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A free zone is a region where the business is directed without the confinements ordinarily applied to remote organizations. For example, requiring a partnership with a local person in the UAE, or corporate or annual tax.
One of the numerous focal points of setting up an organization in DAFZA is that it permits 100% foreign ownership. You do not need a partner to frame an organization at DAFZA. No corporate or personal tax is levied on individuals or companies who have set up their businesses inside the Freezone. A minimum of 1 shareholder or a maximum of 50 shareholders is required to frame a company in DAFZA. The minimum share capital for a Freezone organization is AED 1,000. The Dubai Airport Freezone Authority (DAFZA) works in one of the biggest and quickest developing financial free zones inside the MENA Region.
It gives the essential trade licensing support for organizations, to play out their activities in Dubai, this incorporates the comprehensive ministrations important to set up operations, for worldwide organizations and foreign investors.
DAFZA‘s vital proximity to the Dubai International Airport and world-class infrastructure are only a portion of the exclusivities and favorable circumstances DAFZA’s customers are qualified for.
Tax exemptions, investor incentives, no currency restrictions make the Dubai Airport Freezone one of the world’s most appealing monetary development and investment opportunities in the world. When you set up your business in Dubai DAFZA some of the taxes you will be exempted from are as follows:
100% corporate tax exemption
100% personal income tax exemption
100% import and export tax exemption
100% corporate tax exemptions – The UAE levies a corporate tax on oil companies and foreign banks. If your business is situated in DAFZA then you are not expected to pay any kind of corporate tax as one of the perks of setting up your business in DAFZA is you get 100% corporate tax exemption.
100% personal income tax exemptions – 100% of the money you make will be yours as businesses set up in DAFZA are not expected to personal income tax. Not only you even your employees will be exempted from it.
100% import and export tax exemption – With DAFZA being strategically located right next to the Dubai International Airport it is one of the best places to set your business if you are into the export-import business. They boast of rapid clearance and fast processing of paperwork to maximize business activity and efficiency.
0% VAT – Not all free zones located in the UAE is exempted from VAT but DAFZA is.According to the governing body, “Value Added Tax or VAT is a tax on the consumption or use of goods and services levied at each point of sale. VAT is a form of indirect tax and is levied in more than 180 countries around the world. The end-consumer ultimately bears the cost. Businesses collect and account for the tax on behalf of the government.” However, if your business is located in DAFZA you will not be expected to pay it.
Apart from these tax exemptions, there are a lot more perks you can enjoy if you set up your business in DAFZA. They are one of the most prestigious and advanced free zones in Dubai. They provide an ideal base to do business in the Middle East by providing a business-friendly environment, world-class infrastructure, tax exemptions, and full repatriation of earnings, total ownership, and exceptional facilities.