The company formation in Jebel Ali Free Zone has been acting as a ground of international logistics and trading spot. Company formation in Jebel Ali Free Zone depends upon the number of shareholders and the nature of the business. Investors are provided world class infrastructure supported by quality-driven value-added services and incentives and much more, enabling them to capitalize on the huge business opportunities in the region. This growth can be attributed to JAFZA’s innovative solutions for global industrial investors and focus on long-term Client relationships.
The process and legal formalities for establishing a particular company in JAFZA is passed from different stages. Five basic stages of company formation are as follows
Stage 1 Determine the Legal Entity:
Determine the type of legal entity to set up a business in jazz. Company formation consists of the following types:
- Multiple shareholder company
This number of shareholders for this company ranges between 2-50, that can be individual or a business entity.
- Single shareholder company
A Single individual or business entity has the flexibility to register themselves as free zone establishment the entity holds a different identity from is shareholder and has certain rights a privilege as that of a natural person
- Existing business entity
Branch within the Free Zone can be registered by any entity which has a branch established outside Jebel Ali Free Zone. A branch is considered a legal entity of its parent company is owned by the parent company.
Stage 2 Finalizing a Tradename:
While deciding upon the type of legal entity the business should take, you should choose a trade name. It is important to check with the respective free zone authority about the permitted trade names and whether the intended name has already been registered or not. The key requires mints to approve a trade name are:
- Must not violate the public morals or the public policy of the country
- Must be followed by the legal form of the company
- It has not been previously registered
- It is compatible with the required type of activity and legal status.
Stage 3 Apply for License:
A person is required to apply for the license depending on the activity carried out by organization. Some of the licenses offered by JAFZA are
- Trading license: this license allows the investor to import export, distribute and store items specified in the license
- Service license: this incense allows the investor to carry out the services specifies in the license within the free zone
- Industrial license the owner has access to import raw materials carryout the manufacture of specified products and export the fished products.
Stage 4 Choose an Office Space
Deciding an office space and getting tenancy contract
Stage 5 Pre approvals and Registrations
To set up a business it is necessary to get the necessary approvals, and need to submit relevant documents. The list of documents varies on the type of business activity, the type of company and the requirements of the free zone authority. Below is a general guideline of steps and approvals needed for business set up.
- Initial approval: an initial approval certificate is required to continue with the business licensing formalities that permit foreign nationals to practice their desired business activity in Abu Dhabi. The Initial approval entitles the investor to proceed ahead with legal procedures for obtaining the business license, and apply for obtaining required approvals of relevant authorities to practice economic activities.
- Registration: After the initial approval register the business name and pay the required fees for registration.
- Licensing and visa process: If all the documents are submitted and verified the required authority will issue the license and start the visa processing
Requirements to Form a Company in JAFZA
Investors need to be aware basic requirements to form a company in JAFZA.
- Shareholders: a minimum of one shareholder whether individual or corporate in nature is required. Shareholders meeting should be conducted periodically. Every company should maintain minutes of all proceedings of meetings.
- Directors: A minimum of two directors are required and corporate directors are not permitted. Details of director are not available for public inspection. Each director holds office for a period determined by the shareholders. In the event of death or resignation, another director may be appointed by a resolution of the shareholders.
- Secretary: every company shall have a secretary which is appointed by the shareholders for such period as the shareholders may determine.
- Maintain Annual accounts and audit: every company shall maintain accounts, which shall be preserved from the date on which they are prepared.
Business Setup Services in JAFZA:
Company formation in JAFZA requires the local knowledge of business setup rules and regulations. Far consultancy middles east is one of the top consultants in UAE that helps business entities to build their foundation in this free zone. To form a company in JAFZA free zone do contact us.