Dubai Airport Free Zone (DAFZA) is reputed for offering seamless connectivity benefits for companies as it is situated near the Dubai International Airport. DAFZA was established in 1996 and has become one of the fastest-growing free zones in the UAE. A key reason for foreign investors opting for a business setup in DAFZA is the direct advantage they can gain from having a company near one of the business airports in the world.

Foreign investors regard company formation in DAFZA as the ideal way to set foot in the highly lucrative markets in the Middle East. The free zone also offers smooth connectivity to Europe, the Indian Subcontinent and the Far East. Entrepreneurs must understand the regulations, policies, and requirements set out by DAFZA to establish a company without any hassle. A more viable way is to entrust business setup consultants in Dubai with the responsibility of carrying out the pre-registration process on behalf of the investors. Read ahead for more details on DAFZA:

A Brief Introduction to Business Setup in DAFZA 

DAFZA’s contribution to the GDP of Dubai is highly commendable. In the first half of 2021, DAFZA’s contribution to Dubai’s non-oil foreign trade was 11 per cent. By setting up a company in DAFZA, foreign investors can have a prestigious address at the heart of Dubai. All the major brands in the world have a presence in DAFZA and the free zone is home to over 1,800 registered businesses from over 20 industries.

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    DAFZA was under the regulatory purview of the Dubai Airport Free Zone Authority until September 2021. However, the Dubai government issued Law No. (16) of 2021 to create a new authority called Dubai Integrated Economic Zones (DIEZ) Authority. DIEZ is an independent legal entity with financial and administrative autonomy. Three free zones in Dubai, including DAFZA, are now being regulated by DIEZ.

    Licence Types Permitted by DAFZA 

    A trade license is the most important prerequisite for any company to start its operations in Dubai. Doing business in Dubai without a trade license is a serious offence. However, investors need to do good research while choosing a license. The activity and the license must match to ensure the success of the company. Business setup consultants in Dubai can guide the entrepreneurs to select the right licenses. Here is a list of license types permitted in DAFZA:

    1. A trading license for trading activities including imports, exports
    2. An industrial license for carrying out light manufacturing activities
    3. A service license for carrying out professional services specified in the license
    4. A general trading license for carrying out trading of multiple goods

    Types of Companies Approved by DAFZA 

    Choosing the right legal structure is critical for a successful company formation in DAFZA. A legal structure is determined based on the number of shareholders in the company. DAFZA offers the following legal structures:

    Free zone company  

    A free zone company (FZCO) can be set up in DAFZA with 1-50 shareholders. DAFZA allows the shareholders to be individuals or corporate entities. Business setup consultants in Dubai can help the investors set up an FZCO.

    Public Limited Company 

    DAFZA allows the formation of a Public Limited Company (PLC) with limited liability. There’s no limit of shareholders in a PLC incorporated in DAFZA. PLC structure is best suited for companies wishing to list or relish or offer shares on a securities market.

    Branch Companies  

    Existing companies can establish their branches in DAFZA. Both the UAE local companies and foreign companies can set up their branches in DAFZA. No share capital is required to establish a branch office in DAFZA.

    E-Commerce License 

    An e-commerce license is mandatory for companies that conduct activities like trading goods and products through online platforms. E-commerce activities are much in demand across the world including in the UAE as a result of the COVID-19 pandemic that requires heightened social distancing practices to spread the infection.

    The Dual License with DED 

    The dual license allows DAFZA-registered companies to apply for a DED (Dubai Department of Economic Development) Licence. The companies can do it without the need for physical office space on the mainland. The businesses that hold the dual license can operate in the mainland from their offices in  DAFZA.

    Benefits of Setting up a Business in DAFZA 

    There are more than forty free zones in the UAE and choosing the best from the list is a tough task. There are a number of factors based on which the investors pick the free zone that best fits their requirements of company formation in Dubai. Investors should consider factors such as facilities, ease of setting up a business, cost-effectiveness among other factors while selecting a free zone before starting the process of business setup in Dubai. DAFZA excels in all of the top factors that influence the company formation in Dubai, UAE. DAFZA has been ranked No 1 by the Foreign Direct Investment Magazine’s Global Free Zones & Awards 2012-13. DAFZA earned this prestigious rating due to its exemplary regulatory environment and excellent services to investors.

    The following are some of the reasons why the business setup services in Dubai recommend DAFZA for company formation.

    1. Strategic Location in Dubai near the International airport
    2. Robust Cargo Handling Facilities
    3. World Class Infrastructure
    4. Smart Platform for Administrative services
    5. Dedicated Logistics Centre
    6. Reliable 24*7 customer service
    7. 24*7 security service

    DAFZA provides rapid cargo clearance services which will be highly beneficial for the logistics requirements of the companies operating within the free zone. To know more about the facilities and regulatory requirements in DAFZA, consult with providers of business setup services in Dubai.

    Choose the Best Business Setup Services in Dubai 

    DAFZA is one of the fastest-growing free zones in Dubai, that has been recognized internationally for its excellent regulatory structure and investor-friendly business atmosphere. DAFZA offers easy connectivity for all the companies through the sea, air, and land. However, the company formation in DAFZA becomes a smooth process only when the investors get access to professionals with in-depth knowledge of the UAE laws and regulations. Since the regulations in each free zone vary as per the policies implemented by the respective free zone authorities, selecting the right free zone requires the assistance of a reputed business setup services in Dubai such as Jitendra Business Consultants (JBC).

    JBC has years of experience in assisting investors in setting up companies in free zones including the DAFZA. JBC has a team of highly qualified business setup consultants who guide the investors to have a flawless process of business setup in Dubai. JBC’s business setup services in Dubai, UAE include company registration, visa processing, drafting of MoA and other documents, etc. The investors can enjoy a hassle-free business setup in Dubai by hiring the services of JBC.

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