Dubai Airport Free zone, going by the name of DAFZA is a free zone established by government of Dubai in 1996. DAFZA came into being as part of the Dubai Government’s strategic plan to be an investment driven economy. It is located abutting to Dubai International Airport in the free-zone area of Dubai, UAE. DAFZA allows international investors, a complete tax-free business setup and execution of services along with complete foreign ownership and no currency restrictions.
Presently, DAFZA houses 1,600 companies from across the globe with sectors including, electronics and electrical, IT and telecommunications, pharmaceutical and cosmetics, engineering and building materials, aerospace and aviation, logistics and freight, food and beverage, jewellery, precious stones and luxury items.
Types of companies approved by DAFZA:
DAFZA approves two types of companies:
- A Free zone establishment: which is similar to a limited liability company, that can operate within the Free Zone with 1-50 shareholders whether individual/non-individual with a minimum share capital of USD273
- A branch of an existing company: It can be either a branch office of an existing company in the mainland or anywhere else with no share capital required
Types of licenses available for business set up in DAFZA:
License availability is dependent on the type of operational activities a setup is into. Following are the available license categories in DAFZA:
- Trade license
- Service license
- Industrial license
- E-commerce License
- General Trading License
- Dual License with DED
How to start a company in DAFZA?
Following are a list of documents that are required to submit to Dubai Chamber of Commerce and Industry:
- Application form
- Letter of Intent
- A business plan
- Company profile and brochure
- Annual audited financial report of the entity or a 6 months bank statement of the shareholder(s)
- Bank reference letter (Original for each shareholder)
- CV and passport copy of shareholder and manager
- No objection letter from the sponsor, if it is a UAE based company
Initial approvals from third party authority for the Media, IT, Pharmaceutical etc.
Additional requirements that may be asked for depending on the type of license are:
- Attested and notarized Memorandum of Association/Article of Association. It must be attested from the UAE Embassy at the place of origin.
- Board resolution to be resolute by the board of directors for your existing company/entity at the place of origin. Expressing intent of establishing a new setup abroad. It must be attested and notarized by the UAE Embassy.
- Certificate of registration of an existing company or entity, license. Or certificate of incorporation of an existing company or entity attested and notarized by the UAE Embassy.
What are the Competitive advantages of setting up business in DAFZA?
- Easy access to major areas and a close proximity to Dubai International Airport
- World class infrastructure
- Provides a dedicated logistics centre
- Equipped with smart services platform
- 100% foreign company ownership and 100% repatriation of capital and profits
- No restrictions on currency and employment
- Investor-oriented management with fast and efficient business rapid cargo clearance
- No corporate tax, income tax and VAT exempted
How to close or liquidate a company in DAFZA?
Entities which are unable to continue the operations of their company in DAFZA need to initiate the process of liquidation. Following is the process required for the liquidation process in DAFZA:
- Board resolution: The decision to liquidate the company is taken formally in the form of a board resolution. The shareholders also pass the resolution regarding the appointment of a liquidator who will carry out the entire liquidation process and the resolution must be attested by the Notary Public.
- Official Letter from Liquidator: After the board resolution, the liquidator(A registered audit firm in Dubai – Spectrum Auditing and Accounting is a registered audit firm) has to present a confirmation letter accepting the responsibility of carrying out the liquidation of the company in DAFZA.
- Application for Liquidation: An application with required documents as required for liquidation has to be submitted to the free zone authority to initiate the liquidation process. The DAFZA officials will verify the documents and will notify the management.
- Notification of Liquidation: A notification about the liquidation of the company should be published in a local newspaper to announce the company’s liquidation. There will be a 45-day grace period granted by the DAFZA during which any creditors or clients can come up with any claims over the company.
- Vat and Branch Deregistration: The company management should apply for VAT account deregistration with the Federal Tax Authority (FTA). The management should also ensure that they have shut down the branches or subsidiaries if they have any.
- Clearance letter from Service providers and Customs: The company should obtain a no due letter from the utility service providers and also customs clearance letter if applicable.
- Cancellation of Visa, Bank account: The entity must cancel the visas of the employees, and also close the bank account and obtain a closure letter from the bank.
- Liquidation report: The official liquidator will submit the liquidation report to the free zone authority.
Why choose Spectrum Auditing?
Spectrum Auditing is an expert firm in the Company Formation and Company Liquidation process. Our passion and heart lie in serving the clients and we aim at utmost client’s satisfaction.We are registered Auditors under the Ministry of Economy UAE and also registered Tax Agent from Federal Tax Agency UAE, Dubai providing dedicated Audit, Accounting, Tax services and various Business Advisory Services complying regulatory requirements.
Reach us to have a frills free life in your journey in Dubai, UAE. We at Spectrum will assist you in taking care of all the legal procedures involved in the registration and de-registration of your company in DAFZA. Call us today for any kind of assistance at +971 4 2699329 or email us at [email protected] to get all your queries addressed. Spectrum is your partner in your success.