DAFZ company formation process

Free zone company formation in Dubai Airport Free Zone can be done personally by company owners or assisted by a business consultant. The formation process typically takes about 2-4 weeks. Note that at DAFZ, business licenses cannot be issued without renting an office.

  1. Determine the business activities of your future company and the corresponding license type. This aspect is vital for a successful business setup, as choosing the wrong activity and license can cause errors during company registration, leading to problems with opening a bank account or obtaining residency visas for yourself and your employees.

  2. Specify the legal status of your business in the Dubai Airport Free Zone. Available company formation types at DAFZ include an FZCO (Free Zone Company), a PLC (Public Limited Company), or a branch of an already existing local or foreign company.

    FZCO shareholders may be individuals, corporate entities, or a combination of both. At DAFZ, such companies have the following specifics:

    • 1-50 shareholders (individual, corporate, or both).
    • Minimum share capital: AED 1

    A PLC is aimed at business owners willing to list/offer the company’s shares on a securities market. This entity type comes with limited liability and an unlimited number of shareholders. 

    Company branches opened in DAFZ require no share capital and have to:

    • Be fully owned by the parent company.
    • Share the name with the parent company.
    • Share the activities with the parent company.

  3. Prepare and submit the necessary documents together with the application form. DAFZ requires the following documents for company formation:

    • Passport
    • Passport-size photo
    • Passport copies of all shareholders
    • Latest utility bill as address proof
    • NOC from a local partner
    • Business plan
    • Original bank reference letter
    • Six months personal bank statement

    Also, this step involves paying all the registration and processing fees.

  4. Receive the license and registration documents for the company, including:

    • Certificate of Incorporation
    • Business license
    • Memorandum and Articles of Association
    • Investment Service Agreement
    • Share certificate
    • Lease agreement

  5. Receive the Establishment Card containing information about your company and visa quotes.

  6. Apply for an entry permit. If you’re outside of the UAE during the processing of the entry permit, you will need to come to the country when the document is issued within 60 days to complete the medical test and biometrics for your visa. If you’re in the UAE when the entry permit is issued, a status change will be done from your previous UAE tourist/residency visa to the new one.

  7. Undergo a medical checkup and submit documents for a residence visa. Different registration packages may provide for a varying number of visas available for owners and employees of the company.

  8. Once your visa is issued, secure your Emirates ID card.

  9. Apply to a UAE bank to open a corporate bank account. Fortunately, DAFZ is highly recognized by UAE banks and has several of their offices in its territory, so you should have no problem opening an account. Once you receive your account details, you are free to start running your business.

Expert

With us you can navigate this process quickly and effortlessly. You don`t even have to arrive in Dubai — the registration procedure can be completed remotely. However, you will need to visit the UAE for medical checkups, visa formalities, and account opening.

DAFZ license costs

Dubai Airport Free Zone company registration starts from AED 15,020 as a license fee for most of the business activities allowed in the free zone. Company formation in DAFZ is not among the cheapest ones, but it has a variety of packages on offer.

Currently, DAFZ’s most cost-efficient setup is the Standard Office package with a 27 sq.m. office and 3 visa quotas priced at AED 84,630. This includes the License fee of AED 15,000, Registration fee of AED 7,000, Establishment Card fee (AED 2,000), PO box fee (AED 1,010), rent cost (AED 59,560.31), as well as Knowledge and Innovation fees (AED 30 each).

DAFZ’s 1-year licenses and packages

TYPE OF LICENSECOST
1-year Trading/Service/Industrial license15,000 AED
Standard Office package (27 sq.m. office + 3 visa quotas)84,630 AED
Standard Office package (54 sq.m. office + 6 visa quotas)141,985 AED
Standard Office package (100 sq.m. office + 12 visa quotas)245,664 AED
Premium Office package (27 sq.m. office + 3 visa quotas)92,570 AED
Premium Plus Office package (54 sq.m. office + 6 visa quotas)160,070 AED
Full Guide and Prices

Additional costs apart from the license fee include:

  • DAFZ visa fees
  • DAFZ registration fee
  • PO box fee
  • Knowledge fee
  • Innovation fee
  • DAFZ rent costs
  • DAFZ Establishment Card
  • Medical checkup
  • Emirates ID

Elena O.

We'll find the ideal free zone for your business

DAFZ Company Formation

CEO, Emirabiz

Andrey Ovchinnikov

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Is DAFZ suitable for your business?

Extensive range of infrastructure for businesses

Perfect logistical opportunities

Easier bank account opening

Yes

  • If you are looking for a business setup solution in Dubai.
  • If your business is related to trade or logistics, as DAFZ was built as part of the Dubai International Airport (DXB) providing great logistical opportunities along with in-house customs.
  • If you prefer a free zone with highly-developed infrastructure, as DAFZ offers a variety of fitted-out offices and warehouses, along with a dedicated logistics center, notary, and banks.
  • If you’re looking for a free zone that allows for dual licensing with the DED for mainland operations.
  • If you’re looking for a bank-friendly and reputable free zone, as DAFZ is highly recognized by banks, allowing for easier bank-related operations such as opening a bank account.

You can also consider an alternative solution such as a business setup in SAIF or JAFZA, which have a lot to offer for industrial companies too.

No

  • If you’re looking for a cheap business setup solution, as DAFZ is not the most affordable free zone for company formation.
  • If you’re planning to engage in business activities related to media or IT, and do not require storage or logistical facilities. For such activities, we would recommend applying to Dubai Media City or Dubai Silicon Oasis.
  • If your business model requires virtual offices, as it is mandatory to rent a physical office in DAFZ.

DAFZ licenses and business activities

The list of business activities available at the Dubai Airport Free Zone is very broad, and the activities are spread across various industry sectors, such as:

  • 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, which will make trading through DAFZ highly competitive and convenient. For E-commerce purposes, DAFZ currently has an offshoot in Commercity.

In the table below, you can find the categories of business licenses supported by DAFZ and their descriptions.

    E-Commerce License in Dubai

    Launch your online store or digital marketplace in the UAE and tap into the region’s fast-growing e-commerce sector.

    Consultancy License in Dubai

    With a Consultancy License offer professional advice to companies and individuals in areas like business, marketing, or finance.

    IT license in the UAE

    Start your IT business in the UAE’s growing market, whether it’s software development or IT consulting.

    Commercial Trade License in Dubai

    A Commercial License will allow you to open a business in retail, wholesale, or import-export, with access to local and global markets.

    Professional License in Dubai

    With a Professional License, you can offer specialized services in fields like consulting, management, education, real estate, and more.

    General trading license in Dubai

    Trade multiple products across various industries with a single license, offering maximum business flexibility.

    Manufacturing License in Dubai

    Set up your own production facility in the UAE and benefit from advanced infrastructure and global market access.

    Service license in the UAE

    Offer professional services in sectors like consulting, marketing, or IT with a hassle-free setup process.

Also, DAFZ 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:

  1. Activities from the categories of Trading + Service, Trading + Industrial, and Trading + Service + Industrial go under the Trading primary type license.
  2. Activities from Industrial + Service go under the Industrial primary type license.

Elena O.

We'll find activities for your business

DAFZ facilities

Dubai Airport Free Zone offers a variety of offices and warehouses suited for any business type supported by DAFZ licenses. Offices are fully fitted and ready to move in. One parking space is included as well.

Here is the list of office packages on offer at DAFZ:

  • Standard Office: customizable offices ranging from 27 to 53 and 100 sq. m. of space with 3, 6, and 10 visa quotas respectively.
  • Premium Office: turnkey office with 27 sq. m. of space + 3 visa quotas.
  • Premium Plus Office: turnkey office with 54 sq. m. of space + 6 visa quotas.

Facility options available at DAFZ

    Executive office

    A fully equipped dedicated workspace. It offers privacy, essential support services, and a professional environment for business growth.

    Warehouse

    A facility for companies needing storage space for goods and materials, often equipped for light industrial use.

    Light industrial unit

    A space designed for businesses involved in light manufacturing, testing, or repairing.

Office rental fees at DAFZ may seem higher than in the Dubai mainland, however, the fees include utilities, which is why DAFZ is a preferred location of many industrial companies due to low rates for electricity and rent.

Apart from the above-listed accommodation options, DAFZ offers high-end infrastructure with a variety of additional facilities to help your business thrive. Among them are an in-house customs office, a dedicated logistics center, government centers, retail and business centers, notaries, banks, and more.

DAFZ residence visas

DAFZ companies offer a varying number of UAE residence visa quotas depending on the office package or the size of the rented space – from 1 visa quota as part of the Smart Office package to 30 visas in case of a leased warehouse with over 350 sq.m. in size.

DAFZ visa costs

 DAFZ FEES INCLUDING MEDICAL CHECK AND EMIRATES IDSALARY GUARANTEEHEALTH INSURANCE
Applicant outside UAE2,596 AED (Normal)
3,207 AED (Express)		RequiredRequired
Applicant inside UAE4,096 AED (Normal)
4,707 AED (Express)		RequiredRequired

All visas allocated through DAFZ are valid for 2 years. Note that all visas require mandatory health insurance.

Complete UAE Residency Guide

Requirements, terms, and prices

download guide

DAFZ company license renewal

Any company in the Dubai Airport Free Zone must be renewed on a yearly basis. Company renewal will repeat certain costs of DAFZ company registration: license fees + office rent. You also need to carry out the annual financial audit of your company.

FEECOST
DAFZ Trading/Service/Industrial license renewal (minimal cost, does not include other associated fees)15,000 AED

To renew your business license, submit an application form with the required documents to the free zone authorities, sign the renewed lease agreement, pay the renewal fees, and wait for your license to be renewed. The documents include:

  • Business license
  • PO Box renewal receipt
  • Audit report 

Renewal can be conveniently done without a personal visit from the company owner or general manager if you hire business setup consultants in Dubai.

DAFZ company amendments

If you need to, you can make a company amendment at any time, and as many of them as you require. The list of the most frequently requested amendments includes:

  • Change of company name
  • Change of business activity
  • Shares transfer
  • Change of manager/director
  • And others 

Most of the amendments do not require the presence of the company owner and can be done by consultants specialized in вusiness setup in Dubai.

DAFZ company liquidation

To liquidate a company in DAFZ, the company shareholders must first provide 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.

SERVICECOST
DAFZ company liquidation6,500 AED

The liquidation procedure at DAFZ consists of the following steps:

1. Provide the following mandatory documents:

  • Board resolution signed by the shareholders and stating the reason for the company liquidation
  • Deregistration documentation
  • Business license and all other company incorporation documents
  • Customs Clearance Letter
  • Auditor Liquidation Certificate
  • Audit report 

Company liquidation also requires clearance from the following departments: 

  • DEWA
  • Dubai Customs in DAFZ
  • Emirates Post
  • DAFZ Digital Intelligence Department
  • DAFZ Compliance Health and Security Department
  • DAFZ Government Services Department
  • DAFZ Finance Department

2. Pay cancellation fees and settle other payments. Once this is done, the liquidation process is initiated.

3. All residence visas and other immigration-related documents issued under the company need to be canceled as well.

4. Once the liquidation is complete, you will be notified and receive the corresponding documents.

The company has to advertise its closure procedure in a newspaper. Newspaper advertising, visa cancellation, and other expenses have to be paid separately.

With us, you can navigate the liquidation process for your UAE company quickly and effortlessly, ensuring a smooth closure while saving valuable time and resources.

About DAFZ

The Dubai Airport Free Zone (DAFZ) was established in 1996 and was built as a part of Dubai International Airport. It makes DAFZ one of the primary choices of businesses related to logistics and import-export activities. Business setup in DAFZ 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.

DAFZ has a lot to offer to the businesses registered there. The free zone boasts an extensive range of infrastructure for all-around support of businesses. This includes government centers offering numerous services related to customs, security, immigration, and healthcare, DAFZ Business Center, DAFZ Retail Center, Halal Trade & Marketing Center, banks, notaries, and telecommunication providers.

DAFZ is a reputable zone recognized by the UAE banks. It is also one of a few free zones in the UAE that provides dual licensing with the Dubai Department of Economic Development (mainland company registrar). It allows businesses to provide their goods and services to end-users while retaining 100 percent ownership. Company formation in this free zone might not seem the easiest, but it is still highly demanded due to its infrastructure and support of its already operational companies.

FAQ

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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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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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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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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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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The UAE is free from personal 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 may be granted corporate tax exemption if they meet the criteria for qualifying activities.

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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 a flexi desk option instead of executive offices, making it a cost-effective way to start a business without unnecessary obligations.

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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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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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You have multiple options for fee payment. You can make payments via bank transfer, cash, or online using a card.

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