If your business depends on moving, storing or distributing goods, location has a direct effect on operating costs. That is one reason Jebel Ali Free Zone, better known as JAFZA, attracts logistics companies.
JAFZA sits next to Jebel Ali Port and forms part of DP World's wider trade network. The free zone currently reports more than 650 companies in its logistics and supply-chain sector, with 3.85 million square metres of combined logistics facilities. For a freight forwarder, 3PL provider, distributor or warehousing operator, this puts ports, storage facilities, customs services and major road links in the same business district.
This guide explains how a JAFZA logistics company setup works, what licence you need, the documents involved and the costs you should plan for.
What Is a JAFZA Logistics Licence?
JAFZA has a dedicated logistics licence for companies providing logistics and supply-chain services. According to the official JAFZA logistics licence guide, permitted services can include storage, transportation, distribution, sorting, forwarding and clearing, order management and inventory management.
Depending on your approved activities, your business may cover services such as:
Freight forwarding
Warehousing
Cargo handling
Distribution
Container storage
Inventory management
Order fulfilment
Packing and unpacking
Transport agency services
Customs-related logistics services
You should confirm the exact activity codes before applying. A company offering freight forwarding, for example, may have different approval requirements from a business that simply stores goods for clients.
In a 30-minute call we map your situation against jurisdiction, activity and cost — no commitment required.
Why Do Logistics Companies Choose JAFZA?
The main advantage is practical access to cargo infrastructure. JAFZA operates beside Jebel Ali Port and connects with Dubai's road network, Al Maktoum International Airport and the wider UAE logistics corridor. JAFZA describes its setup as a sea, land and air corridor within a customs-bonded environment. That can work particularly well if your company imports containers, stores inventory and later distributes or re-exports the goods.
You also have several property options. JAFZA offers standard warehouses, industrial warehouses, light industrial units, cold-storage facilities, offices and development land. Existing warehouse units with office space range from roughly 313 to 670 square metres, while industrial warehouse options start from around 543 square metres.
Larger operators can lease land and build their own facility. JAFZA currently states that infrastructure-ready plots start from 5,000 square metres, with annual land rent starting at AED 40 per square metre.
Which Company Structure Can You Choose?
Your ownership structure determines the legal form.
Structure | Suitable For |
FZE | One individual or corporate shareholder |
FZCO | Two or more shareholders |
Branch | An existing UAE or foreign company expanding into JAFZA |
An FZE has one shareholder. An FZCO can have multiple shareholders and JAFZA currently permits between 2 and 50 shareholders for this structure.
A branch may make sense if you already run a logistics company abroad and want the Dubai operation to remain legally attached to the parent company.
You can also read Nexture's guide to FZCO structures in the UAE if several partners or corporate shareholders will be involved.
Documents Required for a JAFZA Logistics Company
The final document list depends on the shareholders and activities, but a standard application usually includes the JAFZA application form, Environment, Health and Safety form, project summary or business plan, KYC information, UBO details and passport copies of shareholders and appointed officers.
Corporate shareholders usually need additional documents such as a certificate of incorporation, constitutional documents and a board resolution approving the JAFZA company. Foreign corporate documents may need notarisation and UAE attestation.
JAFZA can also ask for documents proving that your company is qualified to provide the proposed logistics services. For some activities, supporting registration or approval from Dubai Customs or another government body may be required.
How to Set Up a Logistics Company in JAFZA
- Define your logistics activities
Start with what your company will actually do.
Do you plan to provide warehousing only? Freight forwarding? Customs brokerage? Last-mile distribution? A full 3PL service? This affects the licence, facility and outside approvals.
- Choose the legal structure
Select an FZE, FZCO or branch based on your shareholders and existing corporate structure.
- Apply to JAFZA
Submit your expression of interest and complete the application sent by JAFZA.
Applications go through an evaluation and security-screening process. JAFZA also requires every new company formation to have an appropriate leased facility.
- Select your facility
Your premises should match your operation. A forwarding company may need an office and warehouse. A large 3PL business may require several loading bays and significant storage capacity. Cold-chain operators will need suitable temperature-controlled facilities.
Avoid taking more space than your first-year operation needs. Warehouse rent can quickly become one of your largest fixed expenses.
- Submit documents and approvals
Provide shareholder, corporate, KYC, UBO and operational documents. If the selected activity needs an NOC or approval from another authority, complete that stage before final issuance.
- Pay the fees and sign the lease
Once approved, complete the registration, licence and facility payments and sign your lease.
- Complete post-licensing registrations
Once your licence is active, you may need Dubai Customs registration, immigration establishment services, employee visas and corporate tax registration. JAFZA companies also use the Dubai Trade portal for many ongoing services.
JAFZA Logistics Company Setup Cost
There is no single all-inclusive price because logistics businesses vary significantly in size. Current official JAFZA fees provide a useful starting point:
Cost Item | Indicative Amount |
Company registration | AED 5,000 one-time |
Logistics licence | AED 15,000 annually |
Warehouse or facility | Depends on size and type |
Employee visas | Depends on number and visa term |
Customs and external approvals | Depends on activities |
Fit-out and operating equipment | Depends on business model |
JAFZA's current published fee information lists the logistics licence at AED 15,000 per year, while the company registration fee is AED 5,000.
So you should not plan your budget around AED 20,000 alone. A working logistics company normally needs premises, insurance, visas, equipment, banking, technology and potentially vehicles or specialised storage. Request a complete first-year estimate before signing your facility lease.
We’ll model the requirements and send back a single-page breakdown within 24 hours.
Dubai Customs Registration
If your company will process customs transactions, you will normally need to register with Dubai Customs and obtain a Customs Business Code. Dubai Customs currently lists the business registration fee at AED 100, plus the applicable AED 20 Knowledge and Innovation fee, with a stated service completion time of one working day.
Your valid trade licence, authorised person's passport and Emirates ID are among the listed requirements.
Businesses providing customs brokerage services can face additional approval requirements. If you plan to operate your own road freight vehicles, check whether the relevant RTA commercial transport permits apply to your exact transport activity.
Nexture's UAE import-export licence guide provides more detail on customs registration and cross-border trading requirements.
Corporate Tax and VAT for JAFZA Logistics Companies
Free zone status does not automatically make every company's income tax-free.
Under the current UAE free zone corporate tax framework, logistics services remain a Qualifying Activity. Ministerial Decision No. 229 of 2025 specifically includes storage and transportation of goods for another person, cargo handling, warehousing, freight forwarding, inventory management and related logistics services.
A company that meets the Qualifying Free Zone Person conditions can receive a 0% corporate tax rate on Qualifying Income, while taxable income that does not qualify can be subject to 9%. Conditions include adequate substance and compliance with the applicable qualifying-income and transfer-pricing rules.
Jebel Ali Free Zone North-South is also listed by the Federal Tax Authority as a VAT Designated Zone. This does not mean every transaction is VAT-free. The VAT treatment depends on the goods, transaction and movement involved.
Is JAFZA Right for Your Logistics Business?
JAFZA makes the most sense when physical cargo is central to your business. A 3PL company, regional distributor, freight forwarder, e-commerce fulfilment operator or international logistics group may benefit greatly from being close to Jebel Ali Port. A small logistics consultancy with no warehouse, vehicles or cargo operations may find a simpler free zone more cost-effective. Before choosing JAFZA, compare the full operating model rather than the licence fee alone.
Conclusion
A JAFZA logistics company setup gives you access to one of Dubai's largest trade and distribution districts, with dedicated logistics licensing, warehouses, customs infrastructure and direct proximity to Jebel Ali Port.
The standard logistics licence currently costs AED 15,000 annually, with a separate AED 5,000 company registration fee. Your actual investment will depend far more on the facility you choose, your workforce, external approvals and the type of logistics services you provide.
Get the activities right first. Then confirm the facility, customs requirements and tax position before you commit to the setup. That approach gives you a much clearer first-year budget and reduces the chance of paying for permissions or space your business does not need.
Frequently Asked Questions
How much does a JAFZA logistics licence cost?
JAFZA currently lists its logistics licence at AED 15,000 per year. Company registration and facility costs are separate.
Can a foreigner own a logistics company in JAFZA?
Yes. JAFZA permits foreign ownership of free zone companies. You can establish an FZE with one shareholder or an FZCO with multiple shareholders.
Do I need a warehouse for a JAFZA logistics company?
It depends on your approved activities and operating model. Businesses handling physical storage or distribution will generally require suitable premises. JAFZA requires an appropriate leased facility as part of company formation.
Can a JAFZA company provide freight forwarding services?
Yes. Freight forwarding falls within the types of services covered by JAFZA's logistics licence, subject to the approved activity and any related government requirements.
Is a JAFZA logistics company eligible for 0% corporate tax?
Potentially. Logistics services are listed as a qualifying free zone activity under the current corporate tax rules. The company must still meet the Qualifying Free Zone Person conditions and the income itself must qualify for the 0% rate.
