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Dubai Airport Free Zone (DAFZA) Guide

Dubai houses more than 40 Free Zones, but only a few command the prestige and tactical advantage of DAFZA or the Dubai Airport Free Zone. Set up in 1996 and situated adjacent to DXB, one of the busiest airports globally, this Free Zone is the preferred hub in the sectors of logistics, aviation, pharmaceuticals, as well as high-value trade. 

For foreign investors and entrepreneurs, the Dubai Airport Free Zone provides a gateway to the Middle East as well as the Europe and Asia regions. However, navigating through its regulations, tiers of licensing, and compliance mandates can be a complicated task. Our detailed guide encompasses every important detail about DAFZA, right from the types of licenses to the process of company setup. Let us begin:

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Dubai Airport Free Zone (DAFZA): What is It?

DAFZA is one of the United Arab Emirates’ most advanced premium free zones. It houses more than 3,300 registered business entities as well as 20,000+ working professionals. It runs under the DIEZ (Dubai Integrated Economic Zones) authority. 

As opposed to free zones that are general-purpose, the Dubai Airport Free Zone is purpose-built specifically for industries that need fast connectivity. Its strategic location beside DXB or the Dubai International Airport makes it the premium standard for business involved in the following sectors: 

  • Freight & Logistics
  • Aerospace & Aviation
  • High-End Electronics
  • Pharmaceuticals
  • Luxury Goods & Jewelry

Legal Business Structures in DAFZA

Here are the different types of business structures available to choose from in DAFZA: 

  • Shareholders: One shareholder (either an individual or corporate).
  • Capital: Minimum share capital of AED 1,000* (although a higher amount of capital might be needed for particular banks).
  • Shareholders: Between 2 to 50 shareholders.
  • Structure: Suitable for partners/SMEs with numerous investors.
  • Structure: A representative office of a pre-existing parent organization (international or based in the UAE).
  • Capital: No share capital needed.
  • Liability: Total liability lies with the parent firm. 

The RAKEZ Business Zone is deemed the commercial hub for trading firms, service providers, and working professionals. It provided modern office spaces paired with flexi-facilities, making the zone the main region for Corporate Consulting, administrative operations, etc. 

License Types in DAFZA

Choosing the correct business license in DAFZA is of utmost importance to avoid expenses or any form of operational limitations. Here is a glance at the license types in Dubai Airport Free Zone:

  • Trade License: This allows import/export, distribution, as well as storage of particular goods. It is the most suitable fit for importers, exporters, and distributors.
  • General Trading License: This license permits trading in an extensive range of goods (numerous categories) under a particular business license. It is ideal for large traders and conglomerates.
  • Service License: This business license is specifically designed for professional services, consulting firms, and the IT and management sectors. This license is the perfect fit for consultants, agencies, as well as IT firms. 
  • Industrial License: This is ideal for light manufacturing, assembly as well as packaging businesses. Factories and assembly plants are advised to opt for this license in DAFZA.
  • E-Commerce License: The E-commerce License is designed for trading goods as well as services through online platforms. Online stores and digital marketplaces go for this business license.
  • Talent Pass: The talent pass is a specialized business license in DAFZA for freelancers working the media, technology, and education sectors. Solopreneurs and freelancers opt for this business license in DAFZA. 

 

The Process of Company Formation in DAFZA

The process of company formation in DAFZA requires navigating through numerous complex and lengthy steps. However, Xpert Advisory streamlines this process to make sure your business becomes operational in as little as 2 to 4 weeks. Here is a detailed look at the entire process: 

We evaluate your model of business in order to determine the right license, legal structure, as well as facility type (Smart Desk versus Executive Office).

We compile the required paperwork such as:

  • Shareholders passport copies.
  • Business plan (important for DAFZA).
  • NoCs (if and when applicable).
  • Board Resolutions (specifically for corporate shareholders).

You are required to select one of the following facilities to finalize the business license: 

  • Smart Desk: Low in cost, ideal for startups (usually 1or 2 visa allocation). 
  • Executive Office: Physical office space and a higher quota of visas. 
  • Warehousing: For industrial or trading business setups. 

Post the issuance of the business license, the processing of the Establishment Card takes place. After this, we provide assistance with: 

  • Investor Visa (2-3 years or decade-long UAE Golden Visa).
  • Employer Visas.
  • Family Sponsorship

Opening a bank account in the UAE is generally the most challenging hurdle. We leverage our professional network to set up your corporate profile. Simultaneously, we also ensure that you are registered for both VAT as well as Corporate Tax to stay compliant. 

Why You Should Partner With Xpert Advisory

Launching your business in a premium jurisdiction such as DAFZA demands top-tier precision. Xpert Advisory ensures your business is properly set up. Moreover, our experts also make sure it is 100% compliant and fully operational without any form of delay. If you wish to establish your presence in the Dubai Airport Free Zone, reach out to us today for a free, no-obligation consultation to get started!

Frequently Asked Questions

1. Can a company set up in DAFZA do business in the Mainland of Dubai?

Yes. Your DAFZA company can trade with the Mainland by partnering up with a local distributor. Alternatively, you can also opt for a Dual License, which permits you to directly operation on the Mainland without requiring a physical branch there.

Yes, companies in DAFZA are required to submit annual audited fiscal statements in order to renew their trade license. Doing this is also important for the maintenance of your QFZP status for tax-related purposes.

In the majority of cases, the initial incorporation part can be managed remotely by your business setup consultant. However, the shareholder or manager will be required to visit in order to undergo the visa medical test and biometrics for Emirates ID.