In Q4 of 2024, Onecentive proudly became an official partner of Jebel Ali Designated Zone (JAFZA) and Dubai Airport Free Zone Authority (DAFZA). Leveraging this strategic alliance, we successfully facilitated the establishment of five companies within these zones—each aiming to position itself for growth while maximizing the benefits of the UAE’s tax-friendly regime.

This milestone underscores the rising appeal of Designated Zones for businesses seeking operational efficiency and financial advantages. Let’s explore why registering in these zones is a game-changing decision.

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1. Corporate Tax Benefits through QFZP Certification

The Qualifying Free Zone Person (QFZP) status is a crucial incentive for companies operating in UAE Designated Zones. Businesses that meet the eligibility criteria can benefit from a 0% Corporate Tax rate on Qualifying Income, enabling them to retain higher profits.

To qualify as a QFZP, companies must:

• Maintain adequate substance in the Designated Zone (e.g., offices, staff, and operations).

• Conduct eligible activities, including manufacturing, trading, warehousing, and logistics.

• Ensure transactions are limited to outside the UAE or within other Designated Zones.

• Comply with UAE’s economic substance requirements (ESR) and transfer pricing rules.

This tax framework ensures that companies remain competitive, cost-efficient, and well-positioned for expansion across global markets.

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2. VAT and Customs Duty Advantages

Designated Zones are treated as being outside the UAE territory for Value-Added Tax (VAT) purposes, making them ideal for businesses engaged in international trade and re-export activities.

VAT Exemptions:

• Import and export transactions within the Designated Zone and between other Designated Zones are VAT-free.

• Goods and services provided within the zone are often treated as outside the VAT scope, lowering operational costs.

Customs Duty Relief:

• 100% customs exemption on imports and exports within the zone.

• Goods can be stored, manufactured, or assembled in the zone without incurring customs duties, promoting supply chain efficiency.

These incentives make Designated Zones particularly attractive for logistics hubs, manufacturers, and traders looking to optimize operations.

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3. Strategic Location for Trade and Logistics

Designated Zones like JAFZA and DAFZA offer direct access to key transportation hubs, including airports, seaports, and logistics corridors. This makes it easier for businesses to streamline distribution networks and cater to global markets effectively.

For example:

• JAFZA, located near Jebel Ali Port, connects businesses to over 150 ports worldwide.

• DAFZA, adjacent to Dubai International Airport, provides fast-track access to international markets, making it ideal for time-sensitive operations.

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Why Onecentive?

At Onecentive, we specialize in helping businesses unlock the full potential of UAE’s Designated Zones. From company formation to securing QFZP status and ensuring compliance with tax regulations, our expertise streamlines the process for businesses looking to expand their footprint in the region.

With our proven track record in successfully establishing companies, we continue to empower businesses to benefit from the UAE’s tax-friendly ecosystem and global trade infrastructure.

UAE Designated Zones, particularly JAFZA and DAFZA, offer unmatched advantages for businesses, including 0% Corporate Tax, VAT exemptions, and customs duty relief. Whether you are a startup or an established enterprise, these zones provide the perfect foundation for growth and international expansion.

Contact Onecentive today to explore how we can help your business thrive in UAE Designated Zones!

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