Are you an aspiring entrepreneur or an established business owner looking to expand your horizons?There is a strategic location that not only offers a gateway to the markets of the Middle East but also provides unparalleled incentives for growth. Welcome to Dubai Airport Free Zone (DAFZA). Setting up a business in a foreign land may seem like a daunting task, but with DAFZA, the process becomes seamless. In this detailed FAQ, we unravel the intricacies & offer further insights.
1. What is the legal foundation of Dubai Airport Free Zone (DAFZA)?
DAFZA was established under Dubai Law No. 2/1996 and its amendment No. 2/2000. The main internal regulations governing DAFZA are outlined in Dubai Law No. 25/2009, established by the Dubai Airport Free Zone Authority (DAF Authority).
2. Are there complementary agreements between DAFZA and other free zones?
Free zones typically operate independently, and while they offer up to 100% foreign ownership with reduced trade barriers, there are generally no specific agreements between them. Companies operating outside the free zone boundaries must adhere to UAE Commercial Companies Law.
3. What UAE legislation must free zone entities comply with?
While free zone companies have their own regulations, they must still adhere to UAE laws, including those related to money laundering, terrorism offenses, cybercrimes, and criminal offenses. Federal Law No. 2/2015 concerning UAE Companies Law applies if a free zone company wishes to trade or provide services outside the free zone.
4. Are there onshore entities a DAFZA company needs to register with in the UAE?
Registration with the UAE General Directorate of Resident and Foreign Affairs is required for employee residential permits. Companies may interact with federal ministries for notarization, visas, and more. The DAF Authority assists companies in obtaining services from these ministries.
5. What is the process of setting up a company in DAFZA?
Setting up a company involves selecting a company type, choosing a business license, selecting a facility, and submitting the application. The investor can choose between a Free Zone Company or Branch Setup, select from various licenses (trade, service, industrial, etc.), choose office space, and submit the application for approval.
6. What features will a company in DAFZA have?
Companies in DAFZA enjoy 100% ownership, easy access to several banks, and operate without the interference of UAE Nationals.
7. What are the approved activities in DAFZA?
Companies in DAFZA can engage in activities outlined in their trade or commercial license, including importing, exporting, distributing, storing, trading, manufacturing goods, providing consultancy services, and light manufacturing activities.
8. What types of licenses are available in DAFZA?
DAFZA offers six types of licenses: Trade, Service, Industrial, E-commerce, General Trading, and a Dual License with DED, allowing companies to operate both in DAFZA and mainland Dubai without physical office space.
9. Are there specific rules for inheritance in DAFZA?
While there is no specific inheritance law, shareholder rights are transferable and inheritable, subject to DAFZA rules and regulations.
10. What are the regulations on taxes in DAFZA?
There is no corporate or income tax applied to companies established in DAFZA.
11. What are the accounting and auditing regulations?
While DAFZA does not specify accounting and auditing rules, it is advisable for companies to maintain proper books of accounts.
12. Are there specific regulations for opening a corporate bank account?
There are no specific requirements for opening a bank account, and companies are free to open accounts anywhere in the UAE.
13. How are disputes settled within DAFZA?
Disputes are settled by the DAFZA Authority and are governed by the employment contract signed between the parties in the case of employer-employee disputes.
14. What are the main rights and duties of an employer and employee in DAFZA?
The rights and duties of an employer and employee are governed by DAFZA rules and regulations.
15. How are staff working in DAFZA registered with authorities?
Registration with the UAE General Directorate of Resident and Financial Affairs is required for employee residential permits.
16. What are the costs and types of licenses in DAFZA?
FZE Registration Fee is AED 10,000, Industrial License costs AED 10,000 per annum, Trading License costs AED 10,000 per annum, and Service License costs AED 10,000 per annum.
Conclusion
Establishing a business in DAFZA involves a straightforward process, and investors can choose from various license types and company setups. For further guidance and to simplify the process, feel free to reach out to legal consultants in Dubai, law consultant, or the DAFZA Authority for expert assistance.