Business setup in DAFZA Free zone
The Dubai Airport Free Zone, most commonly known as DAFZA, was founded in 1966 and nowadays is the home for more than 1600 companies that want to take advantage of the thriving market of the United Arab Emirates.
The Dubai’s government has aimed to diversify DAFZA’s economy by implementing several initiatives that attract foreign investment. For this reason, Company Formation in Dubai Airport Freezone (DAFZA) has been a process that many business owners and entrepreneurs undergo so they can enjoy the several benefits this place has to offer.
Forming a company in DAFZA
National, foreign and multinational companies choose Business Setup in Dubai Airport Freezone (DAFZA) because it has one of the fastest-growing markets of the UAE and they can take advantage of this fact.
The incorporation process in DAFZA is pretty straightforward. It’s necessary to select a trade name for the company, as well as the proper business license. In addition, it’s important to gather and attest the documentation to submit it along with the application.
Here are the documents you need for company formation in DAFZA:
- Company incorporation application form
- Shareholder’s passport copy
- Personal bank statement
- CV or company’s brochure
- NOC from local sponsor (if required)
- MOA notarized and attested
Once you have submitted the documents and the application, the final step is to collect the license by providing the signed lease agreement and paying the required fees.
DAFZA Business Activities
To start your Business in Dubai Airport Freezone (DAFZA) you must select the business activity that you want to carry out. Since DAFZA has prominent features that allow investors to obtain benefits from conducting lucrative activities, there are many popular industries in this place.
Some of the most popular sectors in DAFZA are the following:
- Electrical and electronic activities
- IT and telecommunication activities
- Pharmaceutical activities
- Engineering activities
- Jewelry activities
- Logistics activities
- Food and beverage businesses
- Trading activities
- Freight forwarding
Selecting a business activity is crucial for determining which kind of business trade license is suitable for your company.
Business Licenses for DAFZA
To conduct business legally in DAFZA is necessary to have a valid business license, which should be in accordance with the business activities chosen. The available licenses in DAFZA are the following:
- Trading License: companies with this type of license can carry out trading activities like import, export, distribution and storing on several items in accordance with the regulations.
- General Trading License: the General Trading License offers a wider range of items and products that can be traded compared to the Trading License. The company can carry out trading activities with this license but for more products.
- Service License: with the Service License, the company can offer professional services to its clients. This license is aimed for businesses in professional sectors like IT, Consultancy, and others.
- Industrial License: companies that hold an Industrial License are allowed to carry out activities like manufacturing, assembling, packaging, and selling of finished products, as well as any other industrial related activity.
- E-commerce License: with the E commerce License, businesses can carry out trading activities online.
Benefits of doing business in DAFZA
- 100% foreign ownership
- Total repatriation of capital and profits
- No corporate and income taxes
- Import and export duties total exemption
- Stress-free recruitment process
- Investor-friendly legal framework
- Simple and straightforward company incorporation process
- Access to ready-to-move facilities
- Easy licensing procedure
- Taxation incentives to investors
- There are many options for office renting
Business entities in DAFZA
When investors decide to go through the Dubai Airport Freezone (DAFZA) Company Setup process, they need to choose the type of legal structure for the business. DAFZA Authority allows the following types of legal entities:
- Free Zone Company (FZCO): this kind of legal entity can be formed with 2 or more shareholders, with a maximum of 50. Shareholders can be individuals or corporate, or they can be both. The minimum share capital to establish an FZCO is of AED 1000
- Branch Office: an existing company, whether foreign or national, can establish a branch in DAFZA. The parent company owns 100% of the branch and it should have the same business name and carry out the same business activities.
DAFZA License costs
The DAFZA company setup cost involves considering several aspects. Investors must pay the required fees for license, but they also have to consider the physical space they need to establish their business in this place.
When it comes to rental costs, here we have some of the most common in DAFZA:
- Office Unit: costs range from AED 1850 per sq. m. + service charges, depending on the duration of the lease agreement.
- Warehouses: the rent for warehouses of 350 sq. m. starts from AED 1,000 per sq. m. plus service charges
Regarding the license costs and registration fees, here we have the following:
- Trading, service and industrial license: from AED15,000 per year
- Registration fee for FZCO: from AED20,000
DAFZA Innovative Facilities
The Dubai Airport free zone offers a strategic location for companies as well as an innovative infrastructure that allows investors to select the best place for their business. In DAFZA there are companies from many sectors such as logistics, manufacturing, IT, aviation and more.
With its state-of-the-art facilities that offer custom services, entrepreneurs and business owners can take advantage of the many things this place has to offer.
Some of the best facilities DAFZA has are the following:
- Offices and warehouses
- Food courts, for businesses in this sector
- DAFZA business center
- Flexi-desk spaces for entrepreneurs and investors that want a flexible option, as well as a wide range of customizable office solutions
- Storage areas
- Meeting rooms, Boardroom and Function rooms
- Executive offices that are fully furnished and business packages for investors
- Warehouses and light industrial units
- Retail center with a spacious and convenient environment for trading activities
In addition, DAFZA offers extensive cargo handling facilities, which can facilitate the trading activities both locally and internationally. You can also take advantage of DAFZA’s dedicated logistics center to conduct your business activities with ease.