DAFZA Company Formation in Dubai: Costs, Licences and Setup Process

Last reviewed: July 2026 | Reviewed by: DIAC Business Setup Team | Author: Adil Ahmad

Dubai Airport Freezone, officially known as DAFZ and still commonly searched as DAFZA, is a premium Dubai free zone located close to Dubai International Airport. It is mainly suited to international trading companies, logistics service providers, e-commerce businesses, professional firms and companies that benefit from access to airport-linked infrastructure.

Setting up in DAFZ involves three main decisions: choosing the correct licence, selecting a legal structure and leasing a suitable business space. Your final cost depends on the activities, company type, office or warehouse, visa requirements and any external approvals needed.

Dubai International Advisory Consultants supports investors through the complete DAFZ company formation process. Our business setup consultants in Dubai can help you compare DAFZ with other jurisdictions before you pay any registration or leasing fees.

DAFZ Company Formation at a Glance

Setup Detail	DAFZ Requirement
Official name	Dubai Airport Freezone
Commonly searched name	DAFZA or Dubai Airport Free Zone Authority
Location	Close to Dubai International Airport Terminal 2
Foreign ownership	Up to 100%
Company structures	Freezone Company, PLC and Branch
Shareholders	1 to 50 for a Freezone Company
Minimum share capital	AED 1 for a Freezone Company
Main licence options	Trade, e-commerce, service, industrial and general trading
Workspace options	Offices, warehouse or industrial space and cold storage
Mainland operation	Possible for eligible activities through a dual licence with DET
Corporate tax	0% may apply to qualifying income when QFZP conditions are met
Customs registration	Required when importing, exporting or clearing goods
Visa eligibility	Depends on the company, leased space and approved visa allocation

The information above is based on the official DAFZ business setup process. Final requirements should always be confirmed against your chosen activities and proposed company structure.

What Is Dubai Airport Freezone?

Dubai Airport Freezone was created to provide an international business environment for companies establishing a presence in Dubai. It is located close to Dubai International Airport, making it a practical option for businesses that regularly deal with international clients, air cargo, time-sensitive goods or regional distribution.

DAFZ is not physically part of Dubai International Airport. The authority confirms that it is located near Terminal 2 rather than inside the airport itself. This distinction is important when planning cargo movement, airport access or operational facilities.

DAFZ is now home to companies from a wide range of sectors. It is not restricted to aviation businesses. Trading, technology, professional services, e-commerce, industrial operations and family-office activities may also be registered, subject to activity approval.

Investors comparing different Dubai jurisdictions can also review our complete Dubai free zone company formation guide.

Are DAFZ and DAFZA the Same?

Yes. Both names refer to the same free zone.

DAFZ is the current brand name used by Dubai Airport Freezone. DAFZA is the older and still widely used abbreviation for Dubai Airport Free Zone Authority.

You may see both versions in search results, company documents and older business setup guides. In practical terms, a DAFZ company formation and a DAFZA company formation refer to the same jurisdiction.

Who Should Consider DAFZ Company Formation?

DAFZ may be a strong option when airport proximity, international connectivity and premium business space provide a real commercial benefit.

Businesses that may find DAFZ suitable include:

• Import and export companies
• International trading businesses
• General trading companies
• E-commerce businesses
• Air cargo coordination companies
• Freight and logistics consultancies
• Aircraft parts and aviation equipment traders
• Technology and IT companies
• Professional service firms
• Light manufacturing and assembly businesses
• Regional headquarters
• Family offices
• Foreign companies opening a UAE branch

Companies involved in freight, distribution or cargo operations should also review the complete requirements for a logistics business in Dubai.

When DAFZ May Not Be the Best Choice

DAFZ is a premium jurisdiction. It may not be the most economical option for a small consultancy, freelancer or online business that does not need airport proximity, warehousing or a premium free-zone address.

A lower-cost free zone may be more suitable when:

• You only need a basic service licence
• Your team works fully remotely
• You do not need a warehouse
• You do not handle physical products
• Your clients are mainly in another emirate
• Airport access does not support your business model
• Your main priority is the lowest possible annual renewal cost

The right free zone should be selected according to your business activity, market, facility needs, visa requirements and expected operating costs, rather than the starting licence price alone.

DAFZ Licence Types

DAFZ provides several licence categories. The correct licence is determined by what the company will actually do and how it will earn revenue.

Aviation and logistics are not listed by DAFZ as separate standard licence categories. They are business sectors or activity groups that may fall under a trade, service, industrial or other approved licence.

1. Trade Licence

A DAFZ trade licence permits approved trading activities such as:

• Importing goods
• Exporting goods
• Re-exporting products
• Distributing products
• Storing approved goods
• Trading in specified product categories

The exact goods must be included in the approved activity list. Restricted or regulated products may require further approval from another UAE authority.

Companies planning broad product distribution should also understand the difference between a specific trade licence and a general trading licence in Dubai.

2. E-Commerce Licence

An e-commerce licence allows a company to sell approved goods or services online.

It may suit:

• Online retailers
• Digital marketplaces
• Direct-to-consumer brands
• Online wholesalers
• International e-commerce businesses
• Technology-supported retail businesses

An e-commerce licence does not automatically remove customs, product registration, consumer protection or mainland distribution requirements.

3. Service Licence

A service licence is designed for businesses providing approved professional or commercial services.

Possible activities may include:

• Business consultancy
• Management consultancy
• IT services
• Software services
• Marketing
• Technical support
• Project management
• Corporate services
• Other approved professional activities

Some regulated professional activities may need qualifications, authority approval or a no-objection certificate.

4. Industrial Licence

An industrial licence may permit approved activities such as:

• Light manufacturing
• Assembly
• Packaging
• Processing
• Product preparation
• Industrial support operations

Industrial companies normally need suitable physical facilities. The required premises depend on the activity, equipment, safety requirements and production process.

5. General Trading Licence

A general trading licence permits a company to trade in a wider range of approved products instead of being limited to one narrow product category.

It can include:

• Import
• Export
• Re-export
• Storage
• Distribution
• Wholesale trading

Controlled, hazardous or specially regulated products may be excluded or may require additional approval.

6. Single-Family Office Licence

A Single-Family Office licence is designed for a private organisation that manages the investments, financial affairs and family interests of one wealthy family.

This structure may support:

• Investment administration
• Wealth coordination
• Estate planning support
• Family governance
• Asset-management oversight

The structure and activities should be reviewed with legal and tax advisers before registration.

7. Multi-Family Office Licence

A Multi-Family Office licence allows a business to provide approved family-office services to more than one family.

The licence can support shared professional resources, investment administration and family wealth services, subject to the approved scope.

8. Dual Licence With DET

DAFZ companies carrying eligible activities may apply for a dual licence with Dubai’s Department of Economy and Tourism.

A dual licence can allow an approved DAFZ business to conduct specified activities in mainland Dubai while continuing to operate from its DAFZ premises.

Approval is not automatic. Eligibility depends on:

• The licensed activity
• DAFZ approval
• DET approval
• The proposed mainland operations
• Any sector-specific regulatory requirements

9. Talent Pass

The DAFZ Talent Pass is intended for individuals offering freelance or independent professional services in approved fields such as media, technology and education.

It is different from incorporating a Freezone Company and should be compared carefully with other freelance and company structures.

DAFZ Legal Structures

After selecting the licence, the investor must choose the correct company type.

Freezone Company

A Freezone Company is an independent legal entity incorporated within DAFZ.

According to DAFZ, it can have:

• A minimum of one shareholder
• A maximum of 50 shareholders
• Individual shareholders
• Corporate shareholders
• A minimum share capital of AED 1

The AED 1 figure is the minimum share capital requirement. It is not the full cost of setting up a DAFZ company.

A Freezone Company is normally the most relevant structure for entrepreneurs, privately owned businesses and international investors establishing a new UAE entity.

Public Limited Company

A PLC is a public limited company with limited liability. DAFZ states that there is no limit on the number of shareholders.

This structure is intended for larger organisations that may plan to list or offer shares through a securities market. It is not the standard choice for most small and medium-sized companies.

Branch of an Existing Company

An existing UAE or foreign company may establish a branch in DAFZ.

A branch:

• Remains legally connected to its parent company
• Conducts activities approved under the DAFZ licence
• Does not require separate share capital
• May require attested corporate documents
• Requires a parent-company board resolution
• Operates under the responsibility of the parent company

A branch can be useful when an established overseas business wants a Dubai presence without creating a separately owned subsidiary.

DAFZ Company Formation Cost

There is no single DAFZ company formation cost that applies to every investor. The final amount depends on how the business is structured and operated.

The quotation may include the following components:

Cost Component	What Affects the Amount
Licence fee	Selected licence and number of activities
Registration fee	New incorporation or branch registration
Trade-name fee	Chosen name and any special wording
Office or facility lease	Size, location and facility type
Warehouse cost	Floor area, storage type and operational needs
Industrial facility	Activity, equipment and fit-out requirements
Immigration or establishment file	Visa and employee sponsorship needs
Investor and employee visas	Number and type of visas
Emirates ID and medical tests	Number of residence applicants
Customs registration	Import, export and cargo activities
External approvals	Regulated or specialised business activities
Document attestation	Corporate shareholders and foreign branches
Professional assistance	Application, structuring and compliance support

Why a Starting Licence Price Can Be Misleading

A licence fee is only one part of the total setup.

A low advertised figure may exclude:

• Registration
• Office rent
• Security deposit
• Establishment card
• Immigration file
• Visas
• Medical examination
• Emirates ID
• Customs code
• Document attestation
• External authority approval
• Annual audit
• Accounting and tax registration

Before selecting DAFZ, request a written quotation showing each government, facility and visa charge separately.

DIAC can prepare an itemised comparison between DAFZ and other free zones based on your actual activities. You can contact DIAC for a DAFZ cost assessment before submitting an application.

DAFZ Business Space Options

DAFZ requires the investor to choose a suitable business space as part of the setup process.

The official options include:

Office Space

Office space may suit:

• Consultancies
• Trading headquarters
• Regional offices
• Technology companies
• Professional service firms
• Management and administrative operations

The office size can affect the rent and available employee visa allocation.

Warehouse or Industrial Space

Warehouse and industrial facilities may suit:

• Importers
• Exporters
• Distributors
• Product assembly businesses
• Packaging companies
• Inventory-based trading businesses
• Logistics-related operations

The facility must match the activity on the trade licence. Product type, loading requirements, equipment and safety standards may affect approval.

Cold Storage

Cold-storage facilities may support approved temperature-controlled operations.

These can be relevant for businesses dealing with:

• Food products
• Pharmaceutical products
• Medical supplies
• Perishable products
• Temperature-sensitive goods

Separate product, health, municipality or sector approvals may still apply.

Step-by-Step DAFZ Company Formation Process

The official DAFZ framework begins with choosing a licence, selecting a company type and confirming a business space. The full formation process normally includes the following stages.

Step 1: Confirm the Business Activities

Start by listing every service, product and revenue-generating activity the company will conduct.

The activities affect:

• Licence selection
• Company cost
• Facility requirements
• Customs registration
• Banking
• Corporate tax treatment
• External approvals

The licence should match the actual commercial model. Selecting a vague or incorrect activity can cause problems during banking, customs registration and contract onboarding.

Step 2: Choose the Licence

Choose between the relevant trade, general trading, service, e-commerce, industrial or specialist licence.

Multiple activities may sometimes be combined, but compatibility and fees must be confirmed.

Step 3: Select the Legal Structure

Choose between:

• Freezone Company
• Public Limited Company
• Branch

The choice affects ownership, liability, documentation, governance and banking requirements.

Step 4: Reserve the Trade Name

Submit proposed company names that comply with UAE naming rules.

A business name should not:

• Contain offensive language
• Misrepresent the company’s activities
• Use protected government wording without approval
• Use another registered trademark
• Create a false link with a public authority
• Use restricted religious or political references

Step 5: Submit the Initial Application

The application may include:

• Shareholder information
• Director and manager information
• Business activity details
• Proposed legal structure
• Passport copies
• Contact information
• Ownership details
• Business plan or activity description when requested

Regulated activities may require initial approval from another government body.

Step 6: Choose and Lease the Business Space

The investor selects an office, warehouse, industrial unit or cold-storage facility.

After the facility is confirmed, the lease agreement is issued for signature. Payment must be completed according to the approved payment plan.

Step 7: Sign the Incorporation Documents

Depending on the company type, the investor may need to sign:

• Incorporation application
• Articles of association
• Shareholder resolutions
• Manager appointment
• Ultimate Beneficial Owner declaration
• Lease agreement
• Compliance declarations

Corporate shareholders and branches may need attested and translated documents.

Step 8: Pay the Government and Facility Fees

Once the application, legal documents and lease are approved, the relevant fees must be paid.

The licence is issued after the authority completes its review and confirms payment.

Step 9: Complete Post-Licence Registrations

After the company licence is issued, the next steps may include:

• Establishment or immigration file
• Investor visa
• Employee visas
• Emirates ID
• Medical fitness test
• Corporate tax registration
• VAT registration where applicable
• Customs business code
• Corporate bank account
• Accounting system
• Annual audit arrangements
• Product or sector approvals

The company should not begin a regulated activity until all secondary approvals are complete.

Documents Required for DAFZ Registration

The exact checklist depends on whether the shareholders are individuals or companies.

Documents for Individual Shareholders

DAFZ may request:

• Clear passport copy
• Passport-size photograph
• Proof of residential address
• UAE visa copy, when applicable
• Emirates ID, when applicable
• Contact information
• Business activity description
• Curriculum vitae or professional background for certain activities
• No-objection certificate when required
• Source-of-funds or compliance information when requested

The passport should remain valid during the application and visa process.

Documents for Corporate Shareholders

When an existing company will own the DAFZ entity, the documents may include:

• Certificate of incorporation
• Memorandum and articles of association
• Certificate of good standing or incumbency
• Shareholder register
• Director register
• Board resolution approving the DAFZ company
• Board resolution appointing an authorised signatory
• Ultimate Beneficial Owner details
• Passport copies of directors and beneficial owners
• Proof of address
• Parent-company licence
• Audited financial statements when requested

Foreign corporate documents may need:

• Notarisation in the country of issue
• Legalisation or apostille
• UAE embassy attestation
• UAE Ministry of Foreign Affairs attestation
• Certified Arabic translation

The exact attestation chain depends on the country in which the document was issued.

DAFZ Visa and Employee Sponsorship

A DAFZ company may apply to sponsor eligible investors and employees.

The number of visas depends on factors such as:

• Company structure
• Office or warehouse size
• Approved visa quota
• Job roles
• Immigration approval
• Shareholder status

The process may involve:

1. Opening the company’s immigration file
2. Applying for the entry permit or status change
3. Completing the medical fitness examination
4. Applying for an Emirates ID
5. Completing residence formalities

Visa approval remains subject to UAE immigration rules and security checks. A trade licence does not guarantee approval for a specific number of visas or for every applicant.

Customs Registration for Trading and Import-Export Companies

A DAFZ trade licence permits the approved commercial activity. It does not by itself provide access to Dubai Customs systems.

A company that imports, exports or clears physical goods may need a Dubai Customs business code. The company must register through the Dubai Customs client registration service.

Customs registration may be needed for:

• Commercial imports
• Exports
• Re-exports
• Customs declarations
• Cargo clearance
• Warehouse movements
• Goods entering the UAE mainland

The trade licence, customs registration and product approvals must all match.

For a broader explanation, read our guide to obtaining an import export licence in the UAE.

Businesses entering the freight sector should also review how to start a cargo business in Dubai.

Can a DAFZ Company Trade in Mainland Dubai?

A DAFZ company can conduct international trade and approved free-zone activities. However, selling goods, opening a mainland location or providing certain services directly in mainland Dubai may require an additional structure or approval.

Depending on the business, the options may include:

• A DAFZ dual licence with DET
• A mainland branch
• A separate mainland company
• A licensed mainland distributor
• A commercial agent
• Customs clearance into the mainland
• An approved service arrangement

The correct route depends on whether the company sells goods, provides services, maintains mainland premises or employs mainland staff.

Do not assume that a free-zone licence automatically gives unrestricted mainland operating rights.

DAFZ Corporate Tax Rules

DAFZ companies fall within the UAE Corporate Tax system.

A free-zone company does not automatically receive a 0% tax rate on all profits. A company that meets the Qualifying Free Zone Person conditions may receive:

• 0% Corporate Tax on qualifying income
• 9% Corporate Tax on taxable income that does not qualify for the 0% rate

Free-zone companies must assess:

• Their income sources
• Transactions with mainland customers
• Transactions with other free-zone persons
• Qualifying activities
• Excluded activities
• Transfer-pricing requirements
• Adequate substance
• Audited financial statements
• De minimis limits

The Federal Tax Authority’s Corporate Tax guidance for Free Zone Persons should be used when reviewing the company’s tax position.

Our UAE corporate tax guide explains the difference between the general 9% Corporate Tax system and the Qualifying Free Zone Person regime.

VAT Registration

VAT is separate from Corporate Tax.

Mandatory UAE VAT registration generally applies when taxable supplies and imports exceed AED 375,000. Voluntary registration may be available from AED 187,500, subject to the relevant conditions.

Current thresholds and eligibility can be reviewed through the Federal Tax Authority VAT registration guidance.

A DAFZ company should review:

• UAE sales
• Imports
• Exports
• Zero-rated supplies
• Free-zone transactions
• Designated-zone treatment
• Reverse-charge transactions
• Tax invoices
• Customs records

The company’s physical location inside a free zone does not remove its VAT compliance duties.

Accounting and Annual Audit Requirements

DAFZ companies should maintain complete accounting records from the date they begin operating.

Records may include:

• Sales invoices
• Purchase invoices
• Bank statements
• Contracts
• Payroll records
• Customs documents
• Import and export records
• Related-party transactions
• Fixed-asset records
• Expense receipts
• Corporate tax calculations
• VAT returns

DAFZ’s official download centre states that registered companies must have their annual financial statements audited by an authority-approved auditor. The current auditor list can be checked through the official DAFZ download centre.

DIAC also provides accounting services in Dubai for bookkeeping, VAT, Corporate Tax and financial reporting.

DAFZ vs Dubai South vs JAFZA

The best free zone depends on how the company moves goods, serves customers and uses physical infrastructure.

Factor	DAFZ	Dubai South	JAFZA
Main location advantage	Close to Dubai International Airport	Close to Al Maktoum International Airport	Connected to Jebel Ali Port
Strongest use case	International trading, air-linked operations and regional offices	Logistics, e-commerce fulfilment, aviation and larger facilities	Sea freight, container trade, industrial operations and regional distribution
Facility options	Offices, industrial space, warehouses and cold storage	Offices, warehouses, logistics and aviation facilities	Offices, warehouses, industrial plots and port-linked facilities
Best cargo model	Airport-linked and time-sensitive trade	Air cargo and multimodal logistics	Sea freight and container-based trade
Suitable for small service firms	Possible, but may be premium	Business Park options may be considered	Often better for larger operational businesses
Mainland operation	Dual licence may be available for eligible companies	Additional mainland structure may be required	Additional mainland structure may be required

Choose DAFZ When

DAFZ may be the better option when:

• You need a premium Dubai location near DXB
• Your business regularly receives international visitors
• Your products move through air cargo
• You need office, warehouse or cold-storage options
• You operate a regional trading headquarters
• You want to explore an eligible DET dual licence

Choose Dubai South When

Dubai South may be more suitable when:

• Your operations depend on Al Maktoum International Airport
• You need larger logistics facilities
• You run an e-commerce fulfilment operation
• You expect warehousing requirements to grow
• You are building an aviation or logistics operation in southern Dubai

See our Dubai South Free Zone company formation guide for its districts, licences, facilities and setup process.

Choose JAFZA When

JAFZA may be more suitable when:

• Your goods move mainly by sea
• You rely on Jebel Ali Port
• You handle containers or bulk shipments
• You require large industrial or logistics facilities
• You operate a regional import, export or manufacturing business

How DIAC Supports DAFZ Company Formation

Choosing DAFZ is not only about obtaining a licence. The company must be structured around its activities, customers, facilities, tax treatment and long-term operating plan.

DIAC can assist with:

• Initial business-model review
• DAFZ suitability assessment
• Activity selection
• Licence selection
• Legal-structure comparison
• Trade-name reservation
• Application preparation
• Corporate document review
• Document attestation coordination
• Office and facility selection
• Dual-licence assessment
• Customs registration
• Investor and employee visas
• Corporate bank-account support
• Corporate Tax registration
• VAT registration
• Accounting and annual compliance

Before registration, we explain which expenses are government fees, facility charges, visa costs and professional fees. This helps you compare the full first-year cost rather than relying on an incomplete starting price.

Start Your DAFZ Company Formation

DAFZ can be a strong choice for a company that needs a premium Dubai business environment, international connectivity, airport proximity and access to offices or operational facilities.

However, it is not automatically the best free zone for every investor. Your final decision should be based on:

• Approved business activities
• Customer location
• Import and export model
• Mainland access
• Facility requirements
• Visa needs
• Corporate tax treatment
• Annual renewal cost
• Future expansion plans

Speak with DIAC before submitting your application. We will compare DAFZ with other suitable free zones and provide an itemised setup plan based on your actual business.

Book a free DAFZ company formation consultation.

Frequently Asked Questions About DAFZ Company Formation

Is DAFZ the same as DAFZA?

Yes. DAFZ is the current brand name for Dubai Airport Freezone. DAFZA is the older abbreviation for Dubai Airport Free Zone Authority. Both names refer to the same jurisdiction.

Is DAFZ located inside Dubai International Airport?

No. DAFZ officially states that it is located near Dubai International Airport Terminal 2, but it is not part of the airport itself.

What types of companies can be formed in DAFZ?

Investors can establish a Freezone Company, a Public Limited Company or a branch of an existing foreign or UAE company.

How many shareholders can a DAFZ company have?

A DAFZ Freezone Company can have between one and 50 individual or corporate shareholders.

What is the minimum share capital for a DAFZ company?

DAFZ lists a minimum share capital of AED 1 for a Freezone Company. This is a capital requirement, not the total setup price.

Does DAFZ offer an aviation licence?

DAFZ’s official standard licence categories do not list a separate aviation licence. Aviation-related businesses may be licensed through an appropriate trade, service, industrial or other approved activity, with external approval where required.

Does DAFZ offer a logistics licence?

Logistics is not listed as a separate standard DAFZ licence category on the official setup page. A logistics-related business must select the licence and activity codes that match its actual services.

Can I open an e-commerce company in DAFZ?

Yes. DAFZ offers an e-commerce licence for approved online trading of goods and services. Customs, product, consumer-protection and mainland-distribution rules may still apply.

Can a DAFZ company operate in mainland Dubai?

Eligible DAFZ companies may apply for a dual licence with the Department of Economy and Tourism. Eligibility depends on the company’s activities and approval from the relevant authorities.

Can a foreign investor own 100% of a DAFZ company?

Yes. DAFZ permits full foreign ownership, so a UAE national shareholder is not generally required.

Does a DAFZ company pay Corporate Tax?

A DAFZ company is subject to the UAE Corporate Tax system. A Qualifying Free Zone Person may receive a 0% rate on qualifying income, while non-qualifying taxable income may be subject to 9%.

Does a DAFZ company need VAT registration?

VAT registration is generally mandatory when taxable supplies and imports exceed AED 375,000. The company’s transactions and registration position should be reviewed individually.

Does a DAFZ company need a customs code?

A company involved in importing, exporting or customs clearance generally needs to register with Dubai Customs and obtain a business code.

Is an office required for DAFZ company formation?

DAFZ requires the investor to choose an approved business space. Available options include office space, warehouse or industrial space and cold storage.

How much does DAFZ company formation cost?

The total cost depends on the licence, activities, legal structure, leased space, visas, customs requirements and external approvals. Obtain a current itemised quotation instead of relying only on an advertised starting licence fee.

How long does it take to form a DAFZ company?

The timeline depends on document completeness, shareholder type, business activity, facility selection and external approvals. Corporate shareholders, regulated activities and foreign-document attestation can extend the process.

Is DAFZ better than Dubai South?

DAFZ may be better for companies that value proximity to Dubai International Airport and a premium central Dubai location. Dubai South may be more suitable for larger logistics, fulfilment and aviation operations close to Al Maktoum International Airport.

Is DAFZ better than JAFZA?

DAFZ is generally more relevant to airport-linked and time-sensitive trade. JAFZA is more suitable for businesses relying on sea freight, Jebel Ali Port and large-scale industrial or logistics facilities.