Entrepreneurs who intend to establish their manufacturing business can do so with a JAFZA industrial license. Business activities under the Jebel Ali Free Zone Authorities (JAFZA) manufacturing & industrial license include goods production, collection, segregation, packaging, etc. It also includes the buying of raw materials, import/export of manufacturing goods, product assembly & production, sales, and other support services.
Why do you need a JAFZA Industrial License?
The UAE, and by default Dubai, benefits from its centralised location that allows for easy access to over 17 nations. As a result, many establishments look to getting a manufacturing & industrial license. This license is needed:
- If the business activity requires creation, production, & manufacturing of physical goods or products
- For the import/export of raw materials necessary for the manufacturing process
- To make new products from raw materials that exist previously, or formed through combining 2 or more products
To get an industrial license in Jebel Ali Free Zone, a warehouse is of utmost importance. Businesses need to lease a production facility and also a warehouse in JAFZA to get their industrial license. Additionally, the industrial company must also fall HSE compliance requirements as well as regular audits.
About Jebel Ali Free Zone authority (JAFZA)
JAFZA is the biggest free zone in the UAE and one of the largest in the world. Since its formation in 1985, it is home to some of the largest global corporations & industries in the UAE. Jebel Ali Free Zone contributes over 20% of Dubai’s foreign investment. In fact, more than 50% of the total exports from Dubai generate from JAFZA. Therefore, it holds undisputed importance as a commercial trade hub with a valuation of USD 69 billion in trade alone.
Jebel Ali Port, where JAFZA is located, happens to be the largest harbour in the world. It has an annual accommodation capacity of over 15 million containers through 170 shipping routes. JAFZA warehouses can also take advantage of its strategic location and access to major global markets for broader reach. The Dubai International Airport and Al Maktoum Cargo Airport are also within close distance, allowing for ease of air trade process.
Benefits of a JAFZA Industrial License
There are several advantages of a Jebel Ali Free Zone Warehouse and Manufacturing License that can boost the business operations of any enterprise. Some of them are:
- No currency restrictions
- Onsite customs
- 0% personal income tax
- Office space/warehouse available
- Industry beneficial regulations
- Ease of company formation
- 100% ownership of business
- No capital repatriation restrictions
- Among top 10 free zones in the world
- Business friendly environment
Jebel Ali Free Zone industrial license cost
The cost of an industrial license in JAFZA for a single manufacturing facility starts at AED 5,500 per year. Under this, you can select 7 activities under a single group. There is a cost of AED 500 for each additional activity beyond the group.
There is also a choice to opt for two groups consisting of a maximum of 6 activities each. The cost for the license will then come to AED 9,000 per year. Under this license type, you can select a total of 12 activities, but you cannot exceed two groups. Similarly, there is a cost of AED 500 for each additional activity above 6 per group.
Note: The total license cost is dependent on several factors, including but not limited to changes in UAE’s laws and regulations.
Steps to get an industrial license in JAFZA
- The first step is to contact reliable company formation consultants like Shuraa Business Setup who can go over the tedious processes and save your time. They will fill the license application form, the HSE undertaking, and submit all the necessary documents on your behalf.
- Select the corporate structure you want to form your company under. JAFZA offers the following company types:
- Free Zone company (FZCO) – For 2 or more shareholders
- Free Zone Establishment (FZE) – One shareholder
- Branch of a company
- Note that offshore company formation is not applicable for a JAFZA industrial license.
- Then you need to select the license type, which in this case will be – industrial license.
- You will also need a lease agreement, either for the production facility (for selected facilities) or for an industrial facility built for that specific need.
Given the nature of the business activity, it is a strong recommendation to take up the services of company formation consultants who can assist you with the entire process with efficiency and know-how of the country’s regulations.
Industrial license in Dubai – Important regulations
Any entrepreneur or corporate entity that are looking to set up an industry in JAFZA need to keep certain prerequisites in mind:
Warehouse & Office Space
It is mandatory to lease out office space and a warehouse for your JAFZA industrial license. A public warehouse license in Dubai can cost an amount of around AED 150,000*. Additionally, you will also need to show proof of funds to get the warehouse license.
Capital Investment
A JAFZA industrial license requires a minimum share capital to be mentioned on MOA. However, it is important to note that it is not paid-up capital.
Get your Dubai industrial company started
The UAE is ready to emerge as a global industrial leader and act as a catalyst for augmented trade. Dubai, as its most famous city is home to untold business opportunities. If you are looking to expand in areas of manufacturing or warehouse setup, Shuraa is the solution.
An industry leader, Shuraa Business Setup offers end to end guidance to all your company formation needs. Our wide range of services include business licensing and registration, Golden Visa processing, PRO, VAT & tax consulting, and more. Call us at +971 44081900, send us a WhatsApp message at +971 507775554, or send us an email at [email protected]
