JAFZA

JAFZA tends to fit importers and exporters, freight forwarders, distributors, manufacturers and large-scale traders who benefit from being inside one of Dubai's biggest industrial and logistics ecosystems, right beside Jebel Ali Port. As a free zone company you own 100% of the business and can sponsor residence visas under the authority's quota, subject to your office, warehouse or industrial facility. It is worth remembering what a free zone licence is and is not built for: it is designed for activity within the zone and for international trade, while selling directly into the UAE mainland market usually needs a distributor, a mainland branch or another arrangement. We will explain the trade-offs honestly so you choose the right structure rather than the cheapest headline.

If you also serve the local market, compare mainland company formation, where 100% foreign ownership now applies to most (not all) activities under Federal Decree-Law 26/2020. Strategic or restricted sectors may still require an Emirati partner, and some professional licences or foreign branches use a 0% equity Local Service Agent. For purely international holding structures that cannot trade inside the UAE, see offshore company formation. Prefer to look at alternatives in the same bracket? Compare with DMCC for commodities and international trade, or with IFZA for lean, cost-effective licensing. Either way, our free zone company formation team handles the trade-name reservation, application and visas end to end. You can read more about JAFZA on the authority's own site at jafza.ae.

UAE Corporate Tax applies from financial years beginning on or after 1 June 2023 under Federal Decree-Law 47/2022. The standard rate is 0% on taxable income up to AED 375,000 and 9% above that. A JAFZA company that meets the conditions of a Qualifying Free Zone Person (QFZP) pays 0% on qualifying income and 9% on non-qualifying income, with no AED 375,000 band. Corporate Tax registration is required, the late-registration penalty is AED 10,000, and returns must be filed and tax paid within nine months of the end of your tax period. Small Business Relief may apply where revenue is under AED 3,000,000 per period, available until 31 December 2026. Always confirm the current position on tax.gov.ae.

VAT is charged at a standard 5%. Registration is mandatory once your taxable supplies reach AED 375,000, with voluntary registration available from AED 187,500. This matters for trading, logistics and industrial businesses, where supply chains, re-exports and cross-border sales can affect how VAT applies, so it is worth planning early. Our accounting, VAT and corporate tax service keeps your registrations, bookkeeping and filings in order, while our PRO and government services team handles renewals and amendments. When you are ready to grow, we can also help with a corporate bank account, investor residence visas and the Golden Visa.

JAFZA package prices are set by the free zone authority and are not official until you receive a written quote, so we always present them as indicative ranges rather than fixed figures, and government fees change from time to time too. Costs can vary a great deal with your activities and whether you need a flexi-desk, an office, a warehouse, an industrial unit or a land plot. As an indication only, a DET trade-name reservation is about AED 620, MOET foreign-branch initial approval is around AED 3,500, and ICP residence-permit government fees are roughly AED 100 per year plus medical, Emirates ID and typing charges. Always request an exact, written quote before you proceed; you can sanity-check the official schedules at icp.gov.ae and u.ae.

To plan your budget, try our cost estimator or read our guide on the cost to set up a business in Dubai. Beyond the licence we can help with trade licensing, office solutions and trademark and IP protection. When you are ready, message us on WhatsApp and we will give you an honest plan with no hidden fees, then get in touch to begin.