Advantages of IFZA
Among the main advantages of the IFZA zone, which make it one of the best places in the UAE for foreign business, are the following:
- 100% foreign ownership of the company, providing complete freedom for strategic planning and business management.
- Absence of currency controls and restrictions on capital repatriation.
- Low registration costs for legal entities and operational expenses, with no requirements for minimum paid-up capital.
- There is a wide selection of licenses for various activities and the ability to combine up to 6 related types of business under one license.
- Favorable legal framework and business environment, with state-of-the-art international infrastructure.
- There is an opportunity to obtain a residency visa with subsequent tax resident status, which allows exemption from taxes in the country of permanent residence.
- There are no requirements to deposit the company’s capital into a bank account.
- A simplified and fast registration process is essential for entrepreneurs entering the UAE market quickly. On average, the company registration process takes 4-5 working days.
Companies registered in the IFZA free zone can provide services and trade remotely from anywhere globally.
Who Should Consider Setting Up a Company in the IFZA Free Zone?
Establishing a company in the international free zone of Dubai is suitable for conducting various activities. It is worth considering incorporating a business in this free zone for:
- Entrepreneurs and legal entities are looking to open a new company.
- Foreign firms wishing to have a branch in the UAE or a holding company.
- Investors planning to own real estate, shares of other companies, patents, trademarks, intellectual property, and other assets.
Considering the possibility of opening a company in the IFZA Free Zone is also worthwhile for entrepreneurs planning to expand their business and increase its flexibility. After signing an agreement in 2020 between the IFZA and Dubai Silicon Oasis (DSO) free zones, you can register under the joint auspices of both free zones and enter into partnerships with companies operating within them.
For advice on the development opportunities for your business in one of the most attractive zones in the emirate of Dubai, you can consult with specialists from Dynasty Business Adviser.
Types of Licenses Available in the IFZA Free Zone
The IFZA Free Zone offers foreign businesses over 40 types of licenses. The most common ones include:
- Commercial License: This license grants the right to export and import goods, as well as store and distribute them.
- Service License: The specific type depends on the nature of services provided, such as consulting, legal, medical, etc.
- Industrial License: Issued for activities related to the production of goods and raw material processing.
- E-commerce License: This license allows the operation of an online portal for selling various products, acting as an electronic trader or virtual company.
- General Trading License: This license enables the sale of various goods and services in various business models: B2B, B2C, and C2C.
- Media License: Issued by the national council for media-related activities.
- Local Educational License: Required for educational activities, including preschool, primary, secondary, higher education, or research work.
You can contact our company for detailed consultation on licensing matters regarding the activities of interest within the international free zone of Dubai and the possibility of combining them under one license.
Types of Activities that Can Be Registered in IFZA
Companies in the IFZA free zone are offered a wide range of available activities, and individual solutions can always be found for any prospective business. You can engage in the following actions:
- Domestic and international trade is facilitated by the convenient geographical location of the emirate of Dubai, which includes two major ports and an international airport.
- Legal and individual consulting.
- Providing services to businesses and the population.
- Manufacturing consumer goods, food products, medicines, and construction materials.
- Logistics and cargo transportation.
- Development of technologies and software.
- Media business and other types of activities.
Popular Types of Business in IFZA
The most common types of businesses registered in the IFZA free zone are:
- Trading and distribution: The attractiveness of this type of activity is ensured by the absence of customs duties, proximity to transportation routes connecting the UAE with European, Asian, and African markets, convenient access to seaports and airports, as well as the presence of large warehouse complexes and modern logistics centers within the free zone territory.
- IT industry and technology development: The main advantages of operating in this sector include the zone’s state-of-the-art technical equipment and advanced infrastructure, high demand for software development, cybersecurity provision, and other IT developments among all companies registered in IFZA and DSO.
- Provision of consulting services: Due to the large number of companies registered in this jurisdiction and the popularity of the free zone among foreign investors, business consulting services are constantly in demand here, both for opening a company and for business expansion purposes.
Dynasty Business Adviser — IFZA Official Partner
IFZA Free Zone is the only one among the 45 Emirates Free Trade Zones where a multinational team of experts from consulting companies operates — authorized partners of the Dubai International Free Zone government. Professional international lawyers, financial analysts, and business analysts provide consultations on opening and conducting business in IFZA.
Our company, Dynasty Business Adviser, is one such official partner. With years of experience and physical presence in the emirate of Dubai, we assist investors from different countries interested in registering a company with the International Free Zone Authority to start their business here in the shortest possible time. You will only need to come to the Emirates when opening a bank account, a mandatory requirement of the UAE Central Bank.
Our professionalism is also evidenced by various awards received throughout our company’s history. In 2022, Dynasty Business Adviser ranked first in the MEA Business Awards international competition as Dubai’s most reliable business development service provider.
Stages of Company Registration in the Dubai Free Zone IFZA
To register a company in the Dubai Emirate’s IFZA free zone, you need to:
- Choose the type of activity and the legal form of the entity. You can establish a company in IFZA in the form of:
- Free Zone Establishment with a single owner.
- Free Zone Company with multiple shareholders.
- Branch of a Foreign (UAE Company) — a branch of a foreign company or a firm registered in the UAE.
- Reserve the name of the new entity.
- Prepare the necessary documents — the list will depend on whether the founder is an individual or a legal entity. The document package must include an application form, a business plan, and the statutory documents of the new company.
- Pay the registration fee and submit the registration documents.
- After receiving the registration certificate and licenses, obtain a residency visa.
- Open a corporate bank account.
Cost of Establishing a Company in IFZA
The cost of opening a business in the IFZA free zone depends on several factors:
- Type of activity and number of licenses required.
- Size of offices and warehouses, and the cost of their rent.
- Number of employees requiring residency visas.
To find out how much money will be needed to register a company in IFZA in your specific case, you can only do so after consulting with specialists from Dynasty Business Adviser.
|
TYPE OF ACTIVITY |
VISA |
PRICE |
|---|---|---|
|
Package with Trading License |
1 visa |
AED 16 900 $4,630 |
|
Package with Service License |
1 visa |
AED 16 900 $4,630 |
|
Service license + Flexi desk |
no visa |
AED 12,900 $3,540 |
|
Service license + Flexi desk |
1 visa |
AED 16,900 $4,630 |
|
Service license + Flexi desk |
2 visas |
AED 18,900 $5,180 |
|
Trading license + Flexi Desk |
no visa |
AED 12,900 $3,540 |
|
Trading license + Flexi Desk |
1 visa |
AED 16,900 $4,630 |
|
Trading license + Flexi Desk |
2 visas |
AED 18,900 $5,180 |
|
Partner or investor visa – 2 years |
– |
AED 4750 $1,300 |
|
Resident visa – 2 years |
– |
AED 3750 $1,030 |
Taxation System in IFZA
Legal entities registered in the Dubai International Free Zone are required to pay:
- Corporate Income Tax at a rate of 9% is levied only on income exceeding AED 375,000. If the taxable income does not exceed this threshold, no tax is imposed, and the rate is 0%.
- VAT at 5% — This tax applies to most goods and services whose sales exceeded AED 375,000 in the reporting period. For some types of activities, a zero VAT rate is set.
Maintaining accurate and proper accounting records is essential to avoid the risk of financial losses associated with fines for violating UAE tax legislation. Specialists at Dynasty Business Adviser can handle this task, relieving you of the need to maintain your accounting department.
Opening a Resident Visa in IFZA
Foreign investors who have registered a company with the International Free Zone Authority and their employees can obtain a UAE resident visa. This visa grants the right to legally reside in the country for a period of 2 years, with the possibility of extension. Our company’s specialists will help you prepare the documents and quickly obtain the resident visa.
If you want to register a business in the IFZA-free zone, contact Dynasty Business Adviser managers using any of the convenient methods listed in the contacts!
