The Jebel Ali (JAFZA) Free Zone Company, Dubai General
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1 The Jebel Ali (JAFZA) Free Zone Company, Dubai General Jebel Ali Free Zone (JAFZA) is a 140 km2 free trade zone that offers office units, warehouses and land sites for lease. As one of the largest and fastest growing free zones, JAFZA aspires to be the international business hub of the Middle East. Located next to the Jebel Ali Port, the largest port in the Middle East and, at 60 minutes drive from the Dubai International Airport, Jebel Ali Free Zone is well positioned to enable its partner s fastest possible access to many markets. Highlights of a Jebel Ali (JAFZA) Free Zone Company General information JAFZA is located in Dubai, well placed midway between Europe, Asia, and Africa, provides its clients a huge customer base. Outstanding logistics infrastructure is one of JAFZA s key strengths. Situated between Jebel Ali Port, the world s 8th largest seaport and the upcoming Jebel Ali International Airport, the world s largest cargo airport, JAFZA is the only free zone in the world to be located between the two major logistic enablers. With a six lane highway JAFZA will facilitate the transportation of goods (custom bound) from sea to air in just 60 minutes. A range of state-of-the-art facilities are provided at JAFZA, which include pre-built modern warehouses ready to be leased, office space in various sizes to accommodate the requirements of any company of any size, and plots of land for large-scale operations such as manufacturing and extensive warehousing. 1
2 Types of Companies Companies can be formed in JAFZA in the following different ways: Free Zone Establishment (FZE) Free Zone Company (FZCO) Branch Office Free Zone Establishment (FZE) A Free Zone Establishment is a separate legal entity and can be formed with a single shareholder. Share Capital and Shares: The capital shall be denominated in AED. The minimum capital of a FZE is AED (ca. USD ) and needs to be fully paid. The share capital may only be paid in cash unless the Authority otherwise authorizes that the share capital be paid by other way. Name of the Company: The name of a FZE must end with the initials FZE. The name must be approved by the Authority. Board of Directors: At least one director and one secretary is required by the act. Although the offices of director and secretary may be held jointly by a single person. Director and secretary shall be individuals and at least one of the directors, and the secretary must be resident in the Emirate of Dubai. 2
3 Accounts: Every FZE shall keep accounting records and the director needs to prepare for each financial year a balance sheet and a profit and loss account. A copy of the annual accounts (including audit report) shall be delivered to the FZE Department within 3 months of the end of the financial year. The FZE is required to appoint auditors to make a report to the owner. Free Zone Company (FZCO): A Free Zone Company is a separate legal entity and can be formed with 2 to 5 shareholders. Share Capital and Shares: The capital shall be denominated in AED. The minimum capital of a FZCO is AED (ca ) and needs to be fully paid. The share capital may only be paid in cash unless the Authority otherwise authorizes that the share capital be paid by other way. Name of the Company: The name of a FZCO must end with the initials FZCO. The name must be approved by the Authority. Board of Directors: The Board of Directors consists of not less than three persons. At least two directors and one secretary is required by the act. Although the offices of directors and secretary may be held jointly by a single person. Director and secretary shall be individuals and at least two of the directors and the secretary must be resident in the Emirate of Dubai. 3
4 Accounts: Every FZCO shall keep accounting records and the director needs to prepare for each financial year a balance sheet and a profit and loss account. A copy of the annual accounts (including audit report) shall be delivered to the FZE Department within 3 months of the end of the financial year. The FZE is required to appoint auditors to make a report to the owner. Branch Company: Companies having valid registration and license outside JAFZA can apply for the formation of a branch company in JAFZA. Types of Licenses General Trading License: This license allows the holder to import, distribute and store all items as per JAFZA rules and regulations. Trading License: This license allows the holder to import, export, distribute and store items specified on the license. Industrial License: This license allows the holder to import raw materials, carry out the manufacture of specified products and export the finished product to any country. Service License: This license allows the holder to carry out the services specified in the license within the Free Zone. The type of service must conform to the parent company s license, issued by the Economic Department or Municipality of the relevant Emirate in the UAE. 4
5 National Industrial License: This license is designed for manufacturing companies with an ownership or shareholding of at least 51% with AGCC (Arabian Gulf Cooperation Council) nationals / citizens. The value added to the product in the Free Zone must amount to a minimum of 40%. This license allows the holder the same status as a local AGCC inside the UAE. Facilities Office Space: JAFZA offers unfurnished offices of any size, equipped with air-conditioning, light fixtures, power points, internet and telephone access. Light Industrial Units: These facilities exist for two purposes: as a warehouse for storage and distribution, and as a factory for light-production and assembly. Sizes of Units range from 313 m2 to 619 m2. Additional benefits include 24-hour access, two entry points, sufficient parking space and a ramp for light vehicles, as well as a loading dock for containers and trucks. Every Light Industrial Unit is equipped with an office. Land: JAFZA provides land plots of various sizes ranging from square meters up to any size requested by the client. In terms of lease, JAFZA offers the flexibility of both short-term and long-term leases with flexible payment methods. All land plots located in JAFZA are well provided with the necessary utilities and amenities that are fundamental to their developments. 5
6 Incentives JAFZA offers the following incentives: 100% foreign ownership 50-year guarantee of zero corporate or personal taxes the unrestricted repatriation of both capital and profits no recruitment restrictions no currency restrictions facilities to mortgage construction on leased land 6
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