Jebel Ali Free Zone (JAFZA) sits next to Jebel Ali Port, the largest container port in the Middle East, and within reach of Al Maktoum International Airport, which is the single reason most trading and logistics companies choose it. It is a DP World free zone that hosts more than 11,000 businesses from over 100 countries and handled trade worth USD 190 billion in 2024, according to JAFZA. For a business that moves physical goods, the differentiator is not just the free zone license. It is the ability to land cargo at the quayside, hold it in a bonded warehouse, and re-export it without paying import duty, all inside one customs-controlled area. What a bonded customs warehouse licence costs, and how it differs between private and public use, is covered in our industrial and warehousing route.
This guide explains how a JAFZA company is structured, which entity types and license types exist, what facility options drive your visa quota, how JAFZA’s designated-zone status affects VAT and corporate tax, and the actual steps to set up. It also flags where published AED figures are indicative and must be confirmed with JAFZA, because facility rents and package prices vary by unit and are not fixed public numbers.
What JAFZA Is and Why Traders and Logistics Firms Choose It
JAFZA is the free zone attached to Jebel Ali Port and operated by DP World. It describes itself as the largest customs bonded zone in the Middle East, which means goods can enter, be stored, processed, and re-exported under customs supervision without triggering UAE import duty until they cross into the mainland. That single feature is what separates JAFZA from office-focused free zones.
JAFZA is a DP World free zone next to Jebel Ali Port with direct access to Al Maktoum International Airport, built for trading, logistics, manufacturing, and re-export. It offers 100% foreign ownership, 100% repatriation of capital and profits, and 0% duty on imports and re-exports within the zone, according to JAFZA. Its bonded, customs-controlled setup is the core reason goods-based businesses locate there.
The zone’s official benefits, as published by JAFZA, include 100% foreign ownership, no restriction on repatriation of capital and profits, no currency restrictions, and 0% import or re-export duties within the free zone. These are structural advantages of the free zone model rather than temporary incentives. If you are still comparing jurisdictions, our Dubai business setup guide maps the wider decision of mainland versus free zone before you commit to a specific zone.
Entity Types: FZE, FZCO, PLC, Branch, and Offshore
Your first structural decision is the legal form of the company. JAFZA offers five, and the choice mostly comes down to how many shareholders you have and whether you are extending an existing company or starting fresh.
JAFZA allows five entity types. An FZE has a single shareholder, an FZCO has two or more (up to 50), a Public Listed Company can list shares, a Branch extends an existing parent company under the same name, and an Offshore company is a non-resident holding structure. All limited-liability forms carry no minimum share capital fixed in law, but capital must be adequate for the licensed activity.
| Entity type | Shareholders | Typical use |
|---|---|---|
| Free Zone Establishment (FZE) | One (individual or corporate) | Solo owner or a single parent company holding the whole business |
| Free Zone Company (FZCO) | Two to 50 | Partnerships and joint ventures with multiple shareholders |
| Public Listed Company (PLC) | Two or more | Larger entities that want the option to list and raise capital |
| Branch of a company | Parent company (100% owner) | Existing UAE or foreign company extending into JAFZA under the same name |
| Offshore company | One or more | Holding and asset-protection vehicle, not a resident operating trade license |
According to JAFZA company formation, there is no minimum share capital prescribed in law for these entities, though the capital must be sufficient for the intended activities. The FZE and FZCO are the two forms most trading and logistics businesses use. The offshore vehicle is a separate product for holding structures and does not, by itself, grant a UAE residence visa or a trade license to operate inside the country.
License Types at JAFZA
The license defines what your company is permitted to do. JAFZA’s official categories are trading, service, industrial, and logistics, and the approved activity list runs to well over a thousand activities across those categories.
JAFZA issues trading, service, industrial, and logistics licenses. A trading license covers import, export, storage, distribution, and re-export of specified goods. A general trading license widens that to a broad range of products under one license. An industrial license permits manufacturing and processing, and a logistics license covers freight, warehousing, and distribution services. Choose the license by activity, then map it to a facility that fits.
| License type | What it permits |
|---|---|
| Trading | Import, export, distribution, storage, and re-export of specified product lines |
| General trading | A wide range of goods under a single license, useful for multi-product traders |
| Industrial | Manufacturing, processing, assembly, and packaging of goods |
| Service | Professional and consultancy services carried on within the free zone |
| Logistics | Freight forwarding, warehousing, cargo handling, and distribution |
If your model is moving goods in and out of the UAE, read our detailed guide to setting up a UAE import and export business, which explains how a trading license interacts with customs codes and product approvals. JAFZA’s trading and general trading licenses sit at the center of that workflow.
Facilities and How They Drive Your Visa Quota
In JAFZA, the facility you lease is not a cosmetic choice. It determines both your operational capacity and how many residence visas your company can sponsor. This is the point where many first-time applicants underestimate the commitment, because a warehouse operation needs far more than a desk.
JAFZA facilities range from offices and showrooms to pre-built warehouses, light industrial units, and land plots for custom development. Visa quota is tied to the facility: a workstation allows up to two visas, a showroom up to five, offices scale by floor area, warehouses scale by area, and a land plot starts at an initial quota of 20 visas, according to JAFZA. Pick the facility around headcount, not just storage.
According to JAFZA’s warehouse offerings, pre-built units run from roughly 313 to 670 square meters, are thermally insulated, and come fitted with office space, loading docks, and floor loading around 5 tons per square meter. Light industrial units combine a showroom front, office mezzanine, and warehouse at the rear. Land plots for companies that want to build their own facilities start at a minimum of 5,000 square meters. Published rents such as land from around AED 40 per square meter per year are indicative only and change by location and unit, so confirm the current figure with JAFZA as of the month you apply.
Decision point: match the facility to headcount, not just storage. JAFZA’s visa quota follows the facility, so a company that leases a small unit to save on rent can find itself unable to sponsor the staff it actually needs. Per JAFZA, a workstation allows a maximum of two visas and a showroom a maximum of five regardless of size, while warehouses and land plots scale with area. If you plan to sponsor a warehouse team, size the facility for the headcount first, then confirm the exact quota with JAFZA before signing the lease. A cheaper unit that caps your visas is not cheaper.
The Designated Zone Advantage: VAT and 0% Corporate Tax
JAFZA’s biggest tax differentiator is that it is a Designated Zone. This is a specific status under UAE VAT law and it interacts with the corporate tax regime in a way that benefits goods-based businesses in particular.
JAFZA is a Designated Zone for VAT, which means it is treated as outside the UAE for the supply of goods within the zone, so goods moving between designated zones can be free of VAT. Separately, JAFZA is a qualifying free zone for corporate tax, and a Qualifying Free Zone Person can access the 0% rate on qualifying income, according to JAFZA. Distribution of goods in or from a Designated Zone is a listed qualifying activity.
This matters because the corporate tax law treats income from distribution of goods in or from a Designated Zone as a qualifying activity, which can be taxed at 0% for a Qualifying Free Zone Person. JAFZA states directly that it is a designated and qualified free zone for the purposes of the UAE Corporate Tax Law, and that businesses there can benefit from 0% corporate tax on qualifying income. The 0% rate is never automatic, though. It depends on meeting every Qualifying Free Zone Person condition, and our detailed guide on free zone qualifying income and 0% corporate tax explains the five conditions, the de minimis limit, and the Designated Zone distribution route in full. For the wider picture on when small businesses pay tax at all, see our overview of UAE corporate tax for freelancers and small businesses.
On VAT, the designated-zone rule applies to goods, not services. A JAFZA company supplying services to a UAE customer generally charges 5% VAT the same way a mainland company does, and a sale of goods from JAFZA into the mainland is treated as an import on which the mainland buyer accounts for VAT. Designated-zone treatment does not remove the obligation to register for VAT where the company makes taxable supplies.
JAFZA vs Mainland: When the Free Zone Wins
The trade-off between JAFZA and a mainland Dubai company comes down to where you sell and what you move. JAFZA is strongest for businesses that import, store, and re-export, and weaker for those whose whole market is inside the UAE mainland.
| Factor | JAFZA free zone | Dubai mainland |
|---|---|---|
| Foreign ownership | 100%, per JAFZA | 100% for most activities under current rules |
| Import and re-export duty | 0% within the zone, bonded customs area | Standard UAE import duty applies on entry |
| Selling directly to the UAE mainland | Treated as import; usually via a distributor or a customs process | Direct, no import barrier |
| Corporate tax on qualifying income | 0% possible for a Qualifying Free Zone Person | 9% above AED 375,000 of taxable income |
| Best fit | Trading, logistics, manufacturing, re-export | Retail and services sold to the local market |
If your customers are mostly UAE-based end users, a mainland company can be simpler, and our guide on mainland business setup with 100% ownership covers that route. Among free zones, JAFZA competes most directly with commodity and trading hubs, and readers weighing a lighter-touch option often compare it with our DMCC free zone setup and cost guide. JAFZA tends to win where physical cargo, port access, and bonded storage are central.
How to Set Up a Company in JAFZA
The setup runs through JAFZA’s one-stop shop, which combines company registration, licensing, and immigration in one authority. The core path is short on paper but involves real decisions about activity, entity, and facility.
Setting up in JAFZA means choosing your entity type and license, submitting incorporation documents and fees, signing the facility lease, obtaining your establishment and immigration cards, and then applying for residence visas within the quota your facility allows. The company can operate once the license is issued and the lease is active.
The Setup Steps
- Choose the entity type and activity. Decide between FZE, FZCO, branch, or another form, and select the licensed activity from JAFZA’s approved list.
- Reserve the name and submit the application. File the incorporation documents, shareholder and passport details, and business plan where required, then pay the registration and license fees.
- Sign the facility lease. Lease the office, warehouse, light industrial unit, showroom, or land plot that matches your activity and headcount. This lease sets your visa quota.
- Collect the license and immigration cards. Receive the trade license and the establishment and immigration (Computer Immigration) cards that allow you to sponsor employees.
- Apply for residence visas. Process entry permits, status change, medical testing, Emirates ID, and visa stamping for shareholders and staff, up to the facility quota.
- Open a corporate bank account and begin trading. With the license and lease in hand, open a business account and start operations.
What Actually Happens
In practice, the sequence is gated by the facility lease and the immigration card. According to JAFZA, a company must complete its business setup and hold a Computer Immigration Card before it can apply for any employee visa, and the facility lease must remain valid throughout. That is why the lease decision comes early. You cannot issue visas against a facility you have not yet secured, and you cannot exceed the quota that facility carries. Per JAFZA, the minimum age for a UAE residence visa is 18. Once the establishment card is live, each visa runs through the standard entry permit, medical, Emirates ID, and stamping steps. Investors sponsoring themselves through the new company should read our guide on the UAE investor visa via company registration, and every JAFZA company will need a corporate account, which our guide to opening a UAE business bank account walks through.
Renewal and Ongoing Compliance
A JAFZA license is an annual commitment, not a one-time cost. Renewal ties together the license, the facility lease, and the immigration file, and all three need to stay current for the company to keep operating and sponsoring visas.
A JAFZA trade license is renewed annually, and renewal generally requires a valid facility lease and settlement of any outstanding fees before the license and establishment card are extended. Letting the lease lapse can freeze the ability to renew visas, so treat the lease, license, and immigration card as one linked renewal cycle rather than three separate tasks.
The mechanics of license renewal, timing, and late penalties are similar across Dubai jurisdictions, and our guide to trade license renewal in Dubai covers the general workflow. For JAFZA specifically, the renewal window and any fees should be confirmed with the free zone each year, because amounts are set per facility and package and are not fixed public figures.
FAQ
What is the difference between an FZE and an FZCO in JAFZA?
An FZE (Free Zone Establishment) has a single shareholder, who can be an individual or a company. An FZCO (Free Zone Company) has two or more shareholders, up to a maximum of 50. Both are limited-liability entities with no minimum share capital fixed in law, and the choice depends on how many owners the business has.
Is JAFZA a Designated Zone for VAT?
Yes. JAFZA is a Designated Zone, which means it is treated as outside the UAE for the supply of goods within the zone. Goods can move between designated zones without VAT in defined cases, but services are generally taxed at 5% as normal, and a sale of goods into the mainland is treated as an import on which the buyer accounts for VAT.
Can a JAFZA company get 0% corporate tax?
A JAFZA company can access the 0% corporate tax rate on qualifying income if it qualifies as a Qualifying Free Zone Person and meets every condition in the law, including adequate substance, the de minimis limit, and audited accounts. Distribution of goods in or from a Designated Zone is a listed qualifying activity. Non-qualifying income is taxed at 9%.
How many visas can a JAFZA company sponsor?
The visa quota depends on the facility you lease. According to JAFZA, a workstation allows a maximum of two visas, a showroom a maximum of five regardless of size, offices scale by floor area, warehouses scale by area, and a land plot starts at an initial quota of 20 visas that can be increased with approval. Confirm your exact quota with JAFZA before leasing.
What license types does JAFZA offer?
JAFZA issues trading, service, industrial, and logistics licenses, with a general trading option that covers a wide range of goods under one license. The right license depends on your activity: import and re-export need a trading or general trading license, manufacturing needs an industrial license, and freight or warehousing needs a logistics license.
Does JAFZA allow 100% foreign ownership?
Yes. JAFZA states that companies there have 100% foreign ownership with no local partner requirement, along with 100% repatriation of capital and profits and no currency restrictions. This is a standard feature of the free zone model and applies regardless of the shareholder’s nationality.
How much does it cost to set up in JAFZA?
JAFZA setup cost depends on the entity type, license, and facility, and prices are quoted per package rather than as a single public fee. Facility rent is usually the largest variable, from a workstation up to a warehouse or land plot. Because figures change by unit, request a current quote from JAFZA rather than relying on third-party numbers, and verify any amount before you pay.
Can a JAFZA company sell directly to the UAE mainland?
Selling from JAFZA into the UAE mainland is treated as an import, so it typically goes through a mainland distributor or a customs import process, and mainland import duty and VAT can apply on entry. This is why JAFZA suits import, storage, and re-export models more than businesses whose entire market is local mainland retail.
What is the advantage of JAFZA’s location next to Jebel Ali Port?
JAFZA is attached to Jebel Ali Port, the largest container port in the Middle East, and connects to Al Maktoum International Airport and the highway network. For a trading or logistics company, that means cargo can be landed, stored in a bonded warehouse, and re-exported inside one customs-controlled area with 0% duty on imports and re-exports within the zone, cutting handling time and cost.
Do I need a physical office to set up in JAFZA?
Yes, JAFZA requires a leased facility, and the type you choose sets your visa quota. Options range from a workstation or small office to showrooms, pre-built warehouses, light industrial units, and land plots. A company cannot issue employee visas without a valid facility lease and an active immigration card.
Official Sources
- Jebel Ali Free Zone (JAFZA) — official site
- JAFZA — Company Formation (FZE, FZCO, PLC, branch, offshore)
- JAFZA — Warehouses and facility solutions
- JAFZA — Issuing an employee visa and facility visa quotas
- JAFZA — Jebel Ali Free Zone and the UAE Corporate Tax Law
- JAFZA — Why JAFZA (ownership, repatriation, duties)
- Federal Tax Authority — UAE Corporate Tax
Information current as of July 2026. JAFZA fees, facility rents, visa quotas, and licensing rules vary by facility and package and can change, and their application depends on your specific activity, entity, and facility. This article is general information, not legal or tax advice. Confirm all fees, quotas, and eligibility with JAFZA and the Federal Tax Authority, or a qualified advisor, before you set up or file.
