Company Setup in Dubai Airport Free Zone (DAFZA)

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Company Setup in Dubai Airport Free Zone

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DAFZA Business Setup

DAFZA, short for Dubai Airport Free Zone Authority, is one of Dubai’s premier free zones, established in 1996 to create a strategic business hub near Dubai International Airport. Over the years, DAFZA has grown into a critical center for trade and investment, attracting businesses from around the globe. 

Its close proximity to one of the busiest international airports in the world provides unparalleled access to global markets, enabling businesses to easily connect with partners and clients across continents. This strategic location has made DAFZA a preferred choice for companies seeking seamless logistics and operational efficiency.

Currently, DAFZA is home to over 3,000 businesses spanning 20 different sectors, making it a vibrant hub for companies involved in various industries. Businesses operating in DAFZA benefit from a wide array of services, top-notch infrastructure, and an extensive network of companies that drive innovation and growth. 

DAFZA supports more than 1,000 business activities, covering a broad range of industries including aviation, logistics, electronics, engineering products, consumer goods, IT and telecommunications, and pharmaceuticals. The diversity of industries present in the free zone reflects its capacity to cater to a wide spectrum of business needs, from high-tech industries to fast-moving consumer goods.

In addition to its logistical advantages, DAFZA boasts exceptional connectivity through direct access to Dubai’s metro system, with its own dedicated station. This ease of transport enhances the accessibility of the free zone, benefiting employees and clients alike by providing smooth, efficient connections across Dubai and beyond.



Dubai Mainland Business Setup Advantages

Full Foreign Ownership

International businesses do not require a local Emirati sponsor to be a partner to operate, maintaining 100% ownership.

Tax Benefits

Exemption from corporate tax, personal income tax and import and export custom duties.

Strategic Location

Directly linked to Dubai International Airport.

Support Services

Access to round-the-clock government services and efficient regulatory support, including visa services, legal assistance, and help with government relations.

Convenient Business Setup

Streamlined business setup processes with minimal bureaucratic delays.

State-of-the-Art Facilities

Modern infrastructure, including high-tech office spaces, warehouses, and advanced logistics solutions.

Liberal Trade Laws

No restrictions on repatriation of capital and profits, and currency exchange.

Strong Regulatory Framework

Transparent and flexible regulatory environment.

Legal Structure in DAFZA

Free Zone Company (FZCO):
A Free Zone Company (FZCO) operates similarly to a limited liability company within DAFZA. Shareholders can be individuals, corporate entities, or a combination of both. The number of shareholders can range from 1 to 50, with a minimum share capital requirement of AED 1,000 per shareholder. Each share is valued at AED 1,000, which is approximately USD 274.

Branch
As the name suggests, an existing company can establish a branch of its parent company in DAFZA. No share capital is required for a branch, and it must be wholly owned by the parent company, operating under the same name and business activities. If the share capital exceeds AED 150,000, a bank share capital letter will be required.

The type of license required for the company will depend on its specific business activities.

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Legal Structure in DAFZA

Licenses Available in DAFZA

Trade License: For businesses carrying out trading activities, including import, export, re-export, distribution and storage of specific products.
General Trading Licence: For businesses trading in a wide range of unrelated products.
E-Commerce License: For businesses involved in online trading of goods and services.
Dual License with DED (Dubai Mainland): For businesses operating in both DAFZA (Free Zone) and Dubai Mainland.
Service License: For service-oriented businesses.
Talent Pass License: For individuals conducting freelancing activities within the media, technology, or education industries. 
Industrial License: For businesses involved in manufacturing industrial activities, packaging and assembling.

DAFZA Business Setup Process

Timeline: 4 to 8 weeks

01 Choose Business Activity and License Type

Determine the type of business activity you want to undertake (commercial, professional, or industrial) and the legal structure (e.g., Free Zone Limited Liability Company (FZ-LLC).

02  Reserve Trade Name

Ensure the chosen trade name complies with the regulations and submit it for approval.

Takes 1 to 2 days

03  Submit Initial Application

Complete the initial application form and submit it along with required documents.

Takes 2 to 5 days

04 Receive Initial Approval

Once the documents are submitted, the free zone authority will review the application for initial approval.

Takes 3 to 5 days

05 Prepare Legal Documents

Draft the Memorandum of Association (MoA) and any other required legal documents, DAFZA typically provides templates and guidance.

Takes 3 to 5 days

06 Select Office Space 

Choose from the available office solutions in DAFZA based on your business needs.

Takes 1 to 2 days

07  Payment of Fees 

Pay the necessary fees for the business license, office space, and other applicable charges. 

08 Obtain Business License  

After submitting all required documents and payments, you will receive your business license from DAFZA.

Takes 1 to 3 days

09Visa Application Process

Apply for UAE residency visas for shareholders and employees as needed. 

Takes 2 to 4 weeks

Documents Required in DAFZA

Required documents vary based on the legal structure of the business: FZE, FZCO and Branch Office.

Document Type FZE (Free Zone Establishment) FZCO (Free Zone Company) Branch Office
Passport copies of shareholders Single shareholder (required) Multiple shareholders (required) Parent company’s directors/shareholders
Passport copies of managers Required Required Required
Personal Information Form Required for shareholder and manager Required for all shareholders and manager Required for branch manager
Business Plan Required (for certain activities) Required (for certain activities) Required
Board Resolution (Parent Company) Not applicable Not applicable Required (to establish branch)
Certificate of Incorporation (Parent Company) Not applicable Not applicable Required
Memorandum and Articles of Association Standard MOA provided by DAFZA Standard MOA provided by DAFZA Parent company’s MOA required
Shareholder Resolution Required for company establishment Required for company establishment Not applicable
Lease Agreement Required (for office or warehouse space) Required Required
Company Name Reservation Required Required Required
No Objection Letter (if applicable) For UAE residents if applicable For UAE residents if applicable For UAE residents if applicable

License Cost in DAFZA

The cost of setting up a business in DAFZA varies depending on the type of license you require, the starting price of all licenses is AED 20,000.

In addition to the license fees, other potential costs include office space, which can vary significantly based on location and size. Local sponsor fees if applicable and visa and permit costs also add to the overall expenses.

*Note the price is an estimate and will vary in reality. For an accurate cost breakdown, get in touch with our consultants.

Cost of Business Setup in DAFZA

The cost of setting up a business in Dubai Airport Free Zone (DAFZA) typically starts at AED 14,999*, but it can vary based on several factors, including

License Type: Different types of licenses come with varying fees.
Additional Licenses and Permits: If your business requires multiple licenses or permits, the cost may increase.
Business Activities: The number and type of business activities you conduct can affect the overall cost.
Office Space: The size and location of your office space play a significant role in determining setup costs.
Visas: The number and type of visas required for employees and stakeholders will impact the cost.
Additional Services: Any extra services, such as legal or consultancy support, can add to the total.

DAFZA has recently reduced its fees, making it more affordable to establish a business in the free zone. Companies like RadiantBiz Business Setup offer competitive rates and can help you reduce costs for your DAFZA company setup.

*Costs are subject to change based on specific requirements.

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Cost of Business Setup in DAFZA

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Frequently Asked Questions

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