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Get Free ConsultationDubai Airport Free Zone (DAFZA) is a vital, international centre for logistics and trading companies, attracted by its proximity to Dubai International Airport and an excellent logistics infrastructure. These benefits mean that DAFZA is an exceptional option, offering many features for logistics and trade companies, including 100% foreign ownership, the ability for individuals to take all profits, and operating in a 100% tax-free zone. All the same advantages as operating in Dubai and responsibilities are also in DAFZA. But to be able to establish and operate a company in DAFZA, you will need to understand the legal framework it creates.
Logistics regulations, licensing, and compliance requirements in DAFZA can quickly become very specific. Herein lies the value of an expert and advisory team, like CDA. CDA provides many more services than business set up, as these elements require the guidance of knowledgeable partners across all legalities local to DAFZA. We will guide you throughout the entire DAFZA process in relation to all logistics and operational compliance matters, starting with your initial setup and corporate structure and assisting you in managing compliance on an ongoing basis.
DAFZA provides a unique setting suitable for the activities of logistics and trade companies. Legal issues of the free zone help the company to understand what is necessary for long-term business success.
1.Company Formation and Licensing in DAFZA
Once you have decided to establish your business in DAFZA, the first decision to make in starting your business involves the appropriate legal structure, incorporating, and registering the right license.
Usually, DAFZA provides:
The application process in DAFZA requires meticulous preparation and submission of a comprehensive set of documents. This typically includes:
Ensuring accuracy and completeness in these documents is critical to prevent rejections and expedite the approval process, paving the way for a smooth setup.
DAFZA mandates statutory annual external audits for all registered entities. This ensures that your financial statements are prepared in accordance with International Financial Reporting Standards (IFRS) and DAFZA’s specific requirements. An accepted audit report is a prerequisite for license renewals and provides assurance of the company’s financial viability and transparency to the authorities.
Logistics and trade companies in DAFZA must be aware of and comply with the UAE’s Economic Substance Regulations (ESR) for relevant financial years. This involves identifying if your business activities fall under “Relevant Activities” (e.g., holding company, distribution and service centre, shipping business). If so, you must demonstrate genuine economic substance in the UAE by showing sufficient employees, physical assets, and expenditure related to your core income-generating activities. Proper documentation is essential to prove compliance to DAFZA.
Businesses in DAFZA, particularly those in logistics and trade, are subject to stringent AML/CFT regulations. This necessitates the development and implementation of effective AML/CFT policies and procedures tailored to your operations. Key aspects include:
Compliance with these regulations is vital for mitigating risks and maintaining legal standing.
Partnering with CDA, in DAFZA is required on a strategic level when establishing a logistics or trade business in DAFZA. CDA provides a full-service solution from company setup and licensing to corporate governance policy implementation, ongoing compliance with ESR, UBO, and AML etc. By using CDA’s extensive knowledge of compliance requirements and passionate and reliable regulatory advice, logistics and trade businesses in DAFZA can confidently navigate statutory obligations, reduce risk, and, with a trusted operational partner, ensure compliance for their business stability and growth.
Ready to simplify your DAFZA business registration and compliance in logistics & trade?
Contact CDA Today for expert legal & financial advisory.