Revolutionizing the world of commerce, the Jebel Ali Free Zone (JAFZA) is the catalyst for strengthening international logistical and trading capabilities. The specifics of company formation in JAFZA are governed by the number of shareholders and the nature of business ventures. With a world-class infrastructure fortified with quality-focused value-added services, JAFZA entices investors, offering unparalleled opportunities in the region. This surge in growth can be associated with JAFZA’s ingenious strategies designed for global industrial shareholders, with an emphasis on sustainable client relationships.
Company formation in JAFZA free zone involves a sequence of stages interwoven with legal obligations. Detailed below is a step-by-step guide to the five pivotal stages in creating a robust business foundation at JAFZA:
Step1. Identifying the Appropriate Legal Entity
Begin your journey by deciding the ideal legal entity to structure your business in JAFZA. This includes:
- Multiple shareholder company: Can consist of 2-50 individual or business entity shareholders.
- Single shareholder company: An individual or business entity can register as a Free Zone Establishment, holding a distinct identity from its shareholder, possessing the rights and privileges of a natural person.
- Existing business entity: An already established entity can extend its reach by registering a branch within the Free Zone.
Step 2. Choosing a Unique Tradename
After determining the type of legal entity, you need a tradename that complements your business. Make sure to confirm the proposed tradename’s availability and acceptability with the Free Zone Authority. A few key requirements for a tradename include:
- Not contravening the country’s public morals or policy.
- Endeavoring to include the company’s legal form.
- Ensuring uniqueness and compatibility with the desired business activity and legal status.
Step 3. Securing the Right License
Having zeroed in on your business activity, the next step is applying for an appropriate license. JAFZA offers a variety of licenses like:
- Trading license: Facilitates import, export, distribution, and storage of specified items.
- Service license: Permits the conduct of services specified in the license within the Free Zone.
- Industrial license: Grants permission to import raw materials, manufacture specified products, and export the finished goods.
Step 4. Selecting the Ideal Office Space
Ensure a concrete presence in JAFZA by getting the best suitable office space and locking it in with a tenancy contract.
Step 5. Securing Pre-Approvals and Registrations
Ensure you have met the essential approvals and submitted all the relevant documents as per the business’ nature, type of company, and Free Zone Authority’s requirements. A few steps include attaining an initial approval certificate, which primarily permits the continuation of licensing formalities. Furthermore, the registration of business name and paying the required fees is mandatory.
Prerequisites for Company Formation in JAFZA
To initiate a company in JAFZA, it’s essential to understand the basic needs:
- Shareholders: A company should have a minimum of one shareholder – individual or corporate. Regular shareholders’ meetings should be conducted, with meticulously maintained minutes ensuing all proceedings of meetings.
- Directors: A company needs minimum of two directors, corporate directors are not allowed.
- Secretary: Every company needs a secretary, appointed by shareholders for a term defined by them.
- Annual auditing and accounts maintenance: All businesses are required to keep records of accounts from their creation date.
JAFZA Business Setup Services
Understanding and maneuvering through the JAFZA rules and regulations for business setups is vital. Offshore Company Register – International Corporate Service Provider, ranked as one of the leading consultants in UAE, facilitates business entities to establish their foundation seamlessly in this Free Zone.
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Source: Vietnam Insider