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Business Setup

Business Setup in DAFZA (Dubai Airport Free Zone Athority) Benefits & Process

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Business Setup in DAFZA? Here’s what you need to know! Dubai’s Airport Free Zone (DAFZA) is a prime destination for businesses looking to establish a foothold in the Middle East. DAFZA offers a host of benefits for entrepreneurs and companies seeking to expand their operations. What is DAFZA? DAFZA is a dynamic free zone strategically situated near Dubai International Airport. It houses diverse industries such as aerospace, technology, healthtech, logistics, and more. The location provides superb connectivity and access to global markets, making it one of the sought-after places in the world for entrepreneurs to set up their businesses. The free zone offers various strategic benefits to businesses owing to its prime location. The region’s excellent infrastructure coupled with government support makes it an ideal place for businesses to thrive and flourish. Legal and Regulatory Considerations Before doing a business setup in DAFZA, it is essential to determine the most suitable legal structure for your business so that you comply with all applicable regulations. DAFZA offers various options for business setup in dubai, including Free Zone Company (FZCO), Branch Office, and Freelancer Permit. Each option has its unique requirements and benefits, and you must carefully evaluate which one you should opt for. It is better to choose a legal structure that aligns with your business objectives. After selecting the appropriate legal structure, obtain the necessary licenses and permits to operate in DAFZA. The free zone has a streamlined licensing process to facilitate a smooth business setup. You may be required to acquire specific licenses depending on your business activities. However, you can rest assured that if you have proper documents in place, DAFZA provides comprehensive support throughout the licensing process. Once you are equipped with all the legal and regulatory details, you can start with the business set-up process in DAFZA. Step 1: Check your eligibility criteria Various factors will determine your eligibility for running a business. This includes your business activity, finance, and shareholding structure. You will need to ensure you meet the defined criteria as the government will verify your ability for business setup in DAFZA. Step 2: Submit the Application and Documents Have all the necessary documents, including your business plan, passport copies, and other relevant paperwork. Submit your application to DAFZA along with the required fees. Step 3: Company Name Registration Select a unique business name and get it registered with DAFZA. The name should comply with DAFZA’s naming guidelines and should reflect the nature of your business. Step 4: Lease Agreement Secure a physical address for your business in DAFZA by signing a lease agreement. DAFZA offers flexible office spaces with facilities to meet the specific needs of different businesses. Step 5: Obtain Approvals and Licenses Obtain the necessary approvals and licenses for your business in DAFZA by visiting the office. You may be required to obtain trade licenses, immigration cards, and visas for employees. Step 6: Bank Account Opening You will then be required to open a corporate bank account in the UAE. DAFZA has partnerships with several leading banks, so you easily open an account for your business in the free zone. Step 7: Start Operations After obtaining all the required licenses and approvals, you can officially commence your business operations in DAFZA. You can start hiring employees, procure necessary resources, and run business operations as per your plan. World-class business facilities and infrastructure DAFZA provides excellent facilities and infrastructure to support the growth and success of businesses. It offers a range of options for diverse industries such as state-of-the-art office spaces, modern warehousing, and logistics facilities. The free zone is also equipped with advanced IT and telecommunications infrastructure to ensure the business can execute its business operations seamlessly. Attractive Benefits DAFZA is a tax-free zone, which means businesses are 100% exempted from corporate and personal income taxes. Additionally, companies benefit from customs duty exemptions on imports and exports within the free zone. Start a business in DAFZA with Expert Guidance The business setup in Dubai’s Airport Free Zone (DAFZA) opens the door to a world of opportunities. By partnering with a trusted business consultancy firm like Corpin Consultants, you can steer the setup process with confidence. Corpin Consultants will provide you with comprehensive guidance and support throughout the business setup process. We work with you to help you obtain the necessary licenses and permits to ensure your business meets all legal requirements. With our deep understanding of DAFZA’s business setup processes, regulations, and business environment, we can provide invaluable assistance throughout the setup journey. Corpin Consultants can assist with documentation and can liaise with DAFZA authorities on behalf of you to facilitate smooth communication and eliminate any potential delays. Furthermore, we also help businesses select the most suitable workspace, warehousing, or logistics solutions within DAFZA. For more details on business setup in DAFZA, call us at +971 55 843 2911 or email info@corpinconsultants.com or get a free consultation today!

Dubai Airport Free Zone (DAFZA)
Blogs

Your Ultimate Free Zone Guide: Dubai Airport Free Zone Authority (DAFZA)

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Your Ultimate Free Zone Guide: Dubai Airport Free Zone Authority (DAFZA) Established in 1996, Dubai Airport Free Zone is strategically located in the heart of global trade. With direct connectivity to the world’s busiest airport, this freezone is the ideal choice for electronics, engineering, logistics & cargo, aviation and pharmaceutical firms. This free zone houses more than 2300 businesses across many verticals such as aviation, logistics, pharmaceuticals, IT, engineering, and more. It also houses many prominent Fortune 500 companies such as Airbus, General Electric, Rolls Royce, Roche, Boeing, and Chanel. Benefits Of Setting Up Your Company in Dubai Airport Free Zone Business-centric regulatory. Swift company formation and licensing processes. Low operational costs. No currency restrictions. Full repatriation of profits. No minimum capital investment. 100% foreign ownership without the presence of a local service agent. No personal income tax. Exemption from corporate tax for a period of 50 years. Investors can open domestic bank accounts and international bank accounts. No export and import custom duties. DAFZA has an onsite customs clearance facility, which facilitating quick and efficient cargo and goods clearance process.. Liberty to hire foreign employees. Readily available offices, warehouses, factories, convention centers and residential complexes.. Highly-equipped infrastructure and ancillary services including healthcare support, 24-hour security; housekeeping, building maintenance, etc. Dubai Airport Free Zone Business Setup Process Setting up a business in Dubai Airport Free Zone is as simple and it involves the following steps: STEP 1: Choose your Company Name and Structure Select a suitable company name and obtain approval from authority for the same. DAFZA offers mainly two company structure options, these are: 1. Free Zone Limited Liability Company (FZ-LLC) A Free Zone LLC is incorporated as a separate legal entity, with shareholders as individuals and Corporates. It can have up to 50 shareholders. 2. Branch of a Company Any foreign company can open its branch office in Dubai Airport Free Zone (DAFZ), this company does not require any minimum capital requirement. STEP 2: Select Your License There are basically 3 types of licenses that are offered by Dubai Airport Free Zone Authority (DAFZA), which are: 1. Trading License This license provides permission for import raw materials, export, distribute, and store items specified to any country. 2. Service License By obtaining this license, a business can offer services such as legal advisory, accountancy, and business consultancy specified in the license within the free zone. The selected service/business activities should match the parent company’s license, issued by the Dubai Economic Department or Free Zones or any other jurisdictions outside UAE for incorporation as a branch of local company or branch of foreign company. 3. Industrial License If the company is planning to perform light manufacturing industrial activities, packaging and assembling, then you can go for an industrial license. 4. General Trading License By obtaining a general trading license, the company can perform general trading activities such as import, export, storage, and distribution. STEP 3: Choose your Space The final step is to choose a suitable space for your company. DAFZA provides multiple options such as business centers, offices, light industrial units and co-working spaces. STEP 4: Submit all documents Submit all necessary documents and make payments, then you will receive your issued license so that you can start operating your business. Documents Required for Company Formation in DAFZA with Individual ownership Application form. Letter of Intent. Shareholder’s 6-month bank statement (not applicable for new registration). Copy of the manager’s passport and CV. Copy of shareholder(s)’ passport and CV. Original bank reference letter for each shareholder. No-Objection Letter by the current sponsor for the manager. Initial approval(s) from the third-party authorities if required Documents Required for Company Formation in DAFZA with Corporate ownership Application form. Letter of Intent. Certificate of registration/ Incorporation Certificate of the parent company -duly attested and notarized by the UAE embassy in the country of origin and Ministry of foreign Affairs, UAE. Memorandum of association and Article of Association of the parent company -duly attested and notarized by the UAE embassy in the country of origin and Ministry of foreign Affairs, UAE. Certificate of Good standing/ Incumbency certificate of the parent company -duly attested and notarized by the UAE embassy in the country of origin and Ministry of foreign Affairs, UAE. Board of Resolution of the parent company (template shall be provided) – duly attested and notarized by the UAE embassy in the country of origin and Ministry of foreign Affairs, UAE. Power of Attorney (template shall be provided) – duly attested and notarized by the UAE embassy in the country of origin and Ministry of foreign Affairs, UAE List of UBOs (ultimate beneficial owners of the parent company). Copy of the manager’s passport and CV. Copy of shareholder(s)’ passport and CV. Original bank reference letter for each shareholder. No-Objection Letter by the current sponsor for the manager. Initial approval(s) from the third-party authorities if required.   If you require any guidance regarding company incorporation in Dubai Airport Free Zone Authority (DAFZA), we at CORPIN can guide you. With our years of experience in business setup, we can ensure you a smooth journey in obtaining the necessary licenses, permits and setting up your company in DAFZA as soon as possible. Get in touch with us to know more.

News

Dubai Airport Freezone Authority (DAFZA) contributes 12 percent to the country’s foreign trade in 2019

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Dubai Airport Freezone Authority (DAFZA) contributes 12 percent to the country’s foreign trade in 2019 Dubai Airport Freezone Authority (DAFZA) contributed 12% to the Emirate’s foreign trade in 2019, compared to 11.2% in 2018, out of a total trade value of AED 1.37 trillion recorded last year. DAFZA’s foreign trade crossed AED 164 billion in 2019 with a 12.6% growth, compared to the previous year (AED 146 billion). The underlying reason for this hike is the recent business facilitation services and incentives that attracted foreign investors to the free zone. As a result, there was more than 15.8% growth in imports worth AED 72.4 billion. The total exports and re-exports reflected 10.2% growth with AED 91.8 billion allowing DAFZA to achieve an AED 19.4 billion trade surplus in 2019. India was DAFZA’s biggest trade partner in 2019 with 18.3 percent valued at AED 30 billion, followed by China with 17.3 percent at AED 28.4 billion. Switzerland got the third position with 16.3 percent at AED 26.8 billion.  India ranked first for imports with 40.7 percent at AED 29.4 billion, followed by China with 39.2 percent at AED 28.4 billion. Switzerland also ranked first in exports and re-exports and accounted for 27.4 percent at AED 25.1 billion, followed by Iraq with 12.3 percent valued at AED 11.3 billion. When it comes to goods, machinery, electrical and electronics equipment ranked first with 55% of the total foreign trade in 2019, with a value of AED 37.4 billion for imports and AED 53 billion for exports and re-exports. This was a hike of 14.3% or AED 11.3 billion in DAFZA’s total trade. The precious stones and metals accounted for 38% of the total import value at AED 29.6 billion and AED 32 billion in terms of exports and re-exports. This meant an increase of 10.4% worth AED 5.8 billion. Both sectors represent 92.6% of DAFZA’s total trade. Apart from these DAFZA also generated increased revenue from multinational companies (36.6% growth compared to the previous year. The total space occupied by multinational companies also increased by more than 135%. His Highness Sheikh Ahmed bin Saeed Al Maktoum, Chairman of DAFZA quoted that DAFZA’s foreign trade was valued at more than 164 billion AED. This was a result of DAFZA’s contribution as a major hub for international companies and investors across the globe. The results show its major role in accelerating access to global and regional markets, including Dubai’s market. He added that this is positively reflected in Dubai’s economy as DAFZA has been actively contributing to its sustainable growth for the last twenty years. If you wish to set up your business in DAFZA or have any questions regarding the same, contact us at +971 55 843 2911 or info@corpinconsultants.com to book a free consultation.

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