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:
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.
DAFZA has airport services that allow transport directly to 240 locations around the world.
As for the office facilities, DAFZA offers the following:
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 visa slot per every 8 sq meters 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 |
Types of licenses available in DAFZA:
Available activities are spread in various sectors:
By the fourth quarter of 2020, the freezone will be launching a new daughter zone called Dubai Commercity. It will focus on the licensing of e-commerce businesses.
Dropshipping business models will also become accessible in the near future. It will make trading through DAFZA highly competitive and convenient. Business consultants in Dubai can advise you on the full activity list and pick suitable options for you.
Company formation in Dubai Airport Free Zone is not among the cheapest ones, but it also has very affordable packages to offer.
The most cost-efficient setup is a company with a smart desk. It will cost 34,655 AED together with the license.
Other types of setup have to be calculated like this:
Office rent + license.
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 freezone company formation.
Dubai Airport Free Zone company formation takes about 2 weeks.
Documents required for registration:
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.
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 the personal visit of the company owner or general manager if you hire business setup consultants in Dubai.
The most frequently requested company amendments include:
Most of the amendments do not require the presence of the company owner and can be done by consultants, specialized in company registration in Dubai.
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:
The company has to advertise in the newspaper of its closure procedure.
The government cost of liquidation is 6,500 AED. Newspaper advertising, visa cancellation and other expenses have to be paid separately.
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.
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 visa | 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 visa | 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 visa | 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 |
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 visa | 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
INDIVIDUAL SHAREHOLDER
Yes, you can have a company registered outside Dubai, but reside in Dubai or any other Emirate. You do not have to live in the same Emirate where your visa belongs to. You can also have a bank account in a Dubai branch of any UAE bank of your choice.
No, you have to visit UAE personally. It is a requirement of a UAE Central bank which all local banks have to follow. Personal visit is required to make sure that the client is known by the bank.
Normally you can get a debit card for your newly opened company if there is only one shareholder. You can also have a credit card, but it will be given against a fixed deposit. As for the loan, it is possible to get it, but you need to show company operations and profits to the bank. Upon checking your company's turnovers and profits, a bank may approve a loan. We recommend applying for it at least after one year of company's operations.
Officially an office of a free zone company has to be located only within the free zone where this company was registered. If you need an office in Dubai, you have an option to rent a space in a Business center and use it either a few times per month or daily, depending on the package that you choose. However, the free zone minimum required space (flexi desk) cannot be cancelled.
A flexi desk is an obligatory requirement for any company eligible for resident visas. UAE government obliges to have it because it's the minimum physical office space, that a company who has any individual under its visa must have. Apart from that, flexi desk is helpful for bank account opening. The compliance department of the banks needs to see that a company has some kind of office or at least a small physical seat, where it can be working from.
VAT obligations of the company depend not only on the place of its registration, but on the place where its business takes place. To start with, VAT comes into picture once your taxable turnover reaches 375 000 AED. Taxable turnover means the turnover which was done in the UAE. If your company is registered in a Free Zone, but the trading takes place abroad (for example you sell goods from India to Africa), that turnover is not considered taxable, because the transactions are taking place out of UAE. It means that you do not have to pay VAT. But if you have a free zone company and import goods to UAE, you have to add 5% VAT to your Invoices and pay VAT. If your company is registered in a designated free and sells the goods to another designated free zone or within the same zone, VAT does not appear.
UAE is free from income tax and corporate tax. It has only imported tax 5% for the goods that you bring into the country and VAT 5% for the trading or service transactions that happened in UAE.
Everything depends on your business model and requirements, but a free zone setup is the most suitable for the majority of the business needs. Free Zone company has 100% foreign ownership unlike mainland where you need a local partner or agent, it can be eligible for resident visas, allows doing business both in and out of UAE, more favorable by the banks in comparison to offshore companies, can have a flexi desk space instead of an executive office like in mainland companies. Free Zone is a good way to start a business for reasonable fees and without unwanted obligations.
We do our best when we setup your company in such a way that would make account opening easier for you. Knowing your background and your business model, we can give you our estimation about the chances of successful account opening. The approval of the account fully depends on the bank. Each case goes to a few departments of the bank where it has to be approved before the account gets opened. If the bank has any questions or needs clarifications, it will contact you directly with the inquiries. The more clear picture about your business you give to the bank, the higher your chances of account opening are. Being a consultancy company, we cannot guarantee opening of a bank account, because it depends on the factors which do not depend on us. However, we do our best to prepare you and your company for smooth and fast account opening.
Yes, the company should be renewed annually. The cost of the renewal is usually less than the setup cost. It depends on your company package. You can get the price by downloading the Estimate from this page. Renewal does not require personal presence of the owner and can be done by your agent. After company renewal, the new license has to be shown to the bank in order to extend the bank account. It is always included into our renewal service.
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