DAFZA - Dubai Airport Free Zone
DAFZA free zone overview
Dubai Airport Free Zone or DAFZA was established in 1996 and was built as a part of Dubai International Airport. It makes DAFZA one of the primary choices of businesses related to logistics and import-export activities.
DAFZA has a lot to offer to the businesses registered there. Numerous government services are available within the free zone itself:
- 24/7 customs office
- Notary
- Banks
- Telecommunication providers
It is one of a few free zones in the UAE which provides dual licensing with Dubai Department of Economic Development (Mainland companies registrar). It allows businesses to provide their goods and services to end-users while retaining a hundred percent ownership.
Facilities
DAFZA has airport services that allow transport directly to 240 locations around the world.
As for the office facilities, DAFZA offers the following:
- Flexi-desk spaces
- Executive offices
- Storage areas
- Warehouses
All low-cost packages include smart desks that will allocate 1 – 2 visas per license depending on the number of desks rented. If you are renting an office, you will be getting 1 employment visa slot per every 8 sq. m of the area.
Office rental fees may seem higher than in Dubai Mainland, however, the fees include utilities. Offices are fully fitted and ready to move in. One parking space is included too.
DAFZA office rental fees (AED):
| Size | Price, AED |
|---|---|
| 6,65 sqm | 16,625 |
| 25 sqm | 62,500 |
| 50 sqm | 125,000 |
DAFZA Dubai activities
Types of licenses available in DAFZA:
- Trading License
- Industrial License
- Service License
- General Trading License
Also, DAFZA currently has a new License Structure in place for company registration allowing businesses to pick different activities from Trading, Service, and Industrial categories as part of a single license. This is done by introducing a primary type license which works as follows:
- Activities from the categories of Trade + Service, Trade + Industrial, and Trade + Service + Industrial go under the Trade primary type license.
- Activities from Industrial + Service go under the Industrial primary type license.
Available activities are spread in various sectors:
- Investment
- Insurance
- Aircraft and Spacecraft
- Petrol/Crude Petrol, Oil & Natural Gas
- Legal Services
- Business and Management Consultancy Services
- Architectural and Engineering Activities and Related Technical Consultancy
- Transport, Shipping and Storage
- Travel Agent
- Motor Vehicles & Auto Spare Parts
- Metals & Metal Ores
- Building Materials
- Chemical
- Waste Trading
- Equipment & Machines
Dropshipping business models will also become accessible in the near future. It will make trading through DAFZA highly competitive and convenient.
Dubai airport free zone company setup cost
Company formation in Dubai Airport Free Zone is not among the cheapest ones, but it also has very affordable packages to offer. These setup packages include:
- Smart Desk License Package
- Boutique Office License Package
- Premium License Package
- Premium Plus License Package
- General Trading License Package
The most cost-efficient setup is a company with a Smart Desk and an office area of 6.65 sq. m. It will cost approximately 34,700 AED together with the license (excluding the 7,000 AED FZCO-only registration fee).
The cost of a particular setup type is calculated like this:
Office rent + license + other small fees
Licenses cost 15,000 AED for most of the business activities.
Overall, Dubai Airport Free Zone company setup cost is almost within the same range as any Dubai free zone company formation.
Business setup in DAFZA
DAFZA offers two company setup types:
1. FZCO (Free Zone Company)
The FZCO type resembles a limited liability company functioning within DAFZA. Its shareholders may be individuals, corporate entities, or a combination of both.
Specifics:
- 1-50 shareholders (individual, corporate, or both).
- Minimum share capital: AED 1,000 per shareholder.
- Value per share: AED 1,000.
2. Branch
A parent company can set up its branch in DAFZA with no share capital required.
Specifics:
- 100% ownership by the parent company.
- Shares its name with the parent company.
- Shares its activities with the parent company.
Dubai Airport Free Zone company formation takes about 2-4 weeks.
Documents required for registration:
- Business plan
- Six months’ personal bank statement
- Original bank reference letter
- Passport copies of all shareholders
- No objection letter from a local partner
Resident visas
Visa costs in DAFZA (AED):
| DAFZA fees including Medical check and Emirates ID, AED | Salary Guarante | Health insurance | |
|---|---|---|---|
| Applicant outside UAE | 2,696 | Required | Required |
| Applicant inside UAE | 4,196 | Required | Required |
All visas allocated through DAFZA are valid for 3 years.
Renewal
Company renewal will repeat certain costs of DAFZA company registration: license fees + office rent.
You also need to carry out the annual financial audit of your company.
Renewal can be conveniently done without a personal visit of the company owner or general manager if you hire business setup consultants in Dubai.
Amendments
The most frequently requested company amendments include:
- Change of manager/director
- Shares transfer
- Change of activity
- Change of company name
Most of the amendments do not require the presence of the company owner and can be done by consultants specialized in Business setup in Dubai.
DAFZA license liquidation
To liquidate a company in DAFZA, the company shareholders must first provide a notice for company termination 3 months before the expiration of their lease.
The company shareholders must appoint a liquidator for cancellation of the company. Usually it would be an auditing company.
Clearance from the following departments must be obtained:
- DEWA
- Dubai Customs in DAFZA
- Emirates Post
- DAFZA Digital Intelligence Department
- DAFZA Compliance Health and Security Department
- DAFZA Government Services Department
- DAFZA Finance Department
The company has to advertise its closure procedure in a newspaper.
The government cost of liquidation is 6,500 AED. Newspaper advertising, visa cancellation, and other expenses have to be paid separately.
Opinion
Business setup in DAFZA is one of the most convenient for businesses that have a focus on transporting and selling their goods internationally as well as locally in the UAE.
It is a reputable zone welcomed by the UAE banks.
DAFZA company formation might not seem the easiest, but it is still highly demanded due to its infrastructure and support of its already operational companies.
Benefits of DAFZA free zone company
- Well-developed infrastructure for trading
- 24/7 customs services and rapid cargo clearance
- Dedicated logistics center
- Location next to one of biggest international airports
- No import duty for the goods kept in the Free Zone
- Offices and warehouses available
Start your business in DAFZA today
Trading license costs in Dubai airport free zone
Up to 2 visas (office 6.65 sqm)
| LICENSE TYPE | VISAS INCLUDED | TOTAL COST | |
|---|---|---|---|
| Trading license + office 6.65 sqm | no visas | AED 37,045 $10,150 | download breakdown |
| Trading license + office 6.65 sqm | 1 visa | AED 42,344 $11,600 | download breakdown |
| Trading license + office 6.65 sqm | 2 visas | AED 47,642 $13,100 | download breakdown |
Up to 2 visas (office 13 sqm)
| LICENSE TYPE | VISAS INCLUDED | TOTAL COST | |
|---|---|---|---|
| Trading license + office 13 sqm | no visas | AED 45,920 $12,600 | download breakdown |
| Trading license + office 13 sqm | 1 visa | AED 51,219 $14,050 | download breakdown |
| Trading license + office 13 sqm | 2 visas | AED 56,517 $15,500 | download breakdown |
Up to 2 visas (office 25 sqm)
| LICENSE TYPE | VISAS INCLUDED | TOTAL COST | |
|---|---|---|---|
| Trading license + office 25 sqm | no visas | AED 75,920 $20,800 | download breakdown |
| Trading license + office 25 sqm | 1 visa | AED 81,219 $22,250 | download breakdown |
| Trading license + office 25 sqm | 2 visas | AED 86,517 $23,750 | download breakdown |
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General trading license costs in Dubai airport free zone
Up to 5 visas
| LICENSE TYPE | VISAS INCLUDED | TOTAL COST | |
|---|---|---|---|
| General trading license + office 50 sqm | no visas | AED 197,268 $54,050 | download breakdown |
| General trading license + office 50 sqm | 1 visa | AED 202,566 $55,500 | download breakdown |
| General trading license + office 50 sqm | 2 visas | AED 207,865 $56,950 | download breakdown |
| General trading license + office 50 sqm | 3 visas | AED 213,163 $58,400 | download breakdown |
| General trading license + office 50 sqm | 4 visas | AED 218,462 $59,850 | download breakdown |
| General trading license + office 50 sqm | 5 visas | AED 223,760 $61,350 | download breakdown |
Documents for Dubai airport free zone setup
DOCUMENTS
PROCEDURE
INDIVIDUAL SHAREHOLDER
- Passport
- Latest utility bill as address proof
- Passport size photo
- NOC from sponsor for UAE visa holders
- Description of business
- Bank reference
- Bank statement of the shareholder
- 1 week- Pre-approval
- 1 time- Visit DAFZA for documents signing
- 1 week- Company establishing
- 1 week- Establishment card
- 1 week- Entry permit
- 1 day- Medical Check-Up and Emirates ID
- 2 days- Basic insurance (mandatory for visa stamping)
- 3 days- Visa stamping
Top 10 questions about Dubai Airport free zone company
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Can I open a bank account remotely?
No, a personal visit to the UAE is required as per the regulations of the UAE Central Bank. Local banks require this visit to verify the client's identity.
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Do banks give debit and credit cards or loans?
In most cases, you can obtain a debit card for your newly opened company, especially if there is only one shareholder. However, a credit card is usually issued against a fixed deposit. As for loans, banks may consider your eligibility based on your company's operations and profits. It is recommended to apply for a loan after at least one year of company operations.
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Can a free zone company have offices outside the free zone?
Officially, the office of a free zone company should be located within the free zone where it is registered. However, if you need an office in Dubai, you have the option to rent space in a Business Center and use it on a flexible basis. It is important to note that the minimum required space (flexi desk) in the free zone cannot be canceled.
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Why do I need a flexi desk or office?
A flexi desk is a mandatory requirement for any company eligible for resident visas. It serves as the minimum physical office space that a company with individuals under its visa must have. Additionally, a flexi desk can facilitate bank account opening as banks require evidence of a company having some form of office or physical presence.
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Do free zone companies need to pay VAT?
VAT obligations depend not only on the place of registration but also on where the business activities take place. VAT becomes applicable when the taxable turnover reaches AED 375,000. If a free zone company's trading activities take place abroad, the turnover is not considered taxable as long as the transactions occur outside the UAE. However, if goods are imported to the UAE, VAT at a rate of 5% must be added to invoices and paid.
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Are there any other taxes to be paid?
The UAE is free from income tax. However, there is a 5% import tax on goods brought into the country and a 5% VAT on trading or service transactions that occur within the UAE.
On June 1, 2023, the UAE introduced 9% corporate tax, however, companies registered in UAE free zones are exempt from this tax if they do not make profits from activities on the UAE mainland or this profit is less than AED 375,000 per year. Branches of companies registered in free zones and carrying out activities on the mainland will be taxed at the mainland rate.
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Why would a free zone company be better for me than an offshore or mainland entity?
The suitability of a free zone company versus an offshore or mainland entity depends on your business model and requirements. However, a free zone setup offers advantages such as 100% foreign ownership, eligibility for resident visas, the ability to conduct business both within and outside the UAE, and greater favorability with banks compared to offshore companies. Additionally, free zones often offer flexi desk spaces instead of executive offices, making it a cost-effective way to start a business without unnecessary obligations.
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Can you guarantee the opening of a bank account?
While we strive to make the account opening process as smooth as possible, we cannot guarantee the approval as it ultimately depends on the bank. Each case goes through several bank departments for approval, and the bank may contact you directly for clarifications. Providing a clear picture of your business to the bank increases the chances of successful account opening. We do our best to prepare you and your company for a smooth and fast account opening process.
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When and how should I renew my company? How much does it cost?
Your company should be renewed annually, and the cost is typically lower than the initial setup cost. The renewal fees depend on your company package, and you can obtain the price by downloading the Estimate from our website. Company renewal does not require the personal presence of the owner and can be done by your agent. After renewal, the new license must be presented to the bank to extend the bank account, which is included in our renewal service.
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How can I pay the fees?
You have multiple options for fee payment. You can make payments via bank transfer, cash, or online using a card.
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