DAFZA or the Dubai Airport Free Zone is one the most economical-driven and diversified free zone in Dubai. The Dubai government has been taking certain initiatives to expand the DAFZA economy to invite more and more foreign capital. DAFZA company formation is thus one of the ideal choices for foreign entrepreneurs to launch their business in the UAE.
DAFZA is currently vested with several businesses from around the world, such as China, Singapore, and many other parts of Asia. It attracts and invites leading multinational companies and international firms to start their business in this region.
Let’s get into the overview and other details about the Dubai Airport Free Zone, DAFZA company formation cost, benefits, and procedure.
Dubai Airport Free Zone
Dubai Airport Free Zone was established in 1996 as a part of Dubai International Airport. This makes an added advantage for trading companies to choose DAFZA as their work ground to make their trading activities global.
The DAFZA government offers numerous services to the companies established in their jurisdiction. DAFZA has 24/7 working notary clubs, customs offices, banks, telecommunication services, and a lot to offer to the new-age investors for a smooth setup.
Benefits of DAFZA company formation
DAFZA company formation has many significant benefits, such as :
- 100% ownership of the business
- Tax leverage on corporate. Income and trade taxes
- Full exile on capitals and profits
- No restrictions on foreign exchange controls
- Situated at a strategic location
- Connectivity with international borders
- Speedy cargo clearance
- Facilitates easy trades
- Dedicated logistics center
- Well-developed and integrated infrastructure
- 24/7 customs services
- Warehousing facility available
- Office space available for purchase or lease
- Exemption from tax on stored goods
- Offers all-inclusive services and brilliant facilities
- Hosts thousands of leading international firms
- Affordable workforce
- Easy recruitment process
- Certified structural setup
- Efficient communication structure
- Liberal government policies and legal framework
- Single window convenience for administrative services
- Cost-effective and time-saving incorporation
- Comprehensive assistance from the government
- Quick registration and licensing procedures
Types of entities permitted for establishment in DAFZA
- Freezone Company (FZCO) – A Freezone company can be established by 1-50 shareholders, individuals or companies. The minimum capital requirement for company setup depends on the type of business activity you choose to perform.
- Branch office of an existing company – A branch is a subsidiary office of an existing firm, domestic or international. The activities of the branch are fully controlled by the parent company.
You may like it: How to Open a Business in Dubai Free Zone?
Types of licenses available for Dubai Airport Free Zone
- General trading license – To trade in general items.
- Industrial license – Allows manufacturing packaging, assembling, and other industrial activities.
- Service license – To deliver personalized and professional services in a particular field.
- E-commerce license – Allows trading of goods and services through online channels.
- Trade license – To import, export, distribute and store goods specified in the license.
- Dual license with DED – The businesses registered in DAFZA can apply for a DED(Dubai Department of Economic Development) license without its physical presence in the DAFZA mainland. With this license, they can operate out of DAFZA.
The offered activities in various sectors in DAFZA are:
- Investment & Insurance
- Aircraft and Spacecraft
- Petrol, CrudeOil & Natural Gas
- Legal Services
- Business consultancy
- Architectural and engineering activities
- IT consultancy
- Transport, Shipping, and Storage
- Travel Agent
- Automobiles & Auto Spare Parts
- Building Materials
- Chemical
- Waste Trading
- Machines & Equipment
Procedure to set up a Freezone Company in DAFZA
The procedure of starting a business in DAFZA differs for each business activity. However, the basic steps include the following:
- Determine the type of legal entity
- Register the trading name
- Apply for a business license
- Get pre-approval from the relevant departments
- Choose an office space
- Submit the required documents
- Get the final approvals from the authorities
- Obtain the license
Documents required for DAFZA Business Setup
The documentation process is different for individuals and companies respectively. Though, the general documents include:
- Duly filled application form
- Passport copies of the shareholders and company officials
- UAE Visa/Entry permit
- Residential proof
- Original bank reference letter
- No Objection Certificate from the sponsor
- Company Profile/Brochure/Curriculum Vitae
- 6-month bank statement/Audited financial report
- Notarized and attested Memorandum Of Association(MOA) and Articles Of Association(AOA)
DAFZA business setup procedure takes almost two weeks to complete in full success.
DAFZA company formation cost may not be the cheapest, but the authorities offer several affordable packages to start a company in the region. In addition to that, they also offer other amenities like Flexi-desk spaces, executive offices, storage units, and warehousing facilities. The cost of DAFZA company formation is almost within the same range as any Dubai freezone company formation.
DAFZA authorities also facilitate amendments in the company registration. These include changes in managerial level, shareholders, company name, or business activity.
Renewal and Liquidation of DAFZA license
The renewal of the business license in DAFZA includes a certain cost. It can be done by submitting the annual financial audit of the company. Besides, the owner does not have to visit the UAE personally to complete the renewal process. A local agent can accomplish the task on behalf of the business owner.
For the liquidation process, the shareholders of the company have to provide a 3-month notice before the termination of the business. They must also hire a liquidator to achieve this task. In addition to that, the company also has to advertise in the newspaper about the termination of their business.
The company must seek clearance from the following departments:
- DEWA
- Dubai Customs in DAFZA
- Emirates post
- Digital intelligence department DAFZA
- Compliance Health and Security Department DAFZA
- Government Services Department DAFZA
- Finance Department DAFZA
The overall liquidation process requires a fee, including advertising, visa cancellation, and other expenses.
Conclusion
DAFZA is one of the most convenient and ideal destinations for a wide variety of businesses. At present, it is home to 3000+ companies from various sectors, including aviation, pharmaceutical, logistics, jewellery, manufacturing, trade, IT, etc. It is a highly regarded and reputed zones due to its exceptional infrastructure and operational support from existing companies.
So, if you are planning to launch your company in Dubai Airport Free Zone, you need to explore how DAFZA can play a significant role in your businesses’ growth strategy. Thus, it is best to get custom-made solutions from an expert.
Shuraa Business Setup will help you analyze your business needs and provide you with all the information that you need for your business incorporation. We have expertise in assisting clients with all documentation and administration in the UAE freezone company setup.
Seek professional help from Shuraa Business Setup today!
For any additional information on Dubai Airport Free zone company setup, we are here to assist you. Call us at +97144081900, or drop a WhatsApp message on +971507775554. You can also email us your query at [email protected].