In a new initiative taken by the Government of Dubai, the Dubai Airport Free Zone Authority (DAFZA) has slashed the business setup fees by 65%. The move is geared with an aim to increase regional competitiveness and activate various key sectors by attracting foreign direct investment (FDI). Dubai has proved itself to be an ideal location for travel and tourism, but with the recent decision of cost-cutting Dubai wants to widen its horizons to become an ideal location for investment and prosperity. This action will not just drive the investment growth upwards but will also help the free zone companies to achieve further stability for the operational purposes.
According to the DAFZA director general, the decision was taken following comprehensive studies and polls evaluating the free zone’s initiatives, services, and business environment. DAFZA has revised and reduced registration charges by 65%, license fees by 33%, and staff visa fees by 20%. Additionally, Establishment Card issuance fees have been cut by 17% and Board Resolution and Memorandum of Association (MOA) issuance fees have been waived off.
The initiative also includes facilitating of the process of obtaining general trading licenses for new investors by halving the capital requirement from Dh1 million to Dh500,000. DAFZA has also allowed its member companies to be structured as free zone companies limited by liability to help the companies get more flexibility in business set-up, licensing and operation. In addition to this, the businesses who have to pay the license expiry fines for not renewing the license has also been waived off. This means that the investors can renew their license without paying any monetary fine. It shows DAFZA’s constant support for growth and expansion of business sectors under its zone and its commitment to remove obstacles faced by the industries which will ultimately result in creating a competitive, business-friendly environment.
For the investors who wish to set up a business in the free zone, DAFZA has launched a restructuring process of licenses and related fees. It will help the investors to have a smooth business setup and operational experience offering them greater flexibility in choosing the business and service activities that best correspond to the nature of their work. The new license structure will be in line with ISIC Rev 4, the UN benchmark for classification of economic activities and will be introduced to new investors and current customers at the end of Q3 2018.
Not only this, there are many such incentives in line with the objective of boosting the economy by offering comprehensive solutions instrumental to promoting investment and encouraging investors to set up and expand businesses. It is understood from the initiative that Dubai’s ultimate goal is to drive local economic development and support the sustainability of direct FDI, accelerating and increasing its contribution to Dubai’s GDP.
It is a right time for an entrepreneur to make use of this opportunity and set up a business in this Dubai freezone as the investors will now be looking for various business sectors to invest in. If you are looking for any help to kick-start your business, we at Commitbiz have our team of experts to help you with company formation, registration and consulting. If you want to avail this service, do contact us, even if it’s just for a friendly advice.