Setting up a business in DAFZA means operating in a fast-growing free zone in UAE. As it is strategically located beside Dubai international airport, a business in the free zone can leverage unique benefits such as market access, world class facilities, and tax exemptions.
Located within the free zones are all relevant private organizations and government department that are needed for a smooth business operation.
You may also read:Steps to Setup Business in DAFZA
The other benefits of company formation in DAFZA are as follows:
- Strategic location in the heart of Dubai
- World class facilities, such as high-tech offices, prime accommodation, availability of conference rooms, etc.
- 24/7 customs services
- 100% corporate tax exemption
- 100% import and export tax exemption
- 100% personal income tax exemption
- No restrictions on currency
- 100% ownership
- 100% repatriation on capital and profits
Types of Businesses to Setup in DAFZA
To start with company formation, the investors should be aware of what kind of company they want to incorporate. For DAFZA, there are two kinds of businesses that can be established which are as follows:
- Free zone company: there can be a minimum of one shareholder to a maximum of 50 shareholders. The owner can be an individual or non-individual (company).
- A branch office of an existing company: in case you are the owner of a foreign company and you wish to open a branch of your company in DAFZA then this option is appropriate for you. A huge bonus is that no share capital is required in this case.
Licensing and Business Activity Type
Before you venture out into a particular business, it is important to know the types of licenses you need. The types of licenses issued in DAFZA are as follows:
- Service license: this is required for businesses that provide services.
- Industrial License: This license gives the holder to carry out light manufacturing industrial activities, packaging, and assembling.
- General Trading License: A general trading license allows the holder to conduct general trading activities including import, export, re-export, storage, and distribution.
Also Read:How to start a business in DAFZA
Requirement for a company formation in DAFZA
- Duly filled application form
- Letter of intent
- Business plan
- Financial report of the company
- Company profile
- Personal bank statement for 6 months
- Original reference letter
The documents which require attestation must be attested in the UAE embassy in the country of origin and notarized by the notary public.
Cost involved for business set up in DAFZA
Some of the expenses involved for business setup in DAFZA are:
- Licensing fee: Each activity of your company may require you to acquire a specific type of license, so the cost may vary depending on the types and number of licenses and you need.
- Company registration: Cost of company registration depends on the proposed structure of the company.
- Type of facility: Cost may vary depending upon the facility you plan or renting or acquiring.
- Visa cost: Cost of each visa varies depending on the status of an applicant, current location and whether the application is taking place inside or outside UAE.
There is huge popularity of DAFZA among entrepreneurs and business owners for company setup due to their reputation of being tax-free with free trading ports that can be solely owned by the organization that sets it up. DAFZA companies also don’t need the presence of a local sponsor to act as a point of liaison, and this has become a catalyst for increased foreign investment in free zone.
Our business setup consultants have the experience and resources to help you realize your business setup goals without worrying about the red tape, visa applications, documentation, licensing formalities, residence permits, banking details, etc., as our experts will take care of all these requirements for you.
Contact us regarding DAFZA company formation and our specialized team will be glad to provide you with all the details.
what is a free zone or free trade zone?
Free zones are areas designated for international business. The business set up in these free zones can trade only within the same free zone and nowhere else in UAE. They have their own laws and regulations and the mainland laws are not applicable to them.
Is customs duty applicable on free zone businesses?
Business in free zone offers 100% foreign company ownership, 100% repatriation of capital and profits, exemption for all the imports and export duties and no corporate tax.
Does a free zone company formation need the presence of an investor?
It is not required for an investor to be present in UAE or be a resident in UAE for free zone company formation unlike with company formation in UAE mainland.
What is the minimum capital requirement for free zone company formation?
The capital requirement depends on the free zone jurisdiction and business activity you intend to operate. A minimum capital requirement is needed to incorporate a free zone establishment, free zone company or a free zone limited liability company.