UAE offers several advantages such as exemptions to the entities looking to set up a new business in their modest landscape. In addition to the advantages, there is a variety of company types and structures to select from based on the business’s circumstances and objectives. The most popular free zone companies in Dubai are DMCC abbreviated as Dubai Multi Commodities Centre and JAFZA abbreviated as Jebel Ali Free Zone. In this article, we will see the key differences between DMCC and JAFZA free zone companies.
DMCC and JAFZA
DMCC is a free zone authority in Dubai established in 2002. It offers businesses a favorable environment. It includes superlative infrastructure, a strategic site, and a series of incentives. DMCC has registered more than 20,000 companies from across the world. This factor makes DMCC one of the largest and most reckless-growing free zones in the UAE. Whether your domain is linked to trading, IT, or specialized services, DMCC offers a wide-ranging service for businesses of all kinds and sizes to flourish.
Whereas, JAFZA was established in 1985. Also, it has been the host of the largest UAE enterprises. More than 20% of foreign investment and over 50% of the exports from Dubai come from the Jebel Ali Free Zone. JAFZA is now extensively credited with serving as the benchmark for all forthcoming free zones in the Emirate of Dubai, the United Arab Emirates, and the member states of the GCC.
What are the Key Differences Between DMCC and JAFZA?
The prominent Key Differences Between DMCC and JAFZA include;
- Location and Infrastructure
DMCC is located in the heart of Dubai. It provides a dominant position with contemporary facilities and services designed to improve business operations. It also offers access to an advanced office environment, interaction opportunities, and a luxury set-up.
On the other hand, JAFZA is situated near the Jebel Ali Port. It also offers a strategic location for businesses engaged in trade and logistics. JAFZA’s infrastructure provides explicitly to industrial and warehousing requirements. It also highlights its logistical rewards.
- License Types and Business Activities
DMCC offers an array of license types. It includes the licenses regarding trading, service, and industries. Its concentration is on areas like cargo, IT, and financial amenities.
In contrast, JAFZA is focused on industrial, transactions or trading, and logistics events. It also offers several licenses regarding industrial, trading, and warehousing. It makes it perfect for businesses that need extensive storage and distribution conveniences.
- Cost and Fees
DMCC usually partakes in advanced setup and working costs as compared to JAFZA. These costs comprise;
- Initial registration fees
- Office rental
- Ongoing administrative expenses
JAFZA which is being more intensive on manufacturing and logistical companies, provides more cost-effective solutions for businesses demanding huge spaces. The inferior costs in JAFZA can be mainly beneficial for companies that need wide warehousing and industrial services.
- Regulatory and Compliance Obligations
DMCC’s regulatory framework is planned to assist a comprehensive range of business activities. Auch activities must have a focus on high standards of compliance and corporate governance. It offers strong support for domains like financial amenities and commodities trading.
On the other hand, JAFZA has a regulatory atmosphere personalized for logistics and manufacturing businesses. It has a more efficient compliance process for industrial and warehousing operations. It also potentially reduces administrative hurdles.
Conclusion
Selecting between DMCC and JAFZA now depends on the requirements of businesses in the UAE or foreign ones looking to set up in the UAE. DMCC is perfect for companies looking for significantly easier access to an advanced business environment, chiefly in financial services, commodities, and IT domains. On the other hand, JAFZA is well suited for businesses absorbed in the market of industrial, logistics, and trade. It is very beneficial because of its strategic closeness to Jebel Ali Port and profitable infrastructure. Farahat & Co. is one of the top DMCC-approved auditors in UAE that helps businesses handle the complications regarding any corporate domain. their team can help you to streamline the process of setting up in DMCC or JAFZA as per your needs.
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