The Dubai Airport Free Zone (DAFZ) was established in 1996 and it is located within the Dubai International Airport. DAFZ in one of the most developed free zones in the world because it offers many facilities and incentive packages for company incorporation. The Dubai Airport Free Zone encompasses more than 1,600 companies from all areas of expertise and it continues to expand.
Benefits of the Dubai Airport Free Zone
The Dubai Airport Free Zone provides premium benefits, business solutions and incentives for investors. The main advantages of DAFZ are:
- the location in the center of Dubai,
- the incentives for foreign investments;
- tax deductions.
Dubai companies can benefit from good infrastructure, top facilities, non-stop customs services, security and a logistic center. Foreign investors can also benefit from: full corporate tax, personal income tax, import and export tax exemptions and 100% foreign ownership for companies is permitted. Moreover, capital gains and profits can be repatriated without the appliance of any withholding taxes and any currency is accepted.
Company types in the Dubai Airport Free Zone
The most important benefit of establishing a company in a free zone in Dubai is that full foreign ownership is allowed and in DAFZ investors can set up two types of companies: free zone establishments (FZE) and branch offices of foreign companies. The free zone establishment can be formed by at least one shareholder and at most 50 and it must have a minimum share capital of 1,000 AED. The shareholders can be a natural person or a legal entity. Foreign companies are allowed to open branch offices in DAFZ without minimum share capital requirements.
Our company formation agents have also prepared this interesting video on the Dubai Airport Free Zone:
Dubai Airport Free Zone licenses
Foreign investors wanting to expand or start a new companies in DAFZare required to obtain a business license for the activities of their companies. In order to incorporate a company in DAFZ, enterprisers must choose the appropriate type of license according to the type of business they will conduct. These licenses are:
- trade licenses for importing, exporting, distributing or storing products;
- service licenses;
- industrial licenses for processing, manufacturing, assembling and packaging according to the regulations of the Dubai Airport Free Zone Authority.
Documents required to open a company in Dubai Airport Free Zone
The following documents must be supplied when starting a company in DAFZ:
- a prescribed application form;
- a business plan, applicable only for free zone establishments set up by individuals;
- a letter of intent;
- details about the company’s business, applicable to branch offices and other legal entities;
- a No-Objection Letter provided by the UAE sponsor.
If opening a branch office, the foreign company must also submit its Memorandum and Articles of Association and Certificate of Incorporation together with a Resolution of the management board confirming the establishment of the branch office.