BRIEF OVERVIEW OF DUBAI AIRPORT FREE ZONE (DAFZA)
Established in the year of 1996, Dubai Airport Free Zone (DAFZA), confined within the boundaries of Dubai International Airport, is now considered as one of the fastest growing free zones in the Gulf and Middle East. Although it is part of the government’s strategic plan to develop an investment driven economy, DAFZA does not fall short of offering unified business solutions to local and international investors alike.
DAFZA continues to be among the most valuable exclusive Free Trade Zones in Dubai for business owners. It provides the simplest way to establish business in Dubai. The requirements are basic and the cost is reasonable while the registration process is convenient and fast.
DAFZA offers several services within the free zone such as licensing of freezone company and leasing, government services for processing visas, etc. facility management, telecommunication, smart desks, and other information technology services security services and there are also available government centers and banks and commercial centers within the area.
One of the key DAFZA’s advantages is its connectivity. DAFZA’s integrated infrastructure and proximity to Dubai International Airport makes traveling easy. Dubai Airport Freezone businesses operate around the clock, offering 24-hour customer service and rapid cargo clearance through a dedicated logistics center.
As such, DAFZA’s business-friendly services and benefits had contributed to its growth. It now houses almost 1,600 companies from all over the world, covering a massive number of different sectors such as telecommunications, aviation, logistics, pharmaceuticals, engineering, food and beverages, among others.
DAFZA also has an online portal which makes company setup services easily accessible to clients, once the Company is established. Its own website has a Clients’ Lounge with a list of current companies registered with the free zone.
Legal Structure in DAFZA:
a. Free Zone Company (FZCO) – Similar to a limited liability company that can operate within DAFZA. Shareholders can be individuals or corporate or a combination of both. Number of shareholders can be 1 until 50 with minimum share capital pegged at AED 1,000 per shareholder. The value of each share is AED 1,000 equivalent to USD 274.00
b. Branch- As the name implies, any existing company can establish a branch of the parent company in DAFZA. Share capital will not be required and it should be owned 100% by the parent company, with the same business name and activities as the parent company.
If share capital is above AED 150,000.00, a bank share capital letter will be required.
The company’s business activity determines which type of license will be needed.
TYPES OF LICENSES IN DAFZA
- Commercial License – allows the holder to carry out specified commercial services including general trading and logistics services;
- Service License – allows the holder to carry out services specified in the License within DAFZA and elsewhere in the UAE;
- Industrial License – allows the holder to carry out specified light manufacturing activities;
- Education License – allows the holder to carry out educational and social services, educational aid training, and educational consultancy services.
DAFZA Company Formation Licensing Fees:
- Trading License – AED 15,000.00 per year (USD 4,110.00)
- Service License – AED 15,000.00 per year (USD 4,110.00)
- Industrial License- AED 15,000.00 per year (USD 4,110.00)
- General Trading License- AED 50,000.00 per year (13,699.00)
Registration fees for FZCO is AED 7,000.00 (USD 1,918.00) one -time payment
BUSINESS ACTIVITIES IN DAFZA
- Education
- Banks, Finance and Credit
- Investment
- Insurance
- Restaurants, Bars and Canteens
- Railway
- Aircraft and Spacecraft
- Petrol/ Crude Petrol/ Oil and Natural Gas
- Electronics and Electrical Group
- Legal Services
- Business and Management consultancy services
- Architectural and engineering activities and related technical consultancy
- Other Service / Trade Activities (Subject to Approval)
- Transport, Shipping and Storage
- Travel Agent
- Motor Vehicles & Auto Spare Parts
- Representative Office
- Agricultural raw materials and live animals and Plants
- Foodstuff and Beverages
- Textiles, Clothing and Footwear
- Advertising
- Stationery & Books
- Household & Furniture Trading
- Jewelry
- Sports Equipment
- Perfumery, Medicines, Beauty
- Spectacles & Contact Lenses
- Metals & Metal Ores
- Building Materials
- Agricultural, Flowers & Plants
- Chemical
- Waste Trading
- Bags, Packaging Material & Paper Trading
- Equipment & Machines
Certain activities will require applying for NOC from external government entities.
Facility Types in DAFZA
DAFZA can offer different options that are located in DAFZA’s Business Park and Industrial Park. Investors can choose from the wide selection available such as fitted offices, co-working spaces, executive suites and warehouses. There is always one that would be suited for the business needs.
Rental Cost
Office Space
- 3 Year Lease Agreement - AED 1,850 per sq.m + 12.5% of annual rent as Service Charge.
- 1 Year Lease Agreement - AED 1,950 per sq.m + 12.5% of annual rent as Service Charge.
Warehouses (DAFZ Industrial Park)
- Approximate Area: 340 sq.m approx.
- Rate: AED 600 per sq.m (Including service charge)
Employment Visa Entitlement:
- Office less than 40 sq.m – 1 employee visa for every 12.5 sq.m of space
- Office of 40 sq.m and above - 1 employee for every 8.33 sq.m of space
- Warehouse – 20 visas
Benefits of Business Setup in DAFZA
- 100 % Repatriation of profits
- 100 % Business Ownership
- Strategic location
- World - Class facilities
- Logistics Center
- No currency restriction
- Easy registration process
- Online customer service
- Fast and efficient cargo clearance services
- One-stop-shop administration services
- Direct access to government services: Immigration, Customs, Chamber of Commerce
- 24 hours operation if needed
Requirements for Dubai Airport Free Zone Company Formation
For company’s initial approval:
- Application Form
- Business Plan
- 6 Months personal bank statements
- Original bank reference letter
- Shareholder’s passport and that of the other officers, manager, director, and secretary if applicable.
- No Objection letter for manager (if a resident of UAE and UAE employment visa-holder)
- Once initial approval is obtained, the following documents from licensing team should be submitted.
- Notarized and Attested Owner’s declaration regarding establishment of company in DAFZA and guarantee full financial commitment
- Attachment of Notarized and Attested Manager’s Power of Attorney, Director’s Power of Attorney and Secretary’s Power of Attorney, whichever is applicable.
- Notarized and Attested Appointment of Legal representative, if applicable and passport copy
- Specimen Signature- template to be provided by DAFZA and should be signed in DAFZA’s presence.
- Signed office rental agreement
Timeline for company’s incorporation
The overall process of company formation in Dubai airport free zone will take approximately between 2- 4 weeks to finalize.
Visa Issuing Cost for DAFZA Company
Once the company obtained the license and corporate documents, it can now issue visas. The number of visas allocated to the company will depend on the size of the facility chosen. Visa is valid for three (3) years and its costs ranges between AED 3,000.00- AED 5,000.
