How to Setup Business in DAFZA?

How to Setup Business in DAFZA?

Dubai Airport free zone or DAFZA is a free zone located next to Dubai International Airport. It provides premium services to the global business community. It was established in 1996 and became the ideal destination for various businesses.

Additionally, the DAFZA is home to almost 3,000 businesses. Some industries, including aviation, pharmaceuticals, trading, manufacturing, jewellery, IT, and logistics, benefited from the DAFZA free zone. DAFZA is one of the primary choices of businesses related to logistics and import-export activities.

DAFZA business setup- A Perfect Zone for Business

Do you know why DAFZA is a perfect destination for business? If not, read the blog to get a detailed view of DAFZA.

DAFZA is one of the few free zones in the UAE that offers a dual license with the Department of Economic Development in Dubai.

It enables businesses to sell their products and services to end consumers while maintaining complete control. 

Furthermore, due to the dual licensing, companies will be able to apply for a DED licence without establishing a physical presence on the mainland.

DAFZA is one of the region's fastest-growing free zones, contributing 4.7 per cent of Dubai's total GDP. It has one of the most accessible company establishment processes. The prerequisites for forming a corporation in DAFZA are modest, and the expense of doing so is affordable.

DAFZA- Exempt from VAT Tax

DAFZA is a free zone in Dubai that is exempt from paying VAT. The benefits of a VAT Exempted Free Zone are available to investors who establish a firm in the Free Zone.

A VAT exempted free zone allows investors to avoid paying VAT on any sales transactions within the Free Zone or between two VAT Exempted Free Zones.

VAT is charged on any service given or products transferred from the Free Zone to the mainland or neighbouring free zones.

What Facilities does DAFZA Offer?

Before founding a business in a free zone, make sure you know everything about the services available. Compared to other free zones, DAFZA would give various options. See below for further information.

  • Flexible workstations
  • Administrative offices
  • Warehouses and storage areas

Types of Legal Entities Permitted in DAFZA

DAFZA follows two legal entities. They are,

Free Zone Company

  • Free zone company 1-50 shareholders for individual and corporate offices. 
  • The minimum share capital required for the legal entity is AED 1,000.

Branch Office of Existing Company

  • 100 per cent owned by the parent company
  • Same business name as the parent company
  • Same business activities as the parent company

Benefits of Business Setup in DAFZA

Understanding the advantages of DAFZA can help you flourish in your business. First, however, knowing the market worth will be beneficial. The following are some of the uses of establishing a business in DAFZA. 

  • 100 per cent foreign ownership
  • Exempted from corporate, personal and VAT
  • 100 per cent free transfer of funds and no foreign exchange controls
  • Exempt from all import and export duties
  • Liberal governmental policies and legal framework
  • Easy business setup and licensing procedures
  • Freehold offices available for sale or lease

Knowing about the advantages of the DAFZA free zone isn't the only fair thing. One should have first-hand knowledge of the benefits of starting a business in the Dubai free zone.

Why are you still waiting after learning about the benefits of establishing a business in DAFZA?

Oh, you require further information about business incorporation. If so, keep reading our blog.

What are the Various Procedures for Company Setup in DAFZA?

The investor must follow specified measures to establish a company in DAFZA. As a result, it is advisable to pursue the help of Business Consultants to ensure a smooth business formation.

The processes for forming a business in DAFZA are outlined below.

Choose a Business Activity

The first and most important step, just like any business, is to choose which business is best for you. Then, knowing how to run a successful business can help you stand out.

Doing business is not easy in this competitive marketplace. Anyone can start a company. Knowing the appropriate plan and picking the right market, on the other hand, will help you stand prominent.

Decide a Suitable Location

After finding the business activity, the next thing one should do is find a suitable business location. 

One can start a business on the mainland, in a free zone, or offshore. However, selecting DAFZA will assist you in growing your trading firm.

If you consider shinning in export and import business, read the blog on starting an import-export business in Dubai free zone.

Find a Suitable Trade Name

The naming of a company is an essential component of its formation.

Does your business function correctly if it has no name?

Will this company's existence be discovered?

It is preferable to be knowledgeable about company naming to avoid such misunderstandings. When naming a firm, avoid using the name of an existing corporation, god's name, or any other insulting phrases.

Furthermore, you may get professional assistance to determine whether such names are appropriate for your business.

Obtain a Relevant License

Finding a business activity and naming it are not the sole requirements for forming a corporation. Furthermore, licensing is an essential aspect of incorporation.

The different types of licenses are,

  • Trading license
  • General trading license
  • Industrial license
  • E-commerce license
  • Service license
  • Freelancer permit

You will apply for a license that is appropriate for your company. Furthermore, you must submit the paperwork to the proper free zone authorities for approval.

You may get help from our consultancy professionals to make this procedure go more smoothly. In addition to that, it is better to learn about the business license services in Dubai.

Opening a Bank Account

One will be able to open an account in the appropriate jurisdiction after completing the licencing procedure. Unfortunately, opening a bank account is not as simple as it appears. To make the process easier and straightforward, one should get guidance from professionals. 

Documents Required for Business Set Up in DAFZA.

Below are the documents one should have if wishing to incorporate your business into DAFZA.

Dubai Airport Free Zone company formation takes about two weeks.

  • Documents required for registration:
  • Business Plan
  • Six months' bank statement
  • Original bank reference letter
  • Passport copies of all shareholders
  • No objection letter from a local partner (In the case of a Dual license)

I hope the preceding information has helped you find what you're looking for. You've made the right option if you're thinking of starting a business in DAFZA. Doing business in Dubai will bring you success, but it will also bring you a lot of profits.

Our Role

Business Setup Worldwide is a consulting organisation that will assist you along your journey. You can contact us without hesitation if you feel like talking with us. We are the ones that help our customers by delivering a variety of services. So, without hesitation, you may contact us to make your business voyage pleasant and convenient.



Is DAFZA a government entity?

Dubai Airport Free Zone was established in 1996 as part of Dubai's strategic aim to become an investment-driven economy.

How many companies are there in DAFZA?

There are more than 2000 registered businesses in DAFZA.

What are the business activities that come under DAFZA free zone?

The activities that come under DAFZA free zone are,
Aircraft and Spacecraft
Transport, Shipping and Storage
Travel Agent
Building Materials
Waste Trading

How long is the visa that was issued through DAFZA valid?

All visas issued by DAFZA are valid for three years.

What activities do not require the presence of the company owner?

The activities that do not require the presence of the company owner and can be done by consultants are,
Change of manager/director
Shares transfer
Change of activity
Change of company name

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