Company formation in Dubai Airport Free Zone: All you must know
Dubai offers a diverse business atmosphere in the region. Its multiple free zones offer new investors unique opportunities for job and economic growth. Various new startups and entrepreneurs seek a company establishment in the Dubai Airport Free Zone.
This blog will help you discover more about the Dubai Airport Free Zone and all the relevant information you require to establish a company in the UAE.
- What do you mean by the Dubai Airport Free Zone?
- Types of companies at DAFZA
- Types of legal entities at DAFZA
- How can you start your company formation in the Dubai Airport Free Zone?
- Step by step to company formation in DAFZA
- Types of business licenses in DAFZA
- Some benefits of a company formation in the Dubai Airport Free Zone
- How much does a company formation process cost?
- Why should we set up a company in this free zone?
- What do we need to start business operations in the UAE?
1. What do you mean by the Dubai Airport Free Zone?
Dubai Airport Free Zone provides premium amenities for the expanding business community in the Emirates. Companies can obtain licenses for multiple business activities in this free zone, such as consultancy, production, manufacturing, trading, aviation, android phones, information technology, accessories, and more. This zone enjoys VAT exemption and also has a simple company formation process. The requirements to do this are minimal, and you will be paid a reasonable price.
This free zone is situated in a prime location and provides quick access to potential clientele across Asia, Europe, and the Middle East. Companies can obtain business objectives for maximum growth and success to establish their business in this rapidly expanding business hub in the region.
2. Types of companies at the Dubai Free Zone
The companies that work in DAFZA participate in various sectors, some of which are the following:
- Electrical
- Telecommunications
- Information technology
- Aviation and aerospace
- Luxury items
- Engineering and building materials
- Jewelry
- Cosmetics and pharmaceuticals
- Precious stones
- Logistics and freight
- Food and beverages
- Electronic
3. Types of legal entities at DAFZA
In the Dubai Airport Free Zone, only two types of legal entities can carry out commercial activities. These are the following:
3.1 Free Zone Company (FZCO)
- Minimum share capital: AED 1,000
- You can have from 1 to 50 shareholders (corporate, individual, or both)
- Value of each share: AED 1000
3.2 Branch of an existing company
- Same business name of the parent company
- 100% owned by the parent company
- Same business activity as the parent company
4. How can you start your company formation in the Dubai Airport Free Zone?
Establishing your company in the Dubai Free Zone is an extremely important and simple process. This free zone allows for a smooth business setup with flexible options, a tax-free environment, and full ownership. Companies can set their work schedule for 24 hours and seven days a week without restrictions. They need to follow the guidelines for a new business setup in this free zone, and it’s better to consider an expert or professional service for consultancy and acquire an easy process.
5. Step by step to company formation in DAFZA
Companies need to follow the guidelines from the regulatory authorities to establish a company in the Dubai Airport Free Zone.
The steps are the following:
- Choose the type of legal entity
- Pick a trade name
- Apply for a business license
- Select an office space
- Get approvals
- Register your business
- Get your license
5.1 Legal entity
Companies can select a legal entity, such as a Free Zone company or a branch office, to start in this zone. These two entities can differentiate in terms of the number of shareholders.
5.2 Trade name
Companies can select a unique trade name that resonates with their business perspectives. They must check and confirm the trade name availability and register the tradename from the regulated authorities to proceed to the next step. Please ensure that the chosen trade name is not adopted by any other registered business in the UAE. These are the mandatory criteria for trade name registration in this free zone;
- The name must be compatible with the type of activity carried out by your company.
- It may not contain references to any government authority or religious deity.
- The company’s legal entity must appear at the end of the name. For example, FZCO and FZE are among others.
- It must align with the morals of the nation; it cannot have foul or vulgar language.
5.3 Business license
The business license for which you are going to apply will depend on the productive activity to which your company is dedicated. A few of the existing licenses are the following:
5.4 Office space
Generally, in the UAE’s free zones, you can rent or buy office spaces. The requirements of these offices will depend on the number of employees and the type of productive activity carried out by your company.
Note that in Dubai Airport Free Zone, you can choose between smart desk office packages, regular office packages, and executive office packages.
However, you can also learn how to set up a business without office space.
5.5 Get approvals
As shown above, it is mandatory for all companies established in DAFZA to comply with the respective laws. To get the necessary approvals, you will need to submit certain documentation.
This documentation will depend on the type of company, the type of productive activity, and also the requirements of the DAFZA authorities.
To obtain initial approval, you will need to submit the following documents:
- Passport copies of the shareholders
- Business plan
- Application form duly filled
- No objection certificate from the current sponsor
- Letter of intent
- Registration certificate of your business License (if you already have a license, you must submit a copy of it instead)
- Unit title deed
- Specimen of the shareholder’s signature
- Two years audited financial report for a corporate identity or a bank reference for a natural person.
- The registry identification code form (RIC)
If you decide to become a freelancer, then you will need to submit fewer documents. Some are the following:
- Bank reference letter
- CV
- Application for registration
- RIC (Original and notarized)
5.6 Registration
After receiving initial approval, you are required to pay the registration fee and the license fee. These fees will depend on the type of license chosen.
Then, after paying, you must submit the following documents:
- Photo of the director of the company against a white background
- Specimen signature of the director of the company
- Registration form duly filled out
- Share capital information
- Power of attorney given to the director of the company
5.7 Visa and licensing process
At this point, the authorities will take care of your paperwork. The lease contracts will be prepared, the license will be issued, and you will finally begin applying for your visa.
6. Types of business licenses in DAFZA
Companies must acquire business licenses and permits like other free zones. However, they might obtain more than one trade license according to their business requirements. The licenses that you can acquire here are the following:
6.1 Trade license
The trade license is aimed at companies whose commercial activity is based on the export, import, storage, and also distribution of products.
6.2 Industry license
Companies whose commercial activity is based on the manufacture and production of goods and services can acquire this license.
6.3 Service license
In essence, this license allows companies to offer different types of services legally.
6.4 General trading license
If your company qualifies for two or more licenses, then you can apply for a general trading license.
7. Some benefits of a company formation in the Dubai Airport Free Zone
Among the most important advantages of establishing a company in DAFZA we can find the following:
 7.1 Taxation leverage
This free zone offers investors several incentives when it comes to taxes. For example, tax leverages import and export tax, 100% ownership, zero currency restrictions, and 0% income tax, among others.
7.2 Strategic location and infrastructure
DAFZA’s strategic location offers world-class facilities and comprehensive services that are unique to the free zones.
Also, this zone offers custom services 24 hours a day, a dedicated logistics center, an inexpensive workforce, rapid cargo clearance, 24/7 security, easy recruitment procedures, and warehouse facilities, among others.
7.3 Strong connections with the local government
In recent years, the government of the United Arab Emirates has shown great motivation by carrying out ambitious projects in the Dubai Airport Free Zone. The goal is to make it the leading provider of services to international customers and also make the process of running a business as simple as possible.
Currently, they offer several amenities. For example, visa processing, office space requirements, licensing, registration, and other administrative and operational services.
7.4Â Single window system
This free zone offers a unique opportunity for administrative services, intending to boost the efficiency of international traders. Under a single window, an entrepreneur has the freedom to manage the documentation procedure in a single entity.
The single window system makes it easier to interact with government authorities, as well as to obtain permits and authorizations.
8. What is the cost of a company formation process?
Note that a company formation in the Dubai Airport Free Zone is not precisely cheap. However, it offers various packages to make this process more affordable and easier.
The most cost-effective setup is a business with a smart desk; this will cost AED 34,655 with the license included. Another type of setup should be calculated as follows: license + office rent.
Generally, a license costs AED 15,000 for most business activities. Overall, a company formation in the Dubai Airport Free Zone has a similar cost to any other of the free zones in Dubai.
9. Why is it a good idea to set up a business in this zone?
DAFZA offers world-class infrastructure and a beneficial location in the heart of Dubai. This allows entrepreneurs to have the upper hand in the commercial operations they carry out.
Also, when deciding to setting up a company here, you will find a business-friendly environment and exceptional amenities, aimed at promoting the gradual growth of the different businesses.
10. How can we help you start your business activities in the UAE?
DAFZA is one of the leading free trade zones in the Middle East. This is because of its easy accessibility and its state-of-the-art infrastructure. Therefore, it has become the business hub par excellence for all those entrepreneurs interested in innovating in the United Arab Emirates.
However, in order to succeed in this territory, it is always advisable to have the help of professionals in the area. And this is where Connect Zone can be your best companion.
In our agency, we gather and process all the paperwork necessary for the formation of your company. In this way, you can invest your time in expanding your business. Also, we take care of your tax returns and your license applications and even help you find an office space that suits you in one of the best business centers.
Would you like to learn about how we can help you establish your firm in DAFZA? You can contact us at the following number: +97143316688 or send us an email at contact@connectzone.ae, where one of our representatives will answer any questions you may have.
