Company formation in IFZA (International Free Zone Authority) has quickly become one of the most attractive business opportunities in Dubai. Known for its affordable setup packages, flexible licensing options, and fast registration process, IFZA is the preferred choice for startups, SMEs, and global investors. Unlike many other free zones in the UAE, IFZA provides simplified procedures that save time and money while allowing entrepreneurs to expand their operations seamlessly. With access to over 1,000 business activities, low-cost visa packages, and investor-friendly tax benefits, IFZA is designed to make business ownership in Dubai simple and efficient.
What is IFZA?
The International Free Zone Authority (IFZA) is one of Dubai’s fastest-growing and most affordable free zones, created to make company setup simple, flexible, and cost-effective for global investors. Originally located in Fujairah, IFZA shifted its headquarters to Dubai to provide entrepreneurs direct access to the emirate’s world-class infrastructure, international airports, and seaports.
IFZA operates under the authority of the Dubai Government and offers licenses that cover a wide variety of business activities, from trading and consultancy to industrial and service operations. Unlike many other free zones, IFZA allows multiple business activities under one license, making it highly attractive for startups, SMEs, and investors who want diversification.
Step by Step Process for Company Setup in IFZA
Setting up a business in IFZA is straightforward. The entire process can often be completed within a week if documents are ready.
Choose Business Activity and License Type
The first step in company setup in IFZA is deciding on your activity. IFZA allows a wide range of activities under commercial, service, consultancy, and industrial licenses. Entrepreneurs can also combine multiple activities under one license, which gives flexibility to operate in different sectors without separate approvals.
Reserve Your Company Name
Investors must choose a trade name that complies with UAE naming rules. The name should not contain offensive language or religious references and must reflect the chosen business activity. Once approved, the trade name is reserved by the IFZA authority.
Apply for Initial Approval
With the business activity and trade name finalized, the application is submitted for initial approval. IFZA reviews the documents and provides confirmation to proceed with licensing.
Select Office Space
Office space selection depends on the visa quota required. Options range from flexi-desks for small teams to fully furnished offices and warehouses for larger operations. Visa allocation is directly tied to office size.
Submit Documents and Pay Fees
Once office space and activity details are finalized, the investor submits the required documents. Fees vary depending on license type, visa allocation, and package selection.
Receive License and Begin Operations
Upon verification, IFZA issues the business license. Investors can then open a bank account, apply for visas, and begin operations in Dubai.
Required Documents for Company Registration in IFZA
Completing company registration in IFZA requires specific documents based on whether the shareholder is an individual or a corporate entity.
For Individual Shareholders
- Valid passport copy
- Passport-sized photographs
- Visa or entry stamp copy
- Business profile or CV (optional but recommended)
For Corporate Shareholders
- Certificate of Incorporation
- Memorandum and Articles of Association
- Board Resolution approving the formation
- Passport copies of shareholders and directors
- Power of Attorney (if applicable)
Attestation and Notarization
Documents issued outside the UAE must be notarized and attested by the UAE embassy in the country of origin and by the Ministry of Foreign Affairs in the UAE. This ensures compliance and legal recognition.
Types of Licenses Offered by IFZA
The business setup in IFZA allows entrepreneurs to choose from multiple license categories, depending on their business activity.
Commercial License
A commercial license allows import, export, and distribution of goods. It is ideal for businesses involved in trading and distribution across UAE and international markets. IFZA permits multiple product categories under this license, making it flexible for traders.
General Trading License
The general trading license enables companies to trade in multiple goods under a single license. This option is best for businesses handling diverse product lines and industries, though some restricted goods require special approval.
Consultancy License
This license is designed for professionals offering consultancy services, such as IT, management, legal, marketing, or engineering consultants. It is one of the most sought-after licenses due to Dubai’s growing consultancy market.
Service License
The service license covers businesses providing specialized services such as IT support, digital marketing, logistics, travel agencies, and cleaning services. It is a flexible license category for service-based industries.
Industrial License
This license is suitable for companies engaged in light manufacturing, packaging, and assembly. IFZA’s industrial license provides a gateway for businesses to set up production units while enjoying free zone benefits.
Advantages of Business Setup in IFZA
Setting up a business in IFZA provides several unmatched benefits compared to other free zones.
100% Foreign Ownership
Investors enjoy full control over their businesses without the need for local sponsors. This freedom makes business setup in IFZA particularly attractive to international entrepreneurs.
Tax Benefits
Companies in IFZA benefit from 0% personal income tax and exemptions on qualifying free zone income under the UAE’s corporate tax rules. Investors can repatriate 100% of profits and capital freely.
No Paid-Up Share Capital Requirement
Unlike many free zones, IFZA does not require proof of minimum share capital, making it easier for entrepreneurs with limited funds to start their business.
Fast and Easy Incorporation
Licenses can be issued in as little as 5–7 working days, allowing businesses to launch quickly and focus on growth.
Wide Range of Activities
With access to over 1,000 approved activities, IFZA supports diverse industries including trading, consultancy, IT, healthcare, and manufacturing.
Costs of Company Formation in IFZA
The cost of company formation in IFZA is one of the most affordable in Dubai.
License Packages
- Zero-visa license: Starting from AED 12,900
- One visa package: Around AED 14,900
- Two visas: AED 16,900
- Three visas: AED 18,900
- Four visas: AED 20,900
Multi-Year Discounts
Entrepreneurs who choose 2- or 3-year license packages can receive up to 30% discounts on renewal costs. This reduces the long-term financial burden of business setup.
Visa and Establishment Card Costs
Visas typically cost AED 3,000–5,000 per person, including medicals and Emirates ID. An establishment card adds AED 1,500–2,000 annually.
Office Space Costs
- Flexi-desk: AED 6,000–12,000 per year
- Private office: AED 20,000+ per year
- Warehouse: Costs vary depending on size and location
Conclusion
Company formation in IFZA is an ideal choice for entrepreneurs seeking a cost-effective, flexible, and fast business setup in Dubai. With multiple license types, quick registration, and tax-friendly policies, IFZA empowers startups, SMEs, and global investors to thrive. Its streamlined process and affordable packages make it one of the best free zones in the UAE for long-term business growth.
FAQs
Is IFZA a good freezone?
Yes, IFZA is one of Dubai’s most cost-effective and flexible free zones. It offers affordable license packages, quick registration, and wide-ranging activities, making it popular among startups and SMEs.
Is IFZA a government company in Dubai?
Yes, IFZA operates under the authority of Dubai government regulations and is officially recognized as a licensed free zone authority.
Can an IFZA company buy property in Dubai?
Yes, IFZA companies can purchase property in designated freehold areas of Dubai, subject to Dubai Land Department regulations.
How long does it take to register a company in IFZA?
The process usually takes 5–10 working days, depending on the completeness of documents and approvals.
What is the cheapest IFZA license package?
The cheapest license package in IFZA is the zero-visa package, which starts at AED 12,900.
Do I need to visit Dubai to register in IFZA?
No, in most cases, the entire setup process can be completed remotely with scanned documents.
