Unlocking Trade in JAFZA: JAFZA Trading License Requirements Explained

JAFZA, abbreviated as Jebel Ali Free Zone, is one of the oldest and most successful free zone areas in the UAE region. Being connected with all the strategic ways of air, rail, land, and port, this JAFZA free zone hosts nearly 9500 companies, and its overall trading happens in 100 billion dollars.

Hence, setting up a business in a JAFZA also benefits many investors and entrepreneurs. However, JAFZA has categorized the business activities into four broad categories; among them, the trading type is one of the most significant. This article serves as an aid to share information about the licensing requirements for starting a trading company in JAFZA.

Types of JAFZA licenses

In the JAFZA free zone, there are different types of licenses being issued based on the nature of the business, and they are:

  • Trading
  • Industrial
  • Service
  • Logistics
  • E-Commerce
  • General Trading

Trading companies attract three different types within this list of licenses.

  • Type 1 (limited set of activities): This type allows us to choose a maximum of seven activities from one group.
  • Type 2 (multiple activities): This type allows us to select up to twelve activities, but these activities must come from a maximum of two groups.
  • Type 3 (general trading license): It allows us to choose any number of activities from three or more groups, and it is the most flexible and unrestricted trading option, but it attracts an extra cost to acquire this trading license.

What is a JAFZA trading license?

JAFZA’s Trading License streamlines the setup process for the trading company. This single license empowers to buy and sell goods efficiently, while offering significant benefits and flexibility. Unlike restrictive licenses, the Trading License grants a broad range of activities – making it an essential step for any trading business looking to operate within JAFZA.

Licensing requirements for starting a trading company in JAFZA

Acquiring a Trading License is the first step to establishing a trading company in JAFZA. This license comes with specific requirements that need to be met. Here’s a breakdown of those requirements:.

  • Knowing the real requirement: A trading license is necessary when our trading company makes these lists of activities like importing or exporting goods and holding an inventory for UAE sales, purchasing from regional markets, holding inventory, and exporting the goods business also require a trading license.
  • Getting the application forms: Initially, the person who wants to start a trading company should collect the application forms from the JAFZA website and the Environment, Health, and Safety forum.
  • Selection of company type: Picking the correct trading type company is a vital requirement for getting the license. For example, we must choose companies like LLC, shareholding, equity, etc.
  • Company registration certifications: The company’s registration proof must be required before claiming the license to set up the trading company.
  • KYC form: KYC details related to the trading firm must be filled out before the license application.
  • License type: JAFZA has allowed the people to choose between two trading licenses: the standard and general trading licenses. A general trading license is more expensive than a trading license.
  • Departments to be known: Based on the type of trading business, the regulation authority differs in JAFZA. Hence, it is essential to know clearly about the jurisdiction of the Department of Economic Development, Chamber of Commerce, Ministry of Finance, Economy, and Industry.

Benefits of Setting Up a Trading Business in JAFZA

Starting a trading company in the JAFZA UAE attracts many benefits, and here are its most prominent advantages.

  • Strategic Location: Easy access to global trade routes.
  • Business Flexibility: A wide range of trading activities across
  • Tax Advantages: Minimal corporate tax and customs duties.
  • Simplified Setup: Streamlined company formation process.
  • World-Class Infrastructure: Modern warehouses and logistics facilities.
  • Supportive Environment: Access to professional services.
  • Reduced Costs: Tax exemptions and streamlined processes lower costs.
  • Extensive Market Access: Tap into the growing markets of the Middle East, Africa, and South Asia (MESA).

Bottom line

JAFZA’s Trading License unlocks a world of advantages for all types of trading business. They offer a variety of license types, allowing everyone to choose the option that best suits their respective specific trading activities. By establishing the company in JAFZA, one can gain access to these significant benefits and unlock their full potential for growth.

Jumeira Consultants: To Meet Your Trading Licenses Needs!

Our experienced business development and sales team at Jumeira Consultants can expertly guide you through the process of obtaining your JAFZA trading license. We offer personalized consultations to ensure a smooth and efficient setup for your trading company.

Jumeira Consultants offers a comprehensive suite of services to support your business in Dubai and beyond, and we encourage you to explore more of Jumeira’s benefits that are available to you like

Get Started Today!

Contact Jumeira Consultants for expert advice and assistance with all your business needs. Reach out to us at +971 52 809 8408 or email info@jumeiraconsultants.com to schedule a meeting.

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