Dubai Airport Freezone – Register a Company in Dubai

Dubai Airport Freezone (DAFZ)

https://www.dafz.ae/

The Dubai Airport Freezone, located in the immediate vicinity of Dubai International Airport, was established in 1996 and subsequently joined the Dubai Integrated Economic Zones Authority (DIEZA).

DAFZ operates as a designated zone for VAT purposes, providing crucial services such as 24/7 customs processing and expedited cargo clearance.

Currently, the free zone hosts over 3,100 companies and 20,000 professionals across more than 20 economic sectors. The unique location, diverse infrastructure, and comprehensive suite of business services offered by DAFZ make it a preferred choice for establishing a company in Dubai.

A general free zone with over 1,500 activities available.

Dubai Integrated Economic Zones Authority (DIEZA)

DIEZA Implementing Regulations 2023

• Trading License: Various types of trading activities, including import, export, re-export, distribution, and storage of specific goods. May include online trading (e-commerce).
• General Trading License: A universal license for trading goods across various categories (also includes import, export, re-export, distribution, and storage).
• Service License: Provision of services named in the license.
• Industrial License: Various types of manufacturing/production activities.
• Single or Multi-Family Office License (SFO/MFO): Managing the wealth of one or more families, including inheritance and tax planning.
• Dual License: Allows a company to operate in Dubai outside of DAFZ without the need to lease an office in the mainland.
• Talent Pass License: Allows individuals to conduct freelance activities in the fields of media, technology, and education.

You can open a business in the Free Zone in the form of:

• FZCO (Freezone Company with 1 to 50 shareholders);
• PLC (Public Limited Company);
• Branch.

The minimum share capital for FZCO is 1AED (or the equivalent in a foreign currency).

The issued and allotted share capital of a PLC should be at least 250,000 AED. 

Foreign shareholders may own 100% of the company’s shares.

A FZCO must have at least one director. The director must be a natural person, who may also be a shareholder.

A PLC must have at least two directors, one of whom must be a natural person.

The company is required to appoint a manager (who must be a natural person). The Manager may also serve as a director, a shareholder, or the company secretary, among other roles.

Appointing a company secretary is required. The company secretary can be either a natural person or a legal entity.

Companies are offered various office types, including warehouses for storage and distribution, and space for assembly or light manufacturing. Smart Office packages with dedicated workspaces are available for small businesses and startups.

Companies must prepare audited financial statements annually. A copy of the financial statements is submitted to the Registrar.

Free Zone companies in DAFZ, like all UAE businesses, are required to register for corporate tax and submit annual tax returns. The standard corporate tax rate is 9% or 0% (applied to income not exceeding 375,000 AED).

Companies that meet all the requirements for a “Qualifying Free Zone Person” (QFZP) may benefit from a zero tax rate in the UAE on their “Qualifying Income”. 

Annual expenses for the renewal of a free zone company include:

• business license renewal;
• office lease renewal;
• preparation and audit of financial statements;
• renewal of the establishment card and residence visas (as they expire);
• payment for corporate service provider fees.

DAFZ permits both inward and outward re-domiciliation.

A company from another jurisdiction can re-register and continue operations in DAFZ as a free zone company, and, conversely, a DAFZ-registered company can transfer its registration to a third jurisdiction.