Business Setup in DAFZA Freezone
Dubai has emerged as an ultimate haven for all kinds of businesses. Business setup in a DAFZA free zone is considered lucrative for investors all over the world due to its groundbreaking business support schemes and taxation benefits. The various policies adopted by the government, along with its infrastructure facilities, and geographical location, have positioned Dubai as a global trade hub.
Out of the several free zones, Dubai Airport Free Zone is the fastest-growing free zone in Dubai. In 2021, Dubai Airport Free Zone (DAFZ) recorded more than 36 percent growth in non-oil trade. Many top brands in the world have opened their Middle East Regional office in DAFZA. The divergent business sectors functioning in this zone include
Why should you set up your business in Dubai Airport Free Zone (DAFZA)?
Currently, more than 2000 registered companies are there in DAFZA which are from 20 different sectors. What makes DAFZA great for business is its proximity to Dubai International Airport and port Rashid. In terms of connectivity, DAFZA is far superior to any other free zone in Dubai. In DAFZ, there is no limit to the horizon of shipping which is one of the fundamental parts of the prosperity of your business. Whether it is land, water, or air, the mode of transport will always be smooth and hassle-free in DAFZ.
Friendly Business Environment in Dubai Airport Free Zone (DAFZA)
DAFZA always comes up with innovative ideas to help investors integrate into the business ecosystem of Dubai by providing support on an advanced level. The incentives provided by DAFZA to attract investors are numerous. They are
- 100% foreign owned enterprise.
- 100% repatriation of capital & profits.
- 100% personal income tax exemptions.
- Exemption of import & export duties.
- On-site customs inspection.
- Abundant & affordable energy.
- Any kind of currency is allowed
- Cheap labour & easy recruitment procedures.
- One-stop-shop administration services
- Proximity to Dubai Airport Freezone building and the offices surrounded by.
- Companies in the Freezone can work 24 hours a day.
Major Company Formation in Dubai Airport Free Zone (DAFZA)
- Free Zone Establishments (FZE)
- FZE is akin to limited liability companies functioning in free zones.
- The number of shareholders should be between 1 to 50. The shareholder can either be an individual or a corporate body.
- AED 1000 per shareholder is the minimum share capital.
- Public Limited Company (PLC)
- A public limited company with limited liabilities can establish itself in DAFZA, keeping in note that Public Limited Companies has to undergo more rigid reporting and corporate governance requirements.
- The companies that intend to offer their shares in the security market can opt this zone.
- No limit on shareholders
- Branch Set up of an Existing Company
- Any foreign company can open a branch office of their parent company in DAFZA
- No share capital is required.
Licensing Options Provided by Dubai Airport Free Zone (DAFZA) for Company Formation
- Trade License – This license allows the holder to participate in various trading activities such as import, export, re-export, distribution, and storage of specific items.
- Service License – As the name suggests, this license is provided for service-oriented businesses. It allows the companies to provide the services specified by their license. For instance, banking, financial and accounting consulting, etc.
- Industrial License – This license allows the holder to carry out light manufacturing activities, packaging, and assembly.
- General Trading License – This license grants the owner to perform the general operations of trading such as import, export, review, storage, & distribution of products such as clothes, furniture, and accessories. Items such as guns, alcohol, cars, and medical & health care products are restricted to be traded through the general trading license as it requires additional approvals from the higher authorities concerned. The approximate cost to obtain the general trading license is AED 30,000 to AED 40,000. The number varies according to several factors.
- Dual License – DAFZA – registered companies can apply for dual license. To obtain a permit, it is not necessary to establish a physical office on the mainland. Companies holding this license are allowed to conduct business outside of DAFZA.
Company Registration Procedure at Dubai Airport Free Zone (DAFZA)
The regulatory body of Dubai Airport Free Zone (DAFZA) is following a systematic and simple process to carry out the company registration procedure free of trouble. The prime factors to initiate the company registration process include
- Choose the business name, structure & Entity – Decide on the type of business you are going to do. Select the permissible legal entity of the free zone, i.e., whether it would be a Free Zone Establishment, PLC, or a branch office.
- Select appropriate facility for your business location – DAFZA provides numerous facilities for enhancing the efficacy of your business such as fitted office spaces, light industrial units, co-working spaces, and ready-to-move-in offices. You can choose the provided facilities for rent.
- Submit the required documents – Submit all the required documents on time such as
- Filled Application Form
- Letter of Intent
- Business Plan
- Six months’ personal bank statements
- Original bank reference letter
- Passport copies of all shareholders
- Copies of visas
- No objection letter from a local partner (in case of dual license)
- Receive your business license – The last step of the company formation in DAFZ is acquiring the business license. Collect all the required documents and complete the mandatory payments in a timely manner to avoid delay in the process or result in the final rejection of your application.
Within a few days, the complete procedures for DAFZA can be completed with the support of professional business consultants.
HLB HAMT to Assist!
If you are eyeing for a free zone company setup In Dubai Airport free zone, HLB HAMT is here to assist. Our skilled professionals are always available to listen to your requirements and plans. We provide ideas and perfect solutions to help you run your business successfully in DAFZA company formation in the UAE. We inform you about the updates consistently to make things fall into place. Our team is just a call away to clear all your queries.
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