United Arab Emirates

Company Formation in JAFZA

Jebel Ali Free Zone Authority (DP World)

Formation Time

5–10 business days

Min. Capital

AED 100,000 (standard FZCO)

Corporate Tax

0% qualifying / 9%

Foreign Ownership

100%

Overview

JAFZA (Jebel Ali Free Zone) is the flagship customs and logistics free zone of DP World and the largest industrial free zone in the Middle East. Home to over 9,500 multinational companies (including over 100 Fortune 500 enterprises), JAFZA generates nearly 24% of Dubai's total GDP. Physically integrated with Jebel Ali Port (the world's largest man-made harbor and the 10th busiest container port globally) and connected via a bonded customs corridor to Al Maktoum International Airport (DWC), JAFZA provides sea-air multimodal transit times of under 45 minutes. JAFZA is the premier global hub for international trade, logistics, warehousing, petrochemicals, automotive distribution, heavy manufacturing, and FMCG.

Jebel Ali Port integration

VAT Designated Zone status

Sea-air corridor in 45 min

100+ Fortune 500 tenants

JAFZA Offshore DLD real estate

Why Choose JAFZA

Direct physical integration with Jebel Ali Port (world's 10th busiest container port)

Bonded logistics corridor connecting port directly to Al Maktoum Airport in 45 minutes

Generates approximately 24% of Dubai's total foreign direct investment and GDP

Home to 100+ Fortune 500 corporations (ExxonMobil, Sony, Procter & Gamble, Schlumberger)

0% corporate tax on Qualifying Income (designated zone for VAT and corporate tax purposes)

Custom-built industrial land plots, pre-built warehouses, and temperature-controlled storage

100% foreign ownership with complete exemption from customs duties on imported goods

JAFZA Offshore Company structure available for holding real estate across Dubai

Business Entity Types

Entity	Ownership	Directors	Capital	Tax	Best For
FZCO	100%	1	AED 100,000	0% qualifying income (Designated Zone treatment)	Import-export, distribution, manufacturing, warehousing, FMCG
JAFZA Offshore	100%	1	AED 1,000	0% tax	Holding residential and commercial real estate in Dubai, asset protection

Step-by-Step Formation Process

Application & Name Reservation

2–3 days

Submit application through DP World's Dubai Trade portal.

Security Approval & Facility Selection

3–5 days

Select warehouse or office and obtain security clearance.

Lease Agreement & MOA Execution

2–3 days

Sign facility lease with JAFZA and execute Memorandum of Association.

License Issuance

1–2 days

Pay government fees and receive the JAFZA Trade License.

Port Passports, Banking & Visas

2–3 weeks

Obtain port gate passes, open corporate bank accounts, and process visas.

Costs & Fees

Government / License Fee	AED 15,000 – 40,000
Our Service Fee	USD 5,500+
Annual Renewal	AED 15,000 – 35,000

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

JAFZA's long-established reputation ensures tier-one banking access across all major UAE banks, particularly for trade finance and letters of credit.

Account Opening Time

2–4 weeks

Multi-Currency

Yes — multiple currencies supported

Recommended Banks

Emirates NBDFirst Abu Dhabi BankMashreq BankStandard Chartered UAEHSBC UAE

Tax Overview

Corporate Tax

0% on Qualifying Income; 9% on non-qualifying income

Personal Income Tax

VAT / Sales Tax

Designated Zone status: 0% VAT on out-of-scope goods transfers within the zone

Capital Gains Tax

Withholding Tax

Double Tax Treaties

137 countries

JAFZA is officially recognized as a 'Designated Zone' for UAE VAT purposes, meaning transactions of goods within the zone between registered companies are treated as outside the scope of VAT.

Frequently Asked Questions

Why is JAFZA considered a 'Designated Zone' for VAT?

Under UAE VAT Law, JAFZA is designated as a fenced-off customs zone. Goods transferred into JAFZA from abroad, or between entities within JAFZA and other designated zones, are treated as outside the scope of UAE VAT, providing immense cash flow benefits for global distribution hubs.

What is a JAFZA Offshore Company used for?

JAFZA Offshore is the only offshore corporate entity officially recognized by the Dubai Land Department (DLD) for holding freehold real estate property in Dubai without requiring physical presence or local visas.

Can a JAFZA company manufacture goods and export them?

Yes. JAFZA is the premier industrial manufacturing center in the region, offering customized land plots, gas and high-voltage power connections, and direct deep-water container vessel loading at Jebel Ali Port.

What is the bonded sea-air corridor?

The Dubai Logistics Corridor links Jebel Ali Port and Al Maktoum International Airport (DWC) under a single bonded customs seal, allowing cargo to clear sea transport and load onto air cargo planes in under 45 minutes.

What is the minimum capital required for a JAFZA FZCO?

The standard minimum capital for a JAFZA FZCO is AED 100,000, which must be declared in the company's Memorandum of Association.

Can JAFZA companies get trade finance and Letters of Credit (LCs)?

Yes. All major UAE and international banks provide extensive trade finance, letters of credit, bill discounting, and working capital lines to JAFZA companies due to the zone's world-class regulatory oversight.