DAFZA reduces free zone business set up fees

DAFZA has revisited and reduced registration, license, and staff visa fees for new investors.

Dubai Airport Freezone Authority (DAFZA) has reduced business setup cost by up to 65 percent, as part of its aim to increase DAFZA’s regional competitiveness and activate a number of key sectors by attracting foreign direct investment (FDI). Supporting Dubai’s efforts to become an ideal destination for investment and prosperity, the decision is expected to help achieve further stability for the operational processes of free zone companies and consequently sustain and drive investment growth.
Dr. Mohammed Al-Zarooni, director general, DAFZA, said: “This new approach falls in line with the directions of His Highness Sheikh Mohammed bin Rashid Al-Maktoum to boost Dubai’s economic competitiveness. This is being done through a number of initiatives and incentives that aim to attract and promote FDI into the emirate, ensuring sustainable growth across all economic sectors and strengthening Dubai’s status on the world economic stage.”
Al-Zarooni added: “These incentives were agreed upon following comprehensive studies and polls evaluating the free zone’s initiatives, services, and business environment. This has allowed us to ensure flexibility at DAFZA in meeting the requirements of new foreign investors and current customers. We are offering unique services that take into account the global economic climate and allow customers to increase earnings and operational profits as well as achieve business growth and prosperity. The ultimate goal is to drive local economic development and support the sustainability of direct FDI, accelerating and increasing its contribution to Dubai’s GDP.”
DAFZA has revisited and reduced registration, license, and staff visa fees for new investors by 65 percent, 33 percent, and 20 percent, respectively. Establishment card issuance fees have been cut by 17 percent, while fees for Board Resolution and MOA issuance have been waived.
The new incentives include facilitating the process of obtaining general trading licenses for new investors by halving the capital requirement from 1 million dirham ($270,000) to 500,000 dirham. DAFZA has also allowed its member companies to be structured as a Limited Liability Free Zone Company (FZ-LLC), in a bid to provide more flexibility in business setup, licensing and operation.
In addition, DAFZA has waived license expiry fines in an effort to relax the terms of license renewal. Allowing the restoration of legal records and licenses, the decision will help investors renew their expired license without paying any late renewal fines.