There are several different free zone areas in Dubai. Each free zone provides a specific focus for foreign-owned companies to do business from Dubai with significant tax advantages and benefits.
The DAFZA or Dubai Airport Free Zone Authority is an ideal location and consideration for many prospective business owners. This is a free zone set up for foreign-owned businesses in the import and export industry. For foreign investors interested in the business setup in DAFZA, working with a law firm in Dubai with expertise in the business setup is always highly recommended.
Choosing a License and Company Type
Before a business setup in DAFZA, it will be important for the prospective business owner to make several critical decisions. These decisions will define how the business can operate and how it must be structured. This is an important aspect of the services we provide our clients at STA Law Firm.
There are four types of licenses; these include trade, service, industrial and general trading. Trade is import or export only while general trading includes import, export, re-export, distribution, and storage services.
Company type will include FZCO or branch. FZCO is similar to an LLC or limited liability company. There can be from one to fifty shareholders, and these shareholders can be either individuals or corporations or a mixture of the two. Each shareholder must have a minimum share capital in the business.
A branch is a part of an existing company located in the DAFZA. There are no specific shares required, but the parent company must own 100% of the branch. The branch must operate under the same name and complete the same business activities, and no additional activities, to the parent company.
When considering the business setup in DAFZA, it is essential to understand any limitations or advantages of one business license and type over another. Working with STA Law Firm will ensure the right choices are made in the initial setup of the company to optimize business operations now as well as in the future. Contact STA Law Firm to get more information!
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