free Zone Company Formation in 2026

Jebel Ali Free Zone, known as JAFZA, is DP World's flagship free zone. It sits next to Jebel Ali Port in Dubai, hosts more than 11,000 businesses and describes itself as the largest customs bonded zone in the Middle East. You keep 100% ownership, goods enter the zone duty free, and licenses start at AED 5,000 a year.

The hard part is how the pieces fit together. Every JAFZA company needs a lease in place before it is licensed, and the license, the facility and the visa quota all depend on each other. The 0% tax rate and the Designated Zone benefits also come with conditions that the license price does not show.

This is where we come in. We form the company ourselves and handle the license and facility choice, your KYC pack, the application, the immigration card, the visas and the tax registration. Our service starts from €1,899, with JAFZA's fees and the lease on top, and a complete file is usually licensed in about a week.

Why Set Up a Company in Jebel Ali Free Zone

A JAFZA company gives you a licensed base next to a major port, with full foreign ownership and no duty on goods inside the zone. JAFZA says its companies generated USD 190 billion in trade value in 2024. It suits trading, logistics and industrial businesses.

Jebel Ali Port and DP World

DP World runs JAFZA and also operates Jebel Ali Port next door. Customs sits inside the zone, so goods can move from ship to warehouse under bond. That saves time on every shipment. See how to set up an international trading company.

Logistics and Industry in One Zone

JAFZA lists more than 650 logistics companies, plus large groups in automotive parts, food and petrochemicals. You can lease anything from a furnished workstation to a plot of land, and grow without leaving the zone.

Designated Zone for VAT and Distribution

JAFZA's North and South areas form one of seven Dubai Designated Zones under Cabinet Decision No. 59 of 2017. The status matters for VAT on goods and for the 0% rate on distribution. Our page on Designated Zones in the UAE explains the rules.

Full Ownership and Free Movement of Capital

JAFZA lists 100% foreign ownership, no currency restrictions and no limit on sending capital home. A company can own the shares, so JAFZA suits a regional subsidiary or a holding company structure.

Jebel Ali Free Zone Authority and Company Types

The Jebel Ali Free Zone Authority licenses and regulates every company in the zone. You can register an FZE with one shareholder, an FZCO with 2 to 50, or a branch of a foreign or UAE company. JAFZA sets no minimum share capital for an FZE or FZCO, which keeps the setup simple.

Who Runs the JAFZA Free Zone

Dubai Decree No. 1 of 1985 set up the authority on 9 January 1985 to supervise the zone, issue its regulations and license companies. Dubai Law No. 1 of 2001 placed it under the Ports, Customs and Free Zone Corporation. Day to day, JAFZA works as part of DP World UAE.

Free Zone Establishment (FZE)

An FZE is a limited liability company with one shareholder, a person or a company. It suits a sole founder or a parent that wants a wholly owned Dubai subsidiary. If you expect a second owner, start as an FZCO.

Free Zone Company (FZCO)

An FZCO has 2 to 50 shareholders, who can be people, companies or both. It suits joint ventures and founders with partners. Each owner goes through KYC, so more owners means a longer file.

Branch of a Foreign or UAE Company

Any company set up outside the zone can open a branch in it. The branch is 100% owned by the parent, uses its name and carries out its activities. It is part of the parent, not a separate company. It suits a group that wants a Dubai warehouse under its own brand. Our guide to free zone company types in the UAE compares the forms.

JAFZA also registers public listed companies and offshore companies. For an asset-holding vehicle, see our guide to JAFZA offshore company formation.

JAFZA Trade License Types and Facilities

JAFZA issues four license types: trading, service, industrial and logistics. The license sets what the company may do, and the facility sets how many visas it gets. You need both from day one, because JAFZA asks for a lease at setup and an active lease at every renewal.

JAFZA Trade License for Goods

The JAFZA trade license is the most common in the zone. It covers buying and selling goods in three tiers: Type 1 allows up to 7 activities in one group, Type 2 up to 12 across two groups, and Type 3 unlimited activities, which works as a general trading license. See our guides to the UAE trade license and the general trading license in Dubai.

Service, Industrial and Logistics Licenses

A service license is for companies with no stock. An industrial license needs the factory and warehouse inside the zone, with regular HSE audits. A logistics license covers storage, transport and freight forwarding once JAFZA verifies the activities. Food and some other sectors also need approval from other UAE authorities. See how to start a logistics company in Dubai.

Jebel Ali Free Zone License Cost

JAFZA states that its licenses start at AED 5,000 and run for one year. Trading and service licenses are priced by the number of activities. The zone does not publish each tier's price, so we quote the exact figure with your setup.

Facilities and Visa Quotas

JAFZA's visa guide gives 2 visas per workstation, 5 for a showroom and an initial 20 for a plot of land, while office and warehouse quotas depend on the area. Warehouses run from 313 to 1,110 square metres, with rent advertised from AED 400 per square metre. After the license, the company gets a computer immigration card, then each visa holder completes an entry permit, a medical test and Emirates ID biometrics. Read more on the free zone visa in Dubai.

Jebel Ali Free Zone Company Setup for Non-Residents

Jebel Ali Free Zone company setup is open to founders from any country, with no local partner and no residency rule for owners. JAFZA describes its formation process as fully digital, so most of the work runs online. You travel only for a residence visa, and one short trip is usually enough.

Legalising Documents From Abroad

The UAE has not joined the Apostille Convention, so an apostille alone is not enough. For a corporate shareholder, JAFZA wants notarised documents attested by the UAE embassy in the home country. Where there is no UAE embassy, a GCC or Arab embassy attests them first, then the UAE Ministry of Foreign Affairs. This is the slowest step, so we start it in the first week.

Your Home Country's Tax Rules

Your home country may still tax a JAFZA company if its directors manage it from there. Some countries also tax residents on profits kept in a foreign company they control. Read our guide to controlled foreign corporation rules before you choose the structure.

Read more: how to set up a company as a non-resident.

Business Setup in JAFZA Step by Step

Business setup in JAFZA follows four official steps: register your interest, submit the application, choose the facility and pay, then receive the license and move in. We run each step with you and keep the whole file in one place, from the first form to the tax registration.

Before You Start

Decide what you will sell, where the goods come from and how many visas you need. A service company can start on a workstation, while a company that holds stock needs a warehouse.

We Choose the License and Facility

We pick the license, the activities and the facility with you, so the visa quota fits your plan, and check each activity against the 0% rules.

We Prepare the Documents and File

We prepare the JAFZA application, EHS, KYC and UBO forms and the business plan, and plan any attestation on day one. Then we submit the file, answer JAFZA's questions, sign the lease and pay the fees at JAFZA's rates.

We Arrange Visas and Tax Registration

Once the license is issued, we apply for the immigration card and each visa. A new company must register for corporate tax within 3 months, or pay AED 10,000, so we file it as part of the setup. See corporate tax registration in the UAE.

Documents Needed for JAFZA Company Formation

Each shareholder and officer sends:

• Passport copy: Valid for 6 months or more. Officers must be 21 or older.
• Business plan: A one-page project summary and a shareholder profile.
• Appointment letters: For the director, manager and secretary.
• Visa and no objection letter: Only if you already hold a UAE residence visa.

A corporate shareholder adds its certificate of incorporation or good standing, attested articles and a board resolution approving the company, its capital and its officers. Banks ask for much the same, as our guide to the documents needed to open a business bank account shows.

JAFZA Company Setup Cost in 2026

JAFZA company setup cost has three parts: our fee, JAFZA's license and the lease. Our service starts from €1,899 for a standard company. JAFZA's licenses start from AED 5,000 a year, and the lease, the immigration card and the visas are added at JAFZA's rates, quoted with your setup.

Our fee covers advice, your KYC pack, the application, the visa paperwork, the tax registration and the bank file. Trusts, foundations, funds, regulated and high-risk structures are quoted separately.

The lease moves the total more than the license does. JAFZA publishes no price for offices, workstations or visas, so a written quote is the only reliable total. Our page on company formation costs compares other countries.

First-Year Cost by Company Profile

A service company on a workstation costs the least, and accounting is extra in every profile.

How Long Company Formation in Jebel Ali Free Zone Takes

JAFZA states 3 to 14 business days from the day every document is in. With a complete file and a standard trading or service license, we usually have your company licensed in about a week. Visas and the bank account follow straight after.

What Adds Time

Embassy attestation of corporate documents takes the longest. Logistics and industrial activities need JAFZA's checks, and food and other regulated sectors need outside approval. We start the slow items on day one, while the rest of the file is built.

Read more: company formation with a bank account.

Corporate Tax and VAT in Jebel Ali Free Zone

JAFZA companies that pass the Qualifying Free Zone Person test pay 0% corporate tax on qualifying income. Other taxable income pays the normal rates of 0% up to AED 375,000 and 9% above. Because JAFZA is a Designated Zone, distribution of goods from it can count as qualifying income.

Qualifying Free Zone Person Conditions

Federal Decree-Law No. 47 of 2022 lists the conditions in Article 18. For a JAFZA trader, that means staff, premises and spending in the zone that match its core work, income from qualifying activities, transfer pricing files for related-party deals, audited accounts, and no choice to be taxed at the normal rates. Income outside the qualifying list must stay below 5% of total revenue or AED 5 million, whichever is lower. Missing any condition ends the 0% regime for that tax period and the 4 after it. See our guide to free zone corporate tax in the UAE.

Distribution From a Designated Zone

Ministerial Decision No. 229 of 2025, published on 28 August 2025, makes distribution in or from a Designated Zone a qualifying activity when the goods enter the UAE through the zone and the buyer resells or processes them. For tax periods from 1 January 2026, FTA Decision No. 6 of 2026 adds an agreed-upon procedures report from an independent auditor under ISRS 4400. Sales to natural persons are an Excluded Activity, so retail income does not qualify.

Audit, Returns and VAT

Under Ministerial Decision No. 84 of 2025, a JAFZA company that claims 0% needs audited accounts for periods from 1 January 2025. The corporate tax return is due 9 months after the period ends. VAT runs at 5%, with registration mandatory above AED 375,000 of taxable supplies and voluntary from AED 187,500. Cabinet Decision No. 98 of 2024 repealed the Economic Substance Regulations, although some JAFZA pages still mention the report.

Customs Duty in the JAFZA Free Zone

Goods imported into the zone pay 0% customs duty, and goods held there for re-export pay none either. Duty applies only when goods move into the UAE market, generally at 5% of the cost, insurance and freight value. This makes the zone a strong base for re-export trade.

Customs Code and Consumption Declarations

Under Dubai Customs Notice No. 17/2020, in force since 25 October 2020, free zone companies declare the goods they use inside the zone at least every quarter on Dubai Trade. Goods with no record can be treated as sold into the local market, which brings duty and fines. We set up the declarations with your first shipment.

Selling Goods Into the UAE

To sell to UAE customers outside the zone, a free zone company works through a licensed distributor or its own local company, and duty is paid as the goods leave the zone.

Read more: banking for import and export trading companies.

Business Banking for Jebel Ali Free Zone Companies

A JAFZA company can apply to any UAE bank, and since September 2026 banks must open low-risk SME accounts within 3 business days. Our banking partners open multi-currency accounts remotely in days, so many traders open one first and add a UAE bank once goods are moving.

UAE Banks for JAFZA Companies

That rule, the Central Bank's Regulation C 2/2026, also makes banks explain any delay or refusal. A new company with owners abroad is often not treated as low risk, so a review can still take weeks. At Emirates NBD, the file needs the trade license, Emirates ID and passports for shareholders, and at least one signatory who lives in the UAE. Mashreq NeoBiz charges AED 99 or AED 199 a month. Banks look for a real link to the UAE, so we add your supplier contracts and invoices to the file. See why banks reject business account applications.

Faster Accounts Through Our Banking Partners

Our partners are regulated payment institutions and EMIs, not banks. Accounts open remotely in days and cost about €30 to €100 a month on a published plan. We reuse your KYC pack for the partner file and make the introduction. See business bank account vs EMI account.

Open the partner account first, so the company can pay suppliers from the first week. Then apply to a UAE bank with a few months of invoices. Our guide on what working capital is helps you plan the cash.

Read more: multi-currency business accounts.

Jebel Ali Free Zone vs DMCC, Dubai South and KEZAD

All four zones follow the same federal tax rules, so the choice comes down to goods, location and price. JAFZA and KEZAD are port zones with Designated Zone status. DMCC suits services and commodities, and Dubai South sits around Al Maktoum International Airport.

JAFZA's AED 5,000 is a license-only price that needs a lease on top, while the DMCC and KEZAD figures are packages with a desk or a visa, so look at the full first-year cost. With us, price and timeline are the same in every zone. Our hub on business setup in Dubai free zones covers more options.

JAFZA vs DMCC

DMCC's Nook package with a co-working desk costs AED 10,345, and Basic Biz, with a flexi desk and eligibility for one visa, costs AED 35,484. It is not a Designated Zone, so it suits service and commodity businesses more than physical distribution. Read our guide to DMCC company formation.

JAFZA vs Dubai South

Dubai South surrounds Al Maktoum International Airport and suits aviation and air cargo businesses, with packages quoted per setup. Cabinet Decision No. 59 of 2017 lists Dubai Aviation City, so check the exact plot before you rely on Designated Zone status. See our guide to Dubai South company setup.

JAFZA vs KEZAD

KEZAD, run by KEZAD Group within AD Ports Group, sits next to Khalifa Port in Abu Dhabi. Its one-visa start-up package costs AED 9,450 for a year, VAT included. Pick KEZAD for industrial land in Abu Dhabi and JAFZA for direct access to Jebel Ali Port. Read our guide to KEZAD company setup.

Who a JAFZA Company Is Wrong For

A JAFZA company is built for goods, logistics and industry, and for groups that want a Dubai subsidiary near the port. It is a weaker fit in three cases, and each one has a simple answer.

If most of your buyers are UAE customers outside the zone, a Dubai mainland company is often simpler. If you sell mostly to consumers, that income will not get 0%, so plan for 9% above AED 375,000. And if you only hold assets with no staff, the JAFZA offshore company mentioned above needs no lease and costs less to run.

Common Mistakes in Jebel Ali Free Zone Company Setup

Three early choices shape how smoothly a JAFZA company runs: the facility, the tax status and the customs records. Each point below is easy to get right when it is planned before filing.

Choosing the Facility Before Counting Visas

Founders often lease the smallest space first and plan the team later. JAFZA ties visas to the facility: a workstation gives 2 visas and a showroom 5, whatever its size. Hiring a third person on one workstation means adding space or moving, with a new lease and new fees mid-year. Count the visas you need for the next two years, then choose the facility that covers them. We plan the space and the visa quota together before you sign.

Relying on Designated Zone Status Alone

Many traders assume a Designated Zone makes distribution income 0% by default. For tax periods from 2026, a distributor also needs the agreed-upon procedures report, due 30 days after the return deadline, and without it the distribution conditions count as not met. If the company then falls out of the regime, the normal rates apply: on AED 1 million of taxable profit, 9% above AED 375,000 is AED 56,250 a year. Keep import and buyer records from the first shipment and book the auditor early.

Leaving Customs Declarations Until Year End

Some trading companies record stock only at year end, when the accountant asks. Dubai Customs expects consumption declarations at least every quarter on Dubai Trade. Goods with no record can be treated as sold into the local market, with duty at 5% of the CIF value plus fines, and the company may be picked for a customs audit. We set up stock records and declarations with your first shipment.

Bottom Line

Jebel Ali Free Zone, Dubai's port-side free zone, gives you 100% ownership, licenses from AED 5,000 a year, duty-free goods inside the zone and Designated Zone status for distribution. It offers trading, service, industrial and logistics licenses, with space from a workstation to a plot of land.

Before you sign anything, plan the lease you need from day one, the visa quota tied to your space, and the audit and customs records behind the tax and duty benefits. We set up your JAFZA company from €1,899, with JAFZA's fees and the lease on top, in about a week from a complete file. For the national picture, read our guide to company formation in the UAE, or start your UAE company with us.

Sources

• Jebel Ali Free Zone, Home page and key figures (2026)
• Jebel Ali Free Zone, Why Jafza (2026)
• Jebel Ali Free Zone, Business license types (2026)
• Jebel Ali Free Zone, Company formation types (2026)
• Jebel Ali Free Zone, How to set up an FZE company (updated January 2025)
• Jebel Ali Free Zone, Warehouses and light industrial units (2026)
• Jebel Ali Free Zone, Issuing a visa for an employee for Jafza companies
• Jebel Ali Free Zone, Rules and regulations at Jafza (updated September 2026)
• Dubai Legislation Portal, Decree No. 1 of 1985 establishing the Jebel Ali Free Zone Authority (January 1985)
• Dubai Legislation Portal, Law No. 1 of 2001 establishing the Ports, Customs and Free Zone Corporation (April 2001)
• UAE Government portal, Running a business in a free zone (October 2026)
• PwC Worldwide Tax Summaries, United Arab Emirates other taxes (September 2026)
• KPMG, Free zone consumption customs declarations under Dubai Customs Notice No. 17/2020
• EY, UAE Designated Zones listed in Cabinet Decision No. 59 of 2017 (January 2018)
• UAE Ministry of Finance, Cabinet Decision No. 116 of 2022 on taxable income subject to corporate tax
• PwC, Ministerial Decisions No. 229 and No. 230 of 2025 on Qualifying Free Zone Persons (August 2025)
• CMS, What constitutes qualifying income for free zone persons
• Federal Tax Authority, Decision No. 6 of 2026 on additional procedures for Qualifying Free Zone Persons distributing from a Designated Zone (June 2026)
• UAE Ministry of Finance, Ministerial Decision No. 84 of 2025 on audited financial statements (April 2025)
• PwC, FTA Decision No. 3 of 2024 on corporate tax registration timelines (February 2024)
• Federal Tax Authority, Corporate tax returns within nine months of the tax period end
• Federal Tax Authority, VAT registration thresholds (2026)
• HCCH, Apostille Convention status table (2026)
• Pinsent Masons, UAE Central Bank SME customer protection framework (April 2026)
• Emirates NBD, Business banking account opening FAQ
• Mashreq, NEO BIZ business account plans (2026)
• DMCC, Business setup packages (2026)
• KEZAD Group, Free zone business setup solutions (2026)