IFZA Dubai Free Zone Setup : License Cost, Visa Fees, Benefits & Process
Are you dreaming of establishing your business in IFZA (International Free Zone Authority) Dubai ? Establishing a business in Dubai’s International Free Zone Authority (IFZA) offers entrepreneurs a strategic advantage in the Middle East’s dynamic market.
The International Free Zone Authority (IFZA) in Dubai has emerged as a compelling jurisdiction for businesses seeking a strategic foothold in global markets. The International Free Zone Authority (IFZA) in Dubai stands out as one of the fastest-growing and cost-effective free zones in the United Arab Emirates. Strategically situated in the emirate’s business-friendly environment, IFZA offers 100% foreign ownership, No personal income taxes, comprehensive business support and 100% import and export tax exemptions
Ready to start your business in Dubai’s top free zone? Discover the step-by-step process, licensing options, and cost details for IFZA company formation. Get expert help now.
IFZA’s Contribution to the UAE Economy
- SME Empowerment
- IFZA lowers entry barriers for small and medium-sized enterprises, promoting greater economic diversity in Dubai and the UAE.
- Employment Generation
- The free zone hosts a workforce in the thousands, contributing to Dubai’s employment landscape.
- Foreign Direct Investment (FDI)
- With its competitive setup costs and 100% foreign ownership model, IFZA helps channel international capital into the UAE.
- Sectoral Growth
- Sectors like IT, professional services, and e-commerce have seen a marked 25-30% growth within IFZA in the last few years.
Why Set Up Your Business in IFZA?
Benefits of Setting Up in IFZA:
- 100% Foreign Ownership: Unlike mainland companies that may require local partnerships, IFZA allows complete foreign ownership, granting investors full control over their enterprises.
- Cost-Effective Licensing: IFZA offers competitive licensing packages, with fees starting as low as AED 12,900 for a zero-visa quota license. This affordability makes it an attractive option for startups and small businesses aiming to establish a presence in Dubai
- Efficient Incorporation Process: The company formation process in IFZA is straightforward and can be completed within a few business days, minimizing administrative burdens and allowing businesses to commence operations swiftly.
- Diverse License Options: IFZA caters to a wide range of business activities by offering various license types, including Professional, Commercial, and Industrial licenses. This flexibility enables businesses to select a license that aligns with their specific operational needs
- Minimal Documentation : Typically, you only need passport copies, business application forms, and possibly a No Objection Certificate (NOC) if you’re under a different UAE sponsor.
- Strategic Location in Dubai: Leverage world-class infrastructure and access to over 2.5 billion consumers across MENA and beyond.
- Flexible Office Solutions: Options range from flexi-desk to private offices and warehouses.
- Visa Eligibility: Obtain residence visas for shareholders, employees, and family members under the IFZA company structure.
- Easy Bank Account Setup: Once your license is issued, most UAE and international banks readily accommodate IFZA-registered companies.
Types of Business Licenses in IFZA
- Professional License – For professionals offering expert advice and consultancy services.
- Commercial License – Ideal for businesses involved in trading and distribution of goods.
- Combination License – To combine Professional and Commercial activities in one license.
Business License Options
IFZA License Categories
IFZA offers multiple license categories to suit your specific needs—whether you’re a small local venture or a large international corporation.
1. Professional License
Perfect for businesses delivering consulting, technical, or lifestyle services. Examples include:
- Marketing and Advertising Agencies
- IT and Cybersecurity Consultancies
- Architectural and Engineering Services
- Health and Fitness Consultation
Why Choose a Professional License?
- 100% foreign ownership
- Zero % Personal Income Tax
- Lower overhead and streamlined visa processes
- Flexibility in providing multiple services under one umbrella
2. Commercial License
A commercial license allows trading, importing, and exporting of a wide range of goods both within the UAE and internationally. With over 800+ permissible activities, you can engage in:
- General Trading (multiple product lines)
- Auto Parts & Components
- Food & Beverage
- Cosmetics & Perfumes
- Tyres & Accessories
- Construction & Building Materials
- E-commerce and Online Retail
Key Advantages:
- Tax exemptions and full income repatriation
- Legal protection for your company’s assets
- Fast-track global market access
3. Branch License
If you already have a foreign-incorporated company, you can register a branch at IFZA. This structure allows you to maintain the same brand identity while tapping into Dubai’s profitable markets.
Business Registration Process
Incorporating a Free Zone business at IFZA is straightforward for both individual and corporate shareholders. While the steps are similar, document requirements may differ if corporate entities are involved. Typically, you’ll need:
- Registration Application: Indicating shareholders, activities, and license type
- Passport & ID Copies: For shareholders/directors
- Proof of Address: Recent utility bills or tenancy contracts
- NOC (No Objection Certificate): If you hold a UAE visa from another employer
- Attested & Notarized Documents: For corporate shareholders, including certificate of incorporation
Timeline: With proper documentation, approval can come within 3-5 working days.
Step-by-Step Guide: How to Set Up Your IFZA Company
Setting up a business in IFZA can be accomplished within a short timeframe, often 5–10 working days, if you have all your documents in order. Here’s a detailed breakdown:
Step 1: Define Your Business Activity & License Type
- Conduct Market Research: Identify which category—Professional, Commercial, Industrial, or Branch—aligns best with your business model.
- Check Activity Compatibility: Ensure the activities you plan to undertake are permitted under your chosen license.
Step 2: Choose a Company Name
- Draft a Few Options: Dubai has specific rules regarding naming conventions (e.g., no offensive terms, no religious references, etc.).
- Check Availability: Perform a quick name availability search with IFZA or your business setup consultant.
Step 3: Gather Required Documentation
Depending on whether you’re applying as an individual shareholder or a corporate entity, the documentation can vary slightly.
For Individuals:
- Passport Copy (valid for at least 6 months)
- Visa Copy (if UAE resident)
- Emirates ID (if UAE resident)
- Passport-sized Photos (digital)
- UBO Declaration (Ultimate Beneficial Owner)
For Corporate Entities:
- Certificate of Incorporation
- Memorandum & Articles of Association (MOA/AOA)
- Certificate of Good Standing
- Certificate of Incumbency
- Board Resolution permitting branch/subsidiary formation
- Passport copies for company directors and/or shareholders
Note: Documents may need to be attested and legalized in your home country and/or the UAE. Always confirm with IFZA or a professional business consultant.
Step 4: Submit Application & Pay Initial Fees
- Initial Payment: Usually covers license registration, name approval, and initial documentation costs.
- E-Legal Forms: IFZA will issue e-legal forms that must be digitally signed by all shareholders.
Step 5: Approval & Issuance of IFZA License
- Application Review: IFZA reviews your documents and checks compliance with UAE regulations.
- License Issuance: Once approved, you’ll receive a digital copy of your license. The physical copy may be collected from IFZA’s office or couriered upon request.
Step 6: Visa Processing (If Required)
- Entry Permit: If you’re not a UAE resident, an entry permit may be needed for your visa.
- Medical & Emirates ID: Applicants must undergo medical tests and file for an Emirates ID.
- Residence Visa Stamping: After approval, your passport will be stamped with a UAE residence visa.
Step 7: Bank Account Setup & Operational Launch
- Select a Bank: Dubai’s local and international banks (e.g., Emirates NBD, ADIB, HSBC) welcome IFZA companies.
- Submit Corporate Documents: Provide your trade license, MOA, share certificates (if any), and other relevant papers.
- Start Operations: Once your bank account is active and you’ve secured premises (virtual or physical, if needed), you’re ready to trade or offer services.
IFZA Business License Cost & Packages: Understanding the Investment
IFZA Business License Cost & Packages:
IFZA offers various business setup packages to cater to different needs and budgets. These packages typically include the business license, registration fees, and often a certain allocation of visas.
Package | Number of Visas | Office Space | Additional Services | Cost (AED) + Service Charges |
---|---|---|---|---|
Zero Visa Package | 0 | Flexi Desk | Standard | Starting from 12,900 + service charges |
One Visa Package | 1 | Flexi Desk | Standard | Starting from 14,900 + service charges |
Two Visa Package | 2 | Flexi Desk | Standard | Starting from 16,900 + service charges |
Three Visa Package | 3 | Flexi Desk | Standard | Starting from 18,900 + service charges |
Four Visa Package | 4 | Flexi Desk | Standard | Starting from 20,900 + service charges |
For the latest pricing, visit the official IFZA website.
Visa Requirements and Process
One of the major advantages of setting up your company in IFZA is the flexibility to sponsor both employees and dependents. Below is an outline of the standard visa process once your company is registered.
8.1 Visa Eligibility
- Shareholders: Can apply for investor visas valid for up to 2 years.
- Employees: Each employee visa typically follows a 2-year validity.
- Dependents: Family sponsorship is possible based on salary and accommodation requirements.
8.2 Documentation Needed
- Original Passport (valid at least 6 months)
- Passport Photo (white background)
- Copy of IFZA Trade License
- Establishment Card (Issued to your new IFZA company)
8.3 Step-by-Step Visa Process
- Entry Permit: Issued electronically for UAE entry.
- Medical Examination: Mandatory health screening.
- Emirates ID Application: Biometrics at designated centers.
- Residency Visa Stamping: Final stage for legal residence.
Note: The visa process typically takes 1 to 2 weeks, depending on application volume and documentation readiness.
Competitive Analysis: IFZA vs. Other Free Zones
To fully appreciate IFZA’s value proposition, let’s briefly compare it with a few other well-known Free Zones in the UAE.
Free Zone | Strengths | Drawbacks |
---|---|---|
DMCC (Dubai Multi Commodities Centre) | Award-winning zone, strong global reputation, robust infrastructure especially for commodities trading (e.g., gold, diamonds). | Setup costs can be higher; the registration process might be more complex due to stringent compliance checks. |
JAFZA (Jebel Ali Free Zone) | Proximity to the Jebel Ali Port (one of the largest ports in the world), ideal for large-scale manufacturing and logistics. | Tends to be more suitable for medium-to-large enterprises; overhead costs (office rent) can be significant. |
RAKEZ (Ras Al Khaimah Economic Zone) | Competitive pricing, variety of industrial and commercial facilities, simpler business environment outside of Dubai. | Being located in Ras Al Khaimah might be less convenient for international clients who prefer Dubai’s global connectivity. |
Shams (Sharjah Media City) | Focus on creative and media ventures, often lower licensing fees than Dubai-based Free Zones. | Sharjah’s brand recognition is improving, but it’s still overshadowed by Dubai’s global business reputation. |
Why IFZA is the Best Choice
- More Affordable Packages: Especially for new and small businesses with limited capital.
- Streamlined Incorporation: Known for a smoother, quicker process overall.
- Strategic Dubai Address: Business owners can leverage Dubai’s strong brand and connectivity.
- Flexibility in Activities: Combining different activities under one license is relatively simpler compared to some Free Zones.
Choosing IFZA for your business setup positions your company within a supportive ecosystem that emphasizes efficiency, flexibility, and growth. It is an ideal choice for entrepreneurs aiming to establish a strong foothold in Dubai’s vibrant economy.
Key Business Activities in IFZA
Here are some of the top business activities available in IFZA:Activity Code | Activity Name | Description | Type | Property Requirements | Classification |
---|---|---|---|---|---|
3212002 | Imitation Jewellery Smithing | Manufacturing goldsmiths’ articles, such as brooches, earrings, necklaces, and bracelets made from base metals plated with precious metals or containing imitation stones. | Professional | Requires office/retail space | Non-Regulated |
3290024 | 3D Printing Products Production | Firms specialized in producing products by 3D printing, including jewelry, industrial parts, vehicles, and medical products. | Professional | Office space required | Non-Regulated |
4742002 | Radio, TV Stations, Cinema & Theater Equipment Trading | Reselling of broadcasting, cinema, and theater equipment. | Commercial | No property requirement | Non-Regulated |
4510102 | Buses & Trucks Trading | Reselling different passenger buses, trucks, and trailers. | Commercial | No property requirement | Non-Regulated |
4510103 | Specialized Vehicles Trading | Reselling specialized vehicles, including ambulances and fire engines. | Commercial | No property requirement | Non-Regulated |
4510104 | Specialized Electric Cars Trading | Reselling electric mini cars for golf clubs, stadiums, airports, and malls. | Commercial | No property requirement | Non-Regulated |
4510201 | Used Luxury Automobiles Trading | Selling high-end luxury automobiles with a price not less than AED 700,000. | Commercial | No property requirement | Non-Regulated |
4510202 | New Automobile Trading for Export | Firms dealing in exporting new cars only. | Commercial | No property requirement | Non-Regulated |
4510902 | Used Trucks Trading | Reselling used trucks for goods transportation. | Commercial | No property requirement | Non-Regulated |
4510907 | Classic Cars Trading | Selling classic cars with distinctive engineering standards and designs. | Commercial | No property requirement | Non-Regulated |