Dubai International Airport is the busiest airport in the world by international passenger traffic. It is primarily due to the business and tourism facilities provided by UAE and specifically by the emirate of Dubai to the people all around the world. The emirate of Dubai decided to use the proximity of the airport for its maximum benefit and it ended in the formation of Dubai Airport Free Zone (DAFZA) in 1996.
The purpose of this free zone was to direct the economy of Dubai and UAE from oil-based to investment-friendly. Today, the contribution of DAFZA in Dubai’s economy is around 5% while it is one of the fastest-growing economies in the whole region.
Growth of DAFZA
More than 20 years have passed since the establishment of DAFZA and the free zone has grown several folds as compared to its beginning. There were just 2 buildings and 1 warehouse in DAFZA in 1996. Currently, there are 13 buildings and 256 warehouses in the free zone that are used by more than 1,600 companies from UAE and other parts of the world. The companies established their offices in UAE also include several world-renowned corporations including DHL, Red Bull, Airbus Group, Rolls Royce, SkyLink, TNT, ASUS, FedEx and others.
Benefits of business setup in DAFZA
All these and other international companies have chosen DAFZA for their business location due to several advantages and benefits provided by this specific free zone. Few reasons that DAFZA is continuously growing with the passage of time are:
- DAFZA is located in the vicinity of Dubai International Airport which is a hub of international air traffic. This makes it convenient for arrival and departure of goods which makes the free zone a much-favored location for international investors
- Like other free zones, there is 100% exemption from corporate tax, import & export tax and personal income tax in DAFZA
- DAFZA also announces incentives for new investors from time to time. An example is a cost reduction for DAFZA’s new company formation that was announced in 2018.
- There is no currency restriction in the free zone while 100% ownership for foreign entrepreneur and 100% repatriation of capitals and profits are also provided
- Best business environment is provided in the free zone with the inclusion of high tech offices, conference rooms, business lounge, lecture hall, etc
How to setup company in DAFZA
If you want to establish your business in one of the world’s best free zone (DAFZA) then you can do so in two ways.
- You can either form a Free Zone Company setup (FZCO) which is quite similar to LLC (limited liability company). There could be minimum 1 to maximum 50 shareholders in the company and the minimum share capital for each shareholder is AED 1000
- You can also set up a branch of an existing company with its headquarter in DAFZA. In this case, there is no requirement of share capital
In the second step, you will choose the type of license according to your business activity. You can have four types of licenses in DAFZA.
- Trade License is intended for companies with activities including import, export, and storage of specific products
- Service-related business need Service License
- The Industrial License is intended for manufacturing, packaging, and assembling of light industrial activities
- General Trading License is different from Trade License (mentioned above) as it is required for general import, export and storing activities
Submission of various documents in their respective departments is also required for setting up a business in DAFZA.
These are a few general points regarding the opportunities and procedures of setting up a business in DAFZA (Dubai Airport Free Zone). You can contact Riz & Mona Consultancy through firstname.lastname@example.org for detailed information and practical assistance on forming a company in DAFZA. You can relax after handing over the job to us as we have years of experience and a number of satisfied clients with businesses in DAFZA and other free zones of Dubai and UAE.