DAFZA Business Setup - 100% Digital Process

A free zone company is best for startups and founders who are entering the DAFZA free zone. You need at least two shareholders for a startup. It is also ideal if you are planning to raise capital and split equity.

The most common businesses in DAFZA are general trading, re-export, tech, consulting, electronics, AI startups, pharma companies, industrial, and freight forwarding.

Any global/local company, or an individual, such as sole founders, investors, corporate entities, branch offices, freelancers, and professionals, can register a company in the free zone.

Yes, non-UAE foreign entrepreneurs can set up a business in the DAFZA free zone without the need for a local sponsor or a partner for most business activities, except for oil, gas, and certain regulated sectors.

Depending on the number of owners, the company's overall size, and investment, for example, a free zone establishment is preferred by solo founders, whereas a free zone company is used by multiple shareholders.

You can expect anywhere between AED 23,000 and AED 300,000, depending on your visa/office package. Get a proper estimate for business license, office, visa, establishment card, compliance, and local representation from our experts via a 30-min free consultation.

You need a passport copy, MOA, AOA, proposed business activities, the selected name for your company, full KYC of the directors/shareholders, beneficial ownership declaration, business plan, and office address in the free zone.
Branch offices or corporate shareholders need to submit the company's MOA, AOA, board resolution, and a certificate of good standing.

You need AED 1 to set up a free zone company or an establishment, but realistically you should have a sufficient amount to start off your business in the free zone. Activities in the regulated sector have higher fund requirements than unregulated ones.

Yes, you need a real address lease in the free zone for your company, which can be a virtual office, flexi desk, co-sharing workspace, industrial factory, warehouse, or a small private office. A PO box is not allowed, and your application will be rejected if you file an application with one.

The standard package with a dedicated desk or a small office usually comes with 1 to 6 visas. Big physical offices have a rule that allows you to get more than six visas (one per 9 square meters of the lease or rental space). Flexi and co-working spaces will help you get up to 3 visas.

Yes, you can comfortably trade with overseas companies and businesses without any restrictions. If you want to deal with or engage with mainland companies, then you will need a local distributor and a dual license.

Yes, your company can set up a bank account in the free zone through your entity's legal paperwork, such as the registration certificate, license, MOA/AOA, resolution, proof of the address, business plan, and compliance policies (if relevant as per your business activity). You can open a traditional bank account or a fintech solution, depending on your requirements.

Your process starts with basic research about the free zone market and business activity relevance.

• Choose a business structure that is suitable for your proposed company's size and activities.
• Conduct a name search and select a name that aligns with your business interests and does not infringe on an existing company's or brand's rights.
• Prepare the required documents and ensure they are notarized before submitting the application.
• Receive your registration and license approval, and complete tax registration for compliance.
• Open a business bank account to deposit funds and make vendor payments.
• Apply for additional permits if you operate in a regulated activity.

Yes, once you open a company in the DAFZA, you can claim a 0% corporate tax on your qualifying income, no personal income tax at all, zero import & export duties, and a low 5% VAT. For non-qualifying income, you need to pay tax at 9% over AED 375,000.

Although it's not compulsory to have a resident company or individual as a representative for foreign entrepreneurs, appointing one can benefit you, especially if you are registering remotely or opening a bank account.

Yes, you will have to undergo an audit once a year or more, depending on your business activity. All companies are required to prepare audited financial statements as well.

Yes, you will need to renew your business license annually to keep your business running. Make sure to start the process at least one to three months in advance of the expiry. Along with the license, you will have to keep your lease active during the license renewal. Any late filings will trigger an additional fee.

Absolutely, you can easily set up a branch of your mainland company in the DAFZA if you wish to expand your operations without setting up a separate entity in the free zone. All you have to do is submit your parent company's incorporation documents and trade license to the authority in the free zone. You will also need to secure a lease for your branch and align your activities with the parent company.

Yes, foreign businesses can set up a branch office of their parent company in the free zone, the same as local mainland companies. As an owner, you must appoint a manager for day-to-day operational management. Just make sure to submit your company's paperwork from your home country and a certificate of good standing.