How to Setup a Company in Dubai Airport Freezone (DAFZA)
Thinking about expanding your business into Dubai’s dynamic market? Dubai Airport Freezone Company Formation (DAFZA) might be your perfect launchpad.
DAFZA – managed by the Dubai Airport Freezone Authority – is one of Dubai’s premier free zones, offering foreign investors a fast-track route to set up a company with 100% ownership and zero tax on corporate income.
In this comprehensive guide, we’ll explore the benefits of forming a company in DAFZA, the types of licenses available, step-by-step setup process, and how Corporate Business Services (CBS) can help you every step of the way.
Whether you’re a startup looking for a cost-effective beginning, an SME aiming to scale in the Middle East, or a foreign investor seeking a business-friendly hub, DAFZA provides an encouraging environment to grow. Let’s dive in!
Key Takeaways
- Strategic Location & Connectivity: Established in 1996 adjacent to Dubai International Airport, DAFZA offers unrivaled access to global markets in the Middle East, Africa, Europe, and Asia.
Its on-site customs and logistics facilities make import-export processes seamless.
- 100% Foreign Ownership & Tax Benefits: Dubai Airport Freezone company formation allows full foreign ownership with no need for a local sponsor.
Companies enjoy a tax-free environment (no corporate or personal income tax) and 100% repatriation of profits.
- Flexible Licenses & Business Activities: DAFZA Free Zone licenses in Dubai include commercial (trading), service, industrial, general trading, e-commerce, and even freelance permits, catering to a wide range of business activities.
- World-Class Infrastructure: Companies in DAFZA benefit from state-of-the-art infrastructure and facilities.
Modern offices, warehouses, high-speed internet, and a tech-driven atmosphere support your operations.
- Expert Support for Setup: While the setup process is streamlined and relatively quick (often completed within weeks), partnering with experts like Corporate Business Services (CBS) makes it even easier.
CBS handles everything from license application and paperwork to visas, banking, and office setup – ensuring a smooth, hassle-free DAFZA company formation journey.
What is DAFZA (Dubai Airport Freezone Authority)?
Dubai Airport Freezone Authority (DAFZA) is the governing body of the Dubai Airport Freezone – a special economic zone located next to Dubai International Airport (DXB).
Established in 1996 as part of the airport’s expansion, DAFZA has grown into a vibrant business hub. Its strategic location means if you set up a Dubai Airport Freezone company, you’re literally minutes away from one of the world’s busiest airports and global cargo gateways.
This makes DAFZA especially ideal for businesses in logistics, trading, and aviation, though it welcomes all sectors.
DAFZA provides a business-friendly ecosystem underpinned by Dubai’s reputation as a safe, well-regulated city. The Freezone Authority offers streamlined regulations and support services to investors.
When you setup a company in DAFZA, you can choose between two main legal structures:
- Free Zone Company (FZCO/FZ-LLC): An independent company with one or multiple shareholders (up to 50).
This entity offers limited liability and requires only a minimal share capital (as low as AED 1), making it easy for startups and entrepreneurs to begin.
- Branch of an Existing Company: If you already have a company abroad (or in the UAE) and want a presence in DAFZA, you can register a branch.
A branch inherits the name and activities of its parent company and requires no additional share capital.
This option is great for foreign companies looking to expand into Dubai without creating a new entity.
Did you know? DAFZA is home to global industry giants and innovative startups alike. Over the years it has attracted more than 3,000 companies, drawn by its incentives and prime location.
It’s a secure, thriving community where new businesses can network and collaborate through events, seminars, and exhibitions organized in the zone.
Benefits of Dubai Airport Freezone Company Formation
Opening a company in DAFZA comes with numerous advantages that make it one of the top choices for business setup in Dubai:
- 100% Foreign Ownership: Unlike mainland companies in the UAE, a DAFZA company allows you full ownership of your business.
There’s no requirement for a local Emirati partner or sponsor. You retain complete control, which is a huge draw for foreign investors and entrepreneurs.
- Tax-Free Environment: DAFZA offers a zero-tax regime on corporate profits and personal income.
Free zone companies are exempt from corporate tax (subject to meeting free zone regulations) and there are no withholding taxes. This means more profit retained for your business growth.
Additionally, there are no currency restrictions and import/export duties are waived within the free zone (you only pay customs duty if importing into mainland UAE).
- Repatriation of Capital and Profits: Investors can repatriate 100% of their capital and profits back home with no restrictions.
- Strategic Market Access: By operating in DAFZA, you gain immediate access to a broad region.
Dubai’s central geography and world-class airport connect you to the Middle East, North Africa, Europe, and Asia with ease.
For businesses, this means faster shipping, easier international client visits, and a base that’s in sync with multiple time zones.
- World-Class Infrastructure: DAFZA is renowned for its state-of-the-art infrastructure.
You’ll find modern office facilities, warehouses, and logistics centers equipped with advanced telecom and IT infrastructure.
High-speed internet, reliable utilities, and on-site data centers create a tech-driven environment to support digital business models.
The free zone also hosts banks, insurance firms, cafeterias, and even government service centers (customs, visa offices) right on its premises for ultimate convenience.
- Ease of Setup and Streamlined Processes: The company formation process in DAFZA is straightforward and efficient.
The Freezone Authority has minimized red tape – entrepreneurs can get their license issued in a matter of days (assuming documentation is in order).
DAFZA’s reputation as a “business-friendly” zone means you also enjoy easier bank account opening and smooth immigration procedures – UAE banks are familiar with DAFZA companies, expediting banking formalities.
- No Minimum Capital Burden: As mentioned, the minimum paid-up capital for a DAFZA Free Zone Company is just AED 1.
In practice, you can choose a capital that fits your needs, but the low official requirement means minimal upfront financial burden. This is perfect for startups trying to conserve cash.
- Flexible Office Solutions: DAFZA offers flexible workspace options to suit businesses of all sizes.
You can opt for a flexi-desk or shared office (a small workstation setup) if you only need a minimal physical presence, or take a full-fledged private office or warehouse for larger operations.
Even the smallest package (like a flexi-desk) qualifies your company for visa sponsorships for you and your employees. As your business grows, upgrading to bigger spaces or adding more visas is straightforward.
- Networking and Support Ecosystem: Being in DAFZA means joining a thriving business community.
The free zone regularly organizes networking events, industry conferences, and training workshops that help startups and SMEs connect with peers and experts.
This collaborative atmosphere can spark partnerships and new opportunities. Moreover, DAFZA’s administrative support is top-notch, guiding companies on compliance, and offering fast-track solutions for government services.
- Dual Licensing Option: Uniquely, DAFZA is among the few free zones that offer a dual licensing facility with Dubai’s Department of Economy and Tourism (DET).
This means your DAFZA company (while primarily a free zone entity) can obtain a permit to operate in Dubai mainland for certain activities – all while you retain 100% ownership and free zone benefits.
It’s a best-of-both-worlds solution for businesses that want a footprint inside and outside the free zone.
Types of DAFZA Free Zone Licenses in Dubai
DAFZA offers a variety of license types to accommodate different business activities.
When setting up in the Dubai Airport Freezone, you’ll choose a license that matches your company’s activities (you can even hold multiple licenses if needed).
The main DAFZA free zone licenses include:
- Trading/Commercial License: Allows trading activities such as import, export, distribution, and storage of goods.
Most general trading companies (e.g. electronics, textiles, consumer goods) will require this license.
DAFZA’s trading license lets you handle international trade efficiently with the free zone’s on-site customs clearance facilities.
- Service License: For service-oriented businesses (consultancy, IT services, marketing, etc.), a service license is required.
This permits you to provide professional or other services specified in the license. DAFZA’s environment is ideal for regional headquarters, consultancies, and support service firms.
(Note: Certain specialized services might need pre-approval; CBS can help ensure you select the right category.)
- Industrial License (Light Industrial): Suited for light manufacturing, assembly, or packaging activities.
If you plan to do light production or assembly of products within the free zone, this license covers those operations.
DAFZA provides warehouse units and industrial spaces for such purposes.
- General Trading License: This is a broader form of the trading license that allows a company to trade in a wide range of goods and multiple product lines under one license.
It’s beneficial if your business intends to deal in diverse commodities.
- E-Commerce License: With the rise of online business, DAFZA now offers an e-commerce license specifically for online trading activities.
If you are running an online store or marketplace, this license ensures you can operate legally and take advantage of Dubai’s robust digital infrastructure and logistics for e-commerce fulfillment.
- Freelance Permit: DAFZA also caters to solo professionals through a freelance permit.
This permit lets an individual operate as a freelancer under a specific field (such as media, tech, consulting) from the free zone.
It’s a cost-effective way for independent professionals to legitimize their business, with the benefits of a free zone (including visa eligibility).
The cost of a DAFZA free zone license in Dubai will vary depending on the type of license and the facilities you choose.
In general, a basic one-year trade or service license starts at around AED 15,000. Additional fees apply for registration, your chosen office or desk space, establishment card, and visas.
For example, a standard small office package (around 27 m² with a 3-visa quota) might total about AED 80,000+ including all fees and rent.
Tip: You don’t necessarily need to commit to a large office upfront. Many startups begin with a flexi-desk or small office to keep costs low, then expand as the business grows.
CBS can help you understand the DAFZA license packages and pick the one that fits your budget and needs, ensuring you get the best value.
How to Set Up a Company in DAFZA: Step-by-Step Process
Setting up a company in DAFZA is a streamlined process, especially with the right guidance.
Here’s a step-by-step look at how Dubai Airport Freezone company formation typically works:
1.Choose Your Business Activity and Legal Structure:
First, outline what business activities your company will undertake.
Simultaneously, decide on your legal structure – FZCO (free zone company) or branch. This choice affects the documentation and setup (for instance, branches need parent company documents, while FZCOs need shareholder documents and capital setup).
2.Select a Trade Name:
Pick a unique name for your company and reserve it with DAFZA. The name should meet UAE naming guidelines (avoid offensive terms or references to religious/political words, etc.).
Typically, the name should reflect the nature of your business or be a brand name.
CBS can assist in quickly checking name availability to speed up this step.
3.Apply for Initial Approval:
Submit an application to DAFZA for company formation. This will include details of shareholders, proposed business activity, and your chosen facility (office, warehouse, or flexi-desk).
At this stage, you’ll also choose the type of license (trading, service, etc.) you need. The Dubai Airport Freezone Authority will review the application and issue an initial approval or a provisional letter so you can proceed.
4.Prepare Required Documents:
Gather and submit the necessary documents for incorporation. These usually include:
- Shareholder passport copies, visa copies.
- Proof of address.
- A concise business plan or summary of your intended business.
- A No Objection Certificate (NOC) if a shareholder is UAE-resident and employed elsewhere.
If you’re opening a branch, you’ll need documents like the parent company’s Certificate of Incorporation, board resolution to open the branch, and audited financial statements.
Don’t worry – CBS will provide you with a detailed checklist and help you prepare all documentation to meet DAFZA’s requirements.
5.Sign Lease Agreement for Office/Space:
Once your documents are in order, you will finalize your facility rental within DAFZA.
Even if you opt for a flexi-desk, there will be a lease agreement to sign for that workstation; for physical offices or warehouses, you’ll sign a lease for the unit.
Securing a space is mandatory because a DAFZA license is tied to a specific physical location or desk in the free zone (this is also what qualifies you for residence visas).
6.License Issuance & Company Registration:
After all fees are paid and documents approved, DAFZA will issue your business license along with the Certificate of Incorporation and other incorporation documents (Memorandum & Articles of Association, Share Certificates for FZCO, etc.).
Congratulations – your company is now officially established! You will also receive an Establishment Card (sometimes called the immigration card), which is needed for visa processing.
Obtain Visas (if required):
With your company set up, you can now proceed to apply for UAE residence visas for you (as the owner) and any employees under your quota.
The process involves getting an entry permit, then completing a medical test, Emirates ID registration, and visa stamping in your passport.
DAFZA companies are allowed a certain number of visas based on their office package (each desk/office size comes with a specific visa quota).
For example, a small office might allow 3 visas, whereas larger offices allow more.
CBS’s PRO services will handle the visa applications, schedule your medical test, and guide you through the paperwork until you have your visas in hand.
Open a Corporate Bank Account:
Finally, you’ll want to open a business bank account in the UAE for your new company.
The good news is DAFZA’s strong reputation means banks are very comfortable opening accounts for DAFZA companies. In fact, several major banks have branches or representatives within the free zone.
While the account opening process is a separate procedure that requires a bank interview and due diligence, CBS can set up appointments with suitable banks and help prepare the required documents (license, incorporation certificate, business plan, etc.).
Once your bank account is active, you’re all set to commence business operations fully.
From start to finish, the DAFZA company formation process can be completed in as little as 1-3 weeks (assuming timely document preparation and approvals).
Many steps can be initiated even if you’re abroad – for instance, you can reserve the name and get initial approval remotely.
However, keep in mind that you (or an appointed manager) will need to visit Dubai at least once to sign official documents (some of which may be done at DAFZA in person) and for the visa medical test and stamping.
How CBS Can Help with DAFZA Company Formation
Setting up a business in a foreign country can be daunting – but you don’t have to navigate DAFZA company formation alone.
Corporate Business Services (CBS) is an experienced consulting firm specializing in business setup in Dubai, including DAFZA.
Not sure if DAFZA is the right free zone for your venture? Or confused about which license category fits your business model? Our experts provide personalized consultations to understand your needs and advise you on the optimal setup.
We clarify all costs, requirements, and timelines upfront, so you can make an informed decision.
CBS handles the entire company formation process on your behalf – from preparing the application and registering your Dubai Airport Freezone company to liaising with the Dubai Airport Freezone Authority for approvals.
We assist in documentation, ensure your paperwork is error-free, and submit everything through the proper channels quickly. This saves you countless hours and avoids potential delays.
Why choose CBS? We bring years of experience and a proven track record of helping entrepreneurs and companies establish themselves successfully in Dubai.
Our approach is friendly and personalized – we treat your business as our own. With CBS managing your company formation in Dubai, you can expect transparent advice, timely updates, and a hassle-free process from start to finish.
If you’re ready to take the next step, we’re here to help turn your vision into reality. Contact CBS today for a free, no-obligation consultation on DAFZA company formation.
Let our experienced team answer your questions, handle the heavy lifting of paperwork, and guide you through each step with confidence.