Aras Free Zone is located in Northwestern Iran at the zero point of the border  neighboring Armenia, Azerbaijan and Autonomous Republic of Nakhchivan. According to the Decree No. 20708/T/530820 dated 28 June 2005 of the Board of Ministers, the area of Aras Free Zone included 9,700 hectares of the lands of the region. This area was expanded on 4 December 2008 to 51,000 hectares based on the new decree of this Board, including some parts of Julfa and Kaleibar Towns. This approved area in the attached part has increased the main district from 9,700 hectares to 20,500 hectares, and in three detached parts makes up totally 51,000 hectares of entire Aras Free Zone including a part of the Kaleibar city with the area of 24,000 hectares (called Gholi Beig Lou) and the vicinity of Khodafarin Dam with the area of 6,100 hectares as well as the district of Nurduz Customs (Iran-Armenia border) with the area of 240 hectares.

The city of Jolfa is located in the northwest of East Azerbaijan Province, between 45°17′ to 46°31′ of eastern longitude and 38°39′ to 39°2′ of northern latitude as a narrow strip on the northern border of the Province. It ends up from the north to Aras River, Republics of Armenia, Nakhchivan and Azerbaijan. The area of this city is 1670.31 sq. km and the city of Kaleibar is located in the eastern part of this town and the cities of Marand and Ahar are considered its southern neighbors. Averagely, the width of the city is 17 km and its length is 100 km. Jolfa is the capital city and is located 135 km away from northwest of Tabriz and 65 km from north of Marand. In terms of the area, Jolfa is considered among the small towns of the Province and with an area of 1670.31 sq. km only covers %3.4 of the total area of the Province and in this regard stands at the twelfth place.

The central district of the city of Jolfa includes Shoja and Arasi municipalities. The city of Jolfa is located in the geographic district of Shoja municipality and Hadishahr city is located in the geographic district of Arasi municipality. In terms of political divisions, the town has two districts namely the Central and Siahroud districts as well as five villages namely western Dizmar, Noje Mehr, Arasi, Daran and Shoja. Based on 2004 census, the number of inhabited villages of the city of Jolfa is estimated as 73,219.