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What is a Company Formation in Dubai Airport Freezone?

Dubai Airport Freezone, aka DAFZ, company formation allows entrepreneurs to establish a company in a strategic and business-friendly environment. They can enjoy:
  • 100% foreign ownership
  • Full repatriation of profits
  • Simplified regulatory processes
The Dubai Airport Freezone Authority (DAFZA) oversees and regulates all operations within DAFZ, ensuring compliance, efficiency, and transparency throughout the company formation process. The freezone provides ready-to-use office spaces, licensing support, and streamlined government approvals. Many investors prefer company formation in the UAE to access international markets and benefit from tax advantages. This setup is ideal for startups, SMEs, and multinational businesses seeking growth, cost efficiency, and a strong presence in the UAE’s thriving economy. With its modern infrastructure, investor-friendly regulations, and strategic location, Dubai Airport Freezone is a preferred choice for businesses.

Why Choose Dubai Airport Freezone for Company Formation?

Dubai Airport Freezone (DAFZ) offers a dynamic and investor-friendly environment for businesses seeking to establish a presence in the UAE. The free zone boasts a strategic location, comprehensive infrastructure, and supportive policies. Hence, DAFZ stands out as a premier choice for entrepreneurs and companies aiming to thrive in the Middle East.

Some key benefits of company setup in Dubai Airport Freezone include:

  • 100% Foreign Ownership: DAFZ allows full foreign ownership of companies, eliminating the need for a local sponsor. This provides investors with complete control over their business operations.
  • Tax Exemptions: Businesses in DAFZ benefit from 100% exemptions on corporate taxes, personal income taxes, and import/export duties, fostering a tax-efficient environment.
  • Full Repatriation of Profits and Capital: Investors can repatriate 100% of their profits and capital, ensuring financial flexibility and security. 
  • Strategic Location: Situated adjacent to Dubai International Airport, DAFZ offers unparalleled connectivity to global markets, facilitating efficient logistics and trade operations.
  • State-of-the-Art Infrastructure: DAFZ provides modern office spaces, warehouses, and advanced technological facilities, supporting businesses across various sectors. 
  • Simplified Company Setup Process: The company formation process in DAFZ is streamlined, with clear guidelines and efficient procedures, enabling quick and hassle-free establishment.

Many entrepreneurs also combine UAE Free Zone business setup services to expand operations in multiple free zones while staying compliant with UAE laws.

    • Diverse Business Activities: DAFZ caters to a wide range of industries, including aviation, logistics, technology, and e-commerce, offering tailored solutions to meet specific business needs.
    • Access to Skilled Workforce: With over 18,000 professionals employed within the freezone, businesses have access to a diverse and skilled talent pool. 
    • No Currency Restrictions: There are no restrictions on currency exchange or repatriation, providing businesses with financial autonomy. 
    • Enhanced Security Measures: DAFZ implements robust security protocols, including 24/7 surveillance and a smart police station, ensuring a safe business environment. 
  • One Freezone Passport: In August 2025, Dubai introduced the ‘One Freezone Passport’ initiative, allowing companies licensed in one free zone to operate across others without requiring separate licenses. This move aims to streamline business operations and enhance investment attractiveness.

Whether you’re a startup or an established enterprise, DAFZ provides the infrastructure and opportunities to thrive in the UAE’s dynamic market. Businesses can also explore business setup in Dubai for mainland expansions.

What are the Different Types of Company Structures in Dubai Airport Freezone?

DAFZ offers flexible company structures to suit different business needs. Whether you are a startup, a growing SME, or an established multinational, DAFZ provides options that ensure full foreign ownership, regulatory compliance, and operational flexibility.

  • Free Zone Establishment (FZE): Single shareholder structure ideal for individual entrepreneurs seeking full control over their business.
  • Free Zone Company (FZCO): Suitable for 2 to 50 shareholders, perfect for joint ventures, partnerships, or collaborative ventures.
  • Public Limited Company (PLC): Designed for businesses planning to list on the stock exchange or offer shares to the public, with access to public capital markets.
  • Branch Office: Allows an existing company to operate in the UAE while retaining full ownership under the parent company.
  • Representative Office: Set up by foreign companies to promote their business in the UAE; cannot generate direct revenue, mainly used for marketing and research.
  • Freelance/Individual License: For individual professionals such as consultants, designers, or IT specialists; provides legal compliance and a license without a full company setup.
  • Holding Company: Used to hold shares in other companies, manage subsidiaries, or optimize investments and tax efficiency.

Licenses Available in Dubai Airport Freezone

Dubai Airport Freezone provides a wide range of business licenses to meet the diverse needs of entrepreneurs, startups, SMEs, and multinational companies. Some key licenses available in Dubai Airport Freezone include:

  • Trading License: A trade license enables companies to import, export, distribute, and sell goods locally or internationally. Ideal for wholesalers, distributors, and e-commerce businesses.
  • Service/Professional License: For companies offering professional services such as consultancy, IT solutions, marketing, legal, or management services.
  • Industrial/Manufacturing License: Allows businesses to set up production facilities, manufacturing units, or industrial operations within the freezone.
  • Logistics/Freight License: Designed for shipping, cargo handling, freight forwarding, and supply chain management companies operating locally or internationally.
  • Freelance/Individual License: Tailored for individual professionals, freelancers, and consultants who want to legally offer their services without establishing a full company.
  • Holding License: Allows companies to manage investments, hold shares in subsidiaries, or operate as a parent company for other businesses.
  • E-Commerce License: Enables businesses to conduct online trading, digital services, and e-commerce operations within the UAE and globally.
  • Branch Office License: For existing foreign companies to operate in the UAE as a branch of the parent company.
  • Technology/IT License: For companies providing software development, IT solutions, or technology-based services.
  • Media/Marketing License: Covers advertising, media production, PR, and marketing services.
  • Educational/Training License: For companies offering professional training, workshops, or educational programs.
  • Consultancy/Advisory License: For specialized consulting services in legal, financial, or management fields.

Each license ensures full compliance with UAE free zone regulations and allows businesses to operate legally in their chosen sector.

Note: Some of the licenses listed above are specialized or sub-licenses that businesses may need depending on their activity. For example, technology, media, educational, or consultancy licenses are tailored for specific sectors, while core licenses like trading, service, or industrial cover a broader range of business operations. Companies can combine DAFZ licensing with business setup online in Abu Dhabi Free Zone for wider operational coverage.

Documents Required for Dubai Airport Freezone Company Setup

While the exact documents required for setting up a Dubai Airport Freezone company may vary, the following are generally required:

  • Passport Copies: Valid copies of all shareholders, directors, and managers.
  • Visa Copies (if applicable): For shareholders, directors, or employees residing in the UAE.
  • Proof of Address: Recent utility bill, tenancy contract, or bank statement as address proof.
  • Business Plan: Detailed overview of business activities, objectives, and operational strategy.
  • No Objection Certificate (NOC): Required from the current sponsor for UAE residents, if applicable.
  • Bank Reference Letter: For verification when opening a corporate bank account.
  • Shareholder Resolution / Board Resolution: Required for companies with multiple shareholders or parent companies.
  • Memorandum of Association (MOA) & Articles of Association (AOA): Legal documents outlining company structure and governance.
  • Completed Application Form: DAFZ company setup application with all required details.
  • Professional/Service Licenses or Certificates: Depending on the business activity, relevant professional qualifications or approvals.
  • Experience Certificates: For owners or managers in certain specialized fields.
  • Trade References: Sometimes required for trading or import/export companies.
  • Initial Approval Documents from DAFZ: Proof of pre-approval for trade name and business activity.
  • Lease Agreement: Proof of office or warehouse space within the free zone.
  • Bank Statement or Proof of Funds: Required by banks to verify capital.
  • POA: A Power of Attorney is required if someone is acting on behalf of a shareholder or director.
  • Approval from Regulatory Authorities: Necessary for specialized activities like education, healthcare, media, or aviation.

Note: Additional documents may be requested depending on the type of company, business activity, or license. Contact SafeLedger today to ensure all documentation is accurate and complete, preventing delays in registration.

Legal Requirements for Dubai Airport Freezone Company Formation

Setting up a business in Dubai Airport Freezone (DAFZ) requires meeting specific legal and regulatory requirements to ensure full compliance with UAE laws. Some major legal requirements are:

  • Minimum Shareholder Requirements: Understanding the difference between a Free Zone Establishment (FZE) and a Free Zone Company (FZCO) is crucial for determining the minimum number of shareholders. While an FZE requires one shareholder, an FZCO requires 2–50 shareholders.
  • Legal Documentation: Submit Memorandum of Association (MOA), Articles of Association (AOA), and shareholder or board resolutions as required.
  • Approved Trade Name: The company must have a unique trade name approved by DAFZ authorities.
  • Business License: Obtain the appropriate license (trading, service, industrial, freelance, etc.) based on the permitted business activity.
  • Office or Facility Lease: Secure a physical office, flexi-desk, or warehouse space within DAFZ as per freezone regulations.
  • Initial Approval: Obtain initial approval from DAFZ before final registration, confirming business activity, company structure, and shareholders.
  • Approval from Regulatory Authorities: Certain sectors like healthcare, aviation, education, and financial services require additional approvals.
  • Intellectual Property Registration: Register trademarks, patents, or copyrights if your business involves branding, media, or product development.
  • Environmental Approvals: Required for industrial, manufacturing, or logistics companies to comply with waste management and emission regulations.
  • Insurance Requirements: Obtain professional indemnity, employee, or liability insurance as applicable.
  • Compliance with Commercial Contracts: All agreements with suppliers, clients, or partners must comply with UAE commercial laws and freezone regulations.
  • Bank Account Opening Compliance: Banks may require additional legal documents and approval letters from DAFZ.
  • Economic Substance Regulations (ESR): Certain companies must demonstrate substantial economic activity in the UAE.
  • Anti-Money Laundering (AML) Compliance: Financial, investment, and trading companies must comply with UAE AML regulations.
  • Audit and Reporting Obligations: Some freezone companies are required to submit audited financial statements annually.
  • Visa & Immigration Compliance: Apply for visas for shareholders, employees, and dependents as per UAE immigration laws.
  • Power of Attorney (POA): If someone acts on behalf of a shareholder or director, a notarized POA is required.

Adhering to these rules helps businesses operate smoothly, maintain credibility, and avoid penalties.

Note: Legal requirements may vary depending on the company structure, license type, and business activity. Consulting a business setup expert like Safe Ledger ensures that all documentation and approvals are complete and compliant, preventing delays in Dubai Airport Freezone company registration.

How to Set Up a Company in Dubai Airport Freezone?

Setting up a company in Dubai Airport Freezone involves several important steps, from choosing your business activity to obtaining approvals and licenses. Follow this step-by-step guide to ensure a smooth and compliant company formation process.

Step 1: Check Eligibility & Regulatory Approvals

  • Verify if your business activity requires pre-approval from UAE authorities (e.g., aviation, healthcare, education, financial services).
  • Ensure your activity is permitted within DAFZ.

Step 2: Choose Your Business Activity

  • Decide on your primary business activity.
  • Select the appropriate license type (trading, service, industrial, freelance, etc.) based on your activity.

Step 3: Select a Company Structure

  • Choose a legal structure: FZE, FZCO, PLC, branch, or offshore.
  • Consider shareholder numbers, capital requirements, and operational flexibility.

Step 4: Reserve a Trade Name

  • Propose a unique trade name following UAE naming regulations.
  • Submit the name for approval from DAFZ authorities.

Step 5: Apply for Initial Approval

  • Submit initial application to DAFZ with shareholder and director details.
  • Receive pre-approval for your business activity and company structure.

Step 6: Prepare Legal Documents

  • Draft and notarize the Memorandum of Association (MOA) and Articles of Association (AOA).
  • Prepare shareholder or board resolutions if applicable.
  • Include additional documents required for your business activity or license.

Step 7: Lease Office or Facility Space

  • Choose an office, flexi-desk, or warehouse within DAFZ.
  • Sign the tenancy or lease agreement, which is mandatory for registration.

Step 8: Submit Final Application and Documents

  • Submit all legal documents, approvals, and lease agreements to DAFZ.
  • Pay registration and licensing fees.
  • Receive confirmation of successful submission.

Step 9: Obtain Business License

  • DAFZ issues the business license after verification of documents.
  • The license allows you to legally operate within the free zone.

Step 10: Open a Corporate Bank Account

  • Open a corporate bank account using your license and company documents.
  • Deposit the required share capital according to your company structure.

Step 11: Intellectual Property & Insurance (if applicable)

  • Register trademarks, patents, or copyrights if needed.
  • Obtain professional, liability, or employee insurance as required for your activity.

Step 12: Apply for Visas and Immigration Formalities

  • Apply for investor, employee, and dependent visas.
  • Comply with UAE immigration laws and DAFZ visa regulations.

Step 13: Post-License Approvals

  • Obtain any additional approvals or permits required for your specific business activity.

Step 14: Set up Utilities & IT Systems

  • Arrange for office utilities, internet, and IT infrastructure.
  • Ensure operational readiness for your team.

Step 15: Start Business Operations

  • Hire employees and commence operations.
  • Maintain ongoing compliance: license renewals, visa renewals, auditing, and reporting obligations.

Dubai Airport Free Zone Company Setup Cost

Below is a comprehensive breakdown of the typical expenses involved in establishing a company within DAFZ.

Expense Category Estimated Cost (AED) Details
Business License Fee
15,000-50,000
Varies based on business activity; general trading licenses are typically higher
Registration Fee
7,000-20,000
One-time fee for company registration
Office Space Rental
1,850-2,500 per sqm/year
Depending on the lease duration and office type
Establishment Card Fee
2,000-2,500
Mandatory for company setup
Visa Fees
3,000-5,000
Per employee, varies based on sponsorship and validity
Share Capital Requirement
1-1,000
Minimum share capital; higher amounts may be required for certain activities
P.O. Box Rental
1,065/year
Optional; if a new P.O. Box is needed
Parking Fee
1,097/year
Optional, depending on office location
Bank Account Opening Fee
2,000-5,000
One-time setup fee; varies by bank and account type
Notary and Legal Fee
1,500-5,000
For attestation of documents, MOA, and contracts
Employee Insurance
2,000-5,000 per employee
Mandatory health insurance under UAE law
IT and Telecom Setup
1,500-5,000
Internet, phone lines, and basic IT infrastructure
Furniture and Office Fit-Out
5,000-20,000
For furnished or customized offices
Marketing and Branding
3,000-10,000
Website, signage, and promotional materials
Additional Licenses/Approvals
5,000-15,000
Required for specialized business activities

Note: These costs are indicative and may vary depending on business activity, office type, and specific requirements. It’s recommended to consult with a business setup advisor or DAFZ for precise estimates.

What are the Business Activities Permitted in Dubai Airport Freezone?

Dubai Airport Freezone (DAFZ) allows a wide range of business activities to accommodate startups, SMEs, and multinational companies. The freezone supports commercial, professional, industrial, and specialized operations while ensuring compliance with UAE regulations.

  • Trading Activities: Import, export, distribution, and wholesale of goods locally and internationally.
  • Professional/Service Activities: Consultancy, IT services, marketing, management, legal, accounting, and other professional services.
  • Industrial/Manufacturing Activities: Production, assembly, and manufacturing in sectors such as electronics, machinery, textiles, and industrial goods.
  • Logistics and Freight Services: Cargo handling, warehousing, shipping, and freight forwarding.
  • E-Commerce Activities: Online trading, digital services, and technology-driven business operations.
  • Media and Marketing Activities: Advertising, PR, media production, creative design, and digital marketing.
  • Education and Training Activities: Professional training, workshops, certifications, and educational programs.
  • Holding and Investment Activities: Managing investments, holding shares, and overseeing subsidiaries.
  • Technology and IT Activities: Software development, IT solutions, fintech, and other technology-based services.
  • Aviation-related Activities: Aircraft maintenance, ground handling, cargo services, and aviation consultancy.
  • Healthcare & Medical Activities: Clinics, medical consultancy, healthcare services, and medical equipment trading.
  • Research & Development (R&D): Scientific research, innovation labs, and product development initiatives.
  • Industrial Support Services: Packaging, quality testing, and logistics support for manufacturing operations.
  • Financial & Investment Services: Advisory, asset management, investment holding, and capital management.
  • Event Management & Exhibition Services: Organizing trade shows, conferences, and corporate events.
  • Creative & Design Services: Architecture, interior design, fashion, and multimedia production.
  • Specialized/Regulated Activities: Certain sectors requiring approvals from relevant authorities, such as chemicals, pharmaceuticals, and aviation.

Note: DAFZ regularly updates the list of permitted activities. It is recommended to confirm your specific business activity with the freezone authorities before registration to ensure compliance.

Authorities Involved in Dubai Airport Freezone Company Formation

Dubai Airport Free Zone business setup requires coordination with multiple authorities to ensure compliance, licensing, and legal recognition. Understanding these key entities helps entrepreneurs streamline the process and avoid delays.

  • Dubai Airport Freezone Authority (DAFZA): The main regulatory body responsible for company registration, licensing, office allocation, and compliance within the free zone.
  • Ministry of Economy (MOE), UAE: Provides oversight for corporate structures and ensures businesses adhere to national laws.
  • Dubai Municipality: Handles approvals related to office premises, health and safety regulations, and environmental compliance.
  • UAE Immigration & Residency Authorities: Responsible for issuing investor and employee visas, residency permits, and sponsorship approvals.
  • Banks and Financial Institutions: Facilitate corporate bank account opening, share capital validation, and financial compliance requirements.
  • Dubai Chamber of Commerce & Industry (DCCI): Supports trade facilitation, membership, and business credibility for companies operating in Dubai.
  • Dubai Civil Defence: Approves safety measures for offices, warehouses, or facilities handling flammable or hazardous materials.
  • Telecommunications Regulatory Authority (TRA): Involved for businesses that require telecom licenses or internet/communication services.
  • Dubai Customs: Required for companies engaged in import/export, logistics, or trading activities within DAFZ.
  • Specialized Ministries or Departments: Depending on the business activity, approvals may be needed from authorities such as the Ministry of Health, the Ministry of Education, or other sector-specific regulators.

By coordinating with these authorities, entrepreneurs can ensure a smooth, compliant, and efficient company setup in DAFZ while meeting all regulatory and operational requirements.

Banking and Finance Support for Dubai Airport Free Zone Companies

Efficient banking and financial management is crucial for companies in Dubai Airport Free Zone to ensure smooth operations, compliance, and growth. Some financial services tailored to support startups, SMEs, and multinational companies include:

  • Corporate Bank Accounts: DAFZ companies can open corporate accounts with UAE-based banks to manage local and international transactions. Required documents typically include the trade license, certificate of incorporation, and shareholder identification.
  • Online and Mobile Banking Platforms: Advanced digital banking solutions allow businesses to monitor transactions, track payments, and manage accounts seamlessly from anywhere.
  • Business Credit Cards: Banks provide corporate credit cards to streamline operational expenses and employee payments.
  • Payroll Services: Integrated payroll solutions help companies manage employee salaries, benefits, and compliance with UAE labor regulations.
  • Digital Payment Gateways: E-commerce and trading businesses can accept secure online payments globally, enabling smoother international operations.
  • Financing and Loans: Banks and financial institutions offer business loans, credit facilities, and trade finance options to support expansion, infrastructure investment, or working capital needs.
  • Investment Support: DAFZ companies can attract private investors, venture capital, and access government-backed funding programs. A reliable banking setup enhances investor confidence.
  • Trade Finance Solutions: Facilities such as Letters of Credit (LC), documentary collections, and export-import financing help companies engaged in international trade.
  • Escrow Accounts: Banks provide escrow accounts for secure fund management in specific trading or investment transactions.
  • Currency and Risk Management: Forex services, hedging, and treasury solutions assist companies in mitigating currency fluctuations for import-export operations.
  • Financial Compliance and Advisory: Banks and financial consultants help with VAT registration, audits, and annual reporting in line with UAE regulations, ensuring companies maintain full compliance.
  • Insurance and Risk Management: Many banks offer business insurance solutions covering liability, employee health, and asset protection, complementing financial security for DAFZ companies.

By leveraging these banking and finance services, Dubai Airport Free Zone companies can manage operations efficiently. They can reduce financial risks and scale their businesses confidently while staying fully compliant with UAE regulations.

Taxation & Financial Regulations in Dubai Airport Free Zone

Some taxation and compliance requirements essential for smooth operations and long-term growth are:

  • Zero Corporate Tax: DAFZ companies benefit from a 0% corporate tax on income derived from Qualifying Activities within the free zone, as defined under the UAE’s Corporate Tax Law. This means eligible businesses can operate tax-free, provided they meet the qualifying criteria and do not conduct non-qualifying activities on the mainland.
  • No Personal Income Tax: Investors, business owners, and employees are not subject to personal income tax, making the free zone attractive for both local and international talent.
  • Full Repatriation of Profits and Capital: Companies can freely transfer profits and capital abroad without restrictions, supporting international operations and liquidity management.
  • Value Added Tax (VAT) Compliance: Businesses must comply with the UAE’s 5% VAT for applicable goods and services. Proper accounting and timely filing are mandatory.
  • Economic Substance Regulations (ESR): Certain business activities require demonstrating adequate economic presence in the UAE to comply with ESR guidelines.
  • Ultimate Beneficial Ownership (UBO) Disclosure: Companies must maintain updated records of their ultimate owners and disclose them to DAFZ authorities.
  • Anti-Money Laundering (AML) & Counter-Terrorism Financing (CTF): All businesses must implement policies to prevent money laundering and financing of terrorism.
  • Data Protection & Cybersecurity Compliance: Companies handling sensitive or personal data must adhere to UAE data protection laws and cybersecurity regulations.
  • Industry-Specific Regulatory Approvals: Businesses in sectors such as healthcare, education, finance, and logistics may need additional approvals from relevant UAE ministries.
  • Customs & Trade Regulations: DAFZ companies benefit from customs duty exemptions for goods within the free zone, though imports and exports outside the UAE are subject to applicable duties.
  • Accounting, Audit & Financial Reporting: Proper accounting records must be maintained. Certain companies may require annual audits, and financial statements should comply with UAE standards.
  • Banking Regulations: All financial transactions must be conducted through approved banks in line with the UAE Central Bank rules.
  • Employment & Labor Law Compliance: Companies must follow UAE labor laws, including employee contracts, working hours, benefits, and health & safety standards.
  • Environmental Regulations: Businesses, especially in manufacturing, storage, or logistics, must comply with Dubai Municipality and UAE environmental rules.
  • Transfer Pricing & Related Party Transactions: Multinational companies must adhere to UAE transfer pricing regulations to ensure transparency in intra-group transactions.

By complying with these tax and regulatory requirements, companies in DAFZ can operate confidently, take advantage of tax incentives, and build a sustainable, legally compliant business in the UAE.

Comparing Different UAE Free Zones for Business Setup

Choosing the right free zone is critical for your company’s growth, cost efficiency, and regulatory compliance. Factors like licensing options, office facilities, visa quotas, and setup costs vary, so understanding the differences helps entrepreneurs make informed decisions.

 
Free Zone Best For Key Benefits
Business setup in Dubai Free Zone
Startups, SMEs
Flexible business activities, strategic location, investor-friendly
Business setup services in IFZA
Startups, consultants
Cost-effective, fast licensing, flexible visas
Business setup in Sharjah Free Zone
Trading, industrial, logistics
Proximity to airports & ports, competitive costs
Business setup in Ajman Free Zone
SMEs, manufacturing
Affordable setup, wide range of licenses
Meydan Free Zone company formation
Tech, digital businesses
Fully digital setup, bank-friendly, modern infrastructure
SPC Free Zone company formation
Publishing, media, e-commerce
Scalable services, flexible payment plans
Company formation in Dubai Media City Free Zone
Media, creative industries
Networking hub, collaborative environment
Sharjah Airport Free Zone company formation
Logistics, industrial, trading
Excellent connectivity, modern warehouses

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Frequently Asked Questions (FAQs)

Q-1. What makes DAFZ an ideal location for business setup in Dubai?

DAFZ offers a strategic location near Dubai International Airport, making it perfect for logistics, trading, and international business. Entrepreneurs benefit from tax incentives, 100% foreign ownership, streamlined licensing, modern office infrastructure, and access to global markets. Its business-friendly environment supports startups, SMEs, and multinational companies looking to expand in the UAE.

Q-2. Are companies or individuals in DAFZ liable for corporate or income tax?

Companies in DAFZ enjoy 0% corporate tax on profits up to AED 375,000. Profits above this threshold are subject to UAE corporate tax. Individuals, including business owners and employees, are not liable for personal income tax. This tax-friendly environment makes DAFZ highly attractive for investors and international talent.

Q-3. What types of companies can be formed in DAFZ?

Entrepreneurs can establish several company structures in DAFZ, including Limited Liability Companies (LLC), Free Zone Establishments (FZE), Free Zone Companies (FZCO), Branch Offices, and Sole Proprietorships. Each structure offers varying flexibility, ownership options, and compliance requirements, allowing businesses to choose the most suitable setup based on their size and activities.

Q-4. Can DAFZ businesses operate in mainland Dubai?

DAFZ companies are primarily restricted to operating within the free zone or internationally. To operate in mainland Dubai, businesses must obtain additional permits or register a branch with the Department of Economy and Tourism (DET). Many companies partner with local distributors or use service agreements to reach the mainland market legally.

Q-5. Do I need to be physically present in Dubai to start a business in DAFZ?

No, physical presence is not mandatory. Many services, including company registration, licensing, and visa processing, can be completed remotely with the help of certified business setup consultants. 

However, visiting Dubai may simplify bank account opening, office inspections, and the signing of legal documents.

Q-6. Is Dubai Airport Free Zone (DAFZ) located inside Dubai International Airport?

DAFZ is located adjacent to Dubai International Airport, offering immediate access to air cargo, logistics, and international travel. While it is not physically inside the airport terminals, its proximity allows businesses to benefit from seamless transportation, distribution networks, and global connectivity for trading and e-commerce operations.

Q-7. What licenses are available for companies in DAFZ?

DAFZ offers a variety of licenses, including Trading, Service, Industrial/Manufacturing, E-commerce, and Consulting licenses. Specialized licenses or sub-licenses are available for businesses with specific activities, such as logistics, IT solutions, or healthcare. 

Your license determines the type of operations and regulatory requirements your company must follow.

Q-8. How much does it cost to set up a business in DAFZ?

The cost varies depending on business activity, office type, and company structure. Typical expenses include license fees (AED 15,000–50,000), registration (AED 7,000–20,000), office rental (AED 1,850–2,500 per sqm/year), visa fees (AED 3,000–5,000 per employee), and other optional costs like furniture, IT setup, and marketing.

Q-9. What documents are required for DAFZ company formation?

Key documents include: 

  • Passport copies
  • Visa copies (if applicable)
  • Proof of address
  • Business plan
  • No Objection Certificate (NOC) from a sponsor if required
  • Bank reference letter
  • Application forms

Additional documents may be needed based on the company structure, business activity, or licensing requirements.

Q-10. How long does it take to register a company in DAFZ?

Company registration typically takes 2-4 weeks, depending on the business activity, document completeness, and licensing type. Delays may occur if additional approvals or specialized licenses are required. 

Working with an experienced business setup consultant can streamline the process and reduce turnaround time significantly.

Q-11. Can foreign investors own 100% of a DAFZ company?

Yes, DAFZ allows 100% foreign ownership of companies. This means investors do not need a local partner or sponsor. Full ownership provides control over operations, profits, and decision-making, making it an attractive option for international entrepreneurs and businesses seeking to establish a presence in Dubai.

Q-12. Does DAFZ provide support for visas and employee sponsorship?

Yes, DAFZ facilitates employee visas, residency permits, and sponsorships for owners and staff. Businesses can sponsor multiple employees depending on the office size and license type. The free zone handles government approvals and coordination, making it easier for companies to onboard staff quickly and remain compliant with UAE labor regulations.

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