Business Setup Dubai Free Zones Is a Good Call
Dubai is known to be a world-class tourist destination, but we attract more than just casual visitors. Dubai’s location, superior infrastructure, and business-welcoming policies also make it a leading global economic center. Dubai Free Zones are the best places to plan for a new business setup.
And doing business in Dubai is more cost-effective than you may realize. Free Zone business setup cost is relatively cheap, and a Dubai Airport Free Zone company option is particularly attractive. Ready to learn more about business setup services at DAFZ Dubai? You’ve landed on the right page! Keep reading for more important tips and info, brought to you by your friends at MSZ Consultancy.
Why a Free Zone? And What Is the Dubai Airport Free Zone?
One of the things that really sets the UAE apart for doing business is its introduction of Free Trade Zones, more commonly known as Free Zones. A Free Zone like the Dubai Airport Free Zone (or DAFZ) is a special business area that operates separately from laws and rules which typically apply to traditional businesses in the Dubai mainland. Having a separate regulatory jurisdiction for Free Zones like DAFZ makes it much easier to set up a business, and also offers additional benefits to foreign entrepreneurs and foreign business investors.
Established in 1996, the DAFZ is adjacent to the Dubai International Airport, which also happens to be the busiest international airport in the world. DAFZ was a part of the strategic plan introduced by the local government to build a stronger, more investment-driven economy. This Free Zone in Dubai accommodates many business sectors, including logistics & freight, IT, aviation, telecommunications, engineering, food & beverages, jewelry, and cosmetics. It’s currently home to more than 2,300 registered companies and 17,000 professionals that are benefiting from business-friendly laws and a host of local, world-class facilities.
Reasons Why the Dubai Airport Free Zone Makes Good Sense
Why consider setting up a Free Zone business in the DAFZ? There are many reasons, but here are a few worth gaining your attention:
1. Maintain Full Foreign Company Ownership
With Dubai mainland company formation, you’d be required to connect with a local partner that would maintain at least 51% ownership of your company. But Free Zone businesses don’t carry these limits. A business incorporated within the DAFZ offers 100% foreign ownership capabilities, with no required shared capital.
2. You Keep All of Your Profits and Capital
With other types of company ownership frameworks, you might not be permitted to recoup 100% of your capital and profit gains. But with a business venture in the DAFZ, you can repatriate ALL of your capital and profits, without any restrictions.
3. No Assessed Income or Corporate Taxes
Another benefit that comes with operating a foreign-owned company in Dubai is the fact that you enjoy a 100% exemption on personal income taxes. Corporate taxes can still be levied on certain business enterprises, like those which revolve around petroleum and foreign banking-related ventures. But in general, when you decide to set up a Free Zone company in the DAFZ, you’ll be exempt from both personal income taxes and corporate taxes!
4. Streamlined Process for Company Formation
Free Zones generally make it easy to start a business, but the IFZA has streamlined the process even further to get your business set up even faster. Basic license packages don’t require mandatory office space, and business owners need not be physically present to incorporate.
5. More Than One Business Activity Allowed
In the UAE, some business locations restrict you to only being able to pursue one particular business activity. In a Dubai Free Zone like the DAFZ, you have the option to pursue more than one business activity, as long as you follow the channels to gain proper government authorization.
6. Advantageous Location
Business travel becomes easier when your located immediately adjacent to the Dubai Airport. You’ll also gain easier access to convenient logistics and cargo-handling facilities. And being in the DAFZ means you’ll also have easy access to other business hot spots located within the Emirate.
7. Business Technology Advantages
The DAFZ contains some of the best telecommunications infrastructure in the entire world. You’ll have easy access to the latest, most up-to-date communications and other technological tools. And that means you can stay in constant touch with your business operations from any location on Earth.
How to Set Up a Dubai Airport Free Zone Company
Becoming a part of the business community in the DAFZ is easier than you may think. The process really comes down to three essential steps.
1. Choose Your License Type
The Dubai Airport Free Zone Authority currently offers six different types of licenses. These licenses include:
Trade License: This allows the holder to conduct specific trading activities involving import, export, distribution, and storage of specific products. There’s also an e-commerce trade license option.
Service License: This license relates to service-oriented businesses.
Industrial License: This license allows for light manufacturing, packaging, and assembly activities.
General Trading License: This license allows for general trading activities like import, export, re-export, storage, and distribution.
Dual License with DED This allows for DAFZA-registered companies to apply for a DED license without any need for mainland physical office space. Businesses holding this licensure can operate out of the DAFZ.
Talent Pass License This license permits individuals to conduct freelancing activities around media, technology, or education. This licensure includes visa entitlement and smart office leasing possibilities.
2. Choose Your Company Type
The DAFZ offers three different types of company setup options:
Free Zone company: The Free Zone company option includes 1-50 shareholders, with a minimum share capital of AED
PLC: A PLC is a public limited company with limited liability. There is no limit to the number of shareholders, and the company can offer IPO shares on a securities market.
Branch: A foreign company may set up its own branch in the DAFZ, with no share capital required.
3. Choose the Space You Need
The DAFZ offers office space, warehousing and industrial space, and cold storage space for your business use.
Need Some Help with DAFZ Business Setup? MSZ Consultancy Is Here to Serve
Business setup in the Dubai Airport Free Zone doesn’t have to be stressful. Our experts at MSZ Consultancy can come alongside to help make the whole process as smooth and pain-free as possible. We’re located right here in Dubai, and we love partnering with foreign entrepreneurs and business owners just like you!
Reach out today to book your free consultation! You can give us a call at +971 50 487 2208,or if you prefer, you can also start the conversation by sending us an email at info@mszconsultancy.com. There’s no need to wait; we can get started on making your dreams of opening a business in Dubai come true today! Our team is standing by to help!
