Discover the world of doing business in Dubai’s DAFZA (Airport Free Zone) – a tax-free environment for entrepreneurs and investors to establish and flourish their brands. Explore the process of initiating a company in DAFZA, required permits, the array of permits, permitted business activities, advantages of choosing DAFZA, its significance in the industry, business license renewal process, company formation funds, and how Adam Global can help you steer through the whole business setup phase.
What is DAFZA?
Situated close to Dubai International Airport, the Dubai Airport Free Zone Authority (DAFZA) is an exceptional free zone that was founded in 1996. Renowned as one of the foremost free zones in the United Arab Emirates, DAFZA played a significant role in appealing to foreign investment in Dubai. Hosted across an expanse of around 1.5 million square meters, the free zone currently shelters more than 1600 businesses across different industries.
Why Choose DAFZA for Business Setup?
DAFZA emerges as the optimal hub for enterprises aiming to establish a foothold in the Middle East and North Africa (MENA) region. The following factors substantiate this assertion:
1. Comprehensive Business Assistance:
DAFZA extends an array of comprehensive business support services encompassing legal, financial, and administrative realms. These services facilitate seamless operational endeavors for companies.
2. Streamlined Company Establishment:
The process of company setup within DAFZA stands out for its efficiency and simplicity. The incorporation procedures are streamlined, offering expedited pathways and online registration alternatives.
3. Gateway to Markets:
By situating themselves within DAFZA, companies gain an advantageous position to harness Dubai’s strategic location. This positioning enables them to tap into markets spanning the Middle East, Africa, Asia, and Europe.
4. Prime Geographical Placement:
DAFZA’s location at the core of Dubai, proximate to the Dubai International Airport, ensures effortless accessibility from global destinations, reaffirming its appeal.
5. Tax-Advantaged Environment:
Companies registered in DAFZA reap the benefits of a tax-free environment. They are granted complete exemption from corporate and personal income taxes, along with customs duties.
6. Cutting-Edge Infrastructure:
DAFZA extends state-of-the-art facilities and infrastructure, encompassing advanced telecommunications and transportation networks. This fosters an environment conducive to businesses’ operational excellence.
7. Enabling Business Policies:
DAFZA has instituted policies designed to foster business growth and operational ease. These initiatives collectively foster a conducive atmosphere for companies to thrive and expand.
The process to Set Up a Business in DAFZA
Initiating a business in DAFZA follows a straightforward trajectory, yet it necessitates meticulous planning and unwavering adherence to the free zone’s regulations. Here, we present a step-by-step guide to navigate the process of establishing a business in DAFZA:
1. Define Your Business Activity:
Begin by clearly outlining the nature of your intended business activity. It’s imperative to confirm its alignment with DAFZA’s regulations. If uncertainties arise, consulting with a business setup advisor can provide insights into activities specifically permitted within DAFZA.
2. Choose an Exclusive Company Name:
Select a distinctive name for your company that not only mirrors your business identity but also aligns with DAFZA’s prescribed naming conventions.
3. Submit Your Application:
Meticulously compile your business setup application, accompanied by the requisite documentation. This submission initiates the formal process, with your designated consultant as your point of contact.
4. Secure Essential Legal Approvals:
Depending on your business activity, secure necessary legal permits, and approvals from pertinent governmental bodies. External endorsements, such as those from the Dubai Municipality or the Department of Economic Development, are relevant only if your chosen activity mandates them.
5. Formalize the Lease Agreement:
Engage in signing a lease agreement with DAFZA, delineating the office or warehouse space that aligns with your operational requirements.
6. Register Your Business:
Officially register your business entity within DAFZA, culminating in the acquisition of your vital business license.
7. Facilitate Financial Transactions:
Streamline your business transactions by inaugurating a bank account in Dubai, ensuring seamless financial operations.
Types of licenses you can have for different kinds of business
For the establishment of a business in DAFZA, the following licenses are essential:
1. Commercial License:
A commercial license is imperative for entities involved in trading endeavors.
2. Service License:
Entities engaged in service-oriented activities must acquire a service license.
3. Industrial License:
Companies partaking in online trading activities are mandated to obtain an e-commerce license.
4. E-commerce License:
An e-commerce license is requisite for entities conducting online trading operations.
5. General Trading License:
Enterprises dealing in a diverse range of products across various sectors necessitate a general trading license.
6. Branch License:
Foreign companies desiring to establish a branch office within DAFZA are obligated to secure a branch license.
Benefits of DAFZA Company Formation
The process of establishing a business in DAFZA yields a multitude of advantages, which encompass:
1. Complete Foreign Ownership:
Enterprises registered in DAFZA enjoy the privilege of being 100% owned by foreign investors, obviating the requirement for local sponsors.
2. Tax Privileges:
DAFZA-registered companies relish exemption from corporate and personal income taxes, in addition to customs duties.
3. State-of-the-Art Infrastructure:
DAFZA offers businesses access to world-class infrastructure and facilities, encompassing cutting-edge telecommunications and transportation networks.
4. Strategic Geographic Position:
Situated near the Dubai International Airport, DAFZA affords unrivaled accessibility from all corners of the globe.
5. Tailored Business Solutions:
DAFZA presents businesses with customized solutions, ranging from flexible office spaces to warehouses and land plots, tailored to cater to the unique requisites of diverse industries.
6. Expedited Company Setup:
DAFZA expedites the company setup process, facilitating businesses in launching their operations within as little as 24 hours.
7. Comprehensive One-Stop Services:
DAFZA serves as a comprehensive one-stop destination for business setup, offering assistance encompassing visas, licensing, and permits, simplifying the process of initiation and operation.
8. Effortless Market Access:
DAFZA seamlessly connects businesses to markets across the Middle East, Europe, Asia, and Africa, rendering it an optimal locale for global expansion.
9. Networking Opportunities:
Through hosting networking events, seminars, and exhibitions, DAFZA fosters platforms for enterprises to forge connections and collaborations with fellow companies and industry experts.
10. Technology-Driven Ecosystem:
DAFZA’s technology-driven environment is equipped with advanced technological infrastructure and services, spanning high-speed internet, cloud computing, and data centers, facilitating businesses in their digital transformation journey.
11. Incentives for Investors:
DAFZA extends an array of incentives to investors, encompassing waivers of import and export duties, alongside access to financing, grants, and subsidies, thereby fostering business growth and expansion.
12. Business-Friendly Atmosphere:
DAFZA’s implementation of business-friendly policies is tailored to simplify operations and nurture the growth trajectory of enterprises.
Also Read: How to Start a Cleaning Services Business in Dubai
