Procedures for establishing a company in Jebel Ali

The Jebel Ali area in the Emirate of Dubai is considered one of the most prominent free zones in the United Arab Emirates, as it enjoys a strategic location that links global markets and provides a flexible and attractive commercial environment for investors and entrepreneurs from around the world. Establishing a company in Jebel Ali opens doors to multiple business and investment opportunities thanks to the advanced infrastructure and excellent logistics services.

Jebel Ali Free Zone contributes to facilitating trade and investment operations by providing a wide package of facilities and tax exemptions, in addition to simple and quick establishment procedures. This is due to the presence of flexible laws and regulations aimed at attracting foreign investments and promoting economic growth in the region.

In this article, we will discuss in detail the procedures and steps necessary to establish a company in the Jebel Ali Free Zone, starting with choosing the appropriate type of company and ending with completing all legal and administrative procedures. We will also highlight the types of business licenses available and the requirements for each type, along with the costs associated with setting up a company.

Whether you are planning to establish a limited liability company, a private equity company, or even a branch of a foreign company, this comprehensive guide will help you understand everything you need to successfully launch into Jebel Ali’s thriving business environment.

Procedures for establishing a company in Jebel Ali

Choose the type of companies in Jebel Ali

The step of choosing the type of company is considered one of the most important steps in establishing a company in the Jebel Ali region , as the type of company affects many of the legal, financial and administrative aspects of the company. Investors should choose the type that best suits the nature of their business and business objectives. The following are the most prominent types of companies that can be established in Jebel Ali:

• Limited liability companies

Limited liability companies are one of the most common types in the Jebel Ali area. This type of company is characterized by the fact that the partners’ responsibility is limited to their shares in the capital, which limits the financial risks to the business owners. A company can consist of one or more people, and the minimum capital is determined according to local laws. Limited liability companies enjoy high flexibility in management and distribution of profits.

• Private joint stock companies

Private joint stock companies are another option for investors wishing to establish a company in Jebel Ali. These companies differ from limited liability companies in that their capital is divided into tradable shares, but they cannot be offered for public subscription. Private joint stock companies require a larger number of partners and higher capital compared to limited liability companies. These companies provide greater financing and allow additional investors to be attracted through the sale of shares.

• Foreign companies

Foreign companies represent the branch or representative office of an overseas parent company that wishes to expand its activity to the Jebel Ali region. This type of company has great flexibility in business operations, as it can benefit from the expertise and resources available in the parent company. Foreign companies must comply with local regulations and laws and submit the required documents to obtain the necessary approvals. Foreign companies are an ideal option for large companies seeking to enter the UAE market without the need to establish a completely independent legal entity.

Obtaining a commercial license in Jebel Ali

A trade license is a vital step in the process of establishing a company in Jebel Ali Free Zone. This license provides legal legitimacy for doing business and defines the type of business activity a company can undertake. Below we explain the steps and procedures necessary to obtain this license:

Steps to submit the application

1. Choosing a business: The investor must determine the type of business activity he wishes to engage in. There are many categories available such as general trade, manufacturing, services, and others.
2. Submitting an application online: An application for a commercial license can be submitted through the Jebel Ali Free Zone electronic portal. The application form must be filled out accurately and all required information provided.
3. Review of the application: The competent authorities review the application to ensure that it meets all conditions and requirements. This procedure may take some time depending on the type of business activity and the documents provided.
4. Initial approval: After reviewing the application, an initial approval is issued that allows the investor to begin preparing final documents and completing other procedures.

Required Documents

To obtain a commercial license, you must submit a set of necessary documents that include:

1. Copy of Passport: A clear copy of the passport must be provided to both shareholders and directors of the company.
2. Business Plan: A detailed business plan must be submitted that explains the business objectives and the strategy used to achieve them.
3. Memorandum of Association and Articles of Association: A copy of the Memorandum of Association and Articles of Association of the company must be submitted, approved by the relevant authorities.
4. No objection certificate: If one of the shareholders is a company, a no objection certificate must be submitted from the parent company.
5. Proof of address: Proof of the location of the office or facility from which the company will conduct its business must be provided.

Fees and costs

Fees and costs associated with obtaining a business license vary based on the type of business and the size of the company. Fees include:

1. Application Fee: A non-refundable fee paid when submitting the application.
2. Annual issuance fee: varies according to the type of license and category of business activity, and is paid annually to renew the license.
3. Other fees: Additional fees may include such as security approval fees, documentation fees, and administrative services fees.

The process of obtaining a commercial license in Jebel Ali Free Zone is an essential step that ensures compliance with local laws and regulations, and allows the company to start its commercial activity with all credibility and legitimacy.

Procedures for establishing a company in Jebel Ali

After obtaining the business license, comes the company registration step, which is a crucial stage to ensure full compliance with local laws and regulations. This stage includes several basic steps that must be followed carefully to ensure the process goes smoothly:

• Registration in the commercial registry

The first step in the company registration procedure is registration in the commercial registry. Owners must submit a registration application to the Jebel Ali Department of Economic Development, which includes filling out the required forms and submitting documents confirming the validity of the data. These documents include a copy of the business license, articles of incorporation, and shareholder statements. After reviewing the application and ensuring the authenticity of the documents, a commercial registration certificate is issued, which is considered legal proof of the company’s existence.

• Obtain an establishment card

After registering the company in the commercial registry, an establishment card must be obtained from the Ministry of Human Resources and Emiratisation. This card is an essential document that enables the company to employ and bring in workers from abroad. To obtain an establishment card, you must submit an application accompanied by the required documents such as the commercial license, commercial registration certificate, and lease contracts for the company’s headquarters. After reviewing and approving the application, an establishment card is issued, which is considered an official permit to begin operations.

• Open bank account

The last step in the company registration procedure is to open a business bank account. This account is necessary for managing the company’s finances, such as paying salaries, paying bills, and receiving payments from customers. To open a bank account, a set of required documents must be submitted to the chosen bank. These documents include the commercial license, commercial registration certificate, establishment card, and a copy of the passports of shareholders and directors. After reviewing and approving the documents, the bank account is opened, enabling the company to officially begin its financial operations.

By following these three basic steps, entrepreneurs can ensure that their company registration in Jebel Ali is legal and smooth, allowing them to focus on growing their business and achieving their business goals.

In conclusion, it can be said that establishing a company in the Jebel Ali Free Zone in the United Arab Emirates represents an important strategic step for any investor seeking to expand his business and reach new markets. Thanks to the great facilities and economic incentives offered by the free zone, Jebel Ali has become a preferred destination for international and local companies alike.

In this article, we have reviewed the basic steps for establishing a company in Jebel Ali, starting with choosing the appropriate type of company, through obtaining a commercial license, all the way to the final registration procedures and opening the bank account. These steps, although they may seem complicated, become clearer and smoother when you follow the correct guidelines and enlist the help of relevant authorities to provide the necessary support.

By adhering to legal and administrative requirements, investors can make the most of the opportunities available in this vital region. A good understanding of the procedures and conditions contributes greatly to speeding up the incorporation process and avoiding any unwanted delays.

Ultimately, establishing a company in Jebel Ali is a promising future investment that can open new doors for growth and innovation. With good planning and effective management, companies can achieve success and prosperity in a business environment that is conducive to development and expansion.

The most important frequently asked questions about establishing a company in Jebel Ali