Dubai is a home to many aspiring entrepreneurs who land here to make a mark and grab an opportunity in the market. Dubai Airport Freezone (DAFZA), just like other freezone in Dubai, was established to promote growth and economy of Dubai.
DAFZA encourages many ventures from different sectors. It currently has companies in the fields of electronics, IT, telecommunication, cosmetics, logistics, freight, aerospace etc.
Why Encourage Entrepreneurs for Company Formation in DAFZA?
- Local sponsor requirement is waived off for all businesses
- 100% repatriation of capital and profits
- Taxes of any kind are not levied on businesses in DAFZA ( 100% corporate tax, personal income tax, import & export tax exemption)
- The use of any currency by the business is allowed
- Premium airport and logistic facilities are available to the businesses
Types of Licenses Offered:
- You can either open a FZCO company which is similar to a LLC company which can operate within the freezone. Shareholders can either be individuals, corporate entities or both. Secondly, existing companies can open a branch in DAFZA with no requirement of share capital
- The license types offered are as below :
- Professional (Service) License
- Industrial License
- General Trading
- Commercial (Trading) License
Now that we have understood the advantages of setting up a company in DAFZA with the types of licenses they offer, let’s look what opportunities it beholds for the entrepreneurs:
- As DAFZA has a diverse range of companies this make DAFZA one of the best location to start a transportation business. Since these companies would incorporate assembling units, warehousing business, import/trade organizations it would be beneficial to have a transportation company here.
- If you are looking to setup a manufacturing company DAFZA becomes one of the best entities to start as it provides with Industrial license for large scale activities. It broadens the horizon for shipping as has access to port Rashid and Airport also it has units accessible for storage and warehousing.
- DAFZA gives you a lot of advantage in regards to connectivity if starting an Import & Export business because it’s accessible to Air, Land and Sea transportation. Companies can also avail an import & export code from DAFZA for any import & export activity. This will guarantee hassle-free set up of the import & export company.
- A warehousing business includes the holding and protection of the merchandise of companies. With the varieties of company’s setup in DAFZA, there is a huge requirement for small or big storage or holding. This could incorporate cold storage, general storage, and high-security holding, and so on.
- A general trading license allows the holder to trade in general activities including import, export, re-export, distribution and storage of specific products. General trading as being a wide umbrella under the trading activity, entrepreneurs will need to store all kinds of goods they are importing & exporting from and to UAE. DAFZA benefits them by giving access to all transportation mode, all storage facilities.
- Dubai which is house to the tallest skyscrapers and high end residential and commercial buildings, there is no uncertainty that construction is a quick growth business in Dubai. Manufacturing of raw materials for construction will have massive potential as there will be a high demand for these materials for the construction purpose. Transportation of these materials for the purpose of importation or export would also be simple with the easy access of transportation methods.
- Security business is one of the booming sector in DAFZA the reason being all enterprises require protection and safety. Be it warehousing, general offices, logistics, and transportation.
DAFZA has added value to UAE economy by providing smart solutions that attract global investors, through innovation and a customer-centric environment.
All relevant government departments and private organizations are located within DAFZA which you need to access on daily basis for smooth functioning of your business. The concept of one-stop shop has brought together the Government and private organizations such as Banks and Telecommunications companies to make all the process organized and manageable.
This blog is written by Ms. Nirmala, Business Advisor at Flyingcolour Business Setup, VAT and Accounting Services, Dubai. If you have any query related to business setup in Dubai Airport Free Zone or anywhere across UAE, then feel free to call +971 4 4542366 today for a quality consultation or please send inquiry to info[at]flyingcolour[dot]com.