DAFZA Business Licenses & Activities: What You Need to Know

Looking to set up a business in Dubai? We’ve found that many entrepreneurs naturally gravitate toward DAFZA (Dubai Airport Free Zone Authority) – and with good reason!

Nestled right next to one of the world’s busiest air hubs, DAFZA has become a go-to spot for businesses wanting to establish themselves in the UAE. The location alone is worth considering, but there’s so much more to it than just that.

But here’s the thing – before you jump in, you really need to understand what kind of DAFZA business license fits your needs.

Types of DAFZA Business Licenses

The Dubai free zone trade license options in DAFZA come in several types, and each one allows for different types of business activities. Choosing the wrong license could limit what you’re legally allowed to do, while picking the right one gives you the freedom to operate exactly as you need.

In our experience helping businesses get established here, we’ve seen how crucial this decision is. The license you select determines everything from what you can sell to whom you can sell it to – so it’s definitely worth taking the time to understand your options before making any commitments.

So what are these types of licenses in DAFZA exactly?

1. Trading License

The Trading License is one of the most popular DAFZA business license types, and it’s easy to see why.

What you can do with a Trading License:

• Import and export goods
• Re-export products
• Store merchandise in DAFZA warehouses
• Distribute products (with some restrictions on mainland distribution)

2. Service License

The Service License allows companies to provide various services to clients both within and outside the UAE. This is ideal for consultancies, management companies, and other service-oriented businesses.

Services you can offer include:

• Business consultancy
• Management services
• IT services
• Marketing and advertising
• Logistics services
• Financial advisory (non-regulated)
• Educational services
• Health-related services (with additional approvals)

3. Industrial License

If your business involves manufacturing or processing, the Industrial License is what you’ll need. This allows for light to medium manufacturing activities within DAFZA.

What’s possible with an Industrial License:

• Light manufacturing
• Assembly of products
• Processing raw materials
• Packaging and repackaging
• Quality control and testing

4. General Trading License

The General Trading License is perfect for businesses that don’t want to be limited to a specific product category. This comprehensive DAFZA business license allows you to trade across multiple product lines without restriction.

What you can do with a General Trading License:

• Import a wide variety of products
• Export to countries worldwide
• Re-export merchandise
• Store diverse inventory in DAFZA facilities
• Distribute multiple types of products

5. Dual License

Dual License facility allows companies to operate both within the free zone and on the mainland without the need for a separate mainland company.

This arrangement works through a partnership with the Department of Economic Development (DED), which allows them to do business the local market directly while getting the benefits of free zone status.

6. Talent Pass License

The Talent Pass is a newer addition to the Dubai free zone trade license options, specifically designed for freelance professionals in select industries rather than corporate entities.

This license allows you to:

• Work as an independent professional in media, technology, or education sectors
• Obtain a residence visa to live legally in the UAE
• Lease a smart office space in DAFZA when needed
• Provide specialized services to clients globally
• Network within DAFZA’s business ecosystem

The Talent Pass represents DAFZA’s adaptation to changing work patterns and the growing gig economy. It’s particularly attractive for digital professionals who want to operate independently while enjoying the benefits of UAE residency and DAFZA’s prestigious business address.

Popular Dubai Airport Free Zone Business Activities

Now that we’ve covered the types of licenses in DAFZA, let’s look at some of the most common business activities that thrive in this free zone:

Trading Activities

DAFZA is particularly well-suited for trading businesses, especially those dealing with:

• Electronics and technology products
• Jewelry and precious stones
• Aviation parts and supplies
• Pharmaceuticals and medical equipment
• Luxury goods
• Fashion and apparel
• Food products (non-perishable)
• Cosmetics and perfumes

Service Activities

Some of the service activities that work particularly well in DAFZA include:

• Aviation-related services
• Supply chain management
• Business consultancy
• IT and technology services
• Marketing and advertising
• Education and training
• Healthcare consultancy
• Financial advisory (non-regulated)

Light Manufacturing Activities

Though not as common as trading and services, certain manufacturing activities are well-established in DAFZA:

• Electronics assembly
• Jewelry making
• Medical device assembly
• Food processing (with proper approvals)
• Cosmetics production
• Light engineering works
• Aviation parts assembly

The DAFZA Business License Application Process

Getting a DAFZA business license involves several steps, but the process is relatively straightforward:

1. Initial Approval: Submit your business plan and required documents to get initial approval
2. Company Registration: Register your company name and establish your legal entity
3. License Issuance: Receive your DAFZA business license after paying the required fees
4. Facility Allocation: Get your office, warehouse, or industrial unit assigned
5. Visa Processing: Apply for residence visas for yourself and your employees
6. Bank Account Opening: Set up corporate banking facilities

The whole process typically takes 2-4 weeks, which is faster than many other jurisdictions. DAFZA has a reputation for efficiency in processing applications, and they offer a “one-stop-shop” service that handles most of the bureaucratic steps for you.

Cost Considerations for a DAFZA Business License

• License Fee: Up from AED 15,000
• Registration Fee: One-time fee for company registration
• Facility Costs: Office space rental annually for a small office
• Visa Costs: For yourself and employees (around AED 4,000-5,000 per visa)
• Minimum Share Capital: Varies by license type, but generally starts at AED 50,000

DAFZA isn’t the cheapest free zone in Dubai – it positions itself as a premium option with corresponding facilities and services. However, for businesses that benefit from its strategic location and prestige, the investment often pays off through operational efficiencies and business opportunities.

Restrictions and Limitations to Be Aware Of

• Physical Presence Requirement: You need to maintain an actual office in DAFZA
• Activity Restrictions: Your business activities must match your license type
• Mainland Business Limitations: Without a dual license, there are restrictions on directly doing business in the UAE mainland
• Visa Quotas: The number of employee visas is tied to your office space size
• Regulated Activities: Certain activities like banking, insurance, and legal services require additional regulatory approvals

Comparing DAFZA Business License with Other Free Zones

Dubai has over 30 free zones, each with its own focus and benefits. How does DAFZA compare?

• JAFZA (Jebel Ali Free Zone): Designed for heavy trading and manufacturing
• DMCC (Dubai Multi Commodities Centre): Specialized in commodities trading, more central location, similar pricing to DAFZA
• Dubai South: Newer, more affordable, connected to Al Maktoum International Airport, but less established
• DIFC (Dubai International Financial Centre): Focused on financial services, more expensive, with its own legal system

Recent Changes and Developments in DAFZA Licensing

The Dubai free zone trade license landscape is constantly evolving, and DAFZA has introduced several changes in recent years:

• Simplified Processes: Streamlined application procedures with more online services
• New License Categories: Introduction of specialized licenses like the e-commerce license
• Flexible Packages: More options for smaller businesses, including shared workspaces
• Enhanced Dual Licensing: Expanded cooperation with mainland authorities
• Virtual Company Options: Limited remote operation possibilities introduced after COVID-19

Tips for Choosing the Right DAFZA Business License

Based on our experience helping businesses set up in DAFZA, here are some practical tips:

• Future-proof Your License: Consider activities you might want to add in the next few years
• Be Specific but Not Too Narrow: List your core activities but leave room for related services
• Consider Your Client Base: If your main clients will be in mainland UAE, a dual license might be worth the extra cost
• Evaluate Your Space Needs Carefully: Office space is a major cost driver and determines your visa quota
• Compare Package Deals: DAFZA sometimes offers bundled packages that can be more economical than à la carte services

Taking the time to plan your license activities properly from the start can save you amendment costs down the line.

Free zone regulations do change periodically, so it’s always a good idea to get the latest information directly from DAFZA or from consultants who specialize in UAE company formation before making your final decisions.

FAQs About DAFZA Business Licenses

Can I change my Dubai Airport Free Zone business activities after getting a license?

Yes, but it requires an amendment to your license, which comes with administrative procedures and fees. It’s easier if the new activities fall under the same license category.

Can I operate my business from outside the UAE with a DAFZA license?

You need to maintain a physical presence in DAFZA, but some operational functions can be performed remotely.

Can I sponsor my family with a DAFZA visa?

Yes, company owners and employees can sponsor their immediate family members (spouse and children) subject to meeting the minimum salary requirements.