Starting a business in UAE? Dubai Air Port Free Zone Authority (DAFZA) can help you setup.
Government of Dubai continues to devise policies for entrepreneurs that enhance efficiency, save time, reduce costs and improve ease of doing business. Therefore, in a recent announcement by Dubai Airport free Zone Authority, business setup cost has been reduced by up to 65% in DAFZA. The reduction in set-up costs was part of DAFZA’s goal to increase the free zone regional competitiveness and boost Foreign Direct Investment (FDI).
Another Recent Move by UAE Govt. – 100% Foreign Ownership in Mainland
If you have gone through our blog, chances are that you might have read our post about a recent initiative by UAE Cabinet i.e. to allow 100% foreign ownership of companies in UAE (previously complete foreign ownership was a feature available to companies based in UAE free zones only). The law is expected to be enacted by the end of year but it is anticipated that it will be limited to certain industries deemed essential. To know more about the legislation- read in our blog “UAE to allow 100% ownership to foreign investors”.
Reason behind the New Setup Cost Initiative
According to Dr. Mohammed Al Zarooni, Director General, DAFZA; the new approach aims to approve Dubai’s economic competitiveness and strengthen its’ image on the world economic stage. Prior to the introduction of the reduced cost initiative, a series of comprehensive studies and polls were conducted which evaluated DAFZ’s initiatives, services and business environment.
The ultimate goal is to,
- Allow customers to increase earnings and operational profits.
- To achieve business growth and prosperity
- To drive local economic development
- To boost sustainability of direct FDI. This will eventually contribute positively towards Dubai GDP.
Reduced Business Costs
- Registration, license, and staff visa fees for new investors have been reduced by 65%, 33%, and 20% respectively.
- Establishment card issuance fees have been cut by 17%.
- Board Resolution fees and Memorandum of Association issuance fee has been waived.
- Capital requirement has been cut by half i.e. from AED 1 million to AED 500,000 in order to facilitate the process of obtaining general trading license for new investors.
- Member companies have been allowed to structure as Limited Liability Free Zone Company (FZ-LLC). This is done to provide more flexibility in business setup, licensing and operation.
- License expiry fines have been waived in an effort to relax the terms of license renewal. The decision will help investors renew their expired license without paying any late renewal fines.
Restructuring of Free Zone Licenses
For investors looking to setup business in Dubai Air Port Free Zone, DAFZA has launched a program to restructure free zone license process and related fees. It will provide flexibility to entrepreneurs in choosing the type of business and service activities that best correspond to the nature of their work. The new license structure will be made available to investors in the third quarter of 2018.
Further initiatives and incentives such as issuance of “no objection certificate” are also going to be introduced by DAFZA soon.
These measures reflect DAFZA’s continuous support for the growth of its business sectors and its dedication towards providing a competitive and investor-friendly business environment by removing all the obstacles faced by entrepreneurs during their business setup in UAE.
If you are looking to form free zone company in DAFZA, contact our business setup consultants on KWSME at 00971-(04) 871 4313 or email us your query on email@example.com or visit our website KWS Middle East for more information.