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.
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.