DAFZA Company Formation – The Dubai Airport Free Zone (DAFZA) was formed in 1996 as a free economic zone built by the government of Dubai as part of the strategic plan to be an economy driven by investment.
DAFZA is currently home to over 1,600 establishments from around the world. Firms in DAFZA encompasses a substantial number of key industry sectors including cosmetics and pharmaceutical, electrical and electronic, freight and logistics, building materials and engineering, aviation and aerospace, Telecommunications and IT, precious stones and jewellery, food and beverage, as well as luxury items.
The Dubai Airport Free Zone offers two company formation types:
1. Free Zone Limited Liability Company (FZ-LLC)
A Free Zone LLC is established as a separate legal entity, with shareholders as individuals and Corporates.
The minimum capital requirement for Free Zone incorporation is AED 50,000, depending on the business activity.
FZ-LLC license types:
- Natural Individual
- Corporate Entity
- Natural and Corporate Individual(s)
- 1-50 shareholders
- Minimum share capital requirement for each shareholder: AED 1,000 (USD 273)
- Value of each share: AED 1,000 (USD 273)
2. Branch of a Company
Branch of a UAE or foreign company is not a legal entity separate from its parent. It manages the operations inherent in the business of the parent. There is no share capital requirement for a branch company.
Branch company license types:
- Branch of a UAE company
- Branch of a Foreign company
Characteristics of a Branch company
- Fully owned by parent company
- Parent company has the same name as the business
- Parent company conducts the same activities as the business
Types of Licenses issued by DAFZA
The types of licenses offered for company formation in DAFZA are:
- Trade License
To perform trading activities as stated in the License
- Service License
To perform service activities as indicated in the License
- Industrial License
To perform light manufacturing activities as specified in the License
Advantages of forming a Dubai Airport Free Zone
- 100% foreign ownership, no Emirati sponsorship required
- Quick company formation and licensing processes
- Exempt from corporate taxes for 50 years
- Low cost of operations
- Straightforward recruitment and liberal labour laws
- Exempt from personal income tax and capital gain taxes for 50 years
- No currency restrictions
- Exempted from import and export duties for 50 years
100% repatriation of capital and profits