- Osome Blog UAE
- AFZA Company Formation Cost
JAFZA Company Formation Cost: Setup and Ongoing Fees
- Published: 11 October 2026
- 9 min read
- Taxes & Compliance
Ruth Dsouza
Author
Ruth Dsouza Prabhu is a content developer passionate about turning ideas into clear, compelling narratives. Drawing on her experience in marketing communications and lifestyle writing, she makes complex business topics understandable for UAE entrepreneurs. Her work spans strategy, storytelling, and thought leadership, delivering content that is both credible and impactful. Ruth’s articles empower business owners to gain actionable insights, make informed decisions, and confidently navigate their entrepreneurial journey.
Shahla Mohammad
Reviewer
Shahla Mohammad is a Senior Accountant at Osome, bringing extensive experience in financial reporting, bookkeeping, and compliance. She supports UAE businesses with accurate financial management and clear guidance on regulatory requirements. With a detail-oriented and practical approach, Shahla helps entrepreneurs maintain strong financial foundations, ensure compliance, and make informed decisions to support sustainable growth.
Patrisha Dsouza
Reviewer
Patrisha Dsouza is the Head of Sales at Osome, with 9 years of experience driving business growth in the UAE. She has supported numerous entrepreneurs in identifying and implementing the right solutions to meet their business needs. With a strong understanding of client challenges and growth goals, she provides practical insights that bridge business strategy and financial services. Patrisha combines leadership experience with a customer-focused approach, helping business owners make confident, informed decisions at every stage of their journey.
Deepti Laddha
Reviewer
Deepti Laddha is Head of Corporate Operations at Osome, bringing a decade of experience and extensive knowledge of corporate services. She supports our business writers in creating insightful and engaging content for UAE entrepreneurs, helping transform complex definitions, concepts, and corporate jargon into clear, practical guidance. Deepti’s expertise helps business owners better understand their requirements and make informed decisions as they grow.
JAFZA company formation costs start from AED 58,500 for a Service Licence and rise to AED 73,178 for a Trading Licence. Jebel Ali Free Zone (JAFZA), one of the UAE's largest freezones and home to Jebel Ali Port, prices its licences well above most other UAE freezones for one specific reason: every package bundles a mandatory office facility and a minimum of two visas. This article breaks down what a JAFZA setup actually costs in Year 1, what changes as you grow, and where a leaner freezone could save you tens of thousands of dirhams if your business doesn't need what JAFZA's price is really paying for.
Key Takeaways
- Every JAFZA licence bundles a mandatory office facility and two visas, which is why prices run three to four times higher than facility-free freezones like RAKEZ or IFZA.
- Facility size sets your visa ceiling. JAFZA allocates one visa per 9 sq m of leased space, so growing your team means growing your rent.
- Comparing a like-for-like setup against a leaner free zone before you commit can reveal a Year 1 cost gap of over AED 43,000, if your business doesn't need JAFZA's port and warehousing.
What Does a JAFZA Company Cost to Set Up?
A JAFZA licence starts from the following, based on current published pricing:
Licence type | Starting price (includes workstation and 2 visas) |
|---|---|
| Service Licence | AED 58,500 |
| General Trading Licence | AED 68,500 |
| Logistics Licence | AED 70,500 |
| Trading Licence | AED 73,178 |
These figures already include the mandatory facility and the first two visas, since JAFZA doesn't sell a licence on its own. On top of the starting price, budget for the Compute Immigration Card (CIC), a mandatory AED 2,000-a-year fee for every JAFZA company, and for visa stamping, medical testing, and Emirates ID costs for each visa holder, which aren't always bundled into the headline price.
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What Do JAFZA Packages Include and Leave Out?
Here’s a look at what setting up in JAFZA includes. Being aware of what is not is equally important.
Typically included | Typically not included |
|---|---|
| The trade licence | Visa stamping, medical testing, and Emirates ID per holder |
| The mandatory workstation or facility lease | The annual AED 2,000 CIC fee |
| A minimum of two visas | Mandatory health insurance per visa holder |
| Additional facility space beyond the minimum | |
| Bank account opening support and document attestation | |
| Accounting, bookkeeping, and audit support | |
| VAT and Corporate Tax registration and filing |
The gap between the starting price and what you'll actually pay is wider at JAFZA than at facility-free freezones, mainly because the mandatory office opens the door to genuine upgrades, a bigger unit, warehouse space, or more visas, that a workstation-only quote doesn't capture.
How Much Does Facility Space Cost, and How Does It Scale?
JAFZA's smallest facility is a workstation, starting from AED 33,600. It's mandatory, and there's no licence-only alternative at any price. A workstation gets you 5 to 7 sq m of leased space, a desk, a chair, and shared utilities.
Every 9 sq m you lease unlocks one visa allocation. A founder wanting a five-person team needs to budget for roughly 45 sq m of space, not just five visa fees. Larger office units and pre-built warehouses are priced separately by size and specification, for businesses that need real storage or industrial capacity rather than a minimum-compliance setup.
Model your visa needs for the next two years before you lease. Upgrading facility size later usually costs more than leasing slightly ahead of your headcount.
Who Gets the Most Value From JAFZA's Price, and Who Doesn't?
Here is a look at how it plays out.
Business type | Cost-efficiency | Why |
|---|---|---|
| Trading and logistics businesses needing warehousing | Strong | The mandatory facility is an asset you'd pay for elsewhere anyway |
| Manufacturers needing import and export infrastructure | Strong | Port-adjacent industrial space would cost extra at a non-port free zone |
| Consultants, fractional professionals, and service-only founders | Weak | You're paying AED 58,500-plus for office space and two visas you may not use |
| Solo founders wanting the lowest entry cost | Weak | A facility-free freezone can offer similar ownership and tax treatment for a fraction of the price |
A worked example: a two-visa trading company setting up at JAFZA starts from AED 68,500 for the General Trading Licence package. The same two-visa setup at RAKEZ, based on Osome's own internal pricing, comes to roughly AED 18,010 for the licence and visas, or AED 24,810 including a year of accounting. That's a gap of over AED 43,000 in Year 1. If your business genuinely needs Jebel Ali Port access, that gap buys you warehousing and logistics infrastructure you'd otherwise pay for separately. If it doesn't, it's cash you could keep in the business instead.
Match your Osome accounting plan to how JAFZA actually runs, not just your revenue — trading businesses often need more filing and payroll support earlier than the entry-level plan covers.
How Long Does JAFZA Incorporation Take?
JAFZA's process runs through four stages, and the middle two are where timelines vary:
- Application submission, including the application form, an environmental and safety form, company profile, and passport copies.
- Provisional approval, valid for three months once granted.
- Facility booking and sales offer acceptance, which only happens after provisional approval comes through.
- Licence issuance, once the facility is confirmed and paid for.
Because facility booking sits in the middle of the process, incorporation can take longer than at a facility-free free zone if the space you want isn't immediately available. Confirm facility availability early rather than assuming it slots in after the paperwork is done.
What Do Banking Costs Look Like for a JAFZA Company?
Banking itself carries no JAFZA-specific fee, but a few line items around it do: document attestation, bank application support, and a minimum balance requirement that most UAE business banks set between AED 10,000 and AED 100,000, depending on the bank and account tier. A small number of digital banks offer zero-minimum-balance business accounts. JAFZA's scale and long track record among UAE banks can smooth account approval, but it doesn't reduce these standard costs.
What Are the Ongoing Tax and Compliance Costs?
The biggest recurring cost most founders underestimate is the mandatory annual audit. Every JAFZA company, regardless of size or turnover, needs an approved auditor and a submission within 90 days of year-end, as a licence renewal condition. Audit fees vary by provider and company complexity, so get a quote early rather than assuming it's a minor line item.
Selling to UAE mainland customers also has a cost implication worth planning for. If mainland revenue stays under the de minimis threshold (the lower of AED 5 million or 5% of total revenue), a JAFZA company can typically keep its Qualifying Free Zone Person status. Cross that threshold, and the mainland-linked portion of income is taxed at the standard 9% rate.
Recurring cost | What drives it |
|---|---|
| Annual audit | Fee varies by provider and company complexity |
| Corporate Tax filing | 9% above AED 375,000 taxable income, 0% if Qualifying Free Zone Person conditions are met |
| VAT filing | Mandatory once turnover crosses AED 375,000 |
| Licence and CIC renewal | AED 2,000 a year for the CIC, plus the licence renewal fee |
| Visa renewals | Per visa holder, on their individual renewal cycle |
As of 2026, one upcoming cost to plan for: the UAE's e-invoicing mandate begins its voluntary pilot on 1 July 2026, becomes mandatory for businesses with AED 50 million or more in annual revenue from 1 January 2027, and extends to all VAT-registered businesses from 1 July 2027. Companies above the threshold will need an Accredited Service Provider subscription alongside existing compliance costs.
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What Hidden Costs Should You Budget For?
A few costs catch founders off guard specifically because JAFZA's headline price looks all-inclusive:
- Scaling your team scales your lease, not just your visa fees, because of the 9 sq m per visa rule.
- Health insurance is mandatory for every visa holder, starting from around AED 600 to 800 a year for the cheapest plan, and isn't included in the licence package.
- The audit applies from day one, even to a two-person company that would face no audit requirement at a leaner free zone.
- Renewal costs about as much as setup, since the facility lease and licence fee both recur on the same basis each year. A flat AED 1,000 fine applies if you renew late.
- Facility booking can extend your timeline if the space you want isn't available immediately.
- Some nationalities require pre-approval before incorporation, at an additional cost and without a guaranteed outcome, a UAE-wide requirement that's easy to miss when budgeting.
How Osome Can Help
Setting up is only the first cost decision. Once the company is live, the audit requirement, VAT and Corporate Tax filings, and the incoming e-invoicing mandate all need ongoing budget and attention. Osome supports JAFZA companies with bookkeeping, tax registration and filing, and audit-ready record keeping, so the numbers are ready when the deadlines are. If you're still weighing JAFZA against a leaner free zone, Osome can also model the real cost difference against your specific visa and space needs.
Summary
JAFZA's price is higher because the package is genuinely bigger: a facility, a visa minimum, and infrastructure most freezones don't offer at any price. That's a fair trade if your business will use the warehousing and port access. If it won't, run the same two-visa comparison against a leaner free zone before you sign. The gap in this article was over AED 43,000 in Year 1 alone.
Ruth Dsouza Prabhu is a content developer passionate about turning ideas into clear, compelling narratives. Drawing on her experience in marketing communications and lifestyle writing, she makes complex business topics understandable for UAE entrepreneurs. Her work spans strategy, storytelling, and thought leadership, delivering content that is both credible and impactful. Ruth’s articles empower business owners to gain actionable insights, make informed decisions, and confidently navigate their entrepreneurial journey.
