Introduction
For entrepreneurs, investors, and expatriates planning to establish or expand a business in the UAE, Dubai’s free zones offer unique opportunities. Among them, the Dubai Airport Free Zone Authority (DAFZA / DAFZ) stands out for its logistics focus, prestige, and strategic location next to Dubai International Airport.
This guide explains every aspect of DAFZA company setup benefits, structures, licensing, costs, documents, compliance, tax, visas, and expansion tips so you can decide if DAFZA is the right base for your business.
What Is DAFZA / DAFZ
Established in 1996, DAFZA is one of Dubai’s most advanced free economic zones, hosting thousands of companies across aviation, logistics, IT, pharmaceuticals, trading, and light manufacturing. Today it operates under Dubai Integrated Economic Zones (DIEZ).
Its location beside DXB Airport provides unmatched connectivity for import-export, e-commerce, and air cargo enterprises. Modern facilities and pro-business policies make DAFZA a top choice for foreign investors and multinationals.
Why Choose DAFZA
1. 100 % Foreign Ownership & No Local Sponsor
Foreigners can own 100 % of their company without a local partner.
2. Tax Incentives & Full Repatriation
Zero personal and corporate taxes and free repatriation of profits and capital make DAFZA a high return jurisdiction.
3. Strategic Location & Logistics Access
Direct airport proximity ensures fast cargo movement for trading and e-commerce operations.
4. World-Class Infrastructure
Modern offices, warehouses, industrial units, and plug and play spaces suit every business size.
5. Comprehensive Business Support
Visa, licensing, facility management, and legal services are handled within the zone for a smooth start.
6. Prestige and Global Credibility
A DAFZA address enhances trust among international partners and clients.
7. Customs & Trade Ease
Goods can be imported, stored, and re-exported with minimal customs duties.
Legal Structures in DAFZA
- Free Zone Company (FZCO / FZE) – Limited liability, 1 to 50 shareholders, ideal for SMEs.
- Branch Office – A foreign company extension legally linked to its parent.
- Public / Private Limited (PLC / Ltd) – For large scale or specialized operations.
Choose based on shareholders, liability, and growth objectives.
License Types
- Trade License – Import, export, distribution, and re-export.
- Service License – Professional, IT, marketing, or consulting services.
- Industrial License – Light manufacturing and packaging.
- General Trading License – Broad multi-category goods.
- E-Commerce License – Online sales and digital operations.
- Dual License – Operate both inside DAFZA and Dubai mainland via DET collaboration.
Step-by-Step Company Formation
- Plan and Check Eligibility – Select activities and license; minimum share capital AED 1,000.
- Submit Applications – Provide passport copies, MoA/AoA, board resolution, and business plan.
- Lease Office or Warehouse – A physical premise is mandatory.
- Receive Final Approval & License – Once approved, you get registration certificates and DAFZA access.
- Visa & Immigration – Apply for investor and employee visas and establishment cards.
- Commence Operations – Open bank account and begin trading.
Typical timeline: 2 to 4 weeks.
Cost Overview (AED)
| Item | Typical Range | Notes |
|---|---|---|
| License fee | 15,000 – 25,000 | Up to 3 activities included |
| Registration fee | 7,000 | One-time setup |
| Office lease | 25,000 – 80,000 + | Depends on size |
| Visa cost per employee | 3,000 – 5,000 | 3-year validity |
| Smart Desk packages | 41,000 – 45,000 all-inclusive | Ideal for startups |
Note- Prices vary by license, facility, and services. Always request a custom quotation.
Documents Required
For FZCO/FZE:
- Application form & business plan
- Passports of shareholders and managers
- CV and specimen signatures
- MoA/AoA and board resolution
- Proof of address and bank reference
- NOC (if UAE resident)
- Lease agreement
- External approvals (if regulated activity)
For Branches:
- Parent company certificate of incorporation
- Board resolution to form branch
- Power of attorney and manager appointment
- Audited financial statements
- Attested and translated corporate documents
Corporate Tax in DAFZA
Free zone entities can maintain a 0 % corporate tax rate if they qualify as Qualifying Free Zone Persons (QFZP).
To retain this status, a company must show economic substance in the zone, maintain audited accounts, and limit mainland transactions to approved qualifying activities.
Non-qualifying income is subject to the federal 9 % rate.
Large multinationals may be subject to the 15 % Domestic Minimum Top-Up Tax under global tax rules.
Consult your tax advisor to structure revenues correctly and keep separate books for qualifying and non-qualifying income.
VAT and Customs Obligations
- VAT Registration: Mandatory once taxable supplies or imports reach AED 375,000; voluntary at AED 187,500.
- Customs Client Code: Required for import/export through Dubai Customs.
- Goods stored in the zone enjoy duty suspension until released to the mainland.
- Prepare a clear VAT map of all transactions to avoid misfiling.
Compliance Checklist: UBO, ESR & AML
- UBO Register: Keep beneficial ownership records updated and file changes promptly.
- Economic Substance Regulations (ESR): File notifications and reports if you conduct a relevant activity such as distribution, holding, or finance.
- AML/CTF: Businesses handling company formation, real estate, or precious metals must register on goAML and maintain KYC controls.
Maintain a governance calendar for renewals and filings.
Bank Account Opening in DAFZA
Prepare a comprehensive bank pack including:
- License, MoA, lease, board resolution
- UBO structure chart and sample invoices
- Proof of office and staff contracts
- KYC and AML policies
Be ready to explain your business model and expected transactions.
Banks favor companies with clear substance and transparent fund flows.
Visa Strategy and Immigration
Visa quotas depend on office size and facility type.
Typical path: establishment card → immigration card → investor visa → staff visas.
Investor Visas: 2–3 years valid.
Golden Visa: available for qualifying investors or specialists for 5–10 years.
Plan visa timelines with your PRO to avoid onboarding delays.
One Freezone Passport: Multi-Zone Expansion
Dubai’s “One Freezone Passport” lets licensed companies operate across participating free zones without duplicate licenses.
This allows a DAFZA firm to retain its airport hub while using storage or specialized facilities in other zones under a single framework ideal for growth and cost efficiency.
Sector Specific Approvals
| Sector | External Authority | Trigger |
|---|---|---|
| Healthcare & Pharma | MOHAP / DHA | Import & storage |
| Food & Beverage | Dubai Municipality | Labeling & storage |
| Telecom / IT | TDRA | Equipment or network use |
| Aviation | GCAA / Airport Ops | Ground services |
| Education / Training | KHDA | Courses & institutes |
| Financial / FinTech | CBUAE / DFSA | Regulated services |
Use official activity names to avoid license revisions later.
Leasing and Facility Insights
- Smart Desk: Best for startups, limited visa quota.
- Executive Office: Professional image, higher visa allowance.
- Warehouse / Industrial Units: For logistics and assembly.
Allow 2–6 weeks for fit-out approvals and budget for service charges, parking, and IT infrastructure.
E-Commerce and Air Cargo Synergy
DAFZA’s location enables same day shipping through DXB.
Set up inventory inside the zone and partner with local couriers for final mile delivery.
Track returns and re-exports to claim customs reliefs and avoid VAT leakage.
Risk & Governance — Common Founder Errors
- Mixing taxable and exempt income without records.
- Ignoring UBO/ESR deadlines.
- Wrong VAT coding on samples or transfers.
- Weak banking documentation.
- Activity name mismatch with license lists.
- Underestimating fit-out lead times.
- Missing customs inspection SOPs.
- Letting establishment cards expire.
- Skipping KYC on distributors.
- Forgetting annual audit (for QFZP status).
Plan governance from day one to protect your 0 % tax benefit and banking credibility.
DAFZA vs Other Free Zones
| Feature | DAFZA | DMCC | JAFZA | Silicon Oasis |
|---|---|---|---|---|
| Airport access | Excellent | Moderate | Port-based | City centre |
| Facility cost | Premium | Competitive | Warehousing | Affordable |
| Ideal for | Trade, e-commerce, aviation | Commodities, fintech | Manufacturing | Tech, R&D |
| Prestige | Very high | Strong | Industrial | Innovative |
| Regulatory ease | Streamlined | Modern | Traditional | Sector-based |
Choose based on logistics needs and target market.
Frequently Asked Questions
Q- Do DAFZA companies pay corporate tax?
A- Qualifying Free Zone Persons enjoy 0 % on eligible income and 9 % on non-qualifying income.
Q-Is VAT registration mandatory?
A-Yes, once turnover reaches AED 375,000; voluntary at AED 187,500.
Q- Can a DAFZA company trade in mainland UAE?
A- Yes, via a dual license or through a registered local distributor.
Q- How many visas can I get?
A- It depends on office size and DAFZA quota rules.
Q- What’s the minimum capital?
A- AED 1,000 with shares of AED 1,000 each.
Q- Do I need audited accounts?
A- Yes , annual audits are required to maintain QFZP status and bank compliance.
How to Register a DAFZA Company (Quick Checklist)
- Choose business activities and license.
- Select legal structure (FZCO/FZE/Branch).
- Reserve trade name.
- Submit application and KYC documents.
- Lease premises inside DAFZA.
- Receive license and registration certificate.
- Obtain establishment and immigration cards.
- Apply for visas and open bank account.
- Register for VAT if required.
- Begin operations and maintain compliance.
Next Steps
DAFZA combines strategic location, tax advantages, and world-class infrastructure, making it one of Dubai’s most prestigious free zones. Its proximity to the airport and strong regulatory framework support businesses in trade, logistics, aviation, and e-commerce.
While setup costs are higher than some zones, the reputation and logistical efficiency often justify the investment. With proper planning and expert guidance, your DAFZA business can be operational in weeks and positioned for regional growth.
Ready to Launch in DAFZA?
At Aspira Business Setup, we simplify the entire process—from licensing and bank account opening to visa issuance and compliance management.
Contact Aspira Dubai today to get a transparent cost breakdown, custom license advice, and bank-ready documentation within five business days.
Start your DAFZA journey today and connect your business to the world through Dubai Airport Free Zone.
Call us at +971 56 406 6546 Visit: www.aspiradubai.com Email: info@aspiradubai.com
