Dubai Airport Freezone (DAFZA), a world-famous free zone situated close to Dubai International Airport, has an attractive business environment for entrepreneurs and multinational corporations. Moreover, this free zone is the number one place to start a business in Dubai, where entrepreneurship and the development of all industries are encouraged by world-class facilities and a strategic location. In this article, we’ll discuss the DAFZA company setup in detail, including its benefits, required documents, and more!
What is Dubai Airport Freezone (DAFZA)?
Dubai’s Airport Freezone, known as DAFZA, which was founded in 1996, is a dynamic business destination located at the hub of global trade. Conveniently linked directly to Dubai International Airport, the world’s busiest airport for international travel, DAFZA is a key entry point for the Middle East, facilitating easy transfer to Europe, the Indian Subcontinent, and the Far East. Today, it accommodates more than 3,000 registered businesses from over 20 sectors with over 20,000 professionals. Any investors organising a company in a free zone can enjoy the tax-free facilities under a VAT-exempted Free Zone.
Why Should One Choose Dubai Airport Free Zone for Business Setup?
Starting a business in Dubai Airport Free Zone (DAFZA) is unbeatable in terms of benefits and is, therefore, one of the most preferred free zones in the UAE. Entrepreneurs and investors seeking DAFZA company formation in Dubai can leverage world-class facilities, a strategic position and a friendly regulatory framework for businesses. Now let’s find out why DAFZA company setup in Dubai is a good idea:
- Strategic Location
Business setup in the DAFZA free zone offers companies a business centre at the heart of Dubai. The location of the free zone is strategically placed to be a gateway to the Middle East, Africa and Asia’s markets and, in turn, boosts international trade and expands business enterprises.
- Du Ibwiinaa Dubai International Airport (DXB)
One of the greatest benefits of company formation in DAFZA in Dubai is proximity to Dubai International Airport. Such shortness of connectivity aims at a smooth global connectivity, making logistics and supply chain management very effective for those businesses that are involved in import, export, and re-export.
- World-Class Infrastructure
While seeking a license in Dubai Airport Free Zone (DAFZA), entrepreneurs get exposed to twenty-first-century office space, up-to-date warehousing options and high-class facilities for business. The free zone creates a dynamic environment to accommodate a variety of different industries, including IT, logistics, aviation, pharmaceuticals and manufacturing.
- Extensive Cargo Handling Facilities
Administration of the DAFZA company in Dubai is suitable for trade and logistics businesses. The free zone is provided with the best cargo handling facilities, which will make the shipment handling process smooth and fast. This makes the company more efficient in terms of international shipping and distribution.
- Comprehensive Digital Onboarding & Setup
The ease of digital onboarding in the Dubai Airport Free Zone (DAFZA) is further enhanced by the cost of the license. A simplified registration process is a boon to entrepreneurs who enjoy lighter paperwork and easy, quick renewal of the DAFZA company license.
- 100% Foreign Company Ownership
One of the significant advantages of business setup in the DAFZA free zone is full foreign ownership. Thus, there is no need for a local sponsor, which means complete control of the business.
- 100% Capital & Profit Repatriation
Under company formation in Dafza Dubai, investors have maximum capital repatriation and repatriation of profits, which affords financial flexibility and security.
- No Currency & Employment Restrictions
Unlike other jurisdictions, the DAFZA company, which was set up in Dubai, has no currency restriction, which means businesses are able to transact in any global currency. Also, companies are free to engage the services of employees from all corners of the world without limitations.
- No Corporate & Income Tax
Business people who obtain a license in Dubai Airport Free Zone (DAFZA) have at their disposal a tax-free environment with maximum profitability due to a zero corporate and personal income tax obligation.
By teaming up with the Xpert Advisory business setup consultant in Dubai, you can move through the DAFZA company setup process smoothly and effectively. Whether you want to launch a new enterprise or renew your DAFZA company license, DAFZA is an ideal choice for enterprising-minded people.
Required Documents for Company Formation in DAFZA
The process of business setup in DAFZA is rather simple, but one should provide the correct set of documents for the approval process. Whether you are interested in DAFZA company registration in Dubai, updating your DAFZA company license, or just wanting to receive a license in Dubai Airport Free Zone (DAFZA), you have to be prepared for paperwork.
In order to have a smooth company formation in Dubai Airport Free Zone, you will have to present the following documents:
- Application Form – Completed DAFZA company registration form indicating license type and business activities.
- Business Plan – A Condensed description of your business goals, target market and operational set-up.
- Visa Copy & Entry Stamp – If applicable, copies of the UAE residence visa and entry stamp of the shareholders and managers. Copies of passports of all shareholders, directors, and managers in the company.
- Specimen Signatures – Samples of signatures by all authorised signatories, earth-holding shareholders, and managers.
- Bank Reference Letter – A certificate from the shareholder’s or company’s bank regarding their viability.
- Memorandum & Articles of Association (MOA/AOA) – Required for specific business structures to articulate the company’s operational framework.
- Board Resolution – This is a board resolution which will allow the corporate shareholders to approve the establishment of a branch or subsidiary in the DAFZA company setup in Dubai.
- Power of Attorney (if applicable) – In case an external representative of the company initiates the company formation process.
- Office Lease Agreement – Certificate of office premises in Dubai Airport Free Zone (DAFZA), required for registration.
There can be other approvals depending on the type of your business and the licensing fees in Dubai Airport Free Zone (DAFZA). To make the process easy and to make sure that everything submitted is duly placed, contact Xpert Advisory, the best business setup consultant in Dubai, for help.
PRO Facilities for Business in DAFZA
Dubai Airport Free Zone (DAFZA) is an internationally renowned business hub with vast facilities that are suited to assist businesses from all industries. Whether you are seeking DAFZA company formation in Dubai or DAFZA company setup in Dubai, such amenities defined by state-of-the-art facilities improve business operation and development.
- Premium Office Spaces
DAFZA offers contemporary and fully equipped office spaces that reflect different business needs. These offices have high-speed internet, meeting areas, and premium support services for a smooth business operation.
- Advanced Warehousing & Logistics Solutions
For the importers, exporters and re-exporters of goods, DAFZA provides high-quality warehouses and storage units that guarantee safe and efficient cargo handling. The large containers handling facilities allow for smooth logistics operations surrounding Dubai International Airport (DXB).
- Conference & Meeting Rooms
DAFZA has professional meeting and conference rooms with the latest technology to ensure easy hosting of business meetings, presentations and networking events.
- Retail & Commercial Zones
The desire of entrepreneurs and investors to have their businesses covered by specialised retail spaces, shopping centres, and commercial districts in DAFZA facilitates convenient access to products and services.
- Banking & Financial Services
DAFZA’s business users have access to the best financial institutions and services in banking, meaning transactions, corporate banking, and even the management of financials become smooth.
- Accommodation & Lifestyle Amenities
DAFZA provides accommodation options and leisure and entertainment facilities for companies seeking a license in Dubai Airport Free Zone (DAFZA) and need to move employees.
- Visa & Immigration Assistance
DAFZA offers hassle-free visa sponsorship and immigration assistance, facilitating the smooth onboarding of employees and investors.
How to Open Your Company in DAFZA?
DAFZA business setup is a simple process that enables entrepreneurs and investors to set up their businesses smoothly and easily. No matter whether you search for Dubai Airport Free Zone company formation or DAFZA company license renewal, these three easy steps will help you to set up your business effectively:
Step 1: Choose Your Business License
The first step to get a license in Dubai Airport Free Zone (DAFZA) is choosing the right business license according to your operations. DAFZA presents a wide range of licences that are as follows:
- Trade License – For operations in import, export and re-export of goods. Perfect for firms conducting international trade.
- Service License – Applicable to consultancy / legal, IT / professional service companies.
- Industrial License – For businesses that manufacture, produce, and assemble something.
- General Trading License – Unlimited license to trade in several product categories using a single permit.
- Dual License with DED – The license under which a business can operate both inside the DAFZA and Dubai Mainland under the Dubai Economic Department (DED).
- Talent Pass License – A freelancer certificate that is reserved for professionals in the creative, media and technology fields.
Step 2: Choose Your Company Type
After settling on the right license, the next step in setting up a DAFZA company in Dubai is choosing your company structure. The available options are:
- Free Zone Company (FZC) – Companies that have at least two but not more than 50 shareholders.
- Public Limited Companies (PLC) – An adaptable legal structure that enables larger companies to do business in the UAE.
- Branch of a Foreign Company – Enables international companies to have their presence in Dubai Airport Free Zone (DAFZA), without the need for a separate legal entity.
Step 3: Choose Your Space
The last step in company formation within the free zone in Dubai is finding proper business premises. DAFZA offers a variety of facilities suitable for different business purposes:
- Office Space – A class of premium offices with world-class infrastructure to accommodate business operations.
- Warehousing & Industrial Space – Perfect for logistics, storage and manufacturing firms.
- Cold Storage – Specialised purposes of businesses that trade in perishable goods, pharmaceuticals and food products.
By doing so, you can easily complete setting up your DAFZA company in Dubai. For expert advice and to reduce the fees on the license in Dubai Airport Free Zone (DAFZA), seek Xpert Advisory business setup consultant in Dubai to make sure that your registration will go smoothly and hassle-free.
DAFZA Company Setup Costs
A lot of fees apply if you are to set up a business in the Dubai Airport Free Zone (DAFZA). The incorporation cost can differ from one another by the type of company you wish to establish, as well as the scale and range of your business. Other current prices include trade license fees, visa fees, and office rentals.
1. DAFZA Business License Cost
The price of a Dubai Airport Free Zone license depends on the business you intend to start. For example, a trade license will be charged at AED 3,000 for 1 year, and an industrial license will be charged at AED 10,000* for 1 year.
A professional license is priced based on what you wish to do (professionally). For example, a consultant license experienced will cost AED 5,000* for 1 year.
2. Visa Cost
The price for a DAFZA visa varies depending on the type of visa needed. For instance, a single–entry visa is valued at AED 1,000* while a multiple-entry visa for business receives AED 5,000*. Please note that the prices above are tentative, and the exchange rate may alter them.
3. Warehousing Cost
On warehousing and storage in the UAE, DAFZA is offering some of the most competitive rates in the market. Our team will assist you in finding the ideal solution for your business, either for short-term or long-term storage.
4. Freezone Company License Renewal
The renewal of your license within DAFZA will be dependent on the type. Below are the normal renewal fees for a DAFZA trade license.
- Type A License (General Trading): AED 8,000*
- Type B License (Industrial License): AED 4,000*
- Type C License (Service License): AED 2,500*
Final Words
DAFZA company setup offers numerous benefits such as an ideal location, the highest infrastructure in the world, and 100% foreign ownership. The zone serves different industries such as logistics and e-commerce, professional services, and manufacturing, thus helping entrepreneurs find the best fit for their business. Although the costs of the setup, like the cost of the license fee, renting an office, and even the visa quotas, may differ, the value in tax exemptions and easy access to the Dubai Airport free zone authority makes the idea profitable.
Xpert Advisory is your reliable advisor for facilitating the DAFZA company formation and business start-up process. If you want help selecting the appropriate form of license, or the company structure or office space, we provide expert consultation throughout the process. So, contact us now to make your business dreams come to life in the centre of Dubai.
FAQs
Are Companies or Individuals in DAFZA Taxed for Corporate or Income Tax?
Companies and individuals operating business in DAFZA pay no corporate tax and personal income tax. Tax-free status is one of the biggest benefits that make DAFZA a preferred destination for business setup in Dubai.
What Kinds of Companies Can Be Registered in DAFZA?
DAFZA permits the establishment of Freezone Companies (FZCO) and Public Limited Companies (PLC) as well as branches of foreign companies, providing latitude in both startups and multinational corporations.
How Many Shareholders are Required for Business Setup in DAFZA?
To setup a company in DAFZA, you need one shareholder at a minimum. Under the free zone, there is provision for up to 50 shareholders, which makes this a flexible option for both single owners and corporate partnerships.
