DAFZA Free Zone
Company Formation

Set up in Dubai Airport Free Zone — established 1996, adjacent to Dubai International Airport Terminal 1, with 3,400+ businesses across 20+ sectors and the DAFZA-DET Dual Licence.

  • 100% Ownership
  • Established 1996
  • Adjacent to DXB Terminal 1
  • Dual Licence with DET
  • 3,400+ Members

DAFZA — Dubai's Premium Aviation and Tech Free Zone

Dubai Airport Free Zone Authority (DAFZA) was established in 1996 and sits directly adjacent to Dubai International Airport Terminal 1. It hosts more than 3,400 registered businesses, including over 1,600 multinational companies, across 20+ sectors. Its defining feature is the DAFZA-DET Dual Licence, which lets companies operate on the UAE mainland without a separate mainland office.

Dubai Airport Free Zone Authority was established in 1996 and is one of Dubai's most established free zones. Its defining feature is location: DAFZA sits directly adjacent to Dubai International Airport Terminal 1, putting member companies inside the perimeter of the busiest international airport for passenger traffic. The zone hosts more than 3,400 registered businesses, including over 1,600 multinational companies, across 20+ sectors.

DAFZA's commercial proposition runs along three axes: aviation-adjacent logistics, high-value technology and IT, and the Dual Licence — a DAFZA-DET arrangement that allows companies to operate on the UAE mainland without setting up a separate mainland office. The zone's Talent Pass Licence supports freelancers, artists and creatives in media, technology and education, and DAFZA's infrastructure includes ready-to-use offices, private workspaces and Light Industrial Units for storage, distribution and assembly.

DAFZA office towers next to Dubai International Airport at golden hour
Best known for: Aviation, freight & airport-adjacent tech

Why DAFZA

DAFZA is the only UAE free zone integrated with Dubai International Airport (DXB) — the world's busiest international-passenger airport. Established 1996, it has matured into a focused cluster for aviation services, air-freight logistics, MRO (maintenance, repair, overhaul), light manufacturing, and any business where airport-side speed matters more than commodities-trading depth.

Adjacent to Dubai International Airport (DXB)

Direct access to DXB's cargo terminals, with dedicated cargo gates for free-zone tenants — goods clear customs without leaving the airport perimeter.

Air-Freight & Express-Logistics Cluster

Home to DHL Express UAE, FedEx, UPS, Aramex and similar tier-1 logistics operators. Tenants benefit from established freight-forwarding infrastructure and shared-load economics.

Designated Zone — VAT-efficient Goods Movements

DAFZA is a Designated Zone under Cabinet 59/2017. Goods supplies between DAFZA and other Designated Zones, or DAFZA-to-export, can fall outside the scope of UAE VAT — material for high-volume air-freight traders.

Aviation + Tech Specialisation

DAFZA's licence framework includes aviation-specific categories (MRO, ground handling, aviation services) that few other free zones offer. Strong tech cluster has emerged around digital cargo, IoT logistics and aviation software.

Established 1996 — Mature Regulator

Among the older UAE free zones. The DAFZA Authority has settled processes, recognised licensing categories, and a stable industrial-tenancy framework that newer zones can't yet match.

Strong Banking Acceptance

DAFZA carries higher-than-average banking acceptance vs the cost-leader zones. The mature aviation / freight tenant base lifts the average compliance profile that UAE banks see.

Ideal for
  • Air-freight forwarders & express-logistics operators
  • Aviation services (MRO, ground handling)
  • Light manufacturing requiring fast airport access
  • High-value goods traders (electronics, pharma, jewellery)
  • Aerospace tech & cargo software ventures

DAFZA Licence Categories

DAFZA issues licences across six categories, including the distinctive Dual Licence and Talent Pass options.

Trade & General Trading

For buying, selling, distribution and storage of goods. DAFZA's trade and general trading licences support import, export and re-export through DXB.

  • General trading
  • Import, export and re-export
  • Aviation parts and equipment
  • FMCG and consumer goods
  • Pharmaceuticals and cosmetics

Service & Talent Pass

For service-led businesses and individual practitioners. The Talent Pass Licence is DAFZA's dedicated vehicle for freelancers, creatives and consultants.

  • Management and IT consultancy
  • Media, design and creative services
  • Education and training
  • Talent Pass — freelancers and artists
  • Engineering and technical services

Industrial & Dual Licence

Industrial licences cover light manufacturing, packaging and assembly. The Dual Licence is a DAFZA-DET arrangement that lets companies trade on the UAE mainland without a separate mainland office.

  • Light manufacturing and assembly
  • Packaging and processing
  • Aviation industrial activities
  • Dual Licence — DAFZA + DET mainland
  • Light Industrial Unit operations

Legal Structures Under DAFZA

DAFZA recognises three operating structures. Solo and multi-shareholder vehicles are common; branches suit established overseas groups.

01

Free Zone Company (FZ Co.)

Multi-shareholder limited-liability vehicle. DAFZA's standard structure for partnerships, joint ventures and growth-stage businesses — supports up to 50 owners.

02

Public Limited Company (PLC)

Larger partnership-based structure suited to mature ventures with multiple shareholders or capital-raising plans.

03

Branch of an Existing Company

Branch of a UAE or international parent company. Used by established global groups extending into DAFZA — operates under the parent's name and balance sheet.

How a DAFZA Company Is Formed

DAFZA runs incorporation through its licensing services. The sequence below covers a standard FZ Co.; corporate shareholders add KYC steps.

  1. 01

    Define the Business Nature & Licence

    Pick the licence category — Trade, Service, Industrial, General Trading, Dual Licence or Talent Pass — based on activity and whether mainland operations are needed.

  2. 02

    Sign the Lease Agreement

    Lease office, warehouse or Light Industrial Unit space inside DAFZA. Office grade and size drive the visa quota the company can access.

  3. 03

    Submit Legal Approvals

    Submit shareholder documents, business plan and the Memorandum of Association. DAFZA's review covers KYC, activity legitimacy and lease compliance.

  4. 04

    Fee Submission & Licence Application

    Once initial approvals clear, the licence application is submitted with the required government fees and final shareholder documentation.

  5. 05

    Trade Licence Issued

    DAFZA issues the trade licence and corporate documents. Standard timelines run two to four weeks depending on activity and shareholder structure.

  6. 06

    Open Bank Account & Apply for Visas

    Open a corporate bank account using the issued documents. Investor and employee visas are processed alongside Emirates ID and medicals.

Documents Required for DAFZA Setup

Standard documentation set for individual shareholders. Corporate shareholders need additional KYC documents on the parent entity.

  • Passport copies of all shareholders and directors (valid for at least 6 months)
  • UAE residence visa copy for residents in the country
  • Emirates ID for UAE residents
  • Passport-sized photographs of shareholders
  • Three proposed trade names for reservation
  • Personal information or KYC questionnaire
  • For corporate shareholders: parent licence, MoA, board resolution, UBO list, incumbency certificate

Why Choose DAFZA for Your Free Zone Setup

DAFZA pairs the world's busiest international airport with one of the UAE's most established free zone authorities and a distinctive Dual Licence option.

Adjacent to Dubai International Airport Terminal 1 — direct cargo and passenger access

Established 1996 — one of Dubai's most mature free zone authorities

3,400+ registered businesses including 1,600+ multinational companies

20+ business sectors active in the zone — aviation, IT, F&B, pharma, jewellery, cosmetics

100% foreign ownership with full capital and profit repatriation

0% corporate tax on qualifying income under the Qualifying Free Zone Person regime

DAFZA-DET Dual Licence — UAE mainland operations without a separate mainland office

Talent Pass Licence for freelancers, artists and creatives in media and tech

Tax & Compliance Position — DAFZA

DAFZA entities follow the standard UAE Free Zone tax regime. The combination of QFZP eligibility on income side + Designated Zone status on VAT side is a meaningful advantage for goods-trading and air-freight-forwarding businesses.

UAE Corporate Tax

9% Headline · 0% QFZP on Qualifying Income

Corporate Tax at 9% above AED 375,000. DAFZA entities can elect QFZP for 0% on Qualifying Income. The distribution of goods from a Designated Zone to outside-UAE customers is a qualifying activity under Ministerial Decision 265/2023 — directly relevant to DAFZA's freight-forwarding tenant base.

QFZP eligibilityQFZP requires Free Zone substance (DAFZA's physical-warehouse tenants typically meet this), Qualifying Income only, arm's-length transfer pricing, audited financials, and no election out. The de minimis threshold for non-qualifying income is AED 5M or 5% of total revenue — whichever is lower.
UAE VAT

5% Standard Rate · Designated Zone Status

DAFZA is a Designated Zone under Cabinet 59/2017. Goods movements between DAFZA and other Designated Zones, or DAFZA-to-export, can sit outside the scope of UAE VAT — provided the goods-movement conditions are met (Article 51 of the Executive Regulation).

✓ Designated ZoneDesignated Zone status combined with airport cargo-clearance access is DAFZA's single biggest commercial advantage for high-volume air-freight traders.

Ongoing Compliance Obligations

  • Annual Corporate Tax return (9 months from FY-end)
  • VAT returns per FTA assignment (quarterly or monthly)
  • Audited financial statements (mandatory for QFZP)
  • Customs registrations & transit documentation (cargo operations)
  • ESR notification + report (where in scope)
  • UBO register maintenance

Sources & official references: Federal Decree-Law 47/2022 (Corporate Tax) · Cabinet Decision 100/2023 (QFZP) · Ministerial Decision 265/2023 (Qualifying activities) · Federal Decree-Law 8/2017 (VAT) · Cabinet Decision 59/2017 (Designated Zones) · FTA + Dubai Customs

Sectors Active in DAFZA

DAFZA's member base reflects its airport-adjacent positioning — aviation, high-value trade, IT and creative talent.

Aviation & Logistics

Freight & Distribution

IT & Telecommunications

Engineering Services

FMCG & Retail

Food & Beverage

Media & Creative

Pharmaceuticals

The Avyanco Advantage

Avyanco runs DAFZA engagements end-to-end — from licence category selection (including Dual Licence positioning) through to a banked, visa-ready entity.

Activity & Licence Advisory

We map the business to the right DAFZA licence category — including whether the Dual Licence or Talent Pass route fits better than a standard licence.

Dual Licence Structuring

For founders who need both DAFZA and mainland operations, we structure the Dual Licence and the mainland trading arm to avoid duplicating infrastructure.

Application & MoA

Memorandum of Association drafted to DAFZA's current template and the application taken through the zone's licensing services.

Corporate Bank Account

Introductions to UAE banks that actively onboard DAFZA entities, plus the compliance file the bank's KYC will require.

Investor & Employee Visas

Investor, partner and employee visas processed end-to-end with Emirates ID and medicals coordinated.

Corporate Tax & VAT

FTA registrations and ongoing filings — including QFZP eligibility assessment for the 0% qualifying-income rate.

Meet Our Specialists

Five partner-level advisors covering every leg of a DAFZA setup — formation, licence selection, tax and ongoing compliance.

Chandy Joseph, Sales Director at Avyanco

Chandy Joseph

Sales Director · UAE Company Setup

Astha, Senior Business Setup Consultant at Avyanco

Astha

Senior Business Setup Consultant

Dhiren, Business Setup Consultant at Avyanco

Dhiren

Business Setup Consultant

Hadir, Business Setup Consultant at Avyanco

Hadir

Business Setup Consultant

Tanya, Business Setup Consultant at Avyanco

Tanya

Business Setup Consultant

Why Founders Choose Avyanco for DAFZA

Three things that come up in every DAFZA engagement.

Avyanco advisor closing a DAFZA free zone company formation engagement with a founder

DAFZA & Dual-Licence Expertise

Live engagements with aviation operators, IT firms, FMCG traders and Talent Pass freelancers means we know which licence and structure actually fits.

End-to-End Delivery

Licence, lease, MoA, bank, visa and tax — handled by one team on one engagement letter, including Dual Licence mainland positioning where needed.

Built for Airport-Adjacent Realities

Recommendations shaped by how aviation, freight, IT and trade businesses actually operate around an international airport — not generic SME templates.

What Clients Say

A slice of recent feedback from founders who set up their UAE companies through Avyanco.

DAFZA Free Zone — Frequently Asked Questions

Common questions about setting up in Dubai Airport Free Zone Authority.

When was DAFZA established and where is it located?
DAFZA was established in 1996 and is located adjacent to Dubai International Airport, Terminal 1. The zone sits inside the airport perimeter, giving member companies direct access to passenger and cargo operations.
What is the DAFZA Dual Licence?
The Dual Licence is a DAFZA-DET arrangement that lets a DAFZA company conduct business on the UAE mainland without setting up a separate physical mainland office. It is one of DAFZA's distinguishing features and is often used by aviation, trade and service firms that need mainland customer access alongside their free-zone base.
Who is the Talent Pass Licence for?
The Talent Pass Licence is DAFZA's dedicated route for freelancers, artists and creatives working in media, technology, education and related sectors. It provides a lighter-weight licence option for individual practitioners.
Can a foreign founder own 100% of a DAFZA company?
Yes — DAFZA permits full foreign ownership across every legal structure with no UAE-national shareholder requirement.
How long does DAFZA company formation take?
Standard DAFZA setups typically complete in two to four weeks once the document set is ready. Industrial activities, larger lease arrangements and the Dual Licence application may add review time.
What office options does DAFZA offer?
Ready-to-use offices, private workspaces, fitted office space and Light Industrial Units for storage, distribution and assembly. Office grade and size drive the visa quota the company can access.
Is DAFZA recognised for the 0% UAE Corporate Tax rate?
DAFZA is recognised among the UAE's free zones for Corporate Tax purposes. The 0% rate applies to qualifying income earned by a Qualifying Free Zone Person under the Federal Tax Authority's regime. Non-qualifying income is taxed at the standard rate. We assess QFZP eligibility at the planning stage.
Can a DAFZA company trade with the UAE mainland?
Yes — through the Dual Licence arrangement with DET, or through standard distributor channels. The Dual Licence avoids needing a separate mainland office, which is why it is the preferred route for service and trading firms needing mainland customer access.
Verification & independence

Content verified against the live Avyanco site and publicly verifiable secondary sources as of June 2026. The official DAFZA About page was unreachable during compilation, so verification triangulated across multiple independent sources. Avyanco Business Consultancy LLC is independent of DAFZA, not endorsed by the DAFZA Authority and not affiliated with any UAE government agency.

DAFZA activity catalogues, the DAFZA-DET Dual Licence arrangement, Talent Pass requirements and Qualifying Free Zone Person eligibility evolve. Always confirm the current rules for your specific activity directly with DAFZA, the Dubai Department of Economy and Tourism and the Federal Tax Authority before acting on any fact on this page.

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