JAFZA Companies: Free Zone Benefits & Setup Process
Your Complete Guide to Establishing a Business in Jebel Ali Free Zone, Dubai
Table of Contents
- 1. Introduction to JAFZA Companies
- 2. Why Choose JAFZA for Your Business?
- 3. Key Benefits of JAFZA Companies
- 4. Business Activities and License Types
- 5. JAFZA Company Setup Process
- 6. JAFZA Setup Costs and Fees
- 7. Requirements and Documentation
- 8. Office Space and Facility Options
- 9. JAFZA vs Other Free Zones
- 10. Frequently Asked Questions
- 11. Conclusion
1. Introduction to JAFZA Companies
Jebel Ali Free Zone Authority (JAFZA), established in 1985, stands as one of the world's most successful and largest free zones. Located strategically at the crossroads of global trade routes, JAFZA has become a cornerstone of Dubai's economic growth and a preferred destination for international businesses. With over 8,000 companies from more than 100 countries operating within its boundaries, JAFZA represents a thriving ecosystem for businesses seeking expansion into Middle Eastern, African, and Asian markets.
JAFZA companies benefit from world-class infrastructure, proximity to Jebel Ali Port (the largest man-made harbor in the world), and seamless connectivity to Dubai International Airport. The free zone spans an impressive area and continues to expand, offering state-of-the-art facilities ranging from flexible office spaces to massive warehouses and industrial units. Companies operating in JAFZA enjoy a business-friendly environment supported by streamlined administrative processes and comprehensive support services.
The free zone caters to diverse business sectors including trading, logistics, manufacturing, technology, and professional services. Whether you're a startup entrepreneur or a multinational corporation, JAFZA provides tailored solutions designed to meet varied business requirements. The authority has consistently evolved its offerings to remain competitive in the global marketplace, introducing innovative solutions such as advanced technology infrastructure, sustainable facilities, and flexible business packages.
8,000+
Companies Operating
100+
Countries Represented
1985
Year Established
#1
Middle East Free Zone
Ready to Establish Your JAFZA Company?
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2. Why Choose JAFZA for Your Business?
Selecting the right business jurisdiction is critical for long-term success, and JAFZA offers compelling reasons that make it stand out among Dubai's numerous free zones. The strategic location of JAFZA is perhaps its most significant advantage, positioned at the heart of global shipping routes and providing unparalleled access to markets across three continents. This geographic advantage translates into reduced logistics costs and faster time-to-market for businesses engaged in international trade.
The infrastructure within JAFZA is world-class and continuously upgraded to meet evolving business needs. The free zone features advanced telecommunications networks, reliable power supply, efficient transportation systems, and comprehensive security measures. Companies can choose from various facility types including offices, warehouses, light industrial units, and heavy industrial plots, all maintained to international standards. The proximity to Jebel Ali Port eliminates many logistical challenges, enabling seamless import-export operations.
Beyond physical infrastructure, JAFZA provides an ecosystem conducive to business growth. The authority offers streamlined administrative processes, efficient customs procedures, and dedicated customer service teams. Businesses benefit from numerous networking opportunities through events, exhibitions, and business forums regularly organized within the free zone. Additionally, JAFZA has established partnerships with various government entities and private organizations to facilitate business operations and market access.
Top Reasons Businesses Choose JAFZA
Market Reach from JAFZA
JAFZA's strategic position provides access to:
- 2 billion consumers within a 4-hour flight radius
- Middle East & North Africa markets with growing economies
- Indian Subcontinent with massive population and expanding purchasing power
- East African markets experiencing rapid economic development
- Central Asian economies rich in natural resources
3. Key Benefits of JAFZA Companies
JAFZA companies enjoy an extensive array of benefits that create a highly favorable business environment. These advantages span financial, operational, and strategic dimensions, collectively contributing to enhanced profitability and sustainable growth. Understanding these benefits is essential for businesses evaluating JAFZA as their potential business hub.
🏢 100% Foreign Ownership
Maintain complete control of your business without the need for a local sponsor or partner. JAFZA allows full foreign ownership across all business activities.
💰 Zero Tax Benefits
Enjoy 0% corporate tax, 0% income tax, and 0% import-export duties. These tax exemptions significantly enhance profit margins and return on investment.
💵 Full Profit Repatriation
Transfer 100% of your profits and capital back to your home country without restrictions. No capital controls or repatriation limitations apply.
🌍 Global Market Access
Leverage Dubai's strategic location to access emerging markets across the Middle East, Africa, and Asia with ease and efficiency.
📋 Minimal Documentation
Benefit from streamlined registration processes with minimal paperwork requirements, enabling faster company setup and licensing.
🏗️ World-Class Infrastructure
Access state-of-the-art facilities including modern offices, warehouses, and industrial units equipped with advanced utilities and services.
🚢 Port Proximity
Located adjacent to Jebel Ali Port, facilitating seamless logistics operations and reducing shipping costs and delivery times.
✈️ Airport Connectivity
Easy access to Al Maktoum International Airport and Dubai International Airport, supporting efficient air cargo and passenger operations.
👥 Visa Allocation
Obtain multiple employment visas for your staff and residence visas for shareholders and their families based on your business license type.
🔒 Asset Protection
Benefit from robust legal frameworks protecting intellectual property rights and business assets within a secure business environment.
🤝 Business Support
Access comprehensive business support services including consulting, networking events, and dedicated customer relationship management.
⚡ Fast Setup
Complete your company registration and licensing within days, enabling quick market entry and business commencement.
| Benefit Category | Description | Business Impact |
|---|---|---|
| Financial Benefits | Zero corporate and income tax for 50 years, renewable | Increased profitability and competitive pricing |
| Ownership Benefits | 100% foreign ownership, no local sponsor required | Complete business control and decision-making authority |
| Operational Benefits | Streamlined customs, efficient logistics | Reduced operational costs and faster delivery times |
| Strategic Benefits | Access to emerging markets, strategic location | Expanded market reach and growth opportunities |
| Immigration Benefits | Multiple visa allocations for employees and families | Easier talent acquisition and workforce stability |
| Legal Benefits | Strong IP protection, transparent regulations | Business security and innovation encouragement |
Tax Benefits Duration
JAFZA offers tax exemptions that are guaranteed for an extended period, providing long-term financial stability:
- Corporate Tax: 0% for 50 years, renewable for additional periods
- Personal Income Tax: 0% indefinitely
- Import/Export Duties: 0% on goods traded through the free zone
- Withholding Tax: No withholding tax on dividends or interest payments
Note: Recent UAE corporate tax legislation introduces 9% tax on taxable income exceeding AED 375,000 for most businesses. However, qualifying free zone entities may benefit from 0% tax rate if they meet specific conditions. Consult with our tax experts for detailed guidance.
4. Business Activities and License Types
JAFZA accommodates a diverse range of business activities across multiple sectors, making it suitable for companies from various industries. Understanding the available license types and permitted business activities is crucial for selecting the appropriate setup for your company. JAFZA categorizes businesses into several main license types, each with specific activities and requirements.
License Categories in JAFZA
JAFZA offers several license types designed to cater to different business models and operational requirements. Each license type comes with specific benefits, visa allocations, and operational permissions.
| License Type | Permitted Activities | Minimum Space Required | Typical Visa Allocation |
|---|---|---|---|
| Commercial License | Trading, import, export, distribution | Flexi desk or office space | 6+ visas |
| Service License | Consulting, professional services, business services | Flexi desk or office space | 6+ visas |
| Industrial License | Manufacturing, assembly, processing | Warehouse or industrial plot | Based on space size |
| General Trading License | Multiple trading activities | Office or warehouse | 6+ visas |
| National Industries License | Specific approved manufacturing activities | Industrial facility | Based on facility size |
Popular Business Activities
Trading & Distribution
Import-export operations, wholesale trading, retail trading, general trading, and distribution of goods across multiple categories.
Logistics & Warehousing
Freight forwarding, supply chain management, warehousing services, cold storage, and third-party logistics (3PL) operations.
Manufacturing
Light manufacturing, heavy manufacturing, assembly operations, packaging, and industrial processing activities.
Technology & IT
Software development, IT consulting, technology services, digital solutions, and telecommunications services.
Professional Services
Business consulting, financial services, marketing agencies, legal support services, and corporate advisory.
E-commerce
Online retail operations, digital marketplace services, e-commerce fulfillment, and cross-border e-commerce activities.
Selecting the Right License
Choosing the appropriate license type depends on several factors:
- Nature of Business: Identify whether your activities are primarily trading, service-based, or manufacturing
- Operational Requirements: Assess your need for physical space, warehouse facilities, or office environments
- Growth Plans: Consider future expansion and scalability requirements
- Visa Needs: Determine the number of employees and visa allocations required
- Budget Considerations: Evaluate setup costs, annual fees, and operational expenses
For specialized guidance on selecting the optimal license for your business, explore our business setup services or contact our consultants.
5. JAFZA Company Setup Process
Establishing a company in JAFZA involves a systematic process designed to ensure compliance while facilitating quick business registration. The authority has streamlined procedures to enable entrepreneurs to commence operations within a short timeframe. Understanding each step helps businesses prepare adequately and navigate the setup process efficiently.
Step-by-Step Setup Guide
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Initial Consultation and Planning
Consult with business setup experts to determine the most suitable license type, business activities, and facility requirements. Define your business objectives, target markets, and operational model. This planning phase ensures alignment between business goals and licensing choices.
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Company Name Selection and Approval
Choose a unique company name that complies with JAFZA naming conventions and UAE regulations. Submit the name for approval to JAFZA authorities. The name must not conflict with existing trademarks, contain offensive terms, or violate cultural sensitivities.
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Business Activity Selection
Select specific business activities from JAFZA's comprehensive list of approved activities. Ensure that your chosen activities align with your license type and business plan. Multiple activities can be included under a single license depending on the license category.
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Facility Selection and Lease Agreement
Choose appropriate office space, warehouse, or industrial facility based on your business requirements. Options range from flexi-desks and small offices to large warehouses and industrial plots. Execute the lease agreement with JAFZA for your selected facility.
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Document Preparation and Submission
Prepare and submit all required documents including passport copies, business plan, financial projections, and bank reference letters. Ensure all documents are properly attested and translated if necessary. Complete application forms accurately with all required information.
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Initial Approval and Fee Payment
Receive initial approval from JAFZA authorities after document verification. Pay the required registration fees, license fees, and facility lease payments. Payment schedules may vary based on chosen packages and facility types.
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License Issuance
Upon completion of all requirements and payment processing, JAFZA issues the trade license. The license specifies approved business activities, company name, and operational permissions. Digital and physical copies of the license are provided.
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Immigration Card and Establishment Card
Obtain the immigration card which enables visa processing for employees and shareholders. Receive the establishment card required for various government transactions and business operations within the UAE.
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Visa Processing
Apply for employment visas for your team members and investor/partner visas for shareholders. Process includes medical tests, Emirates ID issuance, and residence visa stamping. Visa allocation depends on license type and facility size.
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Bank Account Opening
Open a corporate bank account with UAE banks or international banks operating in Dubai. JAFZA provides support letters facilitating the account opening process. Multiple bank account options are available based on business requirements.
Typical Timeline for JAFZA Company Setup
Total Timeline: Complete setup can be achieved within 2-3 weeks under normal circumstances with proper documentation and planning.
Pro Tips for Smooth Setup
- Work with experienced business setup consultants to navigate the process efficiently
- Prepare all documents in advance and ensure proper attestation
- Choose facility locations based on operational needs and budget constraints
- Consider future expansion when selecting initial facility size
- Engage with multiple banks to compare account features and benefits
- Plan visa requirements carefully based on immediate and near-term hiring needs
Need Expert Assistance with JAFZA Company Setup?
One Desk Solution specializes in JAFZA company formations. Our experienced team will handle all aspects of your company registration, from documentation to license issuance, ensuring a hassle-free experience.
6. JAFZA Setup Costs and Fees
Understanding the cost structure for establishing and operating a JAFZA company is essential for accurate budgeting and financial planning. Costs vary depending on license type, facility selection, visa requirements, and additional services. This section provides a comprehensive breakdown of typical expenses associated with JAFZA company setup and annual operations.
Initial Setup Costs
| Cost Component | Estimated Range (AED) | Notes |
|---|---|---|
| License Fee (Annual) | 15,000 - 50,000 | Varies by license type and activities |
| Registration Fee | 1,000 - 3,000 | One-time registration charges |
| Office/Facility Lease | 20,000 - 200,000+ | Depends on space size and type |
| Immigration Card | 2,500 - 5,000 | Per year, enables visa processing |
| Share Capital (if required) | Varies | Industry-specific requirements |
| Initial Visa Processing | 5,000 - 10,000 per visa | Includes medical tests, Emirates ID, residence visa |
| Business Setup Service Fee | 5,000 - 15,000 | Professional consultation and processing |
Annual Operational Costs
| Expense Category | Annual Cost (AED) | Frequency |
|---|---|---|
| License Renewal | 15,000 - 50,000 | Annual |
| Facility Rental | 20,000 - 200,000+ | Annual |
| Immigration Card Renewal | 2,500 - 5,000 | Annual |
| Visa Renewals | 3,000 - 5,000 per visa | Every 2-3 years |
| Utilities & Services | Variable | Monthly |
| Compliance & Audit | 5,000 - 20,000 | Annual (if required) |
Cost Breakdown for Different Business Sizes
| Business Size | Initial Setup Cost | Annual Operating Cost | Typical Configuration |
|---|---|---|---|
| Startup/Small | AED 45,000 - 75,000 | AED 30,000 - 50,000 | Flexi desk, 2-4 visas, service license |
| Medium Business | AED 80,000 - 150,000 | AED 60,000 - 120,000 | Small office/warehouse, 6-10 visas, commercial license |
| Large Enterprise | AED 200,000 - 500,000+ | AED 150,000 - 400,000+ | Large facility, 15+ visas, multiple activities |
Cost Optimization Strategies
- Flexi Desk Options: Start with flexible desk arrangements to minimize initial facility costs
- Phased Expansion: Begin with minimal visa allocations and scale based on actual hiring needs
- Package Deals: Explore JAFZA packages that bundle multiple services at discounted rates
- Shared Facilities: Consider shared warehouse or office spaces if full facility is not immediately required
- Long-term Leases: Negotiate multi-year facility leases for better rental rates
- Professional Guidance: Work with consultants who can identify cost-effective setup configurations
For detailed cost analysis tailored to your specific business requirements, contact our business consultants for a customized quote.
7. Requirements and Documentation
Establishing a JAFZA company requires specific documentation and fulfillment of various requirements. Proper preparation of documents and understanding of prerequisites ensures smooth processing and minimizes delays. Requirements may vary slightly based on company structure, business activities, and shareholder nationalities.
General Documentation Requirements
| Document Type | Details Required | Special Notes |
|---|---|---|
| Passport Copies | Clear colored copies of all shareholders and directors | Must be valid for minimum 6 months |
| Visa Copies | Current UAE visa copies (if applicable) | Required if shareholders are UAE residents |
| Passport-sized Photographs | Recent photographs with white background | Typically 4-6 copies per person |
| Business Plan | Comprehensive business plan outlining operations | Detail business activities, market analysis, projections |
| Bank Reference Letter | Letter from your bank confirming financial standing | Should be recent (within 3 months) |
| Address Proof | Utility bill or bank statement showing residential address | For all shareholders and directors |
| NOC (if applicable) | No Objection Certificate from current sponsor | Required if shareholder is employed in UAE |
Corporate Shareholder Requirements
If the JAFZA company will have corporate shareholders, additional documentation is required:
| Document | Requirement |
|---|---|
| Certificate of Incorporation | Certified copy from the country of incorporation |
| Memorandum of Association | Notarized and attested MOA of parent company |
| Board Resolution | Resolution authorizing company formation in JAFZA |
| Certificate of Good Standing | Recent certificate confirming company's active status |
| Authorized Signatory Documents | Documents identifying persons authorized to sign on behalf of corporate shareholder |
Attestation Requirements
Most documents from foreign countries require attestation through a specific chain:
- Notarization: Documents must be notarized in the country of origin
- Ministry of Foreign Affairs: Attestation by the foreign affairs ministry in home country
- UAE Embassy: Attestation by UAE embassy or consulate in home country
- UAE MOFA: Final attestation by UAE Ministry of Foreign Affairs
- Translation: Documents not in English or Arabic must be officially translated
Note: Attestation requirements may vary based on bilateral agreements between UAE and specific countries. Some countries participate in the Hague Apostille Convention, simplifying the process.
Company Structure Options
Free Zone Limited Liability Company (FZ-LLC)
Most common structure for JAFZA companies. Requires minimum 1 shareholder (individual or corporate), limited liability protection for shareholders.
Free Zone Establishment (FZE)
Single shareholder company structure. Suitable for entrepreneurs and small businesses. Full ownership control by single entity.
Branch Office
Extension of parent company. Used by established companies expanding to UAE. Parent company maintains full liability.
Understanding these requirements and preparing documentation in advance significantly expedites the setup process. Working with experienced business consultants ensures compliance with all requirements and proper document preparation. For assistance with document preparation and attestation, explore our comprehensive business setup services.
8. Office Space and Facility Options
JAFZA offers diverse facility options catering to various business requirements, from startups seeking minimal space to large enterprises requiring extensive industrial facilities. Understanding available options helps businesses select facilities that align with operational needs while optimizing costs.
Available Facility Types
| Facility Type | Description | Ideal For | Typical Size Range |
|---|---|---|---|
| Flexi Desk | Shared workspace with desk allocation | Startups, freelancers, consultants | Single desk |
| Private Office | Dedicated private office space | Small to medium businesses | 200 - 1,000 sq ft |
| Office Complex | Larger office facilities in business centers | Established companies, corporate offices | 1,000 - 10,000 sq ft |
| Warehouse | Storage and distribution facilities | Trading, logistics, e-commerce | 2,000 - 50,000+ sq ft |
| Light Industrial Unit | Facilities for light manufacturing and assembly | Manufacturing, processing businesses | 5,000 - 20,000 sq ft |
| Heavy Industrial Plot | Land plots for heavy industrial operations | Large-scale manufacturing | 50,000+ sq ft |
| Staff Accommodation | Residential facilities for employees | Companies with large workforce | Variable |
Facility Features and Amenities
🏢 Modern Infrastructure
State-of-the-art buildings with contemporary design, efficient layouts, and professional environments suitable for various business operations.
⚡ Utilities & Services
High-speed internet, reliable power supply with backup generators, centralized air conditioning, and advanced telecommunications systems.
🔒 Security Systems
24/7 security monitoring, CCTV surveillance, access control systems, and professional security personnel ensuring safe business environment.
🚗 Parking Facilities
Ample parking spaces for employees and visitors, with covered and open parking options depending on facility location.
📦 Loading Bays
Dedicated loading and unloading areas for warehouses and industrial units, facilitating efficient logistics operations.
☕ Business Support
Access to meeting rooms, conference facilities, business lounges, and support services like reception and mail handling.
Facility Cost Comparison
Annual Rental Costs by Facility Type
Selecting the Right Facility
Consider these factors when choosing your JAFZA facility:
- Business Nature: Align facility type with your business activities and operational requirements
- Space Requirements: Assess current needs while considering future growth and expansion
- Budget Constraints: Balance facility costs with other setup expenses and operational budgets
- Location Preferences: Consider proximity to port, airport, or specific areas within JAFZA
- Visa Allocation: Larger facilities typically allow more visa allocations
- Flexibility: Some facilities offer flexible lease terms and upgrade options
9. JAFZA vs Other Free Zones
Dubai hosts numerous free zones, each with unique characteristics and advantages. Understanding how JAFZA compares to other prominent free zones helps businesses make informed decisions about the optimal location for their operations. This comparison highlights key differences in benefits, costs, infrastructure, and suitability for various business types.
| Feature | JAFZA | DMCC | DAFZA | IFZA |
|---|---|---|---|---|
| Location | Jebel Ali Port area | Jumeirah Lakes Towers | Dubai Airport area | Dubai Digital Park |
| Primary Focus | Logistics, trading, manufacturing | Commodities, services, trade | Aviation, logistics | Technology, services |
| Setup Cost | AED 45,000 - 75,000 | AED 50,000 - 80,000 | AED 40,000 - 70,000 | AED 15,000 - 30,000 |
| Port Access | Direct (largest port) | Indirect | Indirect | No |
| Airport Proximity | 45 minutes | 30 minutes | 5 minutes | 40 minutes |
| Warehousing Options | Extensive | Limited | Good | Limited |
| Industrial Facilities | Comprehensive | Limited | Available | No |
| Best For | Import-export, manufacturing, large operations | Trading companies, professional services | Aviation-related businesses, logistics | Tech startups, consultants, freelancers |
JAFZA's Competitive Advantages
🚢 Unmatched Logistics
Direct access to Jebel Ali Port, the largest port in the Middle East, providing unparalleled advantages for import-export businesses.
🏭 Industrial Capabilities
Extensive industrial infrastructure supporting light and heavy manufacturing, unavailable in most other free zones.
📦 Warehousing Scale
Largest selection of warehouse facilities in Dubai, from small storage to massive distribution centers.
🌍 Global Connectivity
Strategic position connecting businesses to Africa, Asia, and Middle East markets more effectively than any other free zone.
💼 Established Ecosystem
Mature business environment with 8,000+ companies creating extensive networking and partnership opportunities.
🔧 Comprehensive Services
Full range of business support services, maintenance, and operational support within the free zone.
When to Choose JAFZA
JAFZA is the optimal choice for businesses that:
- Engage heavily in import-export activities requiring port access
- Need warehousing or distribution facilities
- Operate in manufacturing or industrial sectors
- Require large-scale facilities and infrastructure
- Target markets in Africa, Asia, and Middle East
- Plan significant business growth and expansion
- Value established business ecosystems with networking opportunities
For personalized advice on whether JAFZA is right for your business, schedule a consultation with our experts.
For more information on setting up businesses in other Dubai free zones, explore our guides on Hamriyah Free Zone and Dubai Economic Department (DED) mainland companies.
10. Frequently Asked Questions
11. Conclusion
JAFZA stands as a premier destination for businesses seeking to establish operations in Dubai and expand into regional and global markets. With its unparalleled logistics infrastructure, strategic location, comprehensive business support, and attractive free zone benefits, JAFZA offers a compelling value proposition for entrepreneurs and established enterprises alike. The free zone's proven track record, hosting over 8,000 companies from diverse sectors, demonstrates its effectiveness as a business hub.
Whether you're launching a startup, expanding an existing business, or establishing a regional headquarters, JAFZA provides the infrastructure, services, and business environment necessary for success. The combination of 100% foreign ownership, zero tax benefits, world-class facilities, and strategic market access creates exceptional opportunities for business growth and profitability. As Dubai continues to strengthen its position as a global business hub, JAFZA remains at the forefront of this transformation.
Establishing a JAFZA company requires careful planning, proper documentation, and understanding of regulatory requirements. While the process is streamlined and efficient, partnering with experienced business setup consultants ensures smooth registration and optimal structuring of your business. From initial consultation through license issuance and beyond, professional guidance can help you navigate complexities and make informed decisions that align with your business objectives.
Key Takeaways
- JAFZA offers 100% foreign ownership with zero corporate and income tax benefits
- Direct access to Jebel Ali Port provides unmatched logistics advantages
- Comprehensive facility options cater to businesses of all sizes and sectors
- Setup process is efficient, typically completed within 2-3 weeks
- Strong ecosystem with 8,000+ companies creates networking opportunities
- Strategic location enables access to rapidly growing regional markets
- Professional consultation ensures optimal business structure and compliance
The UAE's business landscape continues to evolve with new regulations and opportunities. Staying informed about developments in areas such as VAT compliance and corporate taxation ensures your JAFZA company remains compliant while maximizing available benefits. As you embark on your JAFZA journey, consider these factors carefully and leverage professional expertise to establish a strong foundation for long-term success.
Start Your JAFZA Company Setup Journey Today!
One Desk Solution is your trusted partner for JAFZA company formation. With years of experience and hundreds of successful setups, we provide end-to-end support for your business establishment in Dubai's premier free zone. From documentation to license issuance and beyond, our team ensures a seamless experience.
