How to Get an Industrial License in JAFZA Free Zone?

Get an Industrial License in JAFZA Free Zone

There are several areas in the United Arab Emirates (UAE) where you can start your industrial company. However, starting a business in the right region is essential because it can make your business succeed. The Jebel Ali Free Zone Authority (JAFZA) is among the perfect places to start this l business and make it succeed. However, you require an industrial License in JAFZA Free Zone to start this company. So, let us understand how you can get it in this region. 

JAFZA - Overview

Jebel Ali Free Zone (JAFZA) is DP World’s flagship free zone and the significant custom bonded zone located in the Middle East. Initially, the area grew to more than 500 from 19 companies in just 10 years. Today, it is the home to more than 10000, including 100+ Fortune Global 500 Companies.  The central location has helped JAFZA to grow in just 3 to 4 decades. Its location near Jebel Al Port, Expo 2020 Dubai, and Al Maktoum International Airport has contributed the most to making this free zone an ideal hub for international trade and well-integrated tools for setting up a business.  JAFZA has previously had separate regulations governing Free Zone Establishment (FZE) and Free Zone Company (FZCO). However, it varied new approach by bringing all types of companies within JAFZA under one regulation. Thus, the new regulation replaces the FZE Implementing Regulations No.1 of 1992 as well as the FZCO Implementing Regulations No. 1 of 1999. The new regulation in JAFZA brings a significant reform of some new principles and critical legislative change.   

Why should you consider beginning your manufacturing or industrial business in JAFZA?

We understand some of you may be confused about why you should start your manufacturing business in the JAFZA. The primary reason behind it is the benefits you can enjoy by setting up your business. Therefore, we have listed the top benefits that you can  enjoy in JAFZA below:  

• If you are a foreigner, you can enjoy 100% foreign ownership in JAFZA.
• You can save the money or profit you earn from your manufacturing business in JAFZA because it offers 0% Corporate Tax on Qualifying Income (if you earn more than or equal to AED 375,000) as well as 0% personal income tax. In addition, you will also obtain an exemption on customs duties for import and re-export.
•  You can get access to uncountable skilled employees in the JAFZA, as the region also has a wide tool of foreign talent or employees. 
• There is no restriction on capital repatriation in JAFZA that lets you send back your profit to your home nation without any error. 
• There is also no currency restriction in the JAFZA. 

  As you have read it here, starting your manufacturing business can be very beneficial for your future. However, we again remind you that you need an Industrial License in JAFZA Free Zone to start this company.   

Industrial license in JAFZA

If you intend to start your manufacturing or business in JAFZA, the industrial license of JAFZA is for exactly. Remember, this kind of company involves the raw material purchase, importing products necessary for manufacturing, assembling the product, or production of the final goods or services for sales and support.  If you want to acquire this license, you must fulfil the core requirements set by the Free Zone Authority. Generally, you need to own or have the warehouse or production facilities under the JAFZA.  Apart from this, you must complete a simple process that we are going to discuss later in this article. 

Activities permissible under the industrial license in JAFZA

By obtaining an industrial license in JAFZA, you can start your manufacturing business in JAFZA. Furthermore, you can kick start a wide range of activities within this area. We have listed the top activities that you can perform under this license below:  

• Production 
• Collection 
• Packaging 
• Segregation 

  Apart from these activities that we have discussed above, you can perform numerous other activities by getting an industrial license in JAFZA.    

When an industrial license is mandatory in JAFZA?

You may think that you don’t need an industrial license to begin your manufacturing business in JAFZA. However, there are several cases where obtaining this license becomes mandatory. Let us have a look at the right case where you mandatorily need this license:  

• In case all your business activities involve the production and manufacturing of physical products
• Package and production of many goods from existing raw materials into a single product
• All your business operation requires the export and import of goods you need in your manufacturing process

What are the steps involved in getting an industrial license in the JAFZA?

When you want an industrial license, you must follow some steps to effectively obtain this license. You can complete the process of obtaining this license through the official online portal. The following are the common steps you need to follow to acquire this license in this zone:  

1. You must fill out the JAFZA application form and the EHS Undertaking Form in your entity. In addition, you must submit all required documents in this step. We suggest you consult Flyingcolour Business Setup to know the exact documents you need to submit for this license. 
2. Next, you should choose the type of company you wish to incorporate. For this, you should visit the company formation section on the official website of JAFZA. Remember, you should avoid selecting the offshore company at this step because you cannot acquire this license if you choose the offshore company. 
3. Once choosing the company type, you should choose the license type. Here, you must select the industrial license. 
4. Lastly, you should get the lease agreement or a facility built for manufacturing purposes because they are a must for this license. 

How can Flyingcolour Business Setup help you?

JAFZA is among the top locations for starting your manufacturing business. However, you need an Industrial License in the JAFZA Free Zone to start this business. If you want to obtain this license, you must take care of several factors as a single mistake can break your hope to begin your manufacturing business. Flyingcolour Business Setup can help you to obtain this license in JAFZA. Plus, our experts will ensure you get your license through the right path. To learn more about Get an Industrial License in the JAFZA Free Zone, book a free consultation with one of the Flyingcolour team advisors. Please note that this article was published on  23/07/2024 by the federal policies and updates at the time of writing. For the latest info please talk to our consultant.