DAFZA Free Zone LLC Incorporation for Korean E-commerce Sellers
DAFZA provides a specialized regulatory environment for e-commerce entities requiring proximity to Dubai International Airport. Korean founders must establish physical substance to meet both UAE regulatory standards and Korean National Tax Service requirements.
The Free Zone LLC structure allows for 100% foreign ownership while operating under the UAE's 9% corporate tax regime for income above AED 375,000.
Model the full outlay, not just the setup fee
- SetupDAFZA (Dubai Airport) setup$20,000
- AnnualYear 2 renewal$18,000
What the tax authority sees
UAE Federal Decree-Law 47/2022 imposes a 9% Corporate Tax on taxable income exceeding AED 375,000.
National Tax Service; foreign-source income reporting per Income Tax Act Article 3; Korea has US tax treaty (10% treaty rate for royalties).
Leverage DAFZA's proximity to DXB for logistics-heavy e-commerce; ensure local substance to maintain tax residency for Korean NTS compliance.
- 01Economic substance requirements for tax residency
- 02NTS foreign-source income reporting obligations
- 03Strict DAFZA physical office lease mandates
From filing to funded bank account
UAE Free Zone (DAFZA) vs US LLC (Wyoming)
FAQ
Start filing with DAFZA (Dubai Airport)
Formation typically completes in 2–3 weeks. Use the promo below, then click through to begin the checklist directly on the platform.