Most cost-efficient business start in Dubai free zone

IFZA - International Free Zone Authority Company Formation

verified by : Andrey Ovchinnikov

04 Jan 2024

Overview of  IFZA

International Free Zone Authority (IFZA) is based in Dubai. It migrated there from Fujairah where it was founded originally.

If you are looking for options on how to start a business in Dubai, you may look at IFZA and check some similar zones in this Emirate too.

IFZA is a very competitive free zone for Dubai free zone company formation. It offers cost-effective fees and transparent procedures for investors to establish a business.

IFZA has a vast choice of packages, from zero-visa companies to multiple visa options.

Facilities

International Free Zone Authority provides a wide range of office solutions. This free zone offers the newest facilities located in the Silicon Oasis business park area of Dubai:

  1. Flexi-desks
  2. Offices 

Dedicated office rent prices in IFZA start from 10,080 AED per year. Office packages include:

  • Wi-Fi
  • Furniture
  • Electricity
  • AC
  • Access to printer, scanner, and copy machine
  • Access to a meeting room

Activities

IFZA provides a wide range of business activities. It is allowed to have up to 7 activities under a single license. 

International Free Zone Authority offers business activities with the following categories:

  • Consulting
  • Service
  • Trading

Activities from different categories can be mixed. 

E-commerce does not exist as a separate activity, but you can sell goods online with a usual trading license. All business activities in IFZA are taken from Dubai Department of Economic Development.

International free zone authority licenses

There are several types of IFZA licenses:

1. Professional License

For companies offering professional consulting and several other service types.

2. Commercial License

For companies engaged in import/export, storage, distribution, and delivery of various goods.

3. Industrial License

For companies in the business of importing raw materials, production, processing, packaging, and exporting particular goods.

4. Branch

For foreign parent companies seeking to open a branch in IFZA.

International free zone license costs

IFZA license fees start at 12,900 AED for a Flexi-desk with a zero-visa consultancy and service license.

Setting up a company in International Free Zone Authority saves you the cost of capital requirements and annual audits.

Here are the examples of low-cost license packages in IFZA:

Type of licence Cost, AED
Non visa package 12,900
1 visa package 21,795
2 visa package 28,690
3 visa package 35,585

The total package cost consists of several items:

  1. IFZA License
  2. IFZA Establishment Card
  3. IFZA Visa fee
  4. Medical checkup (result in 24 hours)
  5. Emirates ID

Company formation in the free zone

Company incorporation in the International Free Zone Authority is fast and easy and can be completed within 3-4 working days.

Companies incorporated in IFZA have the legal form of a Limited Liability Company (LLC) with the suffix FZCO (Free Zone Company).

The business setup can also be done remotely, personal presence is not required for the company formation.

The personal documents that are needed for the business setup in this Free Zone include:

  1. Company name options
  2. Passport copy
  3. Residential address and phone number
  4. Passport-size photo (for visa-eligible companies)

The documents provided after successful completion of the registration are:

  1. Trade License
  2. Certificate of Incorporation
  3. Memorandum of Association
  4. Articles of Association
  5. Lease Agreement

UAE residence visas costs

The usual time frames would be the following:

  • Company setup: 3 days
  • Establishment card: 7-10 days
  • Entry visa: 5 days
  • Medical check-up, Emirates ID, and visa stamping: 5-6 days

Visa costs in IFZA (AED):

  IFZA fee, AED Medical checkup, AED Emirates ID, AED
Owner 3,750 755 390
Employee 3,750 755 390

The visas of company owners and employees are valid for 2 years.

The visa processing in IFZA does not require health insurance.

Resident visas can be processed remotely.

Some nationalities are considered as high-risk in IFZA. Such countries include:

  • Syria
  • Bangladesh
  • Turkey
  • Egypt
  • Algeria
  • Sudan
  • Iraq, and others.

Note that this list changes frequently and varies in different Emirates, so there is always an option to accommodate a person of any nationality.

It is mostly recommended for citizens from high-risk countries to set up their business in Dubai because immigration restrictions in this Emirate are minimal.

If you want to bring your family to the UAE and open dependent visas for them, you need to satisfy these requirements:

  1. Rent an apartment in UAE. The tenancy contract must be in the name of the sponsor.
  2. Attest the marriage certificate and birth certificate of the children in the UAE Embassy in the country of origin and in the Ministry of Foreign Affairs in the UAE.
  3. Translate the marriage and birth certificates into Arabic.

Renewal of license

The renewal process is easy and straightforward. The price is the same as the first-year license registration cost minus the accumulated discounts.

If you want to make any changes in your company during the renewal, there are no amendment charges.

The requirements for the renewal are:

  • Submission of an application form
  • Payment

Amendments

In the International Free Zone Authority, if the amendment is done outside of the renewal process, a fee of 2,000 AED will be charged.

However, clients have the advantage of making as many changes as they like.

Minor changes can be done just by sending an e-mail from the registered address. But for major changes, a Board Resolution is required.

Liquidation of IFZA company

IFZA is one of the most affordable free zones when it comes to the cost of liquidation.

They understand the importance of making the liquidation process as easy as possible.

The liquidation cost is 2,000 AED.

Simply cancel any visas first and then hand in the original documents with a signed cancellation form to International Free Zone Authority.

Business setup expert's opinion

IFZA offers an all-perfect balance: work, life, and business.

If you are looking for a fast, easy and remote business setup option, IFZA is a good solution for you.

If you are unable to find your business activity in IFZA, an alternative could be Sharjah Media City.

Benefits of IFZA free zone company

  • Big variety of business activities
  • Up to 7 activities in one license
  • Fully remote incorporation
  • 100% ownership of commercial businesses
  • 100% repatriation of capital and profits

Start your business in IFZA today

IFZA trading or service license costs

Up to 6 visas per company

LICENSE TYPE VISAS INCLUDED TOTAL COST
Trading / Service license no visas AED 12,900 $3,512 download breakdown
Trading / Service license 1 visa AED 21,795 $5,934 download breakdown
Trading / Service license 2 visas AED 28,690 $9,688 download breakdown
Trading / Service license 3 visas AED 35,585 $12,600 download breakdown
Trading / Service license 4 visas AED 42,480 $11,566 download breakdown
Trading / Service license 5 visas AED 49,375 $13,443 download breakdown
Trading / Service license 6 visas AED 55,270 $15,047 download breakdown

Documents for IFZA free zone company setup

DOCUMENTS

PROCEDURE

INDIVIDUAL SHAREHOLDER

  • Passport
  • Passport size photo
  • Description of business
  • Residential address
  • 1 day- Company registration
  • 1-2 weeks- Security approval and Establishment card
  • 1 week- Entry visa
  • 1 day- Medical Check-Up and Emirates ID
  • 1 week- Visa stamping

Top 10 questions about IFZA company

  • Can I open a bank account remotely?

    No, a personal visit to the UAE is required as per the regulations of the UAE Central Bank. Local banks require this visit to verify the client's identity.

  • Do banks give debit and credit cards or loans?

    In most cases, you can obtain a debit card for your newly opened company, especially if there is only one shareholder. However, a credit card is usually issued against a fixed deposit. As for loans, banks may consider your eligibility based on your company's operations and profits. It is recommended to apply for a loan after at least one year of company operations.

  • Can a free zone company have offices outside the free zone?

    Officially, the office of a free zone company should be located within the free zone where it is registered. However, if you need an office in Dubai, you have the option to rent space in a Business Center and use it on a flexible basis. It is important to note that the minimum required space (flexi desk) in the free zone cannot be canceled.

  • Why do I need a flexi desk or office?

    A flexi desk is a mandatory requirement for any company eligible for resident visas. It serves as the minimum physical office space that a company with individuals under its visa must have. Additionally, a flexi desk can facilitate bank account opening as banks require evidence of a company having some form of office or physical presence.

  • Do free zone companies need to pay VAT?

    VAT obligations depend not only on the place of registration but also on where the business activities take place. VAT becomes applicable when the taxable turnover reaches AED 375,000. If a free zone company's trading activities take place abroad, the turnover is not considered taxable as long as the transactions occur outside the UAE. However, if goods are imported to the UAE, VAT at a rate of 5% must be added to invoices and paid.

  • Are there any other taxes to be paid?

    The UAE is free from income tax. However, there is a 5% import tax on goods brought into the country and a 5% VAT on trading or service transactions that occur within the UAE.

    On June 1, 2023, the UAE introduced 9% corporate tax, however, companies registered in UAE free zones are exempt from this tax if they do not make profits from activities on the UAE mainland or this profit is less than AED 375,000 per year. Branches of companies registered in free zones and carrying out activities on the mainland will be taxed at the mainland rate.

  • Why would a free zone company be better for me than an offshore or mainland entity?

    The suitability of a free zone company versus an offshore or mainland entity depends on your business model and requirements. However, a free zone setup offers advantages such as 100% foreign ownership, eligibility for resident visas, the ability to conduct business both within and outside the UAE, and greater favorability with banks compared to offshore companies. Additionally, free zones often offer flexi desk spaces instead of executive offices, making it a cost-effective way to start a business without unnecessary obligations.

  • Can you guarantee the opening of a bank account?

    While we strive to make the account opening process as smooth as possible, we cannot guarantee the approval as it ultimately depends on the bank. Each case goes through several bank departments for approval, and the bank may contact you directly for clarifications. Providing a clear picture of your business to the bank increases the chances of successful account opening. We do our best to prepare you and your company for a smooth and fast account opening process.

  • When and how should I renew my company? How much does it cost?

    Your company should be renewed annually, and the cost is typically lower than the initial setup cost. The renewal fees depend on your company package, and you can obtain the price by downloading the Estimate from our website. Company renewal does not require the personal presence of the owner and can be done by your agent. After renewal, the new license must be presented to the bank to extend the bank account, which is included in our renewal service.

  • How can I pay the fees?

    You have multiple options for fee payment. You can make payments via bank transfer, cash, or online using a card.

How can we contact you?