By Adil Ahmad, Business Setup Consultant at Gulf Corporate Services
Summary
Dubai Airport Free Zone (DAFZA) sits inside Dubai International Airport and suits trading, logistics, aviation, tech and e-commerce companies. Company formation in DAFZA usually means registering an FZCO or branch, choosing a trade, service, industrial, general trading or e-commerce licence, and leasing a desk or office. Most first year setups cost AED 25,000 to 60,000. This guide covers licences, costs, visas, tax and FAQs.
Why Set Up a Business in Dubai Airport Free Zone?
DAFZA is one of Dubai’s most established free zones and is managed by the Dubai Integrated Economic Zones Authority (DIEZ), alongside Dubai Silicon Oasis and Dubai CommerCity. Its biggest advantage is location: companies sit right next to one of the world’s busiest airports and its cargo terminals.
Key benefits of DAFZA company formation:
- Airport access: fast air freight for high value goods, spare parts, pharma and electronics
- 100% foreign ownership with full repatriation of capital and profits
- Wide activity list: more than 2,000 activities across trading, services, industrial and e-commerce
- Prestige address close to Deira, Dubai Festival City and major business districts
- Strong banking access, with many UAE banks familiar with DAFZA companies
- Corporate tax benefits for qualifying activities that meet the free zone conditions
DAFZA suits multinationals, traders of high value goods, aviation and logistics firms, and tech companies that want a recognised Dubai address. If you are comparing options, start with our business setup in Dubai services and our free zone company setup guide.
Who Should Choose DAFZA?
DAFZA works best for businesses that benefit from airport proximity or a premium free zone address:
- Electronics, spare parts and luxury goods traders shipping by air
- Pharmaceutical and medical device distributors needing fast, controlled logistics
- Aviation and aerospace companies serving airlines and MRO providers
- Freight forwarders and logistics firms linked to Dubai Cargo Village
- Technology and regional headquarters of international groups
- E-commerce brands fulfilling orders across the GCC
The UAE Government’s free zones guide explains how free zones differ from mainland companies in general.
DAFZA License Types
| Licence | What It Allows | Typical Businesses |
|---|---|---|
| Trade licence | Import, export, re-export and distribution of specified goods | Traders and distributors |
| General trading licence | Trading in a wide range of unrelated goods | Multi product traders |
| Service licence | Consulting, IT, logistics and professional services | Consultancies and tech firms |
| Industrial licence | Light manufacturing, assembly and packaging | Assembly and processing companies |
| E-commerce licence | Selling goods or services online | Online retailers and marketplaces |
Many founders search for a DAFZA freelance or Talent Pass option. The zone has offered individual permits for freelancers and skilled professionals, with packages reported from around AED 9,500, but terms change, so confirm the current offer with DAFZA before you plan around it. Compare it with the freelance visa in Dubai.
For broad trading, also see our guides to the general trading license in Dubai and the e-commerce license.
Company Structures in DAFZA
| Structure | Owners | Key Points |
|---|---|---|
| Free Zone Company (FZCO) | One or more individuals or companies | The main structure for new companies |
| Branch of a company | 100% owned by a UAE or foreign parent | No separate legal personality, parent liable |
| Public limited company | Shareholders under DIEZ rules | For larger groups |
Under the DIEZ regulations, new companies are generally formed as FZCOs, and older FZE companies are treated as FZCOs. Many older guides still talk about FZEs, so read our explainer on the difference between FZE and FZCO for background.
DAFZA vs Other Dubai Free Zones
| Factor | DAFZA | Dubai South | DMCC | IFZA |
|---|---|---|---|---|
| Location | Dubai International Airport | Al Maktoum Airport and Expo area | JLT | Dubai Silicon Oasis area |
| Best for | Air freight, high value trading, multinationals | Logistics, aviation, e-commerce | Commodities and trading | Low cost consultancy and startups |
| Typical entry cost | Medium to high | Medium | Medium to high | Low |
| Office options | Flexi desks to warehouses | Flexi desks to land | Offices in JLT towers | Flexi desks |
Compare costs in our guides to Dubai South free zone, DMCC and company formation in IFZA. For a profile of the zone itself, see our DAFZA free zone overview.
DAFZA Facilities and Visa Quota
DAFZA offers flexi desks, serviced offices, standard offices, light industrial units and warehouses. Your visa quota depends on the size of the space you lease, not on the licence itself:
- Flexi desk or business centre: usually a small number of visas
- Offices: more visas as office size grows
- Warehouses and industrial units: quota based on area and activity
DAFZA does not publish a fixed visa ratio, so confirm the quota in writing before signing your lease. Shareholders and staff can apply for residence visas, and eligible investors can look at the UAE Golden Visa.
How to Set Up a Company in DAFZA: Step by Step
- Choose your activities from the DAFZA activity list.
- Select your structure: FZCO or branch.
- Reserve a trade name.
- Submit the application to Dubai Airport Free Zone with passports and shareholder documents.
- Receive initial approval.
- Choose and lease a facility, from a flexi desk to an office or warehouse.
- Sign the constitutional documents and pay the fees.
- Receive your trade licence and certificate of incorporation.
- Apply for the establishment card and residence visas.
- Open a corporate bank account.
Most DAFZA company setups take two to four weeks for the licence, plus two to four weeks for visas. Branches of foreign companies take longer because parent documents need attestation.
Documents Required
For individual shareholders:
- Passport copy and photo
- UAE visa and Emirates ID, if resident
- Proof of residential address
- Short business plan or activity description
For corporate shareholders and branches:
- Certificate of incorporation, memorandum and articles of the parent company
- Board resolution approving the DAFZA company or branch
- Certificate of good standing
- Power of attorney for the authorised signatory
- Legal attestation of foreign documents
DAFZA Company Setup Cost
DAFZA does not publish a single package price, so costs depend on licence, facility and visas. The figures below are approximate market estimates from recent client projects. Always confirm current fees with DAFZA before budgeting.
| Cost Item | Approximate Cost (AED) |
|---|---|
| Registration and licence fees | 10,000 to 30,000 per year |
| Flexi desk or business centre | 10,000 to 25,000 per year |
| Serviced or standard office | 40,000 to 150,000+ per year |
| Warehouse or light industrial unit | 80,000 to 300,000+ per year |
| Establishment card | 1,000 to 2,500 |
| Residence visa per person | 3,500 to 7,000 |
| Attestation for branches | 3,000 to 10,000 |
| Small setup with flexi desk and one visa | 25,000 to 60,000 |
| Trading company with office or warehouse | 100,000 to 400,000+ |
For wider comparisons, see the cost of obtaining a trade license in Dubai.
Doing Business With the Mainland
DAFZA companies trade freely inside the zone and internationally. To sell to customers on Dubai mainland, they can:
- Work through a mainland distributor or agent
- Apply for a Department of Economy and Tourism (DET) permit under Dubai Executive Council Resolution No. 11 of 2025, with free zone approval
- Open a sister company through mainland company formation in Dubai
Annual Renewal and Ongoing Compliance
Each year you renew your DAFZA licence, lease and establishment card, and visas renew every two years in most cases. You also need to keep accounting records, submit audited financial statements where required, update the UBO register and file corporate tax returns. Our PRO and accounting teams can manage renewals so your licence never lapses.
VAT and Corporate Tax in DAFZA
- VAT: DAFZA is a Designated Zone for VAT. Some movements of goods within designated zones can fall outside UAE VAT, but services are generally taxed at 5%, and goods moving to the mainland are taxable. Check the Federal Tax Authority guidance or our VAT and tax consultancy team.
- Corporate tax: a Qualifying Free Zone Person can pay 0% on qualifying income, with 9% on other taxable income above AED 375,000. Qualifying activities are set by the UAE Ministry of Finance, and many consultancy and service activities do not qualify. See our corporate tax services.
DAFZA is no longer “tax free” in the old sense, so plan your activities and income with tax in mind.
Common Mistakes to Avoid
- Choosing a flexi desk, then needing more visas than it allows
- Picking a service licence when you need to hold stock
- Assuming 0% corporate tax applies to every free zone activity
- Selling to mainland customers without a permit, distributor or mainland entity
- Starting branch setup before parent documents are attested
Expert Tip From Our Consultants
Choose DAFZA when the airport location and its reputation genuinely help your business, for example air freight, high value goods or a regional HQ that hosts visiting clients. If you only need a licence and a visa for consulting, a lighter free zone is usually cheaper. Get the authority fee, space cost, visa cost and year two renewal total in writing before you sign.
Frequently Asked Questions
How much does DAFZA company formation cost?
A small setup with a flexi desk and one visa usually costs AED 25,000 to 60,000 in the first year. Trading companies with offices or warehouses spend more.
How long does it take to set up a company in DAFZA?
Usually two to four weeks for the licence and another two to four weeks for visas.
Can a foreigner own 100% of a DAFZA company?
Yes. DAFZA allows 100% foreign ownership.
Can I still register an FZE in DAFZA?
New companies are generally formed as FZCOs under the DIEZ rules, and existing FZEs are treated as FZCOs.
Does DAFZA offer a freelance or Talent Pass licence?
DAFZA has offered individual permits for freelancers and talent. Confirm current eligibility and fees with the zone.
Can a DAFZA company trade with mainland UAE?
Yes, through a distributor, a DET permit or a mainland sister company.
Is DAFZA tax free?
Not fully. Corporate tax and VAT rules apply, with 0% corporate tax only on qualifying income.
What visas can I get with a DAFZA company?
Investor and employee residence visas, with the quota based on your leased space.
Start Your DAFZA Business Setup With Expert Support
Gulf Corporate Services helps entrepreneurs and multinationals with company formation in Dubai Airport Free Zone, from activity selection and facility choice to visas, banking and tax. Speak to our business setup consultants for a free cost estimate.
