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What you need to know now
The percentage reductions in this article describe a 2018 announcement. For a new DAFZ business, compare a current written package quotation and the applicable renewal costs.
The original article is preserved below as a historical record. Earlier deadlines, rates, offers and approval statements should not be used as current guidance.
- Ask which charges are promotional and when the offer ends.
- Separate licensing, premises, immigration and professional service costs.
- Check reporting duties and the authority’s auditor requirements before budgeting.
Separate the 2018 announcement from a current quotation
The original article reports reductions announced at a particular time, including percentage comparisons against earlier charges. Those percentages do not establish the amount payable for a new application today. Ask DAFZ or the relevant authorised channel for a dated proposal covering the actual business activity, legal form and facility requirements. If a current promotion is included, obtain its eligibility conditions and expiry date rather than assume that the historical reduction remains part of the standard fee structure.
Compare the full first-year cost
An incorporation budget should identify licensing and registration charges, premises, immigration-related costs and any professional service fees that apply to the proposed package. Ask which amounts are mandatory, refundable, conditional or paid to a separate supplier. Confirm how the quotation deals with taxes and additional approvals. An itemised comparison is more informative than a headline discount because two packages may include different facilities, visa assumptions or service scopes even where their advertised starting prices appear similar.
Ask about recurring and event-driven charges
Review renewal costs as well as initial formation costs. Clarify the price implications of changing activities, shareholders, managers or premises if those changes are likely. Check whether a discounted first year is followed by a different renewal basis and whether additional services are optional. The intention is not to predict every future charge, but to understand the assumptions behind the proposed operating model before committing to a licence or facility arrangement that may be difficult to change.
Plan compliance costs alongside the commercial package
DAFZ’s official materials describe annual audit requirements for relevant company forms and provide authority documents for current reference. Budget for accounting and reporting work appropriate to the entity, and confirm the exact instructions through the client channel. Keep the current quotation, accepted terms and authority guidance with the corporate file. The 2018 news remains part of the site’s history, while the present investment decision should use current documents and a complete view of recurring operating responsibilities.
YOUR NEXT STEPS
A practical way forward
- 01
Step 1
List the activity and facility requirements.
- 02
Step 2
Obtain a dated itemised proposal from DAFZ.
- 03
Step 3
Review recurring charges and compliance responsibilities before signing.
CLEAR ANSWERS
Frequently asked questions
Can I budget using the old 65% reduction?
No. It is a historical news figure rather than a quotation for a current application.
Where should I check the current regulations?
Use the DAFZ download centre and the client portal for the rules applicable to the company.
Read the original article First published 30 July 2018 · retained for context
This earlier article is preserved for context. Its rates, deadlines, approvals and announcements may have been superseded. Use the current guidance and official references on this page for your next step.
DAFZA Reduced Business Set Up Costs
DAFZA Reduced Business Set Up Costs : Business set up cost slashes by 65%
DAFZA reduced business set up costs :Dubai Airport Free zone Authority (DAFZA) has reduced business set-up cost by up to 65 per cent, as part of its aim to increase DAFZA’s regional competitiveness and activate a number of key sectors by attracting foreign direct investment (FDI).
This new approach falls in line with the directions of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, to boost Dubai’s economic competitiveness. This is being done through a number of initiatives and incentives that aim to attract and promote FDI into the Emirate, ensuring sustainable growth across all economic sectors and strengthening Dubai’s status on the world economic stage.
DAFZA Reduced Business Set Up Costs
Reduced Business Costs
DAFZA has revisited and reduced registration, licence, and staff visa fees for new investors by 65 per cent, 33 per cent, and 20 per cent, respectively. Establishment card issuance fees have been cut by 17 per cent, while fees for Board Resolution and MOA issuance have been waived.
The new incentives include facilitating the process of obtaining general trading licenses for new investors by halving the capital requirement from Dh1 million to Dh500,000. DAFZA has also allowed its member companies to be structured as a Limited Liability Free Zone Company (FZ-LLC), in a bid to provide more flexibility in business setup, licensing and operation.
In addition, DAFZA has waived licence expiry fines in an effort to relax the terms of license renewal. Allowing the restoration of legal records and licenses, the decision will help investors renew their expired license without paying any late renewal fines. This reflects DAFZA’s constant support for the growth of business sectors and its commitment to remove all the obstacles faced by them in order to develop the economy and create a competitive, investment-friendly business environment.
Free zone licences restructured
DAFZA has launched a restructuring process of free zone licences and related fees that will allow investors greater flexibility in choosing the business and service activities that best correspond to the nature of their work. The new licence structure will be introduced to new investors and current customers at the end of Q3 2018.
DAFZA declared that there are more initiatives and incentives which are in the pipeline, including facilitating the issuance of ‘no objection certificates’ in order to facilitate investment processes and provide an optimum business environment that will continue to attract FDI.
The new facilities are in line with the strategic objectives set by the free zone to contribute to boosting the economy by offering comprehensive solutions instrumental to promoting investment and encouraging investors to setup and expand businesses. They are also part of wider efforts to realise Dubai Plan 2021 and other governmental strategies that aim to achieve the transition to the post-oil era by supporting economic diversification policies.
VERIFY THE DETAIL
Official sources & further reading
Source checks support this general guide. Your treatment depends on the facts, tax period and applicable legislation.
