UAE’s expanding global competitiveness index and rapidly diversifying business landscape have made it a huge draw for international corporations and foreign entrepreneurs.
With its escalating economic sectors and newly introduced business activities, many new zones offering financially attractive propositions have shifted focus. One such zones are the Dubai Airport Free Zone Authority, which offers enticing company set-up incentives for investors.
Details on Dubai Airport Free Zone
Dubai Airport Free Zone (DAFZA) is a place for 1600 companies from around the globe to carry out their operations in the UAE. Established in 1996, DAFZA is a strategic plan of the UAE government for an investment-driven economy.
- Dubai Airport Free Zone is one of the fastest-growing free zones in Dubai.
- It provides excellent opportunities for new businesses to establish their presence in Dubai and the United Arab Emirates.
- There are various business industries in DAFZA, like aviation, freight & logistics, IT & telecommunications, pharmaceuticals, engineering, food & beverage, jewelry, and cosmetics.
- Dubai Airport Free Zone is next to Dubai International Airport, providing numerous amenities to the industries established in DAFZA.
International investors reap great benefits 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)
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 bridges the Middle East, African markets, Europe, and other parts of Asia.
DAFZA License Types
Companies willing to start their business under DAFZA can opt for any of the four 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 include import, export, re-export, distribution, and storage of specific products. These activities are permitted by the holder of a trade license in the Dubai Airport Free Zone.
A service license is meant for service-oriented businesses and enables an entity to provide services specified in the permit.
A business person willing to carry out light manufacturing industrial activities, packaging, and assembling can opt for an industrial 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.
Permitted Business Activities in Dubai Airport Free Zone (DAFZA)
There is a list of DAFZA companies with huge potential profits, and you can choose according to your preference
- Banking/ finance/credit business
- Spacecraft and aircraft
- Oil/petrochemical/natural gas
- Electronics and Electrical
- Transport and shipping
- Travel agency
- Jeweler and cosmetics
- Medical fitness center
- Emirates post
- Ambulance system
Permissible Legal Entities in DAFZA Free Zone
DAFZA permits two types of legal entities to establish their operation in this Dubai free zone:
1. Free Zone Establishment (FZE)
A Free Zone Establishment must fulfill 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 1,000Each share should be in the denomination of AED 1,000
Any foreign company can open its branch office in Dubai Airport Free Zone (DAFZ), for which no minimum capital is required.
DAFZA company Formation Procedure
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 method of company registration in DAFZ requires three simple steps to be followed:
1. Select your Business Name, Structure, Entity
The first step would be selecting a name for your business and choosing a design from the types of legal business entities, i.e., a Free Zone Establishment or a Branch Office.
2. Choose your Facility
The next choice would be selecting a suitable facility for your business location. DAFZA provides various business offices, light industrial units, fitted office spaces, and co-working spaces for your business operations.
3. Submit the Required Documents
For company formation in Dubai Airport Free Zone, you need to submit the following documents to DAFZA:
Required Documents for company formation in Dubai Airport Free Zone
- Application form
- Letter of Intent
- Your existing company brochure (if available)
- Annual financial report or shareholder(s)’ 6-month bank statement (not applicable for new registration)
- Copy of the manager’s passport and 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.
4. 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.
Our team of business consultants takes care of your needs in company registration. Contact us, and we’ll be glad to assist you in setting up your business in DAFZ.
What is the Dubai Airport company set-up cost?
DAFZA company formation will cost you around AED 25000.
How long will it take to set up a company in DAFZA Airport Free Zone?
It will approximately take around 2 weeks.
Can Dubai Airport Free Zone companies operate 24 hours a day?
Yes, they can operate 24*7.
Which type of DAFZA license is available for the businesses?
The types of available licenses are as follows:
- Trade License
- Service License
- Industrial License
- General Trading License.
Which legal entities can be set up in the airport-free zone of Dubai?
The two permitted legal entities are as follows:
- Free Zone Establishment
- Branch Office of an Existing Company.