Find Answers here.
IMC Group is a leading provider of Company Formation in JAFZA Free Zone. With a team of experienced professionals, IMC Group is well-equipped to provide the support and guidance that entrepreneurs need to succeed. The following are some of the frequently asked questions from our clients regarding Company Formation in JAFZA Free Zone.
Find Answers here.
IMC Group is a leading provider of Company Formation in JAFZA Free Zone. With a team of experienced professionals, IMC Group is well-equipped to provide the support and guidance that entrepreneurs need to succeed. The following are some of the frequently asked questions from our clients regarding Company Formation in JAFZA Free Zone.
Company Formation in JAFZA Free Zone – FAQs
A company can be a shareholder in FZE, FZCO, and PLC formation types. FZCO and PLC formation types require more than one shareholder, allowing for a combination of individuals and non-individuals as shareholders.
The initial step in setting up a company is to determine the formation type, which refers to the legal structure of your business. In addition, you need to choose a license type that defines the activities your company is authorized to engage in. The quick and easy steps are:
- Select a formation type and business license. Submit all essential documents based on the formation type and business license
- Select one or more lease solutions offered by JAFZA. Ensure a lease contract is in place
- Please proceed with making payments for the company set up based on your choices. Let me know if you need any assistance with the payment process
- Please collect the keys to your premises and conduct your business
Jebel Ali Free Zone Authority’s Regulatory department issues licenses to companies in the zone. All companies must submit an Economic Substance Report. Existing companies were to submit it by Dec 31st, 2020. New companies must submit it during the setup process. Some businesses need approvals from other regulatory authorities, e.g., Food and Agriculture-related goods need additional approvals.
Before 2017, JAFZA FZE companies needed AED 1,000,000 minimum share capital, while FZCO companies required AED 500,000 per shareholder for 2 shareholders. JAFZA doesn’t require a minimum share capital, but a company must have enough capital for its licensed activities, as per the UAE Commercial Companies Law.
Each license issued by JAFZA is valid for one year from the date of issuance and must be renewed annually.
Yes, Multiple businesses can be formed in JAFZA with the same shareholders. Each business will have a unique name, and there is no limit on the number of businesses that can be created.
It is mandatory for the office of a free zone company to be situated within the free zone where it is registered. However, if you require an office space in Dubai, you have the option to rent a flexible space in a Business Center. It is crucial to note that the minimum required space (flexi desk) in the free zone cannot be cancelled.
VAT obligations depend on the business activities’ location and registration. VAT applies when taxable turnover reaches AED 375,000. Free zone companies trading abroad are not taxed if transactions occur outside the UAE. However, if goods are imported to the UAE, VAT at 5% must be added to invoices and paid.
Choosing between a free zone company, offshore or mainland entity depends on your business needs. A free zone setup offers advantages such as 100% foreign ownership, resident visas, the ability to conduct business locally and internationally, and favorability with banks. Also, free zones offer flexi desk spaces, which are cost-effective for starting a business.
Setting up a company in Jebel Ali Free Zone Authority takes about 7-14 business days. This includes obtaining security approval, license, and company incorporation documents. After that, receiving the establishment card takes 2-3 business days. Once received, the company can apply for a UAE resident visa under the Jebel Ali Free Zone company.
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