Dubai Airport Free Zone (DAFZA) a place for 1600 companies from all around the globe carrying out their operations in the UAE. Established in the year 1996, DAFZA is a strategic plan of the UAE government towards an investment-driven economy. Dubai Airport Free Zone is one of the fastest growing free zones in Dubai. There are various business industries present in DAFZA, like aviation, freight & logistics, IT & telecommunications, pharmaceuticals, engineering, food & beverage, jewelry, and cosmetics. Dubai Airport Free Zone is located next to Dubai International Airport, which provides numerous amenities to the industries established in DAFZA. International investors reap great benefit from the dynamic growth of this Dubai Free Zone, through the free trade zone’s excellent tax and investment incentives.
Dubai Airport Free Zone Authority (DAFZA) is the regulatory body in Dubai Airport Free Zone which handles and manages all the business licensing and registration. DAFZ has a geographical advantage as it serves as a bridge between the Middle East and the African Markets along with Europe and other parts of Asia. DAFZA provides an excellent opportunity for new businesses that are willing to establish their presence in Dubai and in the United Arab Emirates.
Advantages of Business Setup in Dubai Airport Free Zone
DAFZA provides many business advantages for the companies established under it. Here are some of the advantages you get for company formation in Dubai Airport Free Zone:
- Complete corporate tax exemption
- 100% personal pncome tax exemption
- 100% foreign company ownership
- Freedom of repatriation of capital and profits
- Strategic location adjacent to Dubai International Airport
- Excellent infrastructure and facilities
- Dedicated logistics centre and extensive cargo handling facilities
- Companies can operate 24 hours a day
- Top-notch infrastructure for companies
- Direct access to government facilities like immigration, customs, etc.
- A single stop for all the administrative services
- Quick and easy access to more than 220 countries through 130 airlines’ support
Types of licenses Available in DAFZA
Companies willing to start their business under DAFZA can opt from any of the 4 business licenses and start their operations. They even have an option of dual licensing in DAFZ. The different types of business licenses are:
1. Trade License
Trading activities including import, export, re-export, distribution and storage of specific products. These activities are permitted to the holder of a trade license in Dubai Airport Free Zone.
2. Service License
A service license is meant for service-oriented businesses and enables an entity to provide services specified in the license.
3. Industrial License
A business person who is willing to carry light manufacturing industrial activities, packaging and assembling can opt for an industrial license.
4. General Trading License
A general trading license in Dubai allows its holder to trade in general activities including import, export, re-export, store, and distribute. A general trading license provides the holder to trade in more than 2 product categories.
Permissible Legal Entities in DAFZA
DAFZA permits 2 types of legal entities to establish their operation in this Dubai free zone:
1. Free Zone Establishment (FZE)
A Free Zone Establishment must fulfil the following requirements:
- It should have between 1 to 50 shareholders [a shareholder can be an individual or a corporate body]
- The minimum capital required is AED 1,000
- Each share should be in the denomination of AED 1,000
2. Branch Office of an Existing Company
Any foreign company can open its branch office in Dubai Airport Free Zone (DAFZ), for which no minimum capital is required.
Process of Business Setup in Dubai Airport Free Zone
DAFZA, the regulatory body of DAFZ, has maintained a systematic process of company registration in the free zone. The process is simple and easy to understand, which makes it hassle-free for companies to start their business in DAFZ. The process of company registration in DAFZ requires 3 simple steps to be followed:
1. Select the Business Entity, License and Facility
The first step would be selecting one from the types of legal business entities, i.e., a Free Zone Establishment or a Branch Office.
After selecting the business entity, the next thing would be choosing the required business license – in accordance with your business operation.
The next choice would be selecting the right facility for your business location. DAFZA provides a varied range of business offices, light industrial units, fitted office spaces and co-working spaces for your business operations.
2. Submit the Documents
For company formation in Dubai Airport Free Zone, you need to submit the following documents to DAFZA:
- Application form
- Letter of Intent
- Your existing company brochure (if available)
- Annual financial report or shareholder(s)’ 6-month bank statement (not applicable for a new registration)
- Copy of the manager’s passport and his/her CV
- Copy of shareholder(s)’ passport and CV
- Original bank reference letter for each shareholder
- No-Objection Letter by the current sponsor for the manager
- Initial approval(s) from the third-party authorities in case your business activity requires such approvals, e.g., for media, IT, pharmaceutical companies, etc.
*Note: The process might take from 2 to 4 weeks.
3. Collect Your Business License
The final step for your company formation in DAFZ, before starting your business operation, is:
- Signing the lease agreement
- Payment of fees and collecting your business license
Dubai Airport Free Zone is one of the most predominant spots for starting a business in the industrial sector in the UAE, and starting trade in the International Markets of Africa, Europe and Asia. Commitbiz is your one-stop shop for business setup in Dubai Free Zones. Our team of business consultants take care of your company registration, licensing your business, getting you the best business facility, managing all the banking operations for you, business taxation, and VAT registration. Contact us, and we’ll be glad to assist you in setting up your business in DAFZ.