At the outset, this Free Zone was set up to become a global business hub. With its solid infrastructure and strategic location, JAFZA is an attractive proposition for offshore company formation Dubai. Here entrepreneurs can register offshore company in Dubai and also Free Zone companies with licenses to operate. Though licenses are mandatory for doing business in UAE, offshore companies do not require an operating license as they cannot conduct trading, manufacturing or business within the Emirates.

So why are investors happy to setup offshore company in JAFZA? Let’s take a look at the special advantages offered by this special economic zone:

• A company registered in JAFZA has a legal status for carrying on bona fide business and makes it easy to conduct business within the Middle East
• JAFZA offshore has a reputation as a serious global hub for trading and manufacturing, which is advantageous for the company
• Only offshore companies registered in JAFZA can own property, either in their individual names or through UAE companies
• Offshore companies registered in JAFZA can easily open bank accounts in Dubai
• No taxation and no restriction on capital and profit repatriation
• Assistance with banking, insurance, visas, accounting, legal matters, feasibility studies and so on

These are the steps for offshore company formation in JAFZA:

• You need to contact a reliable JAFZA authorized agent for the registration process
• Get an official quote for the scope of work you need, like registration, nominee services, opening bank accounts, any specific attestations required
• Submit three names for the company out of which one will be finalized by the authorities
• Decide upon the activities of your business – property investment, consultancy, trade, or acting as a holding company
• Determine the share capital
• Finalize the list of shareholders, a minimum of 2 directors, and secretary
• Submit the mandatory documents, like passport copy, address proof, reference from bank and shareholders’ resume.
• The Memorandum, Share certificates, fees and application forms signed by the shareholders, secretary and directors is submitted in the presence of the shareholders.
• If the Registrar is satisfied that everything is in order, the company is registered in three days.

Offshore company incorporation JAFZA can be done as limited liability companies. The companies can be formed with a single shareholder, and there is no limit on the maximum number. The company should have ‘limited’ as a suffix to its name.

Companies have to pay a one-time registration fee of AED 10,000 and an annual fee of AED 2,500 to renew it. Land and office space is provided at reasonable rates and easy terms of renewal.

Offshore company setup in JAFZA can engage in the following activities apart from those mentioned before:

• Interacting professionally with legal consultants, lawyers, accountants and auditors
• Holding shareholders and directors’ meetings
• Opening branches or representative offices worldwide
• Holding shares of a limited liability company being formed in Dubai or elsewhere in UAE
• Holding shares in any other entity formed within the UAE, outside the UAE or within UAE Free Zones

Dubai is a flourishing cosmopolitan city which offers excellent living conditions, making it an ideal location for starting a business and having a comfortable family life. Known as the business capital of the Middle East, Business setup in Dubai is relatively easy and hassle free. Its strategic location, liberal economy, presence of special economic zones, and solid financial infrastructure availability make it attractive as a business hub.

Dubai’s progressive thinking Government realized early on, the advantages of attracting foreign investment for the purpose of their own growth, and so they have always encouraged company setup in Dubai by foreign businesses. Towards this goal, they Set Up several Free Zones with special, easy rules – absence of taxation being the most attractive feature.

Let’s examine one of the first, most popular and flourishing Free Zones in this Emirate, the Jebel Ali Free Zone, or JAFZA. Setting up a business in JAFZA involves three simple steps:

• Submitting your application
• Selecting the products, registration, and payment of fees
• Receiving licences and products

Yes, that’s all it takes. The headaches connected to acquiring land, office space, warehousing, power connections, even visas – is all handled by the Zone authorities. Paperwork is minimal – no wonder that investors are keep to setup company in JAFZA.

Starting its operations way back in 1985, JAFZA allows businesses to be Set Up as one of the following legal entities – Free Zone Company, Free Zone Establishment, Branch of a Foreign Company, or as a Branch of a Local Company, in one of the following industry segments – logistics, service manufacturing, assembling or trading. Today, more than 7000 companies are successfully conducting their business within JAFZA.

The infrastructure facilities at JAFZA ensure that you get all that you need for a business Set Up Dubai might require, like land plots, office spaces, warehousing facilities, showrooms, on-site accommodation, tailor-made development solutions, and so on. Everything has been created to suit the precise requirements of manufacturing and trading businesses.

Let’s take a quick look at the advantages of company setup in JAFZA:

• 100% foreign ownership is possible
• Exemption from income and corporate tax payment up to 50 years, extendable
• 100% capital repatriation allowed
• Exemption from import and re-export duties
• No restriction on currencies
• Ability to hire 100% foreign employees
• Premises can be mortgaged to banks or finance companies
• Customs can be arranged onsite
• Authorities help in obtaining visas
• Banking, finance, insurance and other necessary services are easily accessible
• Opening corporate bank accounts is easy
• Convenient location near Jebel Ali port and Dubai airport allows convenient logistics to transport hubs
• Authorities provide water and electricity connections and supply at reasonable rates.

However there are a couple of drawbacks: JAFZA has one of the highest capital requirements of all company setup Free Zones in Dubai, and rentals and one time fees are also on the higher side. There is also a pretty long list of companies applying to do business in JAFZA, so you may have to plan well in advance, if you are interested.

It must be said though, that the solid infrastructure, liberal regulations, and ease of business setup in JAFZA, makes it a great place for Dubai company setup.

Also Read about: Company Formation in JAFZA

These special economic zones generally have rules and regulations that are more liberal than normal. Let’s take a look now at NIP at Jebel Ali in Dubai.

Built on a sprawling 21 million square meters of land, this special economic zone was created to promote research and development in technology, and to some extent, water management. The facility can house 60,000 permanent residents and 133,000 employees. It began functioning in 1985, and is managed by the Economic Zones World. Entrepreneurs who want business Set Up in Dubai Technopark can do so in one of these three segments – Trading in specified items, Professional or Industrial Activities. The main activities are one of the following: mobility, logistics, engineering, health, water and energy.

The business Set Up in NIP has to be as one of the below mentioned legal entities:

• Limited liability company ( in accordance with UAE commercial companies Law )
• GCC national owned sole proprietorship
• Civil partnership firm for investment in intellectual faculties (in accordance with Federal Civil Transactions Law)
• Branch of a Free Zone entity
• Branch of a foreign company

The NIP special economic zone lays heavy emphasis on R&D in technology and managing the scare water resources of the Middle East. What with having access to the resources of the finest academic institutions and international organizations and interacting with the best brains in the fields, working in the Technopark is an unparalleled experience.

Company formation in NIP requires less paperwork and minimal hassle, as the rules and regulations in special economic zones are far more liberal. Let’s examine the special advantages of the NIP at a glance:

• Easier granting of visas: the number depends on the type of facility leased
• Authorities provide land and office space on easy and renewable lease terms
• Water and power connections are provided at reasonable rates
• Strategically located close to Jebel Ali port, Al Maktoum International Airport and the JAFZA, logistics and transportation is a breeze
• Easy access by road (8 entry points), metro rail and by sea port
• Excellent sea to air transhipment facilities
• The self-contained township hosts posh hotels, lavish living spaces, shopping malls, educational institutions, well maintained roads with smoothly moving traffic and manufacturing units that are located away from residences – making it an excellent place to work and live.
• Efficient management of environmental resources, sustainable industrial development communication and IT, life sciences, socio-economic knowledge – the Technopark focuses on these core areas.

By business Set Up in NIP, you can rub shoulders with some of the world’s leading researchers and innovators, and work together to deliver innovative solutions to improve life on the Earth.

Dubai Airport Free Zone has worked to create a unique opportunities for business Set Up in UAE. Located next door to Dubai International Airport, one of the world’s busiest airports, tenants have access to 24-hour logistics and customs procedures and an international gateway on their doorstep. All of DAFZA’s unique series and facilities have brought about unprecedented growth, and 2013 was one that saw a significant interest from international organisations looking to invest in the Middle East.

Dubai Airport Free Zone Services : International Influence

DAFZA issued 196 licenses for global organisations to operate from the Free Zone in 2013, and has consistently supported international investors.

The Free Zone companies cover a diverse spectrum of industries that meet the needs of international investors looking to access the Middle Eastern and African markets. This alignment will in turn lead to on-going business integration and boost economic relationships between the UAE and other countries worldwide. Tenants have always been an integral focus in DAFZA’s mission and vision since its foundation. The Free Zone has worked hard to ensure that the facilities, infrastructure and services available to tenants meet international standards, and provide a productive environment from which companies can grow their business.

The Free Zone works hard to support its tenants and work in alignment with their business objectives, as well as providing a variety of services on site that make business run more efficiently across the board, including immigration, medical services, and banking. DAFZA strives to provide access to as many logistical and operational requirements as possible.

Tenants can effectively Set Up their operations at DAFZA within two weeks, provided all paper work is submitted accordingly. There are fully functional office spaces that companies can move into and begin work from the minute they have the key. Telecommunications and internet services are installed, furniture and décor are in place and licenses and visas are processed.

Dubai Airport Free Zone Services focus on core business 

In addition to the location and services, DAFZA’s infrastructure has added significant value to tenants’ day-to-day business activities. With ease of access in and out of the Free Zone, and to some of Dubai’s main business hubs, the Free Zone constantly works to ensure that its clients can work safe in the knowledge that any non-core-business related activities can be taken care of by DAFZA, including maintenance, conference facilities, etc.

DAFZA is also committed to adding value to the UAE economy, by providing integrated business solutions, capitalising on the opportunities offered by this region and the ever increasing interest from both Eastern and Western markets.

Despite its continual growth and expansion, DAFZA has worked hard to ensure that its development doesn’t come at the cost of the environment. In compliance with Dubai’s vision to be a role model to the world in energy security and efficiency, DAFZA has successfully obtained an international standard for energy management (ISO 50001:2009).

DAFZA treats sustainable energy very seriously, and is very keen to adopt the best international practices. Saving energy is one of DAFZA’s strategic objectives, and it has adopted the latest technologies and equipment to help reduce energy consumption in all its facilities. Two years ago, DAFZA successfully implemented the green building technology initiative and it constantly encourages its tenants to implement standards for environment protection by assigning a reward for the best company in preserving the environment.

DAFZA’s commitment to delivering excellent services is derived from its leadership vision, dedicated team work and the competency of the people working at the Free Zone. This is recognized by the many international certificates and awards DAFZA received over the years, which continues maintaining its competitive edge and leading position.

Dubai Airport Free Zone Authority believes in the continuous development and growth of its services and facilities and ensures the needs of each tenant are met, holding its position as the premier business destination in the Middle East. Every three years, the Free Zone works on developing a solid strategic plan with the purpose of working towards its vision, to be the region’s ultimate Free Zone destination.

Meeting tenants needs
In working to meet its tenants’ needs through its customer-centric philosophy, DAFZA is transforming into a wireless smart city, becoming the first Free Zone in the region to integrate free WiFi connectivity and smart services in its territory. The wireless development process is done in collaboration with GOWEX, Leader Company in creating Wireless Smart Cities®.

Additionally, in 2014, Dubai Airport Free Zone Authority built facilities and services to meet its tenants’ day-to-day needs. As part of a larger multi-purpose centre for its tenants, DAFZA plans on opening a new food court and expects the larger project to be completed by Q1 2015, inclusive of 20 new food outlets, 11 shops, a gym and business centre. Additionally, the Free Zone will add 1,192 new parking spaces.

Looking forward, in line with the Dubai government’s strategic direction, DAFZA will continue to contribute to the welfare and betterment of the community, observing international standards in all its practices. The Free Zone plans to do this by enhancing its profitability through new value-added products and services, seeking opportunities for diversification. DAFZA expects to maintain and expand its market share through attracting investors from primary and secondary markets.

DAFZA was recognized with seven international awards. These awards included the world’s premier business awards, the Stevie Awards, in three different categories: new services and products award, best IT department award and the best marketing department award. In addition to American Richard Goodman Strategic Planning Award, the number one Free Zone in the World by Foreign Direct Investment (FDI) magazine, the Quality and Distinctive Performance Award, the Comprehensive Quality in Client Satisfaction Award, DAFZA also obtained the ISO:50001 certificate in energy management as it managed to reduce energy consumption by eight per cent; and ISO:28000 for its effective security management.

Once your business Set Up in Dubai or Dubai Multi Commodities Centre, you gain access to a broad range of ancillary services from the Zone authorities like international courier services, commemorative certificates, insurance schemes for health, employee compensation and third party liability, exclusive credit cards for members of DMCC, and more.

The DMCC will also be starting a tech hub to help startups to function in a collaborative atmosphere among likeminded business people, with negligible upfront expenses. This round the clock tech hub will have offer training, workshops, a programmers’ ‘coding cave’, and more.

To provide easy access to the central registry of ownership for stored commodities in Dubai, an electronic system called the DMCC Tradeflow was started in 2012. Its main intention was to encourage commodities trade by providing more security to both warehouse owners and traders through various methods. The online platform also provides a secure platform for e-trading, accessible from anywhere in the world.

Any business consultants in Dubai will tell you that company formation in DMCC means being part of a vibrant and fast growing economy; so make full use of it!

Here is an infographic that accompanies the article about Company Set Up in DMCC: