IFZA — International Free Zone Authority
- Company setup from
12,900 AED
Registration in 5 days
Flexi-desks, offices
IFZA is a low-cost business setup solution in Dubai, perfect for startups and SMEs involved in trading, consulting, or services.…
In 2023, Dubai's business sector experienced growth, with a total capital of AED 210.7 billion from new economic licenses issued. Notably, 24,143 commercial sector licenses were issued, comprising 94.1% of the total, highlighting the popularity and importance of commercial licenses in the UAE.
Understanding the difference between trade and commercial licenses
A trade license is a legal document necessary for all businesses operating in the UAE. Issued by the appropriate authorities, it authorizes individuals or companies to carry out commercial activities within a specific jurisdiction.
A commercial license is a specific category of trade license designed for businesses engaged in trade. While trade licenses cover all businesses, commercial licenses apply to companies that buy, sell or trade goods and certain types of services.
The UAE offers three primary types of trade licenses:
- Commercial license: For trading businesses.
- Professional license: For service providers.
- Industrial license: For manufacturing and production activities.
Standard trade license
It is one of the most common options for businesses in Dubai. It covers the sale of specific types of goods. For example, you can be a food trader, a cloth trader and so on. It requires:
- A Memorandum of Association (available electronically or manually).
- A valid site lease contract.
This license is essential for conducting trading activities in Dubai and must align with the specific commodities or services mentioned in the business activity.
General trading license
This license offers great flexibility, enabling businesses to participate in diverse trading activities such as importing, exporting, distributing, and selling any type of products.
- Covers multiple activities under a single license.
- Permits trade of diverse goods, excluding items restricted by UAE regulations.
- Ideal for businesses dealing with various sectors or commodities.
E-trader license
The e-trader license is suitable for small-scale and home-based businesses operating online. It’s particularly attractive for entrepreneurs and startups looking to minimize costs while entering the digital economy. Non-GCC nationals can provide only professional services with an e-trader license. GCC nationals can conduct commercial activities.
- Issued and regulated by the Dubai Department of Economy and Tourism (DET).
- Enables the sale of goods and services through social media.
- Suitable for UAE nationals, GCC citizens, and resident expatriates (with restrictions for expatriates on selling third-party manufactured goods).
- Eliminates the need for an office or local sponsor, reducing operational expenses.
License types based on jurisdiction and timeframe
Choosing between a mainland commercial license under Dubai DET and a free zone commercial license is one of the most important early decisions.
- Mainland commercial license: allows you to trade directly anywhere in the UAE, open shops in most commercial areas, and work with government entities. Businesses relying on retail outlets or warehouses usually prefer a DET mainland structure.
- Free zone commercial license: provides simplified incorporation, but direct B2C sales on the UAE mainland typically require a local distributor, agent, or mainland branch. For many startups, a free zone license is the fastest way to launch.
In terms of the license registration timeframe, there is also the Instant trade license, also known as the Direct Trade License. It can be used for eligible activities that do not require external approvals and allows founders to secure a trade license, trade name, and initial approvals in a single step, often without a physical office in the first year.
Sharjah Free Zone business setup process
Free zone company formation in SAIF can be done personally by company owners or assisted by a business consultant. The license is issued instantly on the day of application.
Determine the business activities of your future company and the corresponding license type. This aspect is vital for a successful business setup, as choosing the wrong activity and license can cause errors during company registration, leading to problems with opening a bank account or obtaining residency visas for yourself and your employees.
Specify the legal status of your business in the Sharjah Airport International Free Zone. Available company formation types at SAIF include FZE (Free Zone Establishment), FZC (Free Zone Company), or branches of an already existing local or foreign company.
Prepare and submit the necessary documents together with the application form. SAIF requires very few documents for company formation:
- Passport
- Passport-size photo
- Residential address, phone number, and e-mail of the owner
Company registration in SAIF can be done personally by company owners. The license is issued instantly on the day of application or may take a few working days depending on the security approval process. Also, this step involves paying all the registration and processing fees.
Receive the license and registration documents for the company, including:
- Certificate of Incorporation
- Business license
- Memorandum and Articles of Association
- Investment Service Agreement
- Share certificate
- Lease agreement
Receive the Establishment Card containing information about your company and visa quotes.
Apply for an entry permit. If you’re outside of the UAE during the processing of the entry permit, you will need to come to the country when the document is issued within 60 days to complete the medical test and biometrics for your visa. If you’re in the UAE when the entry permit is issued, a status change will be done from your previous UAE tourist/residency visa to the new one.
Undergo a medical checkup and submit documents for a residence visa. Different registration packages may provide for a varying number of visas available for owners and employees of the company.
Once your visa is issued, secure your Emirates ID card.
Apply to a UAE bank to open a corporate bank account. Once you receive your account details, you are free to start running your business.
With us you can navigate this process quickly and effortlessly. You don`t even have to arrive in Dubai—the registration procedure can be completed remotely. However, you will need to visit the UAE for medical checkups, visa formalities, and account opening.
Sharjah Free Zone License Cost
The best license offer at the Sharjah Airport International Free Zone currently is a Trading or Services license for AED 10,800. This package is eligible for 3 resident visas and has a flexi-desk as a part of the package. Visa and other immigration fees are paid separately, and a PO Box will cost an additional AED 1,000.
SAIF 1-year license package fees
| TYPE OF LICENSE | COST |
|---|---|
| SAIF Office package (3-visa standard license + flexi-desk) | 10,800 AED |
| SAIF Office package (3-visa Multi-Activity license + flexi-desk) | 21,150 AED |
| SAIF Suite package (8-visa standard license + 21 sqm office) | 28,650 AED |
| SAIF Suite package (8-visa Multi-Activity license + 21 sqm office) | 28,650 AED |
The additional costs apart from the license fees include:
- SAIF Establishment Card
- SAIF visa fees
- Medical checkup
- Emirates ID
Elena O.
We'll find the ideal free zone for your business
Sharjah Airport International Free Zone (SAIF) Company Formation
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