FAQ

Frequently Asked Questions

Facilities & Services
Licences
Setting Up A Company
General
Customs
Mortgage
Disputes

Facilities & Services

Q.: What are the facilities available in the Free Zone?
A.: Jafza provides on lease purpose-built facilities such as warehouses, light industrial units (LIUs), offices, on-site residential facilities (staff accommodations) and retail stores. Jafza also provides plots of land of various sizes on long term lease. These plots are suitable for a variety of purpose-built facilities.

Q.: Can I manufacture products in the LIUs (Light Industrial Units)?
A.: Yes. LIUs can be used for assembly and light production operations.

Q.: What type of staff accommodation is available in the Free Zone?
A.: Jafza has several on-site residential facilities located inside the Free Zone separately for male and female workers up to supervisory level.

Q.: Can my staff live on my factory premises?
A.: No. However, they can be put up in the on-site residential facilities available in the Free Zone.

Licences

Q.: What types of licenses are issued by the Free Zone?
A.: Jafza offers the following six types of licences for various business activities: Trading Licence, Industrial Licence, Service Licence, National Industrial Licence, General Trading Licence and Logistics Licence.

Q.: Can I have a licence from Jafza but operate from Dubai or another Emirate?
A.: The Licence issued by Jafza is valid for operating your business only inside the free zone. This licence cannot be used for setting up a business in any of the other Emirates. Goods may be sold to other Emirates through distributors.

Setting up a company

Q.: What is the minimum capital required for establishing a company in the Free Zone?
A.: There is no minimum capital requirement if you are merely setting up a branch of your company. However, for establishing an FZE or FZCO the minimum capital requirement is Dhs. 1 million (US$ 270,000) or Dhs. 500,000 (US$ 135,000) respectively.

General

Q.: How long is my resident UAE visa valid?
A.: The residence visa issued by Jafza is valid for a period of three years from the date of issue.

Q.: Can I bring my family members?
A.: Yes, subject to your eligibility as per the immigration rules.

Q.: How do I bring in business visitors?
A.: Jafza Operations Department provides the service of issuing visit visas for business purposes.

Q.: Can I convert my driving licence?
A.: Yes. The UAE recognises driving licences from certain countries. A local UAE license can be issued upon the completion of required formalities.

Q.: Do I have to employ nationals in my business?
A.: There is no compulsion to do so and you are free to hire staff from any country.

Q.: What type of business enterprises are allowed in the Free Zone?
A.: All types of legitimate business operations are allowed in the zone under Industrial, trading and service sectors subject to Jafza’s approval.

Q.: Can a FZCO enter into partnership with another body / entity to set up another FZCO in Jafza?
A.: A FZCO as a legal entity can enter into partnership as a shareholder in another entity, whether another FZCO or otherwise as permitted.

Q.: Can a sister company in a group deposit the Bank Letter of Capital on behalf of the new FZ entity to be formed?
A.: The bank letter should be deposited in the name of the new entity to be formed.

Q.: Do I need a local partner to invest in the Free Zone?
A.: No, 100 per cent foreign ownership is permitted in the free zone.

Q.: What is the minimum number of employees allowed?
A.: This will depend on the nature of the project, size of the facility and the type of business.

Q.: Will the Government or the Free Zone Authority provide finance for projects in the Free Zone?
A.: The Government or the Free Zone Authority does not provide project funding. However, companies can approach other private financial bodies for financing their projects.

Q.: Will the Government protect my product by the imposition of protective duty?
A.: No. The UAE has a free trade policy and no protective duties are imposed.

Q.: Can I establish a branch of my own company?
A.: Yes, any company can establish a branch in the Free Zone.

Q.: Is it possible to open a branch office of my Free Zone Company outside the Free Zone?
A.: Companies incorporated and registered in Jafza have their legal identity and have right to open branches outside the Free Zone subject to the approval of the concerned authorities.

Q.: Can I be a partner in more than one company?
A.: There is no restriction on the number of businesses one person can be involved in.

Q.: Can I transfer my money outside the country freely?
A.: Yes. The free zone allows unrestricted repatriation of capital and profits.

Q.: Can I import and export goods?
A.: Yes, subject to your particular licence. Jafza companies are amongst the major re-exporters in the region.

Q.: Can I travel between the emirates freely with my residence permit?
A.: Yes. There are no restrictions.

Q.: Are there any restrictions on my travel to and from the country?
A.: None. Provided your visa is valid.

Q.: Can members of my family work?
A.: Yes. Once they have residence visas, they may apply for work.

Q.: Who is authorised to clear cargo through customs at Jebel Ali and Port Rashid Terminals or Dubai International Airport?
A.: - Consignees holding a UAE federal or Dubai Economic Department licence or any of the four Free Zone licenses are authorised to clear cargo through customs.
- Agents holding a Dubai Economic Department Clearing and Forwarding (C&F) licence may also clear cargo on behalf of consignees.

Q.: Is there any corporate / income tax applied to the companies or to the individuals?
A.: Jafza follows zero per cent tax regime.

Q.: Can I reside in one of the UAE emirates while conducting business in Jafza?
A.: Yes, you are eligible to stay in any of the emirates of the UAE provided you have a valid residence Visa.

Q.: Is it possible to hire personal security service to guard my office / factory?
A.: We do provide general all round security, however personal security can be provided at request from the customer through Security Department.

Q.: Other than my labourers, is it possible to hire additional labourers should there be a requirement?
A.: Yes, Jafza provides labourers, office boys, technicians etc. whenever required on a casual hire basis.

Q.: Do banks in the UAE allow companies or individuals to open bank accounts in the US Dollar?
A.: Companies or individuals can open bank accounts in the US Dollar as well as other major international currencies.

Q.: How easy is it to market/exhibit our products in the UAE?
A.: Many international exhibitions are held in Dubai, Sharjah, Abu Dhabi and other emirates throughout the year. Free Zone Companies can exhibit their products in these exhibitions. Free Zone Companies may also open Representative Offices in the local market to market their products.

Q.: Can I sell my goods in the local market?
A.: The License issued by Jafza is valid for operating your business only inside the free zone. Goods can be sold in the local market through distributors or agents.

Q.: What are the customer notification systems implemented in Jafza?
A.: Jafza uses the following five communication channels to reach its customers: E-service portal, Jafza mail, SMS, Fax, and Phone.

Q.: Does Jafza provide transportation to commute to and from the city?
A.: No, however the metro and the city bus services are available and they are provided at nominal charges from / to the Free Zone with operations throughout the day.

Customs

Q.: What documents do customs need to see?
A.: Customs needs to see the following documents:
Delivery Order - This will be issued by the shipping agent upon receipt of freight charges and either the original bill of lading or a bank guarantee.
Original Invoice - This should be produced by the original exporter and legalised by a recognised authority in the country of export. (This document is used by customs here for duty charges and statistical purposes.)
Certificate of Origin - Produced by the original exporter and legalised by a recognised authority in the country of export. This is used by customs to confirm the country of origin and its legitimacy.
Bill of Entry - Must be completed by the consignee or C&F agent. Free Zone (FZ) bills of entry are used for cargo declared for the zone. Cargo bound for Dubai is entered on a standard bill of entry.
Customs Duty Receipt - This is issued by customs if duty is payable. Certain importers are able to operate a credit facility with customs.
Duty Exemption Certificate - This is held either by companies importing cargo which do not attract duty, or by the agents acting on their behalf.

Q.: Where is the Jebel Ali Customs office?
A.: It is located next to the Jebel Ali Terminal main gate: Telephone: (04) 8816374/5 Fax: (04) 8816903 Customs head office is located at Port Rashid: Telephone: (04) 3455555

Q.: How do free zone companies clear goods for sale locally?
A.: Free zone companies can sell their goods to companies in the UAE (through an agent or distributor) and also in the FZ. In the former case the Ex-FZ import bill is cleared through customs in the name of the buyer.
Please Note: Blank bills of entry may be purchased from Dubai Customs located at either Jebel Ali or Port Rashid Terminals. Dubai Ports Authority has a common documentary system. As a result, the documents may be processed at either location. Jebel Ali Terminal: (04) 8815000, ext. 254/256 or Port Rashid Terminal: (04)3451545, ext. 347

Mortgage

Q.: Can I perform more than one mortgage on my building in the Free Zone?
A.: As per Jafza law No. 1/2002 on Mortgage of Immovable property erected at the Jebel Ali Free Zone, more than one mortgage may be performed. The records in the Register of Mortgage shall be maintained according to the consecutive dates of their registration and the priority of the acquired titles on one immovable property shall be determined according to the order of the records in the register.

Q.: What is the effect of the Deed of Mortgage made in Jafza?
A.: The Deed of Mortgage made pursuant to the provisions of Jafza law is deemed an executive deed.

Q.: What are the fees related to Mortgage transactions in Jafza? What about the fees imposed in case of re-financing the same property?
A.: The following charges shall be paid by the Mortgagor:
- Registration Fees: 0.12% of the value of the debt.
- Amendment Fees: 0.12% of the value of the debt.
- Mortgage Cancellation Fee: AED 500
- Mortgage Certificate Fee: AED 200
The fee imposed in case of re-financing the property / Amendment fees shall be charged against the total value of re-evaluation of the property at the time of re-financing.

Q.: Are there any requirements for approving financial institutions / banks for Mortgages made in Jafza?
A.: The financial institutions / banks shall be licensed and approved by the UAE Central Bank.

Disputes

Q.: I have a dispute with a Free Zone company which is not responding to all my demands to honour its liabilities. What should I do to claim my rights?
A.: Jafza, being a licensing authority, has no jurisdiction to review disputes of commercial nature, in such cases the dispute should be referred to the court or the equivalent body of jurisdiction.

Q.: I am an employee sponsored by Jafza having a labour dispute with my employer (a Free Zone company) which is not responding to my demands to honour its liabilities and pay my labour rights. What should I do?
A.: Jafza has the jurisdiction to review labour disputes arising between its licensed companies and sponsored staff, in such cases the disputing parties should approach Jafza Labour Disputes Section of the Operations Department to do the needful.

Q.: In case of liquidation of an FZCO or FZE, should the financial statement (report from the chartered accountant) be the same as applicable in the Economic Department? Is there any special formats?
A.: In principle the financial statement (report from the chartered accountant) shall be the same as applicable in the Economic Department.