Business Setup in UAE · Dubai · DXB Airport

DAFZA company setup (Dubai Airport Free Zone)

Last updated: August 2026 · Reviewed by the Stevva setup team

Dubai's airport free zone — directly beside Dubai International Airport (DXB), with 24/7 cargo clearance and single-window government services. A VAT designated zone built for businesses whose goods fly: aviation, electronics, pharma, jewellery and time-critical trade. Stevva handles your DAFZA setup end to end — license, facility, customs, visas and the annual audit — at a fixed fee agreed before we start.

1996
Established beside DXB — one of Dubai's first free zones
2,000+
Companies across aviation, pharma, electronics & trade
Designated zone
Special VAT treatment for qualifying goods
24/7
Cargo clearance at Dubai International Airport

What it is

What is DAFZA (Dubai Airport Free Zone)?

DAFZA — the Dubai Airport Free Zone — is a free zone established by the Government of Dubai in 1996, located directly beside Dubai International Airport (DXB) and operated today under the Dubai Integrated Economic Zones Authority (DIEZ), the same umbrella as Dubai Silicon Oasis and Dubai CommerCity. It hosts more than 2,000 companies across aviation, pharmaceuticals, electronics, jewellery, logistics, IT and trading, and is consistently ranked among the world's leading free zones.

Three things define DAFZA:

  1. The airport. Your premises sit minutes from DXB's cargo terminals, with 24/7 rapid cargo clearance and on-site customs. For high-value, time-sensitive goods — aircraft parts, pharmaceuticals, consumer electronics, jewellery — landing, clearing and re-exporting in hours rather than days is the entire business case.
  2. Designated-zone VAT status. DAFZA is on the UAE Cabinet's list of designated zones — like JAFZA, and unlike DMCC, IFZA or Shams. Qualifying supplies and movements of goods within and between designated zones can fall outside the scope of UAE VAT, subject to conditions. For traders routing goods through Dubai by air, that's a genuine cash-flow and pricing advantage.
  3. A premium, government-integrated campus. Single-window licensing and government services, metro-connected offices, and a tenant list heavy with multinationals — DAFZA reads as an institutional address to banks and counterparties, with license categories (including a dedicated aviation license) matched to its airport context.

Honest fit check

Is DAFZA the right free zone for you?

DAFZA is the right choice when your goods — or your clients' aircraft — move by air and the DXB address pays for itself. Here's the honest picture.

Good fit

  • Aviation businesses — aircraft parts and component trading, MRO support services, aviation consultancy, leasing and asset management: DAFZA's aviation licensing is unmatched among UAE free zones.
  • Pharmaceutical and medical-device companies — temperature-sensitive, high-value products where hours at the airport matter and the buyer expects an institutional address.
  • Electronics, mobile and accessories traders — one of DAFZA's largest tenant clusters; fly in, clear, distribute regionally.
  • Jewellery and precious-goods traders — air freight, security infrastructure and designated-zone treatment in one place.
  • Regional HQs and sales offices of multinationals — a metro-connected, government-integrated campus 10 minutes from the airport your executives fly into.

Look elsewhere if…

  • You're a cost-driven services business. You'd be paying an airport premium for infrastructure you won't use — IFZA delivers a Dubai service license from roughly a third of the realistic cost, Shams for less again.
  • Your cargo moves by sea or you need big-box warehousing. Container volumes, heavy industry and large-footprint distribution belong at JAFZA beside Jebel Ali Port; DAFZA's campus is offices plus light-logistics space, with warehousing via its Industrial Park.
  • Your customers are mostly UAE mainland consumers. The usual free zone limits apply — though note DAFZA's dual-license route with Dubai DED (below) softens this more than most zones; if the business is overwhelmingly onshore, mainland setup is still usually cleaner.

If DAFZA isn't the fit, we'll say so and shortlist the zone that is — we work across 40+ zones.

Licenses

DAFZA license types

Trade License

Import, export, distribution and storage of specified goods. A base license typically covers one industry category with three activities.

General Trading License

A wide, largely unrestricted range of goods under one license, at a substantial premium (~AED 50,000/year indicatively).

Service License

Consultancy, IT, logistics services and other professional activities performed from the zone.

Industrial License

Light manufacturing, processing and assembly, housed in DAFZA Industrial Park facilities.

Transparent pricing

What DAFZA company setup really costs in 2026

DAFZA sits in the mid-to-upper band of Dubai free zones: cheaper to enter than DMCC or a JAFZA warehouse operation, pricier than IFZA — and like every facility-based zone, the workspace drives the total. Build the first year line by line:

First-year cost builder

Smart-desk trading setup · 1 visa · indicative AED
ItemIndicative AEDNote
Base license (1 category, 3 activities)~15,000Annual; general trading ~50,000
FZCO registration~7,000One-time; branch registration differs
MoA / incorporation documents~500–3,000One-time
Establishment card~2,020Renews ~1,870
Smart desk (minimum facility)~10,000–20,000Annual; package-dependent
Residence visa, per person (permit, medical, Emirates ID, stamping)~3,950Per visa
Realistic first-year total — smart desk, 1 visa~AED 38,000–48,000Excludes insurance

Worked example — office-based regional HQ

Base license + 50 sqm fitted office at ~AED 1,850–1,950/sqm plus 12.5% service charge (≈ AED 104,000–110,000/yr) + establishment card + 4 visas ≈ AED 135,000–150,000 first year. DAFZA offices are premium, metro-connected space next to DXB — priced accordingly, and typically leased by companies for whom the address is part of the business case.

  • Visa quota is tied to your facility and package — smart desks carry small quotas; offices scale with size.
  • Aviation, pharma and other specialised activities may require external regulator approvals at additional cost.
  • Renewal years drop the one-time items but add the annual audit (see ongoing costs) and facility renewal.
  • Mandatory health insurance per visa holder is separate.
  • Share capital requirements vary by legal form — figures circulating online range widely and several are outdated, so we confirm the current requirement for your structure at scoping rather than publish a generic number.

Figures are indicative, based on current market rates and DAFZA's published guidance in AED as of August 2026. DAFZA applies a detailed tariff that varies by license category, package and facility, and amends it without notice. Your Stevva quote itemises the exact current DAFZA fees for your specific structure, plus our professional fee — one fixed, all-inclusive number agreed before we start.

Facility options

The facility drives the total — and your visa quota with it.

FacilityBest forTypical visa quotaIndicative annual cost
Smart deskTraders & consultancies without storagesmall (package-based)~AED 10,000–20,000
Fitted office (per sqm)Regional HQs & sales officesscales with size~AED 1,850–1,950/sqm + 12.5% service charge
Light industrial / warehouse unit (DAFZA Industrial Park)Assembly, kitting, air-cargo distributionscales with sizequoted per unit

The DAFZA advantage

Customs and VAT: why air-cargo businesses choose DAFZA

Two regimes work together at DAFZA, exactly as they do at JAFZA — but at the airport instead of the port.

Customs

Goods flown into DAFZA are held duty-free while they remain in the zone, with customs on-site and cargo clearance running 24/7 at DXB. Duty applies only if goods enter the UAE mainland; re-exports across the Gulf, Africa, Europe and Asia never trigger UAE duty. For time-critical freight — an AOG aircraft part, a cold-chain pharma shipment — clearance speed is the product.

VAT designated-zone status

DAFZA is on the UAE Cabinet's designated-zone list. Qualifying supplies of goods within DAFZA, and qualifying movements between designated zones (DAFZA ↔ JAFZA included), can be treated as outside the scope of UAE VAT, subject to conditions on the goods' use and movement. Services and non-qualifying supplies follow normal VAT rules, and mainland-bound goods attract import VAT on entry.

Visas

DAFZA visa costs and quotas

Your DAFZA visa quota follows your facility and package: smart desks carry small allocations suited to founders and lean teams, while offices and industrial units scale with size. Each residence visa costs approximately AED 3,950 end to end — entry permit, medical, Emirates ID and stamping — with health insurance separate. Dependents (spouse, children, and parents subject to conditions) can be sponsored once income thresholds are met, and the 180-day entry rule applies to every visa holder.

As with every facility-based zone: size the workspace to your 18-month hiring plan — upgrading later to unlock visas costs more than planning right on day one.

Timeline

How long does DAFZA company setup take?

A DAFZA license typically issues within 5–10 business days of complete documents and security clearance, and the process can largely run remotely. A fully operational company — facility handed over, customs registration live, visas stamped, bank account open — realistically takes 4–7 weeks, with banking as the usual long pole.

How Stevva runs it

1 Day 0

Scope & fixed quote

We confirm your activities and license category (including aviation approvals or the dual-license route if relevant), size the facility to your goods flow and visa plan, model the designated-zone VAT treatment, and send one fixed, all-inclusive quote.

2 Week 1

Application & KYC

Trade name, application and shareholder KYC through DAFZA's portal; security clearance runs in parallel. We prepare the file to pass first time.

3 Weeks 2–3

Facility & license

Lease signed, incorporation documents executed, fees paid — DAFZA issues your license, certificate of incorporation and establishment card, and customs registration follows so cargo can move.

4 Weeks 3–6

Visas & bank account

Entry permits, medicals, Emirates IDs and stamping for your team; in parallel we prepare your bank file — DAFZA's institutional profile generally reads well with UAE banks — and support the account opening.

5 Ongoing

Operations & compliance

VAT registration structured for designated-zone flows, corporate tax registration, bookkeeping, the annual audit DAFZA requires, and license/facility renewals — one firm, end to end.

Documents

Documents you need for a DAFZA license

Individual shareholders / managers / directors

  • Colored, clear passport copy (valid 6+ months)
  • UAE entry stamp or residence visa copy, if applicable
  • Passport-size photo (white background)
  • CV and a brief business plan or summary of operations (commonly requested)

Corporate shareholders

  • Certificate of incorporation, memorandum & articles of the parent
  • Certificate of incumbency / good standing
  • Board resolution approving the DAFZA company and appointing the authorized signatory
  • Audited financials of the parent (commonly requested)
  • Passport documents for the authorized signatory
  • Corporate documents generally require attestation to UAE standards — we manage legalisation end to end.

Good to know

  • Aviation, pharma, food and telecom-adjacent activities may need external regulator approvals before trading — we scope these before you commit.
  • DAFZA runs security clearance on shareholders and managers as part of onboarding; clean, complete files clear fastest.

The costs nobody shows you

DAFZA renewal, audit and ongoing costs

DAFZA is a jurisdiction with real annual obligations. Budget the lifecycle, not just year one:

  • License & facility renewal — annual license fee plus facility renewal; establishment card renews at ~AED 1,870.
  • Annual audit — DAFZA requires audited financial statements in connection with license renewal. Budget roughly AED 5,000–15,000 depending on activity and volume; goods businesses with inventory sit at the upper end. Missing the filing stalls renewal and accrues penalties.
  • Insurance — health insurance per visa holder renews annually; traders add goods-in-transit and stock cover.
  • Customs & VAT compliance — designated-zone treatment must be maintained transaction by transaction, with movement documentation to match.
  • Exit — formal deregistration involves clearing customs liabilities, cancelling visas, closing the facility lease and establishment card, and final accounts. Never abandon a license — penalties compound.

Stevva's audit and accounting teams keep an air-cargo trader's books — inventory, landed costs, zone movements — audit-ready through the year, produce the audited financials DAFZA requires, and file renewals on time.

Tax

Corporate tax and VAT for DAFZA companies

A DAFZA company is not tax-exempt by default — DAFZA marketing that says "100% tax exemption" predates the UAE's corporate tax regime. The accurate 2026 position:

Corporate tax

Every DAFZA company must register for UAE corporate tax and file annual returns. Free zone companies can access the 0% rate on qualifying income as a Qualifying Free Zone Person (QFZP) — and DAFZA businesses are often well placed, because trading in goods from a designated zone is among the activity types the QFZP rules treat favourably, subject to substance, transfer pricing and de-minimis conditions. Get the structure wrong and the standard 9% applies above the threshold. Note that dual-license mainland income has its own treatment — another reason the structure needs designing, not defaulting.

VAT

DAFZA's designated-zone status can put qualifying goods movements outside VAT scope (see the customs & VAT section above) — but VAT registration itself is still mandatory once taxable supplies exceed AED 375,000/year, and services plus non-qualifying supplies follow normal rules.

Books

Between corporate tax, VAT documentation for zone movements, and DAFZA's audit requirement, proper accounting is mandatory three times over.

Stevva's tax arms handle corporate tax registration and filing — including QFZP assessment for zone traders — VAT compliance structured for designated-zone flows, and bookkeeping, with our audit team closing the loop DAFZA requires each year.

Why Stevva

Why founders use Stevva for DAFZA setup

One fixed fee, agreed first.

DAFZA's fees mapped to your exact license and facility, our professional fee stated plainly, nothing added later.

We speak goods — and air freight.

Customs codes, designated-zone VAT flows, inventory and landed-cost accounting: the compliance layer of a trading business is our home turf.

Dual-license structuring.

If you need onshore Dubai reach, we scope the DED dual-license route against a full mainland setup and tell you which is genuinely cheaper and cleaner for your model.

Built for DAFZA's audit model.

Annual audited financials are mandatory here. Stevva's accounting and audit teams handle them in-house, so renewal never becomes a fire drill.

Straight answers on zone choice.

Sea freight? JAFZA. Lean services? IFZA. Mostly onshore customers? Mainland. We work across 40+ zones and aren't paid to push one.

Dubai-based, responsive.

Real advisors on WhatsApp and phone, Mon–Fri 9–18 GST.

Get started

Get a fixed quote for your DAFZA company.

Tell us what you trade or do, the facility you need and your visa plan. We'll reply within one business day with a fixed, all-inclusive quote — DAFZA's fees itemised for your structure, our fee stated plainly.

Sector
Facility needed
Thank you — we've got your details.
A Stevva setup advisor will reply within one business day with your fixed DAFZA quote.

Quick answers

DAFZA — frequently asked questions

How much does a DAFZA license cost in 2026?

A DAFZA base license — covering one industry category with three activities — costs approximately AED 15,000 per year, while a general trading license runs around AED 50,000. Add one-time FZCO registration (~AED 7,000), the establishment card (~AED 2,020) and a mandatory facility from a smart desk upward, and a realistic smart-desk first year with one visa lands around AED 38,000–48,000. Office-based setups scale with space at roughly AED 1,850–1,950 per sqm plus service charge. Stevva quotes the exact current fees for your structure.

What is DAFZA best known for?

Dubai Airport Free Zone, established in 1996 directly beside Dubai International Airport (DXB), is the UAE's jurisdiction of choice for businesses whose goods move by air: aviation parts and services, pharmaceuticals, electronics, jewellery and time-critical trade. It offers 24/7 cargo clearance, on-site customs, single-window government services and a metro-connected campus that reads as an institutional address to banks and multinationals.

Is DAFZA a designated zone for VAT?

Yes — DAFZA is on the UAE Cabinet's designated-zone list, like JAFZA and unlike DMCC, IFZA or Shams. Qualifying supplies and movements of goods within DAFZA and between designated zones can be treated as outside the scope of UAE VAT, subject to conditions on the goods' use and movement. Services and non-qualifying supplies follow normal VAT rules, and goods entering the mainland attract import VAT. The conditions are strict, so flows need structuring and documenting correctly — that's part of our setup scope.

What is the DAFZA aviation license?

DAFZA licenses the aviation supply chain more comprehensively than any other UAE free zone: aircraft component and spare-parts trading, MRO support services, aviation fuel and lubricants trading, and aircraft leasing and asset management. For companies whose customers are airlines, MRO facilities or ground handlers, DAFZA pairs the right activity codes with the one address in Dubai that sits beside the airport itself.

What is the DAFZA dual license with Dubai DED?

DAFZA companies can obtain a dual license with Dubai's Department of Economy & Tourism, permitting onshore Dubai operations without leasing a separate mainland office. It suits businesses that are primarily international but need a legitimate onshore arm — local invoicing, government clients, mainland distribution. Eligibility and conditions vary by activity, and the tax treatment of mainland income differs from qualifying free zone income, so we scope the dual license against a full mainland setup before you commit.

Do I need a physical office in DAFZA?

Yes. Every DAFZA license requires a facility in the zone — from a smart desk (the minimum, indicatively AED 10,000–20,000 per year) to fitted offices priced per square metre and light-industrial units in DAFZA Industrial Park. There is no virtual-only route, and your facility determines your visa quota.

How many visas can I get with a DAFZA license?

Your quota follows your facility and package: smart desks carry small allocations for founders and lean teams, while offices and industrial units scale with size. Each residence visa costs approximately AED 3,950 end to end (entry permit, medical, Emirates ID, stamping) plus health insurance, dependents can be sponsored once income thresholds are met, and the 180-day entry rule applies.

How long does DAFZA company setup take?

The license typically issues within 5–10 business days of complete documents and security clearance, and most of the process can run remotely. A fully operational company — facility handed over, customs live, visas stamped and bank account open — realistically takes 4–7 weeks, with banking as the usual slowest step.

Does a DAFZA company need an audit?

Yes — DAFZA requires audited financial statements in connection with license renewal. Budget roughly AED 5,000–15,000 per year depending on activity and volume; trading businesses with inventory sit at the upper end. Stevva's accounting and audit teams keep your books audit-ready year-round and handle the filing so renewal never stalls.

Can a DAFZA company sell to the UAE mainland?

Directly, a DAFZA company faces the usual free zone limits — mainland sales of goods generally run through a distributor, with duty and import VAT on entry. DAFZA's dual-license route with Dubai DED softens this more than most zones by permitting onshore operations without a second office, subject to conditions. If your revenue is overwhelmingly onshore, a mainland license is still usually the cleaner structure — we'll tell you honestly which fits.

Do DAFZA companies pay corporate tax?

Every DAFZA company must register for UAE corporate tax and file annual returns. Free zone companies can access the 0% rate on qualifying income as a Qualifying Free Zone Person — and DAFZA traders are often well placed, since trading in goods from a designated zone is treated favourably under the QFZP rules, subject to substance and de-minimis conditions. Otherwise the standard 9% applies above AED 375,000 of taxable income, and dual-license mainland income has its own treatment. We assess this as part of setup.

DAFZA vs JAFZA — which should I choose?

Air versus sea. DAFZA sits beside DXB and suits high-value, time-sensitive goods that fly — aviation parts, pharma, electronics, jewellery — with premium offices and light-logistics space. JAFZA sits beside Jebel Ali Port and suits container volumes, big-box warehousing and manufacturing on plots. Both are VAT designated zones, so the tax logic is similar; the freight mode and facility needs decide it. We quote both side by side on request.

DAFZA vs IFZA — which should I choose?

If you're a service business or lean SME with no cargo, IFZA delivers a Dubai license at roughly a third of DAFZA's realistic first-year cost — the airport premium buys you nothing. If goods move through your P&L by air, or your clients are airlines and multinationals who weigh the address, DAFZA earns its price. The honest test: does your business plan involve freight or aviation? If not, take IFZA.

What legal forms does DAFZA offer?

A new company incorporates as an FZCO (free zone company), and existing UAE or foreign companies can register a branch. Share capital requirements vary by form and are confirmed at application — figures circulating online range widely and several are outdated, so treat any single number with caution until DAFZA confirms it for your structure.

Do I need to visit Dubai to set up a DAFZA company?

Most of the process — application, KYC, document signing — can run remotely, and DAFZA's portal handles post-setup administration online. Physical presence is needed for each visa holder's medical and Emirates ID biometrics, and usually for bank account opening. We sequence the steps so one trip covers everything.

What industries dominate DAFZA?

Aviation and aerospace services, pharmaceuticals and medical devices, electronics and mobile accessories, jewellery and precious goods, logistics and freight services, IT and regional headquarters of multinationals. The cluster effect is real: suppliers, customers and specialist service providers for these sectors already operate inside the zone.