How to set up a business in Dubai’s airport free zone DAFZA 

Welcome to the world of business setup in Dubai’s Airport Free Zone or DAFZA, where entrepreneurs and investors can launch their businesses and grow their brands in a tax-free environment. In this blog post, we will guide you through the process of setting up a business in DAFZA, the legal permits required, benefits, types of business licenses available, activities permitted, why to choose DAFZA, history and its value in the market, business license renewal process, business setup cost, and how Adam Global can help you with DAFZA company formation. 

So, let’s dive into the details of business setup in DAFZA.

What is DAFZA? 

Dubai Airport Free Zone Authority (DAFZA) is a world-class free zone located in the heart of Dubai, near the Dubai International Airport. Established in 1996, DAFZA is one of the leading free zones in the UAE and has been instrumental in attracting foreign investment to Dubai. The free zone spans an area of approximately 1.5 million square meters and houses over 1,600 companies from various sectors. 

Why Choose DAFZA for Business Setup? 

DAFZA is the perfect location for businesses looking to establish a presence in the Middle East and North Africa (MENA) region. Here are some reasons why: 

  1. Business Support Services: DAFZA provides various business support services, including legal, banking, and administrative services, to help companies operate smoothly 
  1. Simplified Company Setup: Setting up a company in DAFZA is a relatively quick and straightforward process, with streamlined procedures and online registration options. 
  1. Access to Markets: Companies in DAFZA can leverage Dubai’s strategic location to access markets in the Middle East, Africa, Asia, and Europe. 
  1. Strategic Location: DAFZA is in the heart of Dubai, near the Dubai International Airport, making it easily accessible from anywhere in the world. 
  1. Tax-Free Environment: Businesses registered in DAFZA enjoy a 100% exemption from corporate and personal income tax, as well as customs duties. 
  1. World-Class Infrastructure: DAFZA provides businesses with state-of-the-art facilities and infrastructure, including advanced telecommunications and transportation networks. 
  1. Business-Friendly Policies: DAFZA has implemented business-friendly policies, making it easier for companies to operate and grow their businesses. 

The process to Set Up a Business in DAFZA 

Setting up a business in DAFZA is a straightforward process, but it requires careful planning and adherence to the rules and regulations of the free zone. Here is a step-by-step guide to setting up a business in DAFZA: 

  1. Choose your Business Activity: Determine the nature of your business activity and ensure that it is permitted in DAFZA or consult with your business setup advisor to get more knowledge on what activities are specifically permitted in DAFZA. 
  1. Select a Company Name: Choose a unique name for your company that complies with the naming conventions of the free zone. 
  1. Submit the Application: Submit your business setup application, along with all the required documents to your consultant. 
  1. Obtain the Legal Permits: Obtain the necessary legal permits and approvals from relevant government authorities, such as the Dubai Municipality and the Department of Economic Development only if that activity requires external approvals. 
  1. Sign the Lease Agreement: Sign a lease agreement with DAFZA for the office or warehouse space you require. 
  1. Register your Business: Register your business with DAFZA and obtain your business license. 
  1. Open a Bank Account: Open a bank account in Dubai to facilitate your business transactions. 

Types of Licenses you can have for different kind of Businesses 

To set up a business in DAFZA, you will need: 

  1. Commercial License: A commercial license is required for companies engaged in trading activities. 
  1. Service License: A service license is required for companies engaged in service-related activities. 
  1. Industrial License: An industrial license is required for companies engaged in manufacturing or industrial activities. 
  1. E-Commerce License: An e-commerce license is required for companies engaged in online trading activities. 
  1. General Trading License: A general trading license is required for companies engaged in trading multiple products from various sectors. 
  1. Branch License: A branch license is required for foreign companies that wish to set up a branch office in DAFZA. 

Legal forms of Businesses you can conduct with JAFZA 

Licenses Available 

DAFZA offers a range of business licenses, catering to the needs of different businesses. Here are the types of business licenses available in DAFZA: 

  1. Free Zone Limited Liability Company (FZ-LLC): A FZ-LLC is a separate legal entity that is owned by one or more shareholders. This type of license is suitable for businesses that require an independent legal entity. 
  1. Branch of a Foreign Company: A branch of a foreign company is a legal entity that is a part of the parent company. This type of license is suitable for businesses that want to establish a presence in Dubai without forming a separate legal entity. 
  1. Branch of a Local Company: A branch of a local company is a legal entity that is a part of the parent company. This type of license is suitable for businesses that want to expand their operations within the UAE. 
  1. Freelance Permit: A freelance permit is a license that allows individuals to work as freelancers in DAFZA. This type of license is suitable for individuals who work independently and do not require office space. 
Activities Permitted 

DAFZA allows businesses to engage in a range of activities, including:

  1. Trading: Import and export of goods, re-export of goods, and wholesale trading. 
  1. Service: Business and management consultancy services, information technology services, and engineering services. 
  1. Manufacturing: Production of goods, assembly of goods, and packaging of goods. 
  1. Logistics: Storage and distribution of goods, cargo handling, and freight forwarding. 
  1. E-Commerce: Online retailing and trading. 
Benefits of DAFZA Company Formation 

Setting up a business in DAFZA offers several benefits, including: 

  1. 100% Foreign Ownership: Businesses registered in DAFZA are 100% owned by foreign investors, with no local sponsor required. 
  1. Tax Exemptions: Companies registered in DAFZA are exempt from corporate and personal income tax, as well as customs duties. 
  1. World-Class Infrastructure: DAFZA provides businesses with world-class infrastructure and facilities, including advanced telecommunications and transportation networks. 
  1. Strategic Location: DAFZA is located near the Dubai International Airport, making it easily accessible from anywhere in the world. 
  1. Customized solutions for businesses: DAFZA offers customized solutions for businesses, including flexible office spaces, warehouses, and land plots to suit the specific needs of different industries. 
  1. Fast-track company setup: DAFZA provides a fast-track company setup process, allowing businesses to start their operations in as little as 24 hours. 
  1. One-stop-shop services: DAFZA offers one-stop-shop services for business setup, including assistance with visas, licensing, and permits, making it easier for businesses to start and operate. 
  1. Easy access to markets: DAFZA provides easy access to markets in the Middle East, Europe, Asia, and Africa, making it an ideal location for businesses looking to expand their global reach. 
  1. Networking opportunities: DAFZA hosts various networking events, seminars, and exhibitions, providing businesses with opportunities to connect and collaborate with other companies and industry experts. 
  1. Technology-driven ecosystem: DAFZA is a technology-driven ecosystem, offering advanced technology infrastructure and services, including high-speed internet, cloud computing, and data centres, to support businesses’ digital transformation. 
  1. Incentives for investors: DAFZA provides various incentives for investors, including exemptions from import and export duties, as well as access to financing, grants, and subsidies to support business growth and expansion. 
  1. Business-Friendly Environment: DAFZA has implemented business-friendly policies, making it easier for companies to operate and grow their businesses. 

DAFZA History and Value in the Market 

DAFZA was established in 1996 with the aim of attracting foreign investment to Dubai. Since its inception, DAFZA has been instrumental in boosting Dubai’s economy by attracting businesses from various sectors, including aviation, logistics, and technology. DAFZA has also been recognized for its contribution to the development of the free zone industry in the UAE and has won several awards for its excellence in service and infrastructure. 

Today, DAFZA is one of the leading free zones in the UAE and is home to over 1,600 companies from various sectors. The free zone has played a significant role in transforming Dubai into a global business hub and has contributed to the country’s economic growth. 

DAFZA Business License Renewal Process 

Business licenses in DAFZA are valid for one year and must be renewed annually. The renewal process is simple and can be done with the help of your business setup consultant very easily.                

As soon as the license will be renewed, you will receive an updated license via email. 

It is important to note that business licenses must be renewed before their expiry date to avoid penalties or cancellation of the license. 

What is the DAFZA Business Setup Cost? 

The cost of setting up a business in DAFZA depends on various factors, including the type of license, office or warehouse space required, and the nature of the business activity. Here are some of the costs associated with setting up a business in DAFZA: 

  1. License Fees: The cost of business license fees varies depending on the type of license and the nature of the business activity. 
  1. Office or Warehouse Space Rental: The cost of renting office or warehouse space in DAFZA varies depending on the location, size, and amenities provided. 
  1. Legal Fees: The cost of legal fees for obtaining permits and approvals from relevant government authorities. 
  1. Visa Fees: The cost of obtaining visas for employees or partners. 
  1. Renewal Fees: The cost of renewing the business license annually. 

It is important to consult with a business setup consultant, such as Adam Global, to get a clear understanding of the costs involved in setting up a business in DAFZA. 

How Adam Global Can Help You in DAFZA Company Formation 

Adam Global is a leading business setup consultant in Dubai, providing end-to-end business setup solutions for entrepreneurs and investors. Our team of experts can help you with every aspect of setting up a business in DAFZA, from selecting the right license to obtaining legal permits and approvals. Here’s how we can help: 

  1. Business Setup Consultancy: Our team of experts will provide you with a comprehensive consultancy service, guiding you through the entire process of setting up a business in DAFZA. 
  1. License Application: We will assist you in selecting the right license for your business activity and submit the license application on your behalf. 
  1. Legal Permits and Approvals: We will obtain the necessary legal permits and approvals from relevant government authorities, such as the Dubai Municipality and the Department of Economic Development. 
  1. Office or Warehouse Space Rental: We will help you find the right office or warehouse space in DAFZA that meets your requirements. 
  1. Visa Assistance: We will assist you in obtaining visas for your employees or partners. 
  1. Renewal Services: We will provide you with timely reminders for business license renewal and assist you in renewing your license. 

Conclusion

Setting up a business in DAFZA offers several benefits, including a tax-free environment, world-class infrastructure, and a strategic location.  

As a business setup expert, I can tell you with confidence that DAFZA offers unparalleled opportunities for growth and success. With its diverse community of businesses, excellent connectivity, and access to key markets, DAFZA provides the ideal environment for startups, SMEs, and multinational corporations alike. 

So, if you’re looking for a dynamic, forward-thinking free zone that can help you achieve your business goals, look no further than DAFZA. And with Adam Global by your side, you can be sure of a seamless and hassle-free company formation process that puts you on the path to success. Contact us today to learn more about how we can help you make the most of the opportunities offered by DAFZA.                        

However, the process of setting up a business in DAFZA requires careful planning and adherence to the rules and regulations of the free zone. By partnering with a business setup consultant, such as Adam Global, you can ensure a smooth and hassle-free business setup process. So, take the first step towards establishing your business in DAFZA and contact us today. 

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