Dubai Economic Freezones Authority (DEFA)
The Dubai Economic Freezones Authority (DEFA) plays a crucial role in the development and regulation of free zones in Dubai. These special economic zones offer companies numerous benefits, including tax incentives, easy company registration and the ability to own 100 per cent of their business abroad. In this article, you will learn everything you need to know about DEFAs and what they mean for investors and entrepreneurs in Dubai.
What are free zones in Dubai?
Free zones in Dubai are special economic areas that offer companies a variety of incentives to promote business activities. These zones are designed to support various industries, including technology, logistics, trade and services.
Role of the DEFA
- Regulating and supervising the free zones in Dubai
- Supporting the establishment of new businesses in these zones
- Developing guidelines and regulations for fair competition
- Promoting international investment to strengthen Dubai’s economy
Benefits of the free zones
Entrepreneurs and investors operating in Dubai’s free zones enjoy a number of benefits:
- 100% foreign ownership: unlike other corporate structures, companies in free zones do not require a local sponsor.
- Tax exemptions: Many free zones offer full tax exemptions on corporate profits as well as no corporate taxes.
- Work permits: Simpler and faster processes for obtaining visas and work permits for employees.
- Freedom to trade and do business: Companies have the freedom to trade internationally and export and import their goods.
Registration process for companies in free zones
The process of setting up a company in a free zone involves several steps:
- Choose the appropriate free zone based on your business sector.
- Submit the required documents to the relevant free zone authority.
- Obtain your business licence and other required permits.
- Open a bank account and employ staff if necessary.
Examples of business free zones in Dubai
There are a variety of free zones in Dubai, including:
- Jebel Ali Free Zone (JAFZA) – One of the largest and most well-known free zones in Dubai.
- Dubai Health Care City (DHCC) – Focussed on healthcare services and research.
- Dubai Technology and Media Free Zone (TECOM) – Supports creative and technological businesses.
The importance of DEFA for Dubai’s economy
DEFA contributes significantly to Dubai’s economic development by creating a favourable business environment and attracting international investment. Through the regulation and development of free zones, Dubai is becoming increasingly attractive as a global centre for trade and business.
Illustrative example on the topic: Dubai Economic Free Zones Authority (DEFA)
One example of the success of free zones in Dubai is the company „ABC Tech“, which specialises in digital solutions. Thanks to the support of the Dubai Economic Free Zone Authority, the company was able to launch its business activities within a few months. With direct access to markets in the Middle East and North Africa and benefiting from the tax advantages of the free zone, „ABC Tech“ has grown rapidly and has already established several subsidiaries in other countries. DEFA has been instrumental in facilitating the complex registration steps, enabling the company to get off to a smooth start.
Conclusion
The Dubai Economic Free Zone Authority (DEFA) plays an irreplaceable role in creating a dynamic and supportive business environment. For entrepreneurs and investors, DEFA is the key to successful business operations in one of the fastest growing regions in the world.
