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

Incorporating a DAFZA Free Zone LLC for Ukrainian IT Contractors

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

DAFZA provides a specialized jurisdiction for IT contractors seeking proximity to Dubai International Airport and a stable regulatory environment. Ukrainian IT professionals can establish a Free Zone LLC to manage international contracts while operating under the UAE's 9% corporate tax regime.

This setup requires compliance with both UAE federal tax laws and the specific operational requirements of the Dubai Airport Freezone Authority. Understanding the interaction between UAE tax residency and Ukrainian Diia City regulations is essential for tax planning.

§ 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 · Ukrainian IT Contractors

What the tax authority sees

US federal / local status

UAE Federal Decree-Law 47/2022 Article 3 imposes a 9% Corporate Tax on taxable income exceeding AED 375,000.

Home-country rule

Diia City tax regime; war-time residency displacement rules

Editorial verdict

DAFZA is ideal for IT contractors needing proximity to DXB; ensure your Diia City status is documented to manage potential double taxation under the UAE-Ukraine DTA.

Key compliance risks
  • 01Economic substance requirements for DAFZA entities
  • 02Potential tax residency conflict with Ukraine under wartime displacement rules
  • 03Mandatory corporate tax registration with Federal Tax Authority
§ 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

The DTA helps prevent paying tax on the same income in both jurisdictions. You must determine your tax residency status based on the 'center of vital interests' test, especially given the current Ukrainian war-time displacement rules.
More profiles for UAE Free Zone (DAFZA)
Ukrainian IT Contractors — other jurisdictions
Next step

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