IFZA Dubai: Comprehensive Guide to the International Free Zone Authority

IFZA (International Free Zone Authority) is one of the newest free zones in the UAE, it was established in Fujairah in 2018. By 2020, it had relocated to Dubai under the management of the Dubai Silicon Oasis Authority, positioning itself as the most attractive and dynamically developing free zone for entrepreneurs. What sets it apart from other Dubai free zones is the cost-effective company setup, a fast and straightforward registration process, and the ability to complete all procedures remotely.

Advantages that make entrepreneurs choose IFZA:

• One of the lowest business registration costs in Dubai: Highly competitive pricing for setting up a business.
• Multi-year licenses with discounts: Options for 2, 3, and 5-year licenses with a 30% discount.
• User-friendly setup process: Simple registration process without the need for a compliance questionnaire.
• Suitable for businesses of all sizes: Ideal for freelancers, startups, and corporations alike.
• Branch setup for foreign companies: Capability to establish a branch of an international company.
• Facilities for every need: Options ranging from virtual offices to warehouses.
• Business setup for high-risk nationalities: Inclusive of entrepreneurs from high-risk nationalities.
• Modern, well-equipped offices: Located in the technologically advanced Dubai Silicon Oasis.
• Thoughtfully designed ecosystem: Provides opportunities for learning, development, communication, and networking.
• Easy bank account opening procedure: A bank-friendly free zone with the streamlined process for opening a bank account.
• No capital requirements: Flexibility with capital, even as low as 1 dirham.
• No physical office rental requirement: Option to set up without renting a physical office.

Types of licenses and business activities in the IFZA Free Zone

In IFZA, you can obtain either a commercial or a professional license. You can read more about the differences between commercial and professional licenses here.

• Commercial license: This license allows you to import, export, and distribute goods and services on a commercial basis within the UAE. 
• Professional license: This license permits you to offer professional services, such as consulting, legal, educational, and more.

The types of business licenses in IFZA Dubai include the following:

• General Trading license allows you to trade various categories of goods.
• Trading license - allows you to trade only the categories of goods specified in the license.
• Service license allows you to legally provide professional services.
• Consultancy license - allows you to provide consultancy services.
• Industrial license allows you to purchase raw materials, manufacture products from them, sell them within the UAE or export them, and also engage in assembly and packaging of products.
• Holding license - allows you to engage in holding assets and/or shares in other companies.

IFZA Free Zone offers a wide range of business activities. In the IFZA Dubai, each business license covers 3 activities, which are already included in the total cost. However, you can add up to 7 additional activities for an extra fee in your trading company license. Activities from different categories can be combined under one license.

General Trading License

Let's take a closer look at this type of license, as IFZA provides Dubai’s cheapest General Trading License, costing only 12,900 AED.

With a General Trading License, you can carry out the following types of trading operations in the UAE:

• Import goods
• Export goods
• Distribute goods
• Re-sell goods

This can be any set of goods, from building materials to electronics, except for goods prohibited by the UAE government.

With such advantages of Dubai free zones as 100% foreign ownership, full repatriation of profits, tax benefits, and no foreign currency restrictions, along with specific benefits of IFZA (no capital requirements and no office rental requirement), the cost of the General Trading License is very attractive. Typically, licenses of this type are more expensive than Trading licenses, but not in the case of International Free Zone Authority (IFZA).

Thus, with a General Trading License, you gain greater flexibility in your business, allowing you to choose sectors, types of activities, and categories of goods, and to change this set according to your circumstances.

For more details on other types of licenses and their costs, you can find additional information here.

Affordable license and visa costs

The IFZA Free Zone attracts the attention of entrepreneurs with its relatively low cost of company setup compared to other Dubai free zones, while offering significant advantages.

A business setup package with zero visa can be purchased for just 12,900 AED. The type of license can be any – trading, general trading, service, or consultancy. A package with one visa will cost 14,900 AED. With 4 visa allocations a trading/services package in IFZA is priced at 20,900, which is still very affordable.

However, there are additional expenses to consider as well. These include the establishment card, medical test, visa and Emirates ID fees.

The costs for these services vary depending on the free zone. For IFZA, the UAE, these additional expenses amount to approximately 6,770 AED.

A major advantage of IFZA unique freezone is the 30% discount on multi-year setup packages for 2, 3, and 5 years. This is very convenient if you made up your mind about this free zone and you plan to develop your business in Dubai in the long run.

To make the right choice of a UAE free zone based on your financial capabilities, business goals, and specific needs, we recommend seeking assistance from professional business consultants in Dubai. This will help you avoid serious mistakes and give your business a solid start in the Emirates.

To learn more about license package costs in the IFZA Dubai free zone, as well as visa options and their prices, check out this article (IFZA license cost and IFZA residence visas).

Quick and straightforward registration process in IFZA

You can register a company in the IFZA free zone in 3 business days. With the visa processing, medical checkup, and obtaining the Emirates ID the whole process will take approximately 2 weeks.

You can complete the entire business registration process in IFZA Dubai remotely! You will only need to come to the UAE to finalize visa formalities and open a bank account.

The process consists of clear and straightforward steps:

1. Determine license type, business activities, and business type.
2. Gather the minimal required documents, including passport copies, entry permits or visas, a confirmation of business activities, and contact details (email, phone number, and residential address).
3. Submit registration documents.
4. Receive the license and company registration documents.
5. Obtain the Establishment card.
6. Undergo medical test.
7. Receive the residence visa (if your package includes one).
8. Receive Emirates ID.
9. Open a bank account.

For more details on each step read this article.

Once you receive the company registration documentation and the license, you can start conducting business in the UAE and make and accept payments. In Dubai, you can open both personal and corporate bank accounts, obtain debit and credit cards, and access a range of banking services and products, such as loans and deposits.

Easy opening of bank accounts in IFZA

IFZA is a bank-friendly free zone and is highly recognized by banks, making it easier and faster to open a bank account here. This is a significant advantage, as without a bank account, your efforts to establish and grow your business in Dubai and the UAE would be in vain. You need to conduct payments related to your trade or professional activities, and for that, a corporate bank account is essential.

The procedure for opening a bank account in the IFZA Dubai freezone requires careful preparation of documents. The success of opening the account—and consequently the future of your company in the Emirates—depends on how thoroughly you answer the banker’s questions, describe your business, financial situation, and business plans in the UAE. Therefore, we recommend entrusting this matter to business consultants who are well-acquainted with regulations, compliance requirements, and have well-established contacts with bankers.

For more details on the advantages of a bank account in Dubai, types of accounts, opening costs, and the steps involved, read this article.

Location and facilities of IFZA

The IFZA Freezone is located within Dubai Digital Park. In 2020, an agreement was signed for the free zone to relocate to Dubai under the Dubai Silicon Oasis Authority, allowing it to collaborate with companies in the DSO and DTEC free zones and benefit from such interactions. What exactly are these benefits?

Dubai Silicon Oasis is an integrated technology park with a complete infrastructure for conducting business in the modern digital world. Dubai Silicon Oasis, and thus IFZA, operates under the Dubai Integrated Economic Zones Authority (DIEZ), which ensures consistency, safety, and predictability in business regulation.

The IFZA Business Park is an ecosystem designed not only for running a business but also for growth, both in terms of company size and personal entrepreneurial experience.

In IFZA, there is a wide range of workspace options. You can opt for a flexi-desk for just 10 hours a week if you are a freelancer or remote worker and do not need a permanent office. Alternatively, you can rent a dedicated office space that is assigned to you, available for use at any time, 24/7.

In all cases, you receive high-speed Wi-Fi, a business address for your company (shared or individual), access to meeting rooms and conference rooms for a certain (pre-determined) amount of time each month, and available parking for you and your visitors.

Additionally, the business park regularly hosts conferences and events where you can meet representatives from other companies and establish valuable connections.

I’ve opened a company in the IFZA Free Zone. What is next?

Once you have completed the company registration process, received the documents, and opened a bank account, you can begin your routine commercial activities. Let’s look at the mandatory procedures and associated costs for maintaining your license.

1. License renewal. The IFZA freezone license needs to be renewed annually. The renewal cost is the same as the initial setup cost. A late renewal fee of 1,000 AED is charged if the license is not renewed within a 30-day grace period.
2. Residence visa renewal (after the expiration of the 2-year period). For this, you will need to undergo a medical examination and submit biometric data again.
3. Establishment card renewal. The cost of renewal is around 2,000 AED. 
4. Health insurance (mandatory for the Dubai free zones). The cost depends on the chosen insurance company.
5. Accounting and bookkeeping. According to the UAE law, companies operating in the UAE under a license are required to maintain accounting records. Since hiring a full-time accountant may not always be financially viable, these services can be outsourced to optimize your expenses. Learn more about accounting and bookkeeping services in Dubai.
6. Corporate tax registration and tax return filing. All companies in the UAE are considered taxable persons and must register with the Federal Tax Authority (FTA) for corporate tax purposes. They are required to pay a 9% corporate tax if their profits exceed 375,000 AED for the tax period.  The tax is applied to the amount exceeding this threshold. Free zones have specific conditions for reducing the tax burden. However, corporate tax registration and an annual tax return filing are mandatory even if the tax amount is zero.  
7. VAT registration. Companies that trade goods within the UAE must pay VAT at a rate of 5%. VAT needs to be paid if the company's taxable supplies exceed 375,000 AED, and the company must register with the Federal Tax Authority (FTA) for VAT purposes. VAT returns must be submitted quarterly. Some free zones are designated zones that are free from VAT. IFZA is not a designated zone.
8. Company amendments. If you need to make amendments to your IFZA freezone company, you will need to pay 2,000 AED for the service.
9. Company liquidation. A similar amount of 2,000 AED must be paid in the case of company liquidation in IFZA.

To sum up, IFZA (International Free Zone Authority) is an excellent choice for foreign investors looking to start a business in Dubai. It offers the lowest price for a General Trading license in Dubai, along with favorable conditions for establishing a company, including a quick registration process, the ability to combine different categories of activities and add up to 7 activities to the license, no capital requirement, a wide range of facilities, and higher chances of opening a bank account smoothly.