Business Setup Dubai

DAFZA Company Setup 2026: Cost, Process, and Corporate Tax Benefits

Stunning modern facade of an airport terminal in Abu Dhabi with reflective glass and contemporary design.

11 min read

Published: 25 August 2026

Last updated: 29 August 2026

Dubai Airport Free Zone (DAFZA) is one of the oldest and most established free zones in the UAE, built around Dubai International Airport and positioned as a hub for aviation, logistics, trading, and service businesses that need fast access to air cargo and passenger routes. This guide covers what it actually costs to set up a company in DAFZA in 2026, which licence to choose, the step-by-step registration process, and how DAFZA companies are taxed under the UAE Corporate Tax QFZP (Qualifying Free Zone Person) framework.

Quick Answer

Setting up in DAFZA in 2026 starts from around AED 15,000 to AED 22,000 for a base commercial, service, or industrial licence covering the first year, before adding office space, visas, and the one-time registration and establishment card fees. A General Trading licence costs AED 50,000 per year. Registration typically takes 10 to 20 business days from document submission to licence issuance, and can be completed without the shareholders travelling to the UAE. DAFZA companies that meet the UAE Corporate Tax QFZP conditions pay 0% tax on qualifying income and 9% on non-qualifying income.

Why DAFZA, and Who It Suits

DAFZA sits inside Dubai Airport’s cargo and logistics zone, which makes it the natural choice for businesses tied to aviation, air freight, and fast-moving trade. It hosts over 3,800 companies today, spanning aviation, pharmaceuticals, general trading, manufacturing, logistics, jewellery, IT, and mobile phone accessories, and has previously been ranked among the top free zones globally for foreign direct investment.

DAFZA is a strong fit if the business needs:
– Direct proximity to Dubai International Airport for air cargo or passenger-linked services.
– An aviation-specific licence (aircraft parts trading, MRO support) that most other UAE free zones do not offer.
– A general trading or industrial licence with warehouse or light manufacturing space near the airport.
– 100% foreign ownership with no local UAE partner required, which applies to every UAE free zone, not just DAFZA.

It is a weaker fit for a business that has no logistics, aviation, or airport-adjacent need and would be better served by a lower-cost free zone such as IFZA or a mainland licence for direct access to the local UAE market. Compare against IFZA, DMCC, or a mainland setup before committing.

DAFZA Licence Types

DAFZA issues five licence categories:

Licence type	What it covers	Annual fee (base)
Commercial (Trading)	Import, export, and distribution of goods	AED 15,000
Service	Consultancy and service-based activities	AED 15,000
Industrial	Light manufacturing, assembly, packaging	AED 15,000
General Trading	Multi-product trading across categories	AED 50,000
Aviation	Aircraft parts trading, MRO support, aviation supply chain	Quoted per activity

The base licence fee of AED 15,000 covers one industry category with up to three business sub-activities under it. The aviation licence is DAFZA’s most distinctive offering and is not available in the same form at most other UAE free zones, since it is built around the aviation supply chain: aircraft component and spare parts trading for airlines, MRO facilities, and ground handling companies.

DAFZA Setup Cost Breakdown for 2026

Costs vary by licence type, office format, and number of visas, but the recurring components are:

Item	Cost (AED)	Frequency
Base licence (commercial/service/industrial)	15,000	Annual
General Trading licence	50,000	Annual
FZCO registration fee	7,000	One-time
MOA/AOA issuance	500	One-time
Establishment card (first year)	2,020	Annual (renewal: 1,870)
Employee visa, applicant outside UAE	2,973 (standard) / 3,973 (express)	Per visa, 2-year validity
Employee visa, applicant inside UAE	4,759 (standard) / 5,759 (express)	Per visa, 2-year validity

A smart desk package (around 6.5 sq.m) with the base licence, registration, and establishment card typically lands close to AED 40,000 in year one. A larger boutique office (around 15 sq.m) with the same components typically lands closer to AED 62,000. Visa allocation is based on office size, generally one visa per 8.33 sq.m of leased space, so the office format chosen directly caps how many employment visas the company can sponsor.

These figures are indicative and change with DAFZA’s own fee schedule; always confirm the exact quote for the chosen activity and office package before paying, since packages bundling office rent, visas, and government fees differ between providers.

Step-by-Step DAFZA Company Setup Process

Choose the licence type and activity. Pick the industry category and up to three sub-activities that match the business, or the General Trading licence if activities span multiple categories.
Choose the company structure. Most new entrants register as a Free Zone Company (FZCO); an existing foreign company can instead register a branch.
Select a facility. Options include a shared desk, a dedicated office (Smart Office or Business Boutique), an executive suite, or a warehouse for industrial/logistics activities.
Submit initial approval documents. Passport copies of shareholders, a business plan or activity description, and the proposed trade name.
Receive facility confirmation and sign the lease. The tenancy contract is required before the licence is issued.
Pay the licence, registration, and establishment card fees, then collect the trade licence and office keys or access.
Apply for visas (establishment card, then individual employee/investor visas) once the licence is active.

Most applicants complete the full process, from initial approval to licence issuance, in 10 to 20 business days. Registration can be done remotely, without the shareholders needing to be physically present in the UAE, though visa applications later require an in-country medical test and Emirates ID biometrics.

How DAFZA Companies Are Taxed: QFZP Corporate Tax Rules

A DAFZA free zone company is not automatically tax-free. It qualifies for the 0% Corporate Tax rate only if it meets the UAE’s Qualifying Free Zone Person (QFZP) conditions under Article 18 of Federal Decree-Law No. 47 of 2022:

Adequate substance in the free zone: core income-generating activities, qualified staff, and operating expenditure must genuinely sit inside the free zone, with key management decisions made from within the UAE.
Qualifying income only. Per Ministerial Decision No. 229 of 2025, qualifying activities include manufacturing, trading in commodities, holding shares and securities, shipping, fund and wealth management, headquarter services, treasury services, aircraft financing and leasing, distribution from a designated zone, logistics, reinsurance, and back-office services. Several of these map directly onto DAFZA’s aviation and logistics focus.
De minimis compliance. Non-qualifying income must stay below the lower of AED 5 million or 5% of total revenue in the tax period. Exceeding this limit, even by a small margin, causes the company to lose QFZP status entirely for that period.
Audited financial statements, prepared by a UAE-licensed audit firm, mandatory for every QFZP regardless of revenue size under Ministerial Decision No. 84 of 2025.
No election into the standard Corporate Tax regime. A company that voluntarily elects Article 19 standard treatment cannot use QFZP status, and that election cannot be reversed for five years.

A DAFZA company that meets all five conditions pays 0% Corporate Tax on qualifying income and 9% on any non-qualifying income within the de minimis limit. A company that loses QFZP status pays 9% on all income, not just the non-qualifying portion, for the current tax period and the following four tax years. Every UAE business, free zone or mainland, must still register for Corporate Tax with the Federal Tax Authority regardless of whether it expects to pay 0% or 9%.

See the full QFZP framework in Qualifying Free Zone Person Corporate Tax rules and the complete qualifying activities list under Ministerial Decision 229 of 2025.

DAFZA vs Other UAE Free Zones

Free zone	Best suited for	Entry-level annual licence
DAFZA	Aviation, air cargo, logistics, airport-linked trading	From AED 15,000
IFZA	Low-cost general trading and consultancy	From lower entry-level pricing
DMCC	Commodities, crypto, and JLT-based trading	Higher entry-level pricing
JAFZA	Large-scale industrial and port-linked logistics	Higher entry-level pricing
Meydan	Mainland-adjacent, flexible activity list	Mid-range pricing
RAKEZ	Ras Al Khaimah-based, cost-conscious industrial setups	Lower entry-level pricing

Exact pricing changes regularly across all UAE free zones; treat this table as a starting comparison point, not a final quote.

Documents Required for DAFZA Registration

For an FZCO (new company):
– Passport copies of all shareholders and the appointed manager.
– Proof of current UAE residence visa or entry stamp, where applicable.
– A completed application form with the proposed trade name (subject to DAFZA name approval rules) and chosen business activities.
– A short business plan or activity description for the licence application.
– No Objection Certificate from a current UAE sponsor, only if a shareholder already holds a UAE residence visa under another employer.

For a branch of a foreign company:
– Board resolution authorising the branch registration.
– Certificate of incorporation and Memorandum/Articles of Association of the parent company, attested and translated where required.
– Power of attorney for the appointed branch manager.

Document requirements can shift slightly depending on the shareholder’s nationality and the chosen activity, so confirm the exact checklist with DAFZA or a licensed setup consultant before submitting.

DAFZA Facility and Office Options

DAFZA’s physical presence requirement scales with company size and visa needs:

Shared/Smart Desk (around 6.5 sq.m): the lowest-cost entry point, suited to a single shareholder with one or two visas.
Business Boutique Office (around 15 sq.m): a dedicated office suited to a small team.
Executive Suite: larger private office space for growing operations.
Warehouse units: required for industrial, logistics, and general trading licences that involve physical goods storage, priced separately by size and location within the zone.

Since visa allocation is tied to office size (roughly one visa per 8.33 sq.m), a company planning to sponsor more than two or three employees should budget for a larger office from the start rather than upgrading later, which involves a new lease and updated establishment card.

Registering for Corporate Tax After DAFZA Licensing

Once the DAFZA trade licence is issued, the company must register for Corporate Tax with the Federal Tax Authority through EmaraTax within the deadline tied to its licence issuance date. See the full registration steps in UAE Free Zone Corporate Tax Registration on EmaraTax.

Frequently Asked Questions

What is the cheapest DAFZA licence?
The base Commercial, Service, or Industrial licence starts from AED 15,000 per year for one industry category with up to three sub-activities.

How long does DAFZA company registration take?
Most applicants complete registration in 10 to 20 business days from initial approval to licence issuance.

Can I register a DAFZA company without visiting the UAE?
Yes. Initial company registration can be completed remotely. Visa applications for the shareholder and employees require an in-country medical test and Emirates ID biometrics afterward.

Does DAFZA allow 100% foreign ownership?
Yes. Like every UAE free zone, DAFZA allows 100% foreign ownership with no local UAE partner required.

What is the DAFZA aviation licence for?
It covers aircraft component and spare parts trading and MRO (Maintenance, Repair and Overhaul) support services for airlines, MRO facilities, and ground handling companies. It is one of DAFZA’s most distinctive offerings compared to other UAE free zones.

Is DAFZA income automatically tax-free?
No. A DAFZA company pays 0% Corporate Tax only on qualifying income if it meets all the QFZP conditions: adequate substance, qualifying activities only, staying within the de minimis limit, audited financial statements, and no election into the standard tax regime. Non-qualifying income and any income after losing QFZP status is taxed at 9%.

How many visas can a DAFZA company sponsor?
Visa allocation is generally based on office size, around one visa per 8.33 sq.m of leased office space, so a larger office or warehouse allows more visas.

What is the difference between a DAFZA FZCO and a branch?
An FZCO is a new, independently licensed free zone company suited to first-time setups. A branch is an extension of an existing foreign company and does not create a separate legal entity in the UAE.

Does DAFZA require an office, or can I use a virtual address?
DAFZA offers shared desks and smart offices as the minimum physical presence option; a virtual-only address without any leased space is not standard for DAFZA licensing.

How much does a DAFZA General Trading licence cost?
AED 50,000 per year, covering trading activities across multiple product categories under one licence.

Get Help Setting Up in DAFZA

Choosing the right licence category, office format, and confirming QFZP eligibility before registration avoids costly corrections later. For help with DAFZA company formation, licence selection, and Corporate Tax registration, contact Qaspro Global on WhatsApp: +971 55 153 9679.

If your DAFZA company will sponsor staff or bring family members to the UAE, Yalah Dubai’s guide on UAE Visit Visa Rules for Relatives and Friends covers the GDRFA and ICP salary thresholds, fees, and documents needed.