Dubai: The very name conjures up images of sand dunes, camels, locals rubbing shoulders with people from all over the world, extravagant malls, the Burj-al-Arab, lavish lifestyles – all in all, a thriving, futuristic desert city. With its cosmopolitan culture, open economic structure, strategic location and superlative infrastructure, it makes sense for company formation in DAFZA.
Dubai has been fortunate to have been ruled by a visionary and liberal Government that realized the value of inviting foreign investment. Almost since inception, this Emirate has encouraged foreigners for business setup in Dubai . With that objective in mind, they framed regulations for that specific purpose. Minimal paperwork, absence of taxation, provision of robust infrastructure, etc. are some of the reasons that make company setup DAFZA very attractive to foreigners.
Also Read: Doing Business In UAE, Why Dubai & Abu Dhabi Become Good Places?
The Government has also established several special economic zones called Free Zones for the express purpose of attracting foreign investment. Let’s check out one of the busiest and most popular free zones in Dubai, the DAFZA. It was established in 1996, adjacent to Dubai International Airport to help drive Dubai’s economy with foreign investment, DAFZA currently has over 1600 companies operating there in sectors as varied as aviation, IT, jewellery, pharmaceuticals and food and beverages, among others.
Company formation in DAFZA as one of the following – Free Zone Establishment, Free Zone Company, Local Company Branch, Foreign Company Branch, in any of the following industry segments: trading, light industry, assembling, services and logistics.
Company setup DAFZA is easy as 1-2-3.
Choose the licence best suited for your business
Choose which category your business falls into
Submit the requisite paperwork
Three types of licences are offered in DAFZA:
Trade Licence – for importing, exporting, distributing and storing specific products included in the approved list
Service Licence – the license should be for the same activity as the parent company’s license, dispensed by the Economic Department or Municipality of the appropriate Emirate in the UAE.
Light Industry – granted for the manufacture, processing, assembly and packaging of approved products. Hazardous products will not be given approval because of DAFZA’s closeness to Dubai Airport
Advantages of Company Setup in Dubai Airport Free Zone:
No restriction on foreign ownership
No restriction on repatriation of capital and profits
No taxation – corporate or on personal income – for up to 50 years; this can be extended
No import or re-export duties to pay
No restriction on employing foreign talent
No restriction on foreign exchange
Options to lease land and develop it as required for the business
Help with visa provided
On site customs, health and security services
Expedited processing of all paperwork and customs procedures
Top notch facilities like spacious offices, warehousing and other facilities
Provision of power and water connections at reasonable rates
Corollary services like banking, insurance, financing are easily available
Dedicated logistics and cargo handling facilities
Strategically located next to the airport which offers connectivity to 200+ cities
The only drawbacks are that once you’ve established your company in the DAFZA, then business setup Dubai is not possible – your operations and offices have to be confined to the free zone region.
But the advantages far outweigh this drawback – and that’s why it makes excellent business sense to your company formation in DAFZA.
Here is the infographic that accompanies the procedures for business setup Dubai:
(Click infographic to enlarge.)
