Company Formation At Dubai Airport Free Zones
Company formation in Dubai Airport Free Zone (DAFZ, also called DAFZA) gives you 100% foreign ownership, a location beside Dubai International Airport and trade, service, industrial, general trading and e-commerce licences. First year packages usually start from about AED 40,000 including a smart office, and visa quota depends on your space. This guide covers costs, licences, steps, documents, visas, banking and tax.
What Is Dubai Airport Free Zone (DAFZ)?
Dubai Airport Free Zone was established in 1996 inside the Dubai International Airport area. Since 2022 it has been part of the Dubai Integrated Economic Zones Authority (DIEZ), alongside Dubai Silicon Oasis and Dubai CommerCity.
According to DAFZ, the zone hosts more than 3,400 registered businesses and over 20,000 professionals across more than 20 sectors. You will see it written as DAFZ, DAFZA or “Dubai Airport Freezone”. They all mean the same place.
Why Choose DAFZA for Company Formation
From the clients I have set up there, DAFZA works best for businesses that move goods or need a premium, airport side address. Key benefits include:
- 100% foreign ownership and full repatriation of capital and profits
- Direct airport access with cargo handling and a dedicated logistics centre
- VAT Designated Zone status, which can help goods trading businesses
- Ready offices, smart desks, warehouses and light industrial units
- On site government centre for visas and other services
- Strong reputation with banks and multinational partners
It is not the cheapest free zone, because every package includes physical workspace. For electronics, pharmaceuticals, luxury goods, aviation and logistics companies, the airport location usually justifies the cost.
DAFZA Licence Types
Licence type | Best for |
|---|---|
Trading licence | Import, export and distribution of specific product lines |
General trading licence | Trading a wide range of unrelated products |
Service licence | Consulting, logistics, IT and professional services |
Industrial licence | Light manufacturing, assembly and packaging |
E-commerce licence | Online stores and digital sales channels |
DAFZA uses a large list of activities based on international activity codes. Make sure the activity on your licence matches what you actually do, because customs and banks check it. Read more about the general trading license in Dubai and the e-commerce license.
Company Types in DAFZA
- FZCO (Free Zone Company): The main structure for new companies, with one or more shareholders. Under current DIEZ rules, older FZE structures are treated as FZCOs.
- Branch of a foreign or UAE company: Lets an existing company operate from DAFZA without a new legal entity.
- Public limited company (PLC): For larger structures, with a higher minimum capital.
Most founders choose an FZCO. Multinationals entering the region often choose a branch.
Dubai Airport Free Zone Company Formation Cost
DAFZA designs packages around your space, so there is no single fixed price. The figures below are approximate market estimates.
Item | Approximate cost (AED) |
|---|---|
Smart office package (licence, registration and workspace) | From about 40,000 in year one |
Standard office package | About 60,000 to 120,000 |
General trading package | Higher, up to about 180,000 with larger offices |
Establishment card | About 2,000 |
Residence visa per person | About 3,000 to 5,000 |
Renewal (smart office) | About 33,000 per year |
Typical first year budget: A solo founder with one visa on a smart office package should plan for about AED 44,000 to 46,000, before insurance. Renewal is cheaper, because registration and incorporation fees are one time.
For a wider comparison, see our guide on the cost of a trade license in Dubai and our free zone company setup guide.
Want an exact DAFZA quote? Speak to our business setup consultants for a breakdown based on your activity, space and visas.
Popular Business Activities in DAFZA
The businesses that get the most value from Dubai Airport Free Zone usually depend on air freight or speed to market:
- Electronics and mobile phones: High value, fast moving stock. See our guide on how to start an electronics trading company in Dubai.
- Pharmaceuticals and medical equipment: Temperature controlled storage and quick clearance
- Luxury goods, watches and jewellery: Secure storage and premium address
- Aviation and aerospace services: Parts, maintenance support and logistics
- Perfumes, cosmetics and fashion: Regional distribution hubs
- Logistics and freight forwarding: Air cargo agents and customs brokers
If you need storage, our warehouse license guide explains the options.
Office Space and Visa Quota in DAFZA
Your visa allocation depends on the space you lease, not the licence itself.
- Smart desk or smart office: Usually fixed at around two visas
- Standard office: Roughly one visa for every 8 to 9 square metres
- Warehouse or light industrial unit: Based on unit size and activity
If you expect to hire more than two people within a year, plan for a standard office from the start. Moving later is possible but adds cost and paperwork.
How to Set Up a Company in Dubai Airport Free Zone: Step by Step
- Choose your activity and licence type. Trading, general trading, service, industrial or e-commerce.
- Pick your company type. FZCO or branch.
- Select your space. Smart office, standard office, warehouse or industrial unit.
- Submit your application with shareholder documents.
- Receive initial approval and sign your lease.
- Sign the memorandum and articles of association.
- Pay fees and receive your trade licence.
- Apply for your establishment card with immigration.
- Apply for entry permits and residence visas for owners and staff.
- Open a corporate bank account and register for tax.
Most setups take about two to four weeks for the licence, with another two to four weeks for visas. Branch setups often take longer because of document attestation.
Documents Required
- Passport copies of all shareholders, directors and the manager
- Passport photos
- Proof of residential address
- Business plan (for some activities)
- Bank reference letter (for some applicants)
- Attested parent company documents, board resolution and power of attorney (for branches and corporate shareholders)
- No objection letter from your current sponsor, if you already live in the UAE
Dubai Airport Free Zone Entry Permits and Visas
The visa process usually follows this order:
- Establishment card for your company
- Entry permit, or change of status if you are already in the UAE
- Medical fitness test and biometrics
- Emirates ID and residence visa
DAFZA’s on site government centre handles much of this. Read more about the UAE residence visa process. Investors and senior staff may also qualify for the UAE Golden Visa.
Banking, VAT and Corporate Tax in DAFZA
- Banking: Several major UAE banks work with DAFZA companies, but each bank decides independently. Allow two weeks to three months. We support corporate bank account opening.
- VAT: DAFZA is a VAT Designated Zone. Some goods movements inside the zone can fall outside VAT, while services and goods sold to the mainland are generally taxed at 5%.
- Corporate tax: DIEZ grants local tax exemptions, but federal corporate tax still applies. A Qualifying Free Zone Person can pay 0% on qualifying income, such as distribution of goods in or from a Designated Zone. Other income is taxed at 9% above AED 375,000.
- Check the details with the Federal Tax Authority. Our corporate tax and VAT consultancy teams can review your structure.
DAFZA vs JAFZA vs Dubai Silicon Oasis
Factor | DAFZA | JAFZA | Dubai Silicon Oasis |
|---|---|---|---|
Location | Next to Dubai International Airport | Next to Jebel Ali Port | Dubai Al Ain Road |
Best for | Air freight, high value goods, regional HQs | Sea freight, large warehousing, heavy trade | Tech, startups, light industry |
Entry cost | Medium to high | Medium to high | Lower to medium |
Authority | DIEZ | DP World | DIEZ |
Compare in detail with our guides on JAFZA company formation, Dubai Silicon Oasis and Dubai South.
DAFZA Company Regulations and Annual Compliance
DAFZA companies are regulated by DIEZ under Dubai Law No. 16 of 2021. To stay in good standing:
- Renew your licence and lease every year
- Keep your establishment card and staff visas valid
- Update your beneficial owner records whenever ownership changes
- Maintain accounting records and file corporate tax returns
- Cancel visas and licences properly if you close the company
Our accounting services team keeps DAFZA companies compliant year round.
Can a DAFZA Company Trade on the Mainland?
A DAFZA licence lets you trade inside the zone and internationally. To sell directly to mainland customers, you usually need a mainland distributor, a separate mainland company or specific permits. Many trading companies hold both. See our guides on mainland company formation in Dubai and transferring a free zone company to the mainland.
Common Mistakes to Avoid
- Choosing a smart office when you need more than two visas
- Picking a service licence when you will trade goods
- Assuming all free zone income is taxed at 0%
- Underestimating bank account opening time
- Leaving parent company attestation to the last minute
Expert Tip from Adil Ahmad
Choose DAFZA when the airport genuinely helps your business. If you ship high value goods by air, need fast customs clearance or want a premium regional headquarters, it is one of the best addresses in Dubai. If you are a service business with no goods, a lower cost free zone may give you more for your budget.
Expanding across the Gulf? We also support business setup in Saudi Arabia. For a full overview of options, start with our guide to business setup in Dubai and the UAE government portal.
Frequently Asked Questions
How much does company formation in Dubai Airport Free Zone cost?
Most first year packages start from about AED 40,000 with a smart office. Larger offices and general trading licences cost more.
What licences does DAFZA offer?
Trading, general trading, service, industrial and e-commerce licences.
How many visas can I get in DAFZA?
A smart office usually allows around two visas. Standard offices allow more, based on floor space.
How long does DAFZA company setup take?
The licence usually takes two to four weeks, with another two to four weeks for visas.
Can foreigners own 100% of a DAFZA company?
Yes. DAFZA companies can be fully foreign owned.
Is DAFZA a VAT Designated Zone?
Yes. This can help companies trading goods, but services and goods sold to the mainland are still generally subject to 5% VAT.
Do DAFZA companies pay corporate tax?
Federal corporate tax applies. Qualifying income can be taxed at 0%, while other income is taxed at 9% above AED 375,000.
What is the difference between DAFZ and DAFZA?
None. Both refer to Dubai Airport Free Zone. DAFZA was the name of the original authority, and DAFZ is the current brand.
Start Your DAFZA Company with Gulf Corporate Services
From choosing your licence and space to visas and banking, we handle DAFZA company formation from start to finish. Book a free consultation with our business setup consultants today.