The Dubai International Airport Free Zone (DAFZA) is an area within the Dubai International Airport where companies can set up and carry out different businesses. DAFZA’s unique location as part of one central hub makes it highly sought after by logistics and import/export-related businesses.
With DAFZA being a part of Dubai International Airport, business owners can enjoy the benefits of being situated in the middle of a highly lucrative landmark. The airport offers an ideal gateway to the Middle East and also unparalleled connectivity with Europe, the Indian Subcontinent & Far East.
DAFZA has become a haven for businesses from across multiple industries and sectors. One of the most sought-after reasons that DAFZA is known for is its quick processing and clearing of paperwork to conduct business activities efficiently.
Do you want to establish a company in Dubai but are not sure where to start? This guide will provide all the information you need to know about setting up a company in DAFZA. From required documents to permitted activities, we have you covered. So, what are you waiting for? Start your business in Dubai today!
DAFZA Attraction for the New Business
The dream of owning your own business can become a reality at DAFZA. Being a part of one of the world’s most active airports and having quick processing times for paperwork is an attractive opportunity for anyone who wants to start a business in Dubai.
What else makes DAFZA so attractive? Here are a few facts:
- It has approximately 1800 businesses registered
- There are 20+ different sectors of businesses operating in DAFZA
- 15000+ professionals are working in the business environment
- Sheikh Ahmed bin Saeed Al Maktoum is the Chairman of DAFZA
- In 2005, The Dubai Government Excellence Award was given as recognition of how well planned out this Department is when it comes to employee satisfaction levels
- There are 33+ warehouses in the vicinity
- The Chairman of DAFZA, H.H Sheikh Ahmed Bin Saeed Al Maktoum, said that they are committed to providing services for all industries and companies with their vast range of warehouses across the UAE
Benefits of Setting up Your Business in DAFZA
DAFZA offers a wide range of facilities and services to its clients
- Office Rental Spaces:
DAFZA offers a wide range of office rental spaces designed to meet the specific needs of businesses. The free zone has several office types that companies can choose from, such as executive suites and shared offices. Companies can also choose to rent office space long-term or short-term.
- Light Industrial Units:
DAFZA offers light industrial units suitable for a wide range of businesses. These units have several features, such as mezzanine floors and loading docks.
- DAFZA Industrial Park:
The DAFZA Industrial Park is a state-of-the-art facility that provides companies with the necessary infrastructure to support their businesses. The industrial park offers various services such as water and electricity, storage facilities, and transportation. Additionally, the industrial park has a security force that ensures the safety of the businesses.
- DAFZA Scality:
Scality is a software company that provides object storage solutions. The company’s products are used by some Fortune 500 companies and have been deployed in some of the world’s largest data centers. Scality has its headquarters in San Francisco and an office in DAFZA.
- DAFZA Square Retail Center:
The DAFZA Square Retail Center is a one-stop shop that provides businesses with various services. The retail center offers office space, meeting rooms, and storage facilities. Additionally, the retail center has a business center that provides multiple services such as secretarial support, concierge services, and more.
- VAT Exempted Free Zone:
DAFZA is a VAT exempted free zone, meaning businesses registered in the free zone can enjoy 0% VAT on their products and services. This makes DAFZA an ideal location for companies that want to avoid paying VAT on their operations.
How to Setup a Freezone Company in DAFZA
There are many reasons why setting up a company in DAFZA may be the best option for your business. DAFZA offers several benefits and advantages that make it an attractive option for businesses of all sizes, from start-ups to large multinationals.
There are a few simple steps to set up your Freezone company in DAFZA.
- The first step is to apply online or through the post and the required documents.
- Once your application has been reviewed, you will be contacted by a DAFZA representative who will arrange a meeting with you to discuss the next steps.
- During this meeting, you will be asked to provide additional documents and information about your company.
- Once all the required documentation has been submitted, you will be asked to pay the registration fee.
- After the registration fee has been paid, your company will be officially registered with DAFZA, and you will be issued a license.
- You can then begin setting up your company in DAFZA.
Documents Required for Business Setup in DAFZA
Primary documents to start your dream business at DAFZA include the following:
- Passport copy
- Passport size photo
- Bank reference or statement
- CV
- Business plan
*Note: that the above mentioned are basic requirements. Depending on the type of business activity and business license, case-to-case variations require tailored documents. To know exactly which documents you can contact us.
DAFZA Licensing Options
DAFZA offers several licensing options for businesses looking to operate in the free zone. The type of license you will need depends on the nature of your business.
The most common types of licenses are:
- Trading License:
A trading license at DAFZA is for companies involved in importing, exporting, re-export, or distributing goods. A Dubai trading license can also be obtained if your company carries out activities like storage, packing, and repacking goods.
- Industrial License:
The industrial license at DAFZA is for companies involved in manufacturing goods. A company can also get an industrial permit if it will be providing assembly, packaging, processing, or repairing services.
- Service License:
A service license at DAFZA is for companies that will provide service from the free zone. This could include consultancy, management, or IT services.
- General Trading License:
A general trading license at DAFZA permits the holder to engage in endless activities, including the import, export, re-export, storage, packing, and repacking of goods and distributing these goods.
- E-Commerce License:
The E-commerce license at DAFZA permits the holder to carry out business activities related to e-commerce from the free zone. This could include website design, development and hosting, online marketing and advertising, and online trading
List of Companies in DAFZA
Companies operating in DAFZA are subject to the rules and regulations of the Dubai Airport Free Zone Authority (DAFZA).
The types of activities that are allowed at DAFZA include:
1. Trading in goods
2. Manufacturing
3. Packing and repacking
4. Storage
5. Handling and transport
Much more…
Therefore, the list of companies in DAFZA is constantly updated with new businesses, making it one of the most comprehensive lists available.
Some of the notable companies that have a presence in DAFZA include:
- 3M Gulf
- A.P. Moller – Maersk
- Afcons Infrastructure
- Al Ghurair Greeting Cards
- Al Habtoor Engineering
- Al Naboodah Laing O’Rourke
- Atkins
- Bechtel
DAFZA is home to some of the world’s leading companies in various industries and sectors. The Free Zone provides ample opportunities for business setup and development across a broad spectrum of economic activities, making it one of the most attractive destinations for foreign investors looking to tap into the UAE’s vast market potential.
Some of the key industries and sectors that are well represented in DAFZA include:
- Aerospace
- Automotive
- Chemicals
- Construction
- Electronics
- Energy & Power
- Engineering & Manufacturing
- Environmental Services & Waste Management
- Food & Beverage
- Healthcare & Pharmaceuticals IT & Telecommunications
- Logistics
- Machinery & Equipment
DAFZA provides ample opportunities for business setup and development across a broad spectrum of economic activities, making it one of the most attractive destinations for foreign investors looking to tap into the UAE’s vast market potential.
DAFZA Fees
Many fees are associated with setting up and maintaining a company in the Dubai Airport Free Zone (DAFZA). The cost of incorporation can vary depending on the type of company you wish to set up and the size and scope of your business. Other ongoing prices include trade license fees, visa fees, and office rental costs.
Dubai Airport Free Zone License Cost
The cost of a Dubai Airport, Free Zone license, depends on the type of business you want to set up. For instance, a trade license will cost AED 3,000 for 1 year, while an industrial license will cost AED 10,000 for 1 year. The cost of a professional license depends on the activity you want to carry out. For instance, an experienced consultant license will cost AED 5,000 for 1 year.
DAFZA Visa Cost
The cost of a DAFZA visa depends on the type of visa required. For example, a single-entry visa costs AED 1,000, while a multiple-entry visa for business purposes costs AED 5,000. Please note that these prices are subject to change and may vary depending on the exchange rate.
DAFZA Warehousing Cost
When it comes to warehousing and storage in the UAE, DAFZA offers some of the most competitive rates in the market. Our team can help you find the perfect solution for your business, whether you’re looking for short-term or long-term storage.
DAFZA License Renewal
The cost of renewing your license in the Dubai Airport Freezone will depend on the type. The following are the standard fees for renewing a DAFZA trade license.
- Type A License (General Trading): AED 8,000
- Type B License (Industrial License): AED 4,000
- Type C License (Service License): AED 2,500
These fees are subject to change, so it’s always best to check with the DAFZA authority for the most up-to-date pricing.
Pros & Cons of Company Formation in DAFZA
There are several advantages and disadvantages to company formation in DAFZA.
Advantages:
- Convenient location: DAFZA is located in the heart of Dubai, making it a convenient location for businesses.
- Advanced infrastructure: DAFZA offers cutting-edge facilities, such as state-of-the-art office space and warehouses.
- Favorable tax regime: DAFZA offers a reasonable tax regime with 100% foreign ownership and no personal or corporate income tax.
- Business-friendly environment: DAFZA provides a business-friendly environment, with easy company formation and a one-stop-shop for all your business needs.
Disadvantages:
- High costs: The costs of company formation in DAFZA are high, with the minimum capital requirement being AED 1 million.
- Restrictions on business activities: There are restrictions on certain types of business activities that can be carried out in DAFZA.
- Lack of transparency: There is a lack of transparency in the pricing and terms of contracts in DAFZA.
- Lack of customer service: There is a lack of customer service in DAFZA, with few options for resolving disputes.
The advantages and disadvantages of company formation in DAFZA should be carefully considered before deciding. If you are looking for a convenient location, advanced infrastructure, and a favorable tax regime, DAFZA may be the right choice. However, if you are looking for a low-cost option or a business-friendly environment, you may consider other options.
Conclusion
Start your dream business in the UAE at DAFZA. The Dubai Airport Freezone Authority (DAFZA) is one of the world’s leading free zones, offering many advantages and benefits for businesses. Located in the heart of Dubai, DAFZA provides easy access to markets in the Middle East, Africa, Asia, and Europe.DAFZA offers a variety of business setup options to choose from, making it the perfect destination for businesses of all sizes and industries. Whether you’re looking to set up a simple business or a more complex operation, DAFZA has the ideal solution.
Contact us today to get started on your business journey in the UAE. If you want more information, you can check out how to start a business in Dubai.
