Dubai Airport Freezone Authority Reduces Business Set-up Fees
Dubai Airport Freezone Authority (DAFZA) has announced plans to reduce the cost of setting up a business in the zone by up to 65 percent. According to DAFZA, the move is part of an ongoing strategy to increase the regional competitiveness of the free zone and to attract foreign direct investment.
“This new approach falls in line with the directions of His Highness Sheikh Mohammed bin Rashid Al Maktoum to boost Dubai’s economic competitiveness,” said Dr. Mohammed Al Zarooni, Director General, DAFZA.
The new set up cost was agreed upon following comprehensive studies and polls evaluating DAFZA's initiatives, services, and business environment.
The Implications for Foreign Investors and Entrepreneurs With the introduction of the new set up costs, Dubai Airport Freezone Authority (DAFZA) has slashed registration, license, and staff visa fees for new investors by 65 percent, 33 percent, and 20 percent respectively. This will greatly reduce the cost of setting up a new business in Dubai Airport Freezone, which is one of the most preferred zones for foreign investors and entrepreneurs.
DAFZA also announced that establishment card issuance fees have also been reduced by 17 percent and the fees for Board Resolution and memorandum of association issuance have been removed. In addition, license expiry fines have been removed. Hence, business owners can now renew their licenses without paying late renewal fines.
The zone has also introduced new incentives to draw new investors into the zone. Some of which include reducing the capital requirement for obtaining general trading licenses by 50 percent as well as allowing member companies to be structured as a Limited Liability Free Zone Company (FZ-LLC). This will provide more flexibility in business setup, licensing, and business operation.
Dr. Zarooni further stated that there are more initiatives and incentives being developed including facilitating the issuance of ‘no objection certificates’.
If you would like to know more about setting up a business in Dubai Airport Freezone Authority (DAFZA) or any other part of the UAE, do not hesitate to contact us.