UAE government has specialized freezones among all the emirates. The basic goal of this initiative is to increase business opportunities at a global level and boost foreign investment in the UAE market. This will, thus, help in lifting the country’s economy and bring in new initiatives for the general public. Dubai Airport Free Zone is one such developing freezones in the Dubai city that comes with an incredible incentive package for investors. Moreover, the Dubai airport free zone company formation offers a great opportunity for global investors to set up their quality in Dubai within a facilitated procedure.
Dubai Airport Free Zone(DAFZA) was built as a part of Dubai International Airport, making it a preferred choice for businesses related to trade activities. At present, it is home to more than 3000 companies from different industry sectors, such as aviation, healthcare, trading, manufacturing, logistics, jewelry, IT solutions, etc.
With this blog, let’s dive into the major facets of DAFZA company formation, including its benefits, registration steps, and the procedure to acquire a Dubai airport free zone trade license as well.
Dubai Airport Free Zone overview
Dubai Airport Free Zone was established in the year 1996 and is currently one of the fastest-growing economic zones in the region. It was basically built as a part of Dubai International Airport, to facilitate trade activities across international borders. Gradually, it caught up with the Dubai government’s strategic plan and became one of the quickest developing freezones. Additionally, it contributes nearly 4.7% to Dubai’s overall GDP.
Dubai Airport Free Zone Authority, also termed DAFZA, is the licensing authority that issues business licenses for expats and investors to operate their businesses worldwide. DAFZA provides licenses for an array of business activities such as consultancy, manufacturing, IT Services, Mobile phone and accessories trading, food items trading, etc. It is also one of the VAT(Value-Added Tax) exempted Free Trade Zones in Dubai.
Benefits of Dubai airport free zone company formation
- 100% foreign ownership of the company
- Tax-free business setup as well as execution of services
- No restrictions on foreign currency
- Complete repatriation of UAE profit and capital
- Free transfer of funds
- Exemption from all import/export tariffs
- Low freight charges and rapid cargo clearance
- 24/7 customs services
- Availability of inexpensive manpower
- Easy recruitment procedure
- Single-window administration for Dubai airport free zone company formation
- Efficient communication system
- Liberal government policies and business-pro legal framework
- Timely immigration process
- Visa facilities for staff
- Availability of office premises and warehouses for sale as well as for lease
- Ready-to-move offices
- Easy, quick, and affordable business registration and licensing procedure
- Unique and well-developed infrastructure for business purposes
- Located near one of the biggest international airports
- Direct access to government services
- Other benefits such as notary, banks, telecommunications providers, etc.
You may like it: Benefits of UAE Free Zones Company Setup
Licenses available for Dubai airport free zone company formation
- Trading license – Allows companies to conduct trading activities such as import, export, distribution, and storage of specific goods.
- General trading license – Permits trading in general items.
- Industrial license – Companies can carry out light manufacturing and industrial activities, such as packaging, and assembling.
- E-commerce license – This allows companies to sell and promote their goods and services through online channels.
- Service license – Provided to companies involved in specified service deliveries. For example, IT services, accounting services, web development, etc.
DAFZA also permits dual licenses with DED (Department of Economic Development) where companies do not have to establish a physical office in the mainland but still can trade outside DAFZA.
The company’s business activities determine the type of license it would need to operate in the region. Also, the investor must be physically present to acquire the license for their company.
Types of legal structure allowed in DAFZA
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Free Zone Company (FZCO) –
A Free Zone Company is similar to a Limited Liability Company(LLC). So, just like an LLC, the company is formed with a minimum of one shareholder and a maximum of 50. Besides, the shareholders can be an individual or a corporate entity, or a mix of both.
-
Branch Company –
A branch belongs to an existing company, established within or outside of UAE. In other words, the parent company can be a domestic company or an international business. Also, there is no requirement for paid-up share capital for the formation of a branch company. Besides, the ownership of the branch lies with the parent company which regulates and controls its operations.
Business activities available in DAFZA
The business activities that are permitted in Dubai airport free zone are spread in various sectors. For instance,
- Insurance
- Aviation
- Petrol, crude oil, and natural gas
- Business and management consultancy
- Legal services
- Technical activities and consultancy
- Transportation activities
- Storage services
- Automobile and spare parts
- Travel & tourism
- Construction materials
- Electronic equipment
- Telecommunications
- Pharmaceuticals and cosmetics
- Food and beverage
- Jewels and stones
- Luxury goods
- Waste management
- Investment
- Mobile & accessories trading
Facilities offered to companies in DAFZA
- Executive offices
- Flexi desks
- Warehouses
- Storage units
Process of Dubai airport free zone company formation
- Select the legal structure as well as activities of the business.
- Determine the type of license you need for your business. The license you choose depends on the business activities you choose to run in the freezone.
- Reserve a trading name, depending upon the nature of your business. The name must be unique, appropriate as well as non-resembling to any other business.
- Apply for company registration and duly fill out the license application form.
- Submit all the relevant documents with the DAFZA.
- Choose a suitable office space as per your business preferences such as business activities, employee count, etc.
- Open a corporate bank account to track all your business transactions.
Documents required :
- Copy of passport
- UAE visa/entry permit
- Emirates ID
- Business plan
- Six months’ bank statement
- Original reference letter from the bank
- No objection letter(NOC) from a local partner
- Letter of intent
Renewal process
The renewal process for DAFZA companies includes certain costs such as license fees and office rent. In addition, the owner has to submit the annual financial audit of the company, that too without having to make any personal visit to the UAE.
Also, the owner can easily apply for any company amendments during the renewal process.
Company liquidation process
For liquidation, the company must provide a notice of termination 3 months before the expiration of its lease. Besides, the shareholders must also appoint an audit company as a liquidator for the cancellation of the business in DAFZA.
The company owner must obtain clearance from certain departments and also advertise its closure procedure in the newspaper.
The basic steps for liquidation of the company in DAFZA include:
- Cancellation of visas
- Termination of the lease agreement
- Closure of bank account
Summing up
Dubai airport free zone company formation is one of the most convenient business setup procedures. It mainly focuses on trading activities in the UAE as well as in foreign markets. It is a reputable zone with high demand because of its infrastructure and support of other operational companies.
Securing a Dubai airport free zone trade license or establishing your business might not seem the easiest, but it can be performed with the guidance of business setup consultants in the UAE. Shuraa Business Setup can help you solve all your business-related queries and also offer the best solutions for your UAE company formation plans. We, indeed, are one of the best business setup companies in Dubai, UAE.
To learn more about DAFZA company formation options, contact the Shuraa team at +97144081900. Share your chat queries on WhatsApp at +971507775554. You can also drop in an email at [email protected] and get your queries answered in no time.
