Dubai Airport Free Zone (DAFZA) is a popular free zone in Dubai that is home to more than 1600 companies from across the globe. Founded in 1996 as a strategic plan to make Dubai as an investment-driven economy, DAFZA is one of the fastest-growing zones and this tremendous growth is mostly attributed to import and export businesses in Dubai.

In DAFZA, there are companies from several industries, such as aviation, freight and logistics, IT and telecommunications, food and beverage, jewelry, cosmetics, and pharmaceuticals. This free zone is located in the vicinity of Dubai International Airport which makes DAFZA a major vantage point. Proximity to the airport has made shipping of cargo, freight, and parcels much easier and faster. 

Licensing and registration of all businesses are handled by the Dubai Airport Free Zone Authority (DAFZA). Apart from its proximity to an international airport, DAFZA also serves as a bridge between the Middle East and African Markets and also provides access to some parts of Europe and Asia. Being a free zone, DAFZA also provides tax benefits and investment incentives to global investors and businesses. 

Thus, if you are also planning to start an export business in Dubai, DAFZA makes an ideal choice. 

Benefits of Company Formation in DAFZA

• Full Exemption from Corporate and Personal Tax
• 100% foreign ownership
• Full repatriation of capital and gains
• Freedom to operate your business 24 hours a day
• Direct access to government facilities, such as customs and immigration
• Dedicated logistics centre and cargo handling services
• World-class infrastructure
• Strategic location

While DAFZA provides various kinds of licenses such as general trading license, service license, and industrial license for business setups, you will need to focus only on the trade license for export business setup in Dubai Airport Free Zone. A trade license is designed for trading activities, such as import, export, re-export, storage and distribution of products. 

Legal Entities in DAFZA for Business Setup

In DAFZA, there are only 2 types of legal business entities that one can establish: Free Zone Establishment (FZE) and Branch Office of an Existing Company.

For Free Zone Establishment (FZE), the shareholder limit varies between 1 and 50, and the minimum capital required is AED 1,000, where AED 1,000 is the denomination of each share. On the other hand, there is no minimum capital requirement for any foreign company that wants to establish its branch office in DAFZA. 

How to Start an Export Business in Dubai

There are three simple steps to start an export business in Dubai. 

Choose Your Business Entity, License, and Facility 

• Determine whether you want to establish an FZE or Branch Office in DAFZA. 
• As mentioned above, you will need to apply for a trade license to start your export business in Dubai.
• Select a business facility, such as business offices, fitted office spaces, and warehousing (if needed) for your business location that best suits your export business. 

Prepare and Submit the Required Documents 

You will need to prepare and submit the following documents for your Company Formation to the DAFZA. 

• Application form, existing company brochure if available, Copies of shareholders’ passports and CVs.
• Annual financial report or shareholders’ 6-month bank statement (not required for new registration)
• Original reference letter from the bank for each shareholder
• Initial approvals from third-party authorities in case your export business requires such approvals
• NOC from the current sponsor

Get Your Business License and Start Your Business

Before starting your export business in Dubai, DAFZA requires you to sign the lease agreement Pay of Fees, and collect your business license. 

To ensure that your business starts without any hassle and objections from the DAFZA made against mistakes or missteps taken by you, it is highly recommended to hire a business consultant who can help you right from company registration and business license to bank operation and visa processing.