- July 21, 2020
- Posted by: Dhivya Krishna
- Category: Uncategorized
Dubai, the commercial hub of UAE, is home to more than 30 Free zones. The government of Dubai set up these free zones with the aim of increasing foreign investments and as a way to increase its GDP. The Dubai airport free zone authority or the Dafza is one such free zone in Dubai, founded in 1996. It is one of the world’s fastest-growing business regions, owing to its strategic location and its proximity to the busiest international airport in Dubai.
The Dubai airport free zone spans over a vast area of 696,000 sq.km and houses more than 1600 companies and industries.
The Dubai airport free zone offers a 100% tax exemption and flexible ownership rights to foreign investors. Foreign investors and entrepreneurs can easily procure business licenses using the Dafza portal. The Dubai airport free zone is also strategically located, providing direct access to European countries, India, and other South Asian countries. The main advantage of the Dubai airport free zone is its proximity to the Dubai international airport, one of the busiest airports in the world. You also can get in touch with Dafza approved auditors to get legal assistance. The Dafza offers world-class facilities like spacious warehouses and pre-furnished office spaces.
Industries of the Dubai airport free zone:
You can get a Dafza trade license to set up industries in the following sectors:
- Electricals and electronics
- IT and telecommunications
- Construction materials
- Aviation and aerospace
- Food and beverages
- Jewelry, precious stones, and other luxurious items
Setting up a business in Dubai airport free zone:
Setting up a business and incorporating your business in the Dubai airport free zone is very simple and can be done using the Dafza portal. You can also seek the assistance of Dafza approved auditors to register your business and obtain a business license.
Step:1 Choosing your license type.
The Dubai airport free zone offers you six types of licenses. You can consult Dafza approved auditors from the Dafza auditors list to choose the suitable type of license to support your business activity.
- Trade license:
You will need this license to carry out business activities like import, export, storage, and distribution of goods.
- Service license:
You will need this license if your organization provides services and consultancies.
- Industrial license:
You will need this license to carry out manufacturing, assembling, and packing activities.
- E-commerce license:
You will need this license to set up an e-commerce entity in the Dubai airport free zone. This license permits you to carry out trading activities and services online.
- General trading license:
You will need this license to carry out general trading activities like import, export, and distribution of goods.
- Dual license with DED:
Companies possessing this license can operate outside the Dubai airport free zone. The companies can enjoy the benefits of a free zone company while having an office outside the mainland. This license comes with a lot of advantages, so we recommend you to consult Dafza approved auditors from the Dafza auditors list to confirm your eligibility.
Step:2 Choosing your company type.
The Dubai airport free zone offers you two different types of business setups. You can choose a suitable one with the help of auditors from the list of auditors in Dafza.
- Free zone company (FZCO/ FZ-LLC):
The free zone companies can have 1 to 50 shareholders in their business. They must have a minimum share capital of USD 273. If the minimum share capital exceeds AED 150,000, the companies must produce a bank statement.
- A branch office:
You can also set up a branch office of any approved international company in the Dubai airport free zone. There is no minimum limit for the number of shareholders as well as the shareholder capital.
Step:3 Choosing your space.
The Dubai airport free zone offers the following types of workspaces with world-class facilities:
- Office space
- Industrial space for manufacturing activities
- Cold storage spaces
The Dubai airport free zone offers two types of warehouses.
- The light industrial units (LIU):
These warehouses are located inside the Dubai airport free zone and have an approximate area of 350 sq.m.
- The Dafza Industrial park:
These warehouses are relatively new, are located outside the Dafza mainland, and have an approximate area of 330 to 400 sq.m.
Step:4 Registering your business.
- After choosing your license type, company type, and space, you will have to sign a lease agreement with our Authorities.
- After finalizing the lease agreement, you will have to make the required payment.
- You will then have to upload the required documents in the Dafza portal for verification.
- After the verification process, you will receive your Dafza trade license and your certificate of incorporation.
You are required to submit the following documents to get initial approval for setting up your business in the Dubai airport free zone.
- Application form
- Personal bank statements of 6 months
- Bank reference letter (original)
- Passport copies of shareholder and other employees if applicable
- Your business plan
- A no objection letter
- Your CV
On getting initial approval, you will have to upload the following documents to the Dafza portal to register your business:
- Attested declaration from the owner regarding the establishment of a company at Dafza
- Attested manager’s power of attorney
- Attested appointment order of legal representative
- Specimen signature
- Signed office lease/rental agreement
Advantages of the Dubai airport free zone:
- The Dafza is UAE’s most innovative free zone. It also promotes the use of technology in sustainable development. It emphasizes its goal to become Green Dafza.
- The Dubai airport free zone is at the heart of Dubai, in proximity to the busiest International airport. Therefore, it provides easy access to several locations.
- The Dafza has world-class amenities and infrastructure. It also has pre-furnished office spaces.
- The Dafza provides smart services platforms like the Dafza portal to assist businesses.
- The Dafza imposes no currency and employment restrictions on companies.
- The free zone companies at Dafza are 100% exempt from paying taxes like VAT, corporate tax, and income tax.
- The Dubai airport free zone provides 100% flexible ownership rights and foreign company ownership.
KGRN is one of the most reputed legal service providers in Dubai. We help you register your business in the free zones of UAE. We have a team of Dafza approved auditors to help you file your financial statements and maintain records.
Here are a few reasons why KGRN makes a perfect choice:
- We are committed to bringing 100% customer satisfaction.
- Our services are affordable. You can choose a plan from the range of options available.
- We complete your job on time as we always value our customers’ time.
- All your data is encrypted during transactions to avoid security issues and privacy breaches.
- Our list of auditors in Dafza stays updated on the current legislation to help our customers avoid legal issues.
- On signing up with us, you can receive updates on the changes in the regulations of the free zones.
Frequently asked questions:
- What is the validity period of a business license in Dafza?
Any business license in the Dubai airport free zone is valid only for a year. You will have to renew the license a month before it expires to avoid penalties and legal issues.
- Are the free zone companies also required to submit audit reports?
Yes, the free zone companies in Dafza must submit their audit reports and financial statements annually. KGRN has a list of auditors in Dafza to help you file your financial statements and maintain records accurately.
- How many days will it take to incorporate my business in Dafza?
The whole process of business incorporation can take up to 2 to 4 weeks based on the accuracy of your documents.
- How much can a Dafza trade license cost?
|Trade license||AED 15,000 per year|
|Service license||AED 15,000 per year|
|Industrial license||AED 15,000 per year|
|General trading license||AED 50,000 per year|
For more info, please contact,
Gopu Rama Naidu, CPA FCA
Phone: +971 504 520648 | +971 455 70204