JAFZA industrial license is required for companies who want to set up a manufacturing process. This may involve the acquisition of raw materials, the importation of manufactured goods, the assembling of the product, the creation of the finished product, and the provision of sales and support services.
In Dubai, the main operations covered by the industrial license are production, segregation, collecting, packaging, etc. The transformation of raw materials or natural resources from their unprocessed state to their finished or polished state is referred to as production.
The warehouse and production facility must both be located within the free zone in order to qualify for an industrial license.
WHAT IS THE COST OF AN INDUSTRIAL LICENSE IN JAFZA?
- The cost of a single manufacturing facility license, which allows the applicant to choose 7 activities from one category, is AED 5,000 per year. Beyond the first seven activities in the group, there will be an extra AED 500 charge for each following activity.
- The cost of the license will be AED 8,500 per year if they have chosen 2 groups, and each group has a maximum of 6 activities. This means that they may choose up to 6 activities for each group (12 in all), but no more than 2 groups may be chosen. Beyond six activities per group, there will be an additional AED 500 charge for each following activity.
WHEN IS INDUSTRIAL LICENSE NECESSARY?
- If all corporate operations involve the development, production, or manufacturing of tangible things or products.
- If the business operations call for the import or export of commodities or materials to be used in a manufacturing process.
- To package existing raw materials to make a set of new products or to combine two or more current products into a single product.
An industrial license is a wide license that includes features of service, trading, and manufacturing. The applicant may need to import raw materials as a manufacturing unit, export the finished product, and also offer some kind of service or after-sales support.
It is important to remember that obtaining an industrial license necessitates renting a production facility and a warehouse within Jafza. Additionally, the business must adhere to HSE regulations and will frequently be subject to an audit from the HSE authority.
STEPS TO OBTAIN A JAFZA INDUSTRIAL LICENSE
- Both the Jafza Application Form and the EHS Undertaking Form must be fully filled out and submitted along with any other paperwork.
- You must decide what type of business structure you wish to incorporate.
- Usually, there are two types of companies available in JAFZA- Free Zone Company (FZCO) which has 2 or more shareholders, and Free Zone Establishment, which has only one shareholder.
- Please be aware that an offshore company formation will not be eligible for an industrial license.
- After choosing the formation, the applicant will be required to choose the type of license. In this case, they must choose an Industrial License.
- There must be a lease agreement in place for a facility built for industrial use or a production facility (for the specific activities chosen).
LICENSE RENEWAL IN JAFZA
The applicant must pay the following fees in order to renew the company:
- Office (facility) fees,
- License fees
- cost of an establishment card
The price of a Jebel Ali Free Zone company registration and license renewal is the same.
Without traveling to the Jebel Ali Free Zone, the company renewal can be completed.
For businesses with a plot of land and a sublease facility, the license can be renewed for another three years.
HOW TO CANCEL A JAFZA INDUSTRIAL LICENSE?
The owner must be present in person during the liquidation process, though the power of attorney holder may also handle it.
The owner will be asked to return the original documents and pay the liquidation cost by the free zone. The cost to cancel a license will be about 2,000 AED.
The company’s shutdown will take around a month. Upon successful completion of the process, JAFZA company registration will give them a certificate of liquidation.
BENEFITS OF GETTING A JAFZA INDUSTRIAL LICENSE
- JAFZA has no limitations on the types of currencies in which firms may transact. This promotes global trade and makes it simpler for businesses to collaborate with partners throughout the world.
- JAFZA offers customs services on-site, enabling companies to speed up import and export procedures. This lowers logistical difficulties and speeds up the clearance of products.
- The lack of personal income tax is one of the main benefits of doing business in JAFZA. As a result, those who work in the free zone can maximize their income by receiving income that is tax-free.
- JAFZA provides a variety of flexible options for office and warehouse space, enabling businesses to select the most appropriate location depending on their specific requirements. This enhances operational effectiveness.
- The JAFZA has put in place industry-specific rules and guidelines that are meant to encourage development and ease business operations within the free zone. These laws are crafted to meet the requirements of different industries, fostering a good business climate.
- Foreign investors are not required to have a local partner or sponsor in order to own their companies under JAFZA fully. This enables businesses to oversee their internal operations and decision-making procedures fully.
- JAFZA enables companies to repatriate capital and profits without any limitations. Due to the freedom of fund transfers into and out of the free zone, businesses can operate more easily and with greater financial flexibility.
- Thanks to its extensive infrastructure, business-friendly policies, and superior connectivity, JAFZA consistently ranks among the top 10 free zones worldwide.
Reach out to us at Relin Consultants for further assistance with getting your JAFZA Industrial License.
What distinguishes a business license from a formation?
A company’s legal framework is determined by its company formation type. This controls a company’s organizational structure and determines its shareholder number.
Its business license controls a business’s operations. A license primarily determines whether a business is legitimately permitted to produce, sell, or supply a single service. Each particular license type has a list of permitted activities that the corporation must choose from before it may engage in any particular commercial activity.
What distinguishes a free zone FZCO from a free zone FZE company?
A single shareholder or a sole proprietorship corporation is precisely what an FZE (Free Zone Enterprise) is. The shareholder in this sort of company formation could be a person or a non-person (a company).
A partnership business with multiple shareholders is what is known as an FZCO (Free Zone Company). The shareholders in this sort of company formation might be either persons (a person) or entities other than individuals (a firm).
Both kinds of business formation are allowed and can be used to carry out business within the free zone
Within Jebel Ali Freezone, is it possible for one firm to become a stakeholder of another?
Yes, in the case of the FZE, FZCO, & PLC formation types, a non-individual (a firm) can be regarded as a shareholder. An FZCO or PLC formation type requires that there be more than one stakeholder. As a result, these sorts of formations may also contain a mix of individual and non-individual shareholders.
Can my license be transferred from the mainland to the Jebel Ali Free zone?
JAFZA is not able to move a company from Dubai’s mainland area to a free zone. However, you have the option of dissolving the mainland firm and submitting an application for a new company creation and licensing at Jafza. After completing this stage, you can continue to provide employees, directors, and stockholders with the necessary visas.
What financial criteria are there to launch a business in Jebel Ali Freezone?
Prior to 2017, FZCO firms with two shareholders were required to have a minimum share capital of AED 500,000, while Jafza FZE companies were only required to have a minimum share capital of AED 1,000,000.
The requirement is no longer this. A firm must have a share capital sufficient for the operations for which it is permitted, while Jafza does not specify a minimum share capital for an FZE or FZCO. The UAE Commercial Companies Law is in compliance with this.
How long is a license valid in Jebel Ali Free Zone?
Each license that Jafza issues has a one-year expiration date. After the first year following the date of issuance, a license must be renewed.