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UAE Free Zone (DAFZA) · via Shuraa Business Setup (UAE BSC)·🌐Founder profile

Incorporating a DAFZA Free Zone LLC for Korean E-commerce Sellers

VerifiedJul 2026
EligibilityConditional
Setup timeline21–45days
Year-1 total$7,500

DAFZA provides a specialized jurisdiction for e-commerce entities requiring direct access to Dubai International Airport infrastructure. Korean founders must align their business structure with UAE Federal Decree-Law 47/2022.

This setup requires physical office presence within the Free Zone to satisfy local economic substance regulations. Korean tax residents must reconcile UAE corporate tax payments with the National Tax Service requirements.

§ 01Cost of ownership

Model the full outlay, not just the setup fee

Renewal costs sneak up on non-resident founders. Compare year-1 filing against a 3-year total to see the real bill.
Currency · USD (live FX)
2-year cost of ownership
$12,000
≈ $500.00/month amortized·USD @ live FX
Time horizon
Line items
Amount
  • SetupShuraa Business Setup (UAE BSC) setup
    $7,500
  • AnnualYear 2 renewal
    $4,500
Total$12,000
§ 02Tax residency · Korean E-commerce Sellers

What the tax authority sees

US federal / local status

UAE Federal Decree-Law 47/2022 imposes a 9% Corporate Tax on taxable income exceeding AED 375,000.

Home-country rule

National Tax Service; foreign-source income reporting per Income Tax Act Article 3; Korea has US tax treaty (10% treaty rate for royalties).

Editorial verdict

DAFZA is ideal for Korean e-commerce businesses requiring proximity to DXB for logistics; ensure your NTS reporting accounts for the 9% UAE CT.

Key compliance risks
  • 01Economic substance requirements for DAFZA office space
  • 02NTS foreign-source income reporting obligations
  • 03Corporate Tax registration deadline compliance
§ 03Setup timeline

From filing to funded bank account

Setup timeline
21–45days total, 3 phases
Milestone check
Filing · Tax ID · Banking
d0
d11
d23
d34
d45
01FilingShuraa Business Setup (UAE BSC) submits formation docs
d0–d16
02Tax ID / EINLocal tax authority registration
d14–d34
03BankingBusiness account approved & funded
d27–d45
§ 04Head-to-head

UAE Free Zone (DAFZA) vs US LLC (Wyoming)

Full comparison →
UAE Free Zone (DAFZA)
Free Zone LLC
US LLC (Wyoming)
LLC
Entity
Free Zone LLC
LLC
Setup cost
$1,578
$102.00
Annual
$1,578
$60.00
Local director
Remote OK
Remote OK
Physical presence
Remote OK
Remote OK
Tax regime
9% CT above AED 375k; aviation and light industry near DXB
0% state tax; federal only on US-source income
§ 05Questions founders actually ask

FAQ

Yes, DAFZA mandates a physical office lease within the Free Zone to maintain the license. Virtual offices are generally not permitted for DAFZA-based LLCs.
More profiles for UAE Free Zone (DAFZA)
Korean E-commerce Sellers — other jurisdictions
Next step

Start filing with Shuraa Business Setup (UAE BSC)

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