How Sole Proprietors and Startups Can Use DAFZ
You can start with a per-desk Smart Office and choose a free zone company with minimum capital of USD 1. We explain how small businesses can use DAFZ, together with the "Scality" programme that supports companies from founding to growth.
Starting a DAFZ base at the smallest scale
DAFZ is not just an option for large companies. Offices start with the Smart Office, available by the desk, and with the free zone company as the legal form (1–50 shareholders, minimum capital of USD 1, or AED 3.67), the barrier to setting up is low even for sole proprietors and small teams.
- Smart Office: available by the desk
- Free zone company: minimum capital of USD 1 (AED 3.67)
The "Scality" startup programme
DAFZ offers the "Scality" programme, which supports startups end to end, from founding through growth. Together with "PowerHub", which connects companies with trusted service providers, and the "HAYAK" benefits app, it provides a framework that helps businesses in their early phase.
For an example of how a business can grow into a regional headquarters (RHQ), see the case of Epson Middle East FZCO.
Tax points for small businesses
A 0% corporate tax rate applies to companies that meet the QFZP requirements, but only to qualifying income. Even small businesses can become subject to 9% tax where mainland transactions arise, so it is advisable to map out the transaction structure at the business-planning stage.
We explain how the QFZP rules work in more detail in Is 0% Corporate Tax in DAFZ Real?
DAFZ can be entered at a very small scale: a per-desk Smart Office, a free zone company with minimum capital of USD 1, and the Scality programme to support growth. The main point to watch is tax — the 0% rate applies only to qualifying income — so mapping out mainland transactions early keeps the structure sound as the business grows.
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