The International Free Zone Authority (IFZA) in Dubai has emerged as a top destination for entrepreneurs and investors seeking a business-friendly environment in the UAE. Known for its affordability, flexibility, and world-class infrastructure, IFZA offers a compelling option for setting up a company in one of the world’s most(bindable: most dynamic economies. This guide explores the IFZA Free Zone License, its costs, types, benefits, setup process, and more, providing a detailed roadmap for business owners looking to establish a presence in Dubai.
What is the International Free Zone Authority (IFZA)?
The International Free Zone Authority (IFZA) is a leading free zone in Dubai, co-branded with the Dubai Silicon Oasis Authority. Established initially in Fujairah in 2018, IFZA relocated to Dubai in 2020, gaining popularity for its cost-effective business setup solutions and investor-friendly policies. It caters to a wide range of businesses, from startups to multinational corporations, offering a strategic location and a robust ecosystem for growth.
IFZA’s mission is to simplify company formation, providing a seamless process for entrepreneurs worldwide. Its strategic location in Dubai Silicon Oasis, just 20 minutes from Dubai International Airport, ensures easy access to global markets. With over 2,000 permitted business activities, IFZA is a versatile hub for industries like trading, consulting, manufacturing, and more.
Types of Licenses in IFZA Free Zone Dubai
IFZA offers a variety of licenses tailored to different business needs. Each license type is designed to align with specific activities, ensuring compliance with the Dubai Department of Economic Development (DED) regulations. Below are the primary Types of Licenses in IFZA Free Zone Dubai:
Professional License: Ideal for consultancy and service-based businesses, such as IT consulting, marketing, or legal services. It suits professionals offering expertise in specific fields.
Commercial License: Designed for businesses engaged in import, export, distribution, and storage of goods. This is suitable for trading companies dealing with physical products.
Industrial License: For companies involved in manufacturing, processing, or packaging goods. It supports businesses importing raw materials for production.
General Trading License: A flexible option allowing a broader range of trading and service activities under a single license, ideal for businesses with diverse operations.
Holding License: Enables holding assets or shares in other companies, suitable for investment or parent companies managing subsidiaries.
Branch License: Allows foreign companies to establish a branch in IFZA, with activities mirroring those of the parent company.
IFZA’s unique feature is the ability to combine up to seven activities under a single license, even across different categories, reducing costs and administrative burdens.
Key Benefits of IFZA Freezone
The Key Benefits of IFZA Freezone make it a standout choice for investors. These advantages create a conducive environment for business growth and profitability:
100% Foreign Ownership: Investors can fully own their company without needing a local sponsor, ensuring complete control.
Full Profit Repatriation: Businesses can transfer all profits and capital back to their home country without restrictions.
Tax Exemptions: Companies are exempt from corporate and personal income taxes if they don’t engage with mainland UAE businesses, maximizing profitability.
Cost-Effective Setup: IFZA offers some of the lowest setup costs in the UAE, with packages starting at AED 11,900, making it accessible for startups and SMEs.
No Physical Office Requirement: Businesses can operate remotely without leasing physical office space, reducing overhead costs.
Fast Setup Process: Company registration and license issuance typically take 2-5 business days, enabling quick market entry.
Bank-Friendly: IFZA’s reputation with UAE banks simplifies corporate bank account openings, a critical step for operations.
Flexible Visa Packages: Options range from zero to six visas, catering to businesses of all sizes, with affordable visa fees.
Global Connectivity: Located in Dubai, IFZA provides access to a population of 9.8 million and two-thirds of the world’s population via short flights.
These benefits, combined with IFZA’s modern infrastructure, make it an attractive destination for global entrepreneurs.
IFZA Free Zone License Cost
Understanding the IFZA Free Zone License Cost is crucial for budgeting and planning. Costs vary based on the license type, visa quota, and additional services. Below is a breakdown of typical expenses:
Item | Cost (AED) |
|---|---|
License (Zero Visa) | 11,900 – 14,900 |
License (1-6 Visas) | 14,900 – 29,900 |
3-Year License Package | 43,470 (with discounts) |
Establishment Card (1st Year) | 2,000 |
Establishment Card (Renewal) | 2,200 |
Residence Visa (Per Applicant) | 3,750 |
Medical Checkup (Normal) | 450 |
Medical Checkup (VIP) | 850 |
Emirates ID | 390 |
Family Residence Visa | 2,650 |
Additional costs may include office solutions (e.g., flexi-desk at AED 10,080/year or dedicated offices from AED 18,240/year) and PRO services for document processing. Multi-year packages offer discounts of up to 30%, reducing long-term expenses. For precise costs, consult a business setup firm like Bizinvestfirm, as fees may vary based on specific requirements.
How to Setup Business in IFZA
The process to Setup Business in IFZA is streamlined, allowing entrepreneurs to establish their company remotely in 3-5 days. Here’s a step-by-step guide:
Choose a Business Activity: Select up to seven activities from IFZA’s extensive list, ensuring alignment with your business goals.
Select a License Type: Based on your activities, choose a professional, commercial, industrial, general trading, holding, or branch license.
Reserve a Trade Name: Propose three unique company names in order of preference. IFZA will check availability and approve one.
Submit Documents: Provide required documents (detailed below) via an online portal or through a business setup consultant.
Pay Fees: Settle the license, establishment card, and any additional fees as per your chosen package.
Sign E-Agreement: Digitally sign the electronic agreement and share capital letter provided by IFZA.
Receive License: Obtain your e-license within days, allowing you to commence operations.
Apply for Visas: If needed, submit visa applications, complete medical checks, and obtain Emirates IDs.
Open a Bank Account: Use your license and establishment card to open a corporate bank account with a UAE bank.
The process is designed for efficiency, with no requirement for shareholders to be physically present. Partnering with a consultancy can further simplify paperwork and compliance.
Documents Required for Business License in IFZA Free Zone
Gathering the correct Documents Required for Business License in IFZA Free Zone is essential for a smooth setup. Requirements vary slightly for individual versus corporate shareholders. Here’s a comprehensive list:
For Individual Shareholders:
Clear, colored passport copy
High-resolution passport-sized photo
UAE visa or entry stamp copy (if applicable)
Utility bill (less than 3 months old) as proof of address
Emirates ID copy (for UAE residents)
Proposed company names (three options)
Business activity details
Personal details (email, phone, parents’ names)
For Corporate Shareholders:
Certificate of incorporation
Memorandum and Articles of Association
Board resolution appointing a manager/legal representative
Passport copy and photo of the appointed manager
Attested documents (by UAE embassy and Ministry of Foreign Affairs)
Additional Documents (if applying for visas):
Sponsor’s Emirates ID and passport/visa copy
Salary certificate or labor contract (in Arabic)
Ejari/tenancy contract or title deed with DEWA bill
Marriage/birth certificate (attested and translated for family visas)
Ensure all documents are clear and meet IFZA’s specifications to avoid delays. A business setup consultant can assist with document preparation and attestation.
Wide Range of Activities Offered by IFZA Free Zone
The Wide Range of Activities Offered by IFZA Free Zone is one of its strongest selling points. With over 2,000 permitted activities, IFZA supports diverse industries, including:
Consulting: Management, logistics, public relations, tax, and technical consulting.
Services: IT support, education, recruitment, creative arts, and sports management.
Trading: Import/export of goods, e-commerce, and general trading.
Industrial: Manufacturing, packaging, and processing of products.
Lifestyle: Photography, event management, and recreation activities.
All activities are DED-approved, ensuring compliance. Businesses can mix activities (e.g., trading and consulting) under one license, offering flexibility for entrepreneurs with multifaceted operations. For a full list, contact IFZA or a consultancy like Bizinvestfirm.
Different Facilities Offered by IFZA Freezone
IFZA provides a range of Different Facilities Offered by IFZA Freezone to support business operations. These facilities cater to various needs, from startups to large enterprises:
Flexi-Desk: Shared workspaces for minimal facility requirements, starting at AED 10,080/year.
Dedicated Offices: Customizable private offices with Wi-Fi, furniture, and utilities, from AED 18,240/year.
Warehouses: Storage solutions for trading and industrial businesses, with flexible lease terms.
Conference Rooms: Modern meeting spaces for client meetings or events, available for rent.
Residential Apartments: On-site accommodations for employees or owners, enhancing convenience.
Retail Outlets: Spaces for businesses targeting local customers within the free zone.
Event Spaces: Access to venues for networking events, such as IFZA’s annual Polo event, fostering connections with high-net-worth individuals.
These facilities, located in Dubai Digital Park, are equipped with 24/7 access, high-speed internet, and customer support, creating an ideal environment for growth.
IFZA Freezone Company Establishment Card & Visa Fees
The IFZA Freezone Company Establishment Card & Visa Fees are critical components of the setup process. The establishment card, required for visa applications and bank account openings, costs AED 2,000 for the first year and AED 2,200 for renewals. It serves as proof of your company’s registration with IFZA.
Visa fees include:
Residence Visa: AED 3,750 per applicant, valid for two years.
Family Visa: AED 2,650 per dependent, with additional costs for medical checks (AED 450-850) and Emirates ID (AED 390).
Medical Checkup: Required for visa applicants, with VIP processing available for faster results.
NOCs and Letters: AED 250 for additional documentation, if needed.
These fees are competitive compared to other UAE free zones, and IFZA’s streamlined visa process ensures quick issuance. For families, package deals (e.g., AED 6,350 for a spouse) simplify sponsorship.
Maintaining Your IFZA Free Zone License
Once established, maintaining your IFZA Free Zone License involves annual renewals and compliance. Key tasks include:
License Renewal: Costs mirror initial setup fees (e.g., AED 11,900 for zero visas). A AED 1,000 late fee applies if not renewed within 30 days of expiry.
Establishment Card Renewal: AED 2,200 annually.
Visa Renewals: Every two years, requiring medical checks and biometric data (AED 3,750 per visa).
Health Insurance: Mandatory for visa holders, with IFZA Life offering tailored packages.
Bank Account Maintenance: Ensure compliance with bank requirements to avoid account freezes.
Company Amendments: Changes to activities or shareholders cost AED 2,000.
Liquidation: If closing, submit an audit report and pay AED 2,000, with visa cancellations and account closures completed within a month.
Regular audits, though not mandatory, are recommended to maintain financial transparency. A consultancy can handle renewals and compliance to minimize disruptions.
Why Choose IFZA for Your Business?
IFZA stands out as a cost-effective, flexible, and efficient free zone for global entrepreneurs. Its low setup costs, rapid licensing, and extensive activity list make it ideal for startups and established firms alike. The ability to operate remotely, combined with tax exemptions and full ownership, ensures maximum profitability.
IFZA’s modern facilities, strategic location, and bank-friendly policies further enhance its appeal. Whether you’re launching a trading company, consultancy, or manufacturing unit, IFZA provides the tools and support needed to succeed in the UAE’s dynamic market.
Conclusion with Bizinvestfirm
Navigating the complexities of setting up a business in a foreign country can be daunting, but the International Free Zone Authority (IFZA) simplifies the process with its affordable IFZA Free Zone License, diverse license types, and investor-friendly environment. From cost-effective packages to a wide range of activities and modern facilities, IFZA is a gateway to success in Dubai’s thriving economy.
For a seamless setup experience, partner with Bizinvestfirm, a trusted business setup consultancy specializing in IFZA company formation. Bizinvestfirm offers expert guidance, from selecting the right license to handling documentation, visas, and bank account openings. Their tailored solutions ensure your business is operational in days, with full compliance and minimal hassle.
Contact Bizinvestfirm today for a free consultation and take the first step toward launching your dream company in IFZA. With their support, you’ll unlock the full potential of Dubai’s business landscape and achieve long-term success.
FAQ: IFZA FreeZone
Below are answers to common questions about the IFZA Free Zone License:
How long does it take to get an IFZA license?
License issuance typically takes 3-5 business days, with the full setup process, including visas, taking about two weeks.
Can I set up an IFZA company remotely?
Yes, IFZA allows remote registration, eliminating the need for physical presence.
What is the minimum capital requirement?
There is no minimum paid-up capital requirement for IFZA companies.
Can I transfer my IFZA company to another free zone?
Transferring a company between free zones is not permitted in the UAE.
Is VAT applicable in IFZA?
IFZA is not a VAT-designated zone, so businesses with taxable supplies exceeding AED 375,000 must register for VAT at a 5% rate.
For personalized answers, consult a registered agent like Bizinvestfirm.