Your Complete Guide to a Dubai Airport Free Zone Business License (DAFZA)

Obtaining a Dubai Airport Free Zone Business License (DAFZA) is the first step for any entrepreneur or investor that are aiming to operate legally in this hub for aviation, logistics & international trade. This license not only gives you credibility but also opens doors to 0% corporate tax benefits, duty-free imports/exports & full foreign ownership. Let’s break down what you need to know to start, operate & grow your business in DAFZA

1. Introduction

A Dubai Airport Free Zone Business License (DAFZA) is the essential first step for anyone aiming to set up a legal company and operate in the free zone. It is located next to Dubai International Airport DAFZA is a hub for aviation, logistics, trading & IT services, which offers unmatched access to global markets. If you’re holding this license, it doesn’t just legalize your operations; it builds credibility with clients. This also includes full repatriation of profits & connects you to offices, warehouses & service networks. This article explains how to get a DAFZA license, choose the right type, meet requirements & start your business easily.

2. What is a DAFZA Business License?

A Dubai Airport Free Zone Business License (DAFZA) is the legal authorization you need to operate a company within DAFZA. It governs your business activities, employee visas & compliance with UAE regulations. Also without this license, you cannot legally open a corporate bank account, sign contracts or lease office space within the free zone. Essentially, it formalizes your business presence and provides the framework to operate confidently in Dubai’s aviation and logistics hub.

Why is a DAFZA business license important?

• Legal operations: This allows your business to function fully within UAE laws & this ensures all contracts, transactions & activities are recognized legally
  
• Full foreign ownership: It enables 100% ownership of your company without requiring a local partner or sponsor in the free zone
  
• Profit repatriation: Let’s you transfer earnings outside the UAE freely which keeps full control of your company’s revenue streams
  
• Credibility: It also builds trust with clients, partners & international stakeholders, which ensures your business reputation immediately
  

This license is your entry point into Dubai’s strategic business ecosystem.

3. Types of DAFZA Business Licenses

• Trading License
  This is suited for import, export & distribution companies operating within Dubai Airport Free Zone. It allows legal trading of goods but does not cover consultancy or professional services
• Service License
  It is designed for consultancy, IT, education & professional services. The companies that are holding this Dubai Airport Free Zone Business license can provide expertise and advisory services but cannot trade physical products within the free zone
• Industrial License
  This is ideal for manufacturing, light assembly & warehouse operations. A DAFZA industrial license allows production activities but requires compliance with industrial regulations and safety standards set by the free zone

Can I switch my license type later?
Yes, with approval from DAFZA authorities. If you’re changing your Dubai Airport Free Zone Business License (DAFZA) type may involve additional fees and document updates.

4. Eligibility Criteria and Shareholding

To obtain a Dubai Airport Free Zone Business License (DAFZA), companies must meet certain eligibility requirements. The minimum capital is AED 1,000 per share & you can have between one and fifty shareholders. Full foreign ownership is permitted, which gives investors complete control over their company without the need for a local partner. Partnerships with UAE nationals are optional; they allow flexibility for joint ventures if desired. These rules ensure that both small startups and larger enterprises can establish themselves confidently in DAFZA while maintaining compliance with the free zone’s regulations. Meeting these criteria is the first step toward legal operations.

5. Steps to Apply for a DAFZA Business License

• Choose your business activity
  Decide whether your company will operate under trading, service, or industrial activities. Selecting the right activity is crucial before applying for a Dubai Airport Free Zone Business License (DAFZA)
• Submit initial approval request
  Send your proposed business name and activity to DAFZA for review. Approval confirms your business scope and eligibility to proceed with the licensing process
• Sign office lease
  Select and lease appropriate office space flexi-desk, executive office or warehouse as your DAFZA license and visa allocation depend on registered office size
• Submit incorporation documents
  Provide MOA, passport copies, application form & business plan to DAFZA. Complete and accurate documentation this ensures license processing without delays
• Receive trade license
  Once approved, your Dubai Airport Free Zone Business License (DAFZA) is issued this allows you to start operations, open a bank account & hire employees legally

How long does it take to get a DAFZA business license?
Typically 7-14 days if all documents are complete.

Estimated Costs (AED):

6. Office Space and Visa Allocation Requirements

Your Dubai Airport Free Zone Business License (DAFZA) is directly linked to the office space you choose, which also determines the number of visas your company can obtain. Flexi-desk options suit small businesses and startups this offers a cost-effective solution with a limited visa allocation. Executive offices are ideal for mid-size companies this provides more space and a higher visa quota to accommodate growing teams. For industrial operations, warehouses give larger workspace and allow for a greater number of employee visas.

It’s important to note that all offices must be physically located within DAFZA.The license and visas are tied to the registered office address, so you cannot operate or sponsor visas outside the free zone under the same license. You can choose the right office size is a strategic decision, as it affects operational capacity, visa allocation & your ability to scale easily within Dubai’s logistics and aviation hub

7. Compliance and Renewal Requirements

• Annual license renewal: Every Dubai Airport Free Zone Business License (DAFZA) must be renewed annually. Timely renewal ensures your business continues operations without interruptions or legal complications within the free zone
  
• Audited financial statements: Submission of accurate, audited financial statements is required each year. This demonstrates compliance with UAE regulations and maintains the validity of your DAFZA license for uninterrupted business activities
  
• Regulatory compliance: Companies must adhere to UAE AML, ESR & other free zone rules. Following these regulations protects your license, avoids penalties & ensures smooth operations across all DAFZA activities
  
• Consequences of non-renewal: Failure to renew your DAFZA license may lead to fines, suspension of operations, or complete revocation of the license, halting your legal ability to conduct business. Non-renewal can result in fines, suspension of operations, or license revocation

8. Banking, Customs and Financial Benefits

• Duty-free imports and exports: A Dubai Airport Free Zone Business License (DAFZA) allows companies to import and export goods without paying customs duties this reduces costs and supports easy international trade operations
  
• UAE-based corporate bank account: All DAFZA license holders must open a corporate bank account in the UAE. This ensures easy financial transactions, secure payments & compliance with local banking regulations
  
• 0% corporate tax for free zone activities: Companies that are operating under a DAFZA license enjoy zero corporate tax on qualifying free zone activities this enables higher profitability and reinvestment opportunities for business growth
  
• Use for mainland UAE trading: A DAFZA license alone cannot operate directly in mainland UAE. You need a separate DED licensing or a distributor agreement is required to conduct business outside the free zone

Can a DAFZA license be used for mainland UAE trading?
Limited. Mainland operations require a separate DED license or a distributor agreement.

9. How Arnifi Can Help

Navigating the process of obtaining a Dubai Airport Free Zone Business License (DAFZA) can be complex, but Arnifi makes it straightforward. From the very beginning, we ensure your license application is completed accurately this prevents delays and avoids unnecessary back-and-forth with DAFZA authorities. We help you select the right office space whether a flexi-desk, executive office or warehouse so your visa allocation matches your business needs. Our team also manages visa processing easily this your employees can start working without any complications. Beyond setup, Arnifi supports ongoing compliance this helps you meet annual renewal requirements, submit audited financial statements & follow all free zone regulations. By partnering with us, you can focus on growing your company while we handle the administrative and regulatory aspects. Arnifi guides entrepreneurs and investors every step of the way in obtaining and managing a Dubai Airport Free Zone Business License (DAFZA) with confidence and ease.

10. FAQs

Q1. What documents are needed for a DAFZA business license?
Passport copies, MOA, business plan, lease agreement & application form.

Q2. Can a foreigner own 100% of a DAFZA company?
Yes, full foreign ownership is allowed.

Q3. How many visas does a DAFZA license allow?
Visa allocation is based on office space, typically 1 visa per 9-10 sqm.

Q4. Are annual audits mandatory for DAFZA companies?
Yes, audited financial statements must be submitted for license renewal.

Q5. How long is the DAFZA license valid?
Usually 1 year; renewable annually.

11. Conclusion

A Dubai Airport Free Zone Business License (DAFZA) is your gateway to operating in one of the most strategic free zones in Dubai. With the right license, compliance, office setup & visa allocation, you can enjoy full foreign ownership, 0% corporate tax & credibility with international clients.

Partner with Arnifi today to simplify your DAFZA license process, manage renewals, ensure complete compliance & focus on scaling your business. Arnifi also helps with visas, bank accounts & ongoing corporate support which makes your Dubai journey smooth from day one. Book a free consultation with Arnifi today!