31 Jul DAFZA – Business Setup in Dubai Airport Free Zone
This article examines the multifaceted benefits of business set up in the Dubai Airport Free Zone (DAFZA)
Dubai Airport Free Zone (DAFZA) is one of the most prestigious and innovative free zones in Dubai. It offers an attractive environment for businesses, with numerous benefits, including a strategic location, state-of-the-art infrastructure, and a plethora of support services. The benefits extend beyond the typical expectations of tax and customs benefits, encompassing various factors that make it a preferred location for any entrepreneur looking to expand their global reach.
DAFZA’s Strategic Location
DAFZA is strategically located adjacent to the Dubai International Airport (DXB), one of the biggest and busiest airports in the world. This strategic location ensures easy accessibility to the major trading nations in less than eight hours, creating opportunities for global business connectivity. It is a gateway that links the East and the West, enabling businesses to reach their international customers and suppliers quickly and efficiently. The area is a bustling hive of activity that guarantees high visibility and a constant stream of customers for businesses operating in the free zone.
Numerous international and local freight forwarding companies operate within DAFZA, offering services like freight transport, customs clearance, warehousing, and cargo handling. The onsite customs office provides swift and seamless customs clearance services, enabling faster processing of goods and reduced lead times.
Tax and Customs Duty Exemptions
One of the most significant benefits of starting a business in DAFZA is the exemption from corporate taxes and customs duties. This fiscal advantage facilitates a higher return on investment and boosts companies’ profit margins. In addition to tax exemptions, DAFZA allows 100% repatriation of capital and profits, encouraging entrepreneurs to invest without fearing capital lockup. These monetary incentives play a significant role in fostering an environment conducive to businesses’ growth and prosperity.
World-Class Infrastructure of DAFZA
Dubai Airport Free Zone (DAFZA) offers state-of-the-art infrastructure, advanced technological facilities, and logistics solutions. Businesses benefit from modern telecommunications systems and ample office and warehouse spaces. These facilities enable companies to function seamlessly and efficiently, maximizing their productivity and ensuring their operational processes are smooth and unhindered.
DAFZA offers a wide range of warehouse facilities with flexible areas for storage, distribution, and manufacturing needs. These warehouses are built with advanced technology and safety features to ensure that goods are stored securely. For businesses dealing with perishable goods, DAFZA provides cold storage facilities. These temperature-controlled environments are essential for industries like food and pharmaceuticals.
DAFZA offers Light Industrial Units (LIUs) for businesses involved in light manufacturing. These units are fully equipped with the necessary infrastructure and utilities.
How to Start a Business in Dubai Airport Free Zone (DAFZA)
For business setup in DAFZA (Dubai Airport Free Zone), you would need to follow these general steps:
- Research and Planning:
Conduct thorough market research to identify the viability of your business idea in DAFZA and its target market. Create a detailed business plan that outlines your company’s goals, target audience, products/services, marketing strategies, and financial projections.
- Business Activity and Legal Structure:
Determine the type of business activity you wish to engage in. DAFZA offers a wide range of business activities across various industries. Decide on the legal structure for your company. Such as a Free Zone Establishment (FZE) for a single shareholder or a Free Zone Company (FZCO) for multiple shareholders.
- Initial Application:
Submit an application to DAFZA, along with all the necessary information and documents. The required documents may include your business plan, passport copies of shareholders and directors, shareholder/director profiles, and a No Objection Certificate (NOC) from the current sponsor (if applicable). We can assist you with this process if you’ve never set up a company in the UAE before.
- Legal Documentation:
Sign the legal documents, including the Memorandum and Articles of Association (MOA/AOA), shareholder agreements, and other required contracts. Based on your business requirements, lease an office or warehouse space in DAFZA.
- Capital Requirements and Bank Account:
Fulfill the minimum capital requirements stipulated by DAFZA to set up your company. Open a corporate bank account at a bank of your choice. Our consultants have partnerships with several banks to facilitate this process.
- Office Setup and Operations:
Set up your office or warehouse space according to DAFZA’s guidelines and regulations. Comply with all legal requirements related to employment, accounting, and reporting.
Business Setup Requirements and Process
It’s important to note that the specific requirements and processes may vary, and it is advisable to engage the services of a business setup consultant such as us to guide you through the process and ensure compliance with all regulations.
We are here to make the DAFZA incorporation process more manageable. We handle all your administrative work so you can focus on your business setup in Dubai. Please speak to one of our consultants about how we can help you start your DAFZA company.