Dubai Flower Centre (DFC) is the new hub for the growth of the floriculture industry in Dubai. It is located near Dubai International Airport and is established to meet the needs of the developing floriculture centre in the country. The flower centre’s first phase was finished in the year 2004 at a cost of $50 million. The construction is not yet completed and will continue in two more phases. At present, the Dubai Flower Centre has 19 tenants coming from 11 countries and is expected to serve two billion consumers once fully operational. Thus, Dubai Flower Center Free Zone apart from increasing the country’s revenue and offering jobs to the locals also allows people from other countries to take part in the industry.
With an explosive growth in the global trade of flowers and perishables, there is an increasing demand for innovative logistics and commercial solutions to enable the industry to reduce transit times, improve quality, and grow profits. Hence, the Dubai Flower Centre has been established to meet all these needs and is committed to delivering all its objectives.
Benefits of Setting up a Business in DFC
- Situated at the Dubai International Airport
- 100%t import and export tax exemption
- 100% repatriation of capital and profits
- No currency restrictions
- Increased capacity and connection to and from major global trading points
- Facilitates and support to enable efficient commercial transactions
- 100% foreign ownership
Business Activities Allowed in DFC
Any activity related to perishable items like floriculture, horticulture, fruits & vegetables, etc. is allowed in DFC. The free zone also allows:
Types of Business Entities in DFC
- Free zone Establishment
- Free zone company
- Branch of a foreign company
Types of Licenses Issued in DFC
There are two types of licenses issued in DFC:
- Trading License
- Service License
How to Set Up a Business in DFC?
As said earlier, since DFC offers jobs to the locals and also allows people from other countries to take part in the industry other than increasing countries revenue, it is quite natural that many businessmen are attracted to this free zone. Business setup in Dubai free zone is relatively easy and straight-forward once you are aware of all the legalities. The steps to register your business in DFC are as follows:
1. Filling & Reviewing the Application Form
Companies wishing to set up their business in DFC must fill out an application form attached with documents for the authorities to review the same. Once the application is received, the Dubai free zone authorities will look through the company background, proposed business activities, space requirements etc. and will then issue a Preliminary Letter of Approval (or a letter indicating that an application has been declined) within 30 days of having received an application, unless additional information is required from the applicant.
2. Memorandum of Understanding (MoU)
The approved applicants will be sent a Provisional Approval Letter, along with a Memorandum of Understanding (MOU), outlining the basic terms and requirements of operating in the Dubai Flower Centre Free Zone. This MOU will act as a preliminary agreement between the Dubai Flower Centre and applicant companies. The applicants should fax back the MOU, endorsing their acceptance, within ten days of receiving it.
3. Submit the Legal Documents
Upon receiving the Provisional Letter of Approval, the applicant should forward the required legal documents within 30 days to ensure reservation of office/warehouse space and registration of the proposed entity.
4. Documentation Review and Final Approval
Upon receiving the documents, a final approval letter will be forwarded to the applicant within two weeks along with the lease agreement and an invoice covering the Trade License Registration Fee and first year’s rentals. The applicants should fax back to the Dubai Flower Centre the final approval letter, endorsing their acceptance within one week.
5. Lease Agreement and License Issuance
The applicants must assign an authorized signatory who will sign the lease agreement and collect the trade license. Payment of the invoice covering the trade license registration fee and first year’s rental must be received prior to or in parallel with the aforementioned step. This should occur within one month of acceptance of the final approval letter.
Once you complete all the above steps, you can get started with your day-to-day business dealings.
Documents Required to Set Up a Business in DFC
- Completed Dubai Flower Centre application form
- A brochure of the company (if available)
- The company’s annual financial report for the last three years (if available)
- Business plan
Why Set Up a Company in DFC?
Apart from the aforementioned benefits, DFC offers a number of facilities to the businesses operating in their free zone, like, rapid consolidation and trans-shipment, world-renowned cool chain management and facilities to accommodate efficient commercial transactions, not to mention a range of free zone incentives. It is an ideal deal for an entrepreneur who wishes to start a business in this field. If you are one of them and are in need of a consultant who will guide you through this process, we at Commitbiz are here to help. We have the experience and resources to help you realize your company setup dreams without worrying about the red tape, visa applications, documentation and licensing formalities, residence permits, banking details, etc., as our experts take care of all these requirements. Contact us for Dubai company formation, and our specialized team will be glad to assist you with all the details.