Key Highlights

• The IFZA commercial license starts from just AED 12,900 annually with transparent pricing and no hidden government fees.
• Complete license processing takes only 1-2 weeks from application submission to business commencement.
• Foreigners are allowed to establish companies with 100 percent full ownership, based on the provisions of Federal Decree-Law No. 26 of 2020 amending the provisions of Federal Law No. 2 of 2015 on Commercial Companies. [UAE Official Portal]
• Enjoy 0% corporate tax on qualifying free zone activities (subject to meeting specific conditions), no personal income tax, and potential import/export duty exemptions.

Located in Dubai Silicon Oasis, IFZA offers you the perfect combination of affordability, flexibility, and strategic positioning. You can establish your commercial enterprise with 100% foreign ownership while enjoying zero corporate tax benefits and streamlined processes that typically take just one week to complete.

This comprehensive guide will walk you through every aspect of obtaining your IFZA commercial license for business setup in IFZA. 

You’ll discover the costs, documentation requirements, step-by-step processes, and tips to avoid common pitfalls that cause application delays or rejections.

Keep reading this article to learn more. 

Disclaimer: The information provided in this article is for general informational purposes only. This content does not constitute professional, legal, or financial advice, and readers should consult with qualified professionals before making business decisions.

Understanding IFZA Commercial License: What You Need to Know

1. What is an IFZA commercial license?

An IFZA commercial license authorizes you to conduct trading, import-export, and distribution activities within Dubai’s business ecosystem. This license type specifically covers commercial activities, including buying, selling, importing, exporting, and distributing goods across various industries.

“The UAE offers investors more than 40 multidisciplinary free zones, in which expatriates and foreign investors can have full ownership of companies. These zones are characterized by their highly efficient infrastructure and distinct services that facilitate smooth workflows, saving businesses considerable time and effort.” – UAE Ministry of Economy

After all, the key distinction lies in scope. While professional licenses cover service-based activities, commercial licenses focus on goods-based businesses. Your commercial license grants you extensive import-export rights, trading permissions, and distribution capabilities that form the backbone of most international business operations.

2. Types of Commercial Licenses Available in IFZA

IFZA structures its commercial licensing to accommodate different business models and operational needs.

A general trading license represents the most flexible option for entrepreneurs. You can engage in import-export activities across multiple product categories under a single license. This versatility makes it ideal if you plan to expand your product range or test different markets.

The e-commerce license specifically targets online retail operations. Whether you’re running B2B or B2C platforms, this license covers digital commerce activities, including online marketplaces and direct-to-consumer sales.

A tourism license caters to travel-related commercial activities. You can operate tour packages, hospitality services, and tourism-related trading under this specialized license.

A travel agency license focuses specifically on travel service provision and related commercial activities.

The Computer Trading License covers technology-related import-export operations, including hardware, software, and IT equipment trading.

Each license type permits specific commercial activities. You must align your business model with the appropriate license category to avoid operational restrictions later.

Recent Updates and Government Regulations

The UAE government introduced significant regulatory updates in 2025 that directly impact free zone operations.

Corporate tax clarifications now provide greater certainty for free zone businesses. The new Ministerial Decision No. (229) of 2025 expands qualifying activities eligible for zero percent corporate tax treatment. Previously, only raw commodities qualified for preferential tax treatment. Now, processed goods, industrial chemicals, environmental commodities, and associated by-products also qualify.

These changes particularly benefit commercial license holders engaged in commodity trading and related activities. You can now conduct more diverse commercial operations while maintaining tax advantages.

Free Zone Business Framework updates also introduced clearer definitions for qualifying activities and acceptable pricing benchmarks. These regulatory improvements eliminate previous ambiguities and provide better operational planning certainty.

IFZA Commercial License Cost 

Understanding the true cost structure helps you budget accurately and avoid unexpected expenses that can disrupt your business planning.

1. Official Government Fees

IFZA operates on a transparent, visa-based pricing structure for 2025.

The Zero Visa Package costs AED 12,900 annually. This option suits you if you already hold a UAE residence visa or don’t require visa processing. It’s particularly cost-effective for businesses operating without local presence requirements.

One Visa Package is priced at AED 14,900 per year. This popular choice works well for solo entrepreneurs establishing their first Dubai presence.

Two Visa Packages cost AED 16,900 annually, ideal for small teams or partnerships.

The three-visa package requires AED 18,900 per year and is suitable for growing businesses with multiple key personnel.

Four Visa Packages start at AED 20,900 annually, with additional visa slots available for larger operations.

2. Additional Mandatory Costs

Beyond license fees, you’ll encounter several mandatory expenses that directly impact your total investment.

The Establishment Card costs AED 2,000 for the first year, with renewal fees of AED 2,200 annually. This card contains your visa quota information and company details.

Visa processing requires AED 3,750 per applicant for each residence visa you obtain.

Medical checkup costs vary by service level. A standard medical examination costs AED 450, while VIP service requires AED 850. This examination is mandatory for all visa applicants.

Emirates ID processing costs AED 390 per application. Every visa holder must obtain this national identification document.

Office space requirements add variable costs depending on your chosen solution. Virtual office options start around AED 6,000 annually, while dedicated office spaces cost significantly more based on size and location.

3. Hidden Costs to Avoid

Many entrepreneurs encounter unexpected expenses that weren’t clearly communicated during initial consultations.

Agent markup fees can add 20-30% to your total setup cost. Some service providers apply significant markups above official government fees. Always verify actual government rates versus quoted prices.

Unnecessary Service Bundling occurs when agents push additional services you don’t immediately need. These might include premium office packages, extended visa quotas, or expedited processing when standard timelines work fine.

Banking account opening charges vary significantly between banks. While some charge minimal fees, others require substantial minimum deposits or impose monthly maintenance charges that weren’t initially disclosed.

Renewal penalty costs apply if you miss renewal deadlines. Late renewal can cost an additional AED 1,000-3,000 in penalty fees, plus potential business operation disruptions.

Eligibility Requirements for Commercial License 

Meeting IFZA’s eligibility criteria upfront prevents application delays and potential rejections that could set back your business launch timeline.

1. Individual Applicant Requirements

Passport validity must extend at least six months beyond your application date. IFZA requires high-quality, colored scans of all passport pages, not just the biographical page.

Age requirements mandate that primary shareholders be at least 21 years old. Some commercial activities may have higher age requirements based on UAE federal regulations.

Nationality considerations generally don’t restrict commercial license eligibility, though certain nationalities may require additional security clearance time or documentation.

Previous UAE visa history undergoes thorough review. Outstanding fines, visa violations, or immigration issues can impact your application approval. Clear any pending issues before submitting your application.

2. Corporate Shareholder Requirements

Parent company documentation requires comprehensive corporate records. You need notarized board resolutions, a memorandum and articles of association, valid trade licenses, and certificates of incorporation.

Board resolutions must explicitly authorize the UAE business formation and designate authorized signatories. These documents require notarization and, in many cases, consular attestation.

Legal attestations involve multiple steps depending on your company’s country of origin. Documents may require notarization, apostille certification, or UAE embassy attestation.

Ultimate Beneficial Owner (UBO) Declarations mandate disclosure of all individuals holding 25% or more ownership. This transparency requirement applies to complex corporate structures and holding companies.

3. Business Activity Alignment

Activity matching requires careful alignment between your business model and selected license activities. Misalignment commonly causes application rejections or operational limitations later.

License Type Selection must accurately reflect your intended operations. General trading licenses offer maximum flexibility, while specialized licenses provide specific activity authorizations.

Special approvals apply to certain commercial activities, including pharmaceuticals, controlled substances, precious metals, or regulated goods. Research approval requirements before committing to specific activities.

Also Read: UAE UBO Compliance 2025: How Businesses Can Avoid Penalties

Complete Documentation Checklist

Proper documentation preparation accelerates your application process and prevents common delays that affect many applications.

1. Individual Shareholders’ Documents

Passport copy requirements demand colored, high-resolution scans with at least six months validity remaining. Include all pages, not just the biographical section.

Passport-Size Photographs must feature white backgrounds without glasses, hats, or other accessories. Professional photography ensures compliance with UAE standards.

Emirates ID and visa copies are mandatory for UAE residents. Include both front and back sides of Emirates ID cards.

Entry Stamp Documentation applies to non-residents. Provide clear scans of UAE entry stamps or current visa pages.

Proof of address can include utility bills, bank statements, or official correspondence dated within three months.

Completed application forms require accurate UBO information and business activity descriptions. Double-check all details before submission.

2. Corporate Shareholders Documents

A notarized board resolution must authorize UAE business formation and designate signing authorities. This document requires proper corporate authorization procedures.

The memorandum and articles of association need notarization and often consular attestation, depending on the originating country.

A valid trade license copy must be current and notarized. Expired licenses require renewal before submission.

A certificate of incorporation provides legal proof of corporate existence. This document requires notarization and possible apostille certification.

Shareholder documentation includes passport copies and photographs for all corporate shareholders and key management personnel.

Third-party approvals may be necessary for regulated industries or specific commercial activities.

Document Preparation Best Practices

Professional attestation follows specific procedures based on the document’s country of origin. UAE embassy attestation is often required for corporate documents.

Translation requirements mandate certified Arabic or English translations for documents in other languages. Use approved translation services to ensure acceptance.

Common preparation errors include poor scan quality, incorrect document formats, missing signatures, or expired validity periods. These issues cause significant processing delays.

Digital Submission Guidelines require PDF format for text documents and JPEG/PNG for images. Maximum file size is 5 MB per document.

Step-by-Step Application Process

Following IFZA’s structured application process ensures smooth progression from initial preparation to final license issuance.

1. Pre-Application Preparation (Days 1-3)

Business activity selection requires careful consideration of your operational scope. Choose activities that accommodate your current plans and potential future expansion.

Company Name Reservation demands three alternative options. Names must comply with UAE naming conventions and avoid restricted terms or existing registrations.

Legal structure decisions involve choosing between FZCO (Free Zone Company) for independent operations or a branch office structure for subsidiaries of existing companies.

Office space planning depends on your operational requirements and budget. Virtual offices meet basic licensing needs, while dedicated spaces support physical operations.

2. Application Submission (Days 4-5)

Online Portal Navigation utilizes IFZA’s digital submission system. The platform accepts all documents electronically with specific format requirements.

The document upload process requires organized file preparation. Name files clearly and ensure they meet size and format specifications.

Fee payment methods include bank transfers, credit cards, and electronic payments. Confirm payment processing before proceeding to next stages.

The initial review timeline typically takes 1-2 business days for document verification and completeness assessment.

3. Processing and Approval (Days 6-10)

The security clearance process involves background verification by UAE authorities. Processing time varies by nationality and previous UAE history.

Government Authority Review includes multiple verification stages. IFZA coordinates with relevant Dubai authorities to ensure compliance.

E-Legal Document Signing requires electronic signatures on incorporation documents. You’ll receive signing instructions once approval is confirmed.

License issuance typically occurs within 2-3 business days after final approval and payment confirmation.

4. Post-Approval Setup (Days 11-15)

Office lease finalization involves executing space agreements if you selected physical office options.

Corporate bank account opening requires your new license and supporting documentation. IFZA’s reputation facilitates smoother banking relationships.

Visa processing begins after license issuance for applicable packages. Medical examinations and Emirates ID applications follow.

Business Commencement allows you to start operations once all regulatory requirements are completed.

Common Rejection Reasons and How to Avoid Them

Understanding frequent rejection causes helps you prepare stronger applications and avoid delays that impact your business timeline.

1. Security Clearance Failures

Previous visa violations automatically trigger enhanced scrutiny. Outstanding fines, overstay violations, or immigration issues require resolution before application submission.

Criminal History Disclosure mandates complete transparency about any legal issues. Failure to disclose known issues typically results in automatic rejection.

Nationality-specific considerations affect processing time and requirements for certain countries. Some nationalities require additional documentation or longer processing periods.

Background Check Preparation involves ensuring all personal and professional history aligns with submitted information. Inconsistencies cause immediate rejections.

2. Documentation Issues

Incomplete information represents the most common rejection cause. Missing signatures, incorrect dates, or blank fields create processing problems.

Mismatched details between different documents cause verification failures. Ensure name spelling, dates, and other details match exactly across all submissions.

Missing Attestations particularly affect corporate documents. Verify attestation requirements for your specific country before submission.

Poor Document Quality includes blurry scans, cut-off borders, or illegible text. Professional scanning ensures clear, acceptable documentation.

3. Business Activity Misalignment

Wrong License Type Selection occurs when chosen activities don’t match intended operations. Research activity classifications carefully before committing.

Vague business descriptions provide insufficient detail for approval authorities. Specify exact activities and operational scope clearly.

Missing Special approvals apply to regulated industries. Research approval requirements for pharmaceuticals, food products, or controlled goods before application.

Activity Scope Limitations arise when requested activities exceed license type parameters. Ensure alignment between business plans and license capabilities.

4. Financial Inadequacy

Insufficient financial proof includes weak bank statements or inadequate capital demonstration. Maintain consistent positive balances for several months before application.

Banking Transaction Irregularities such as unusually large deposits or suspicious activity patterns raise verification concerns.

Weak Business Plan The presentation fails to demonstrate viability or market understanding. Provide comprehensive, realistic business projections.

Capital Requirement Misunderstandings occur when applicants underestimate total setup costs or ongoing operational needs.

Banking and Financial Setup Requirements

Establishing proper banking relationships forms a crucial foundation for your commercial operations and ongoing compliance.

1. Corporate Bank Account Opening

The UAE banking landscape offers numerous corporate bank account opening options for free zone companies. Major banks, including Emirates NBD, ADCB, FAB, and international banks, maintain dedicated free zone banking units.

Required documentation typically includes your trade license, establishment card, shareholder passports, Emirates IDs, and business plans. Some banks require additional financial projections or reference letters.

Minimum deposit requirements vary significantly between institutions. Local banks may require AED 3,000-10,000 minimum deposits, while international banks often demand higher amounts.

Banking partner relationships benefit from IFZA’s established reputation. Many banks recognize IFZA as a credible free zone, facilitating smoother account opening processes.

2. Financial Compliance

Businesses with accounting periods starting on or after January 1, 2023, are no longer required to file UAE economic substance notifications or reports. ESR now only applies to fiscal years between January 1, 2019, and December 31, 2022.

VAT Registration Requirements apply when your annual taxable supplies exceed AED 375,000. Register for VAT within 30 days of crossing this threshold.

Audit and Accounting Obligations mandate annual financial statement preparation. Appoint qualified auditors and maintain proper bookkeeping records.

Corporate tax implications under 2025 rules provide clarity for qualifying free zone activities. Ensure your operations align with qualifying activity definitions to maintain tax benefits.

Also Read: Free Zone Licenses That Qualify for the UAE Golden Visa in 2025

Renewal and Maintenance Requirements

Maintaining your IFZA commercial license requires ongoing compliance and timely renewal procedures.

1. Annual License Renewal

Renewal timelines and deadlines require action at least 30 days before expiration. Late renewals incur penalties and may disrupt operations.

Required documentation updates include current shareholder information, updated business activities, and financial statements. Prepare renewal documents well in advance.

Cost considerations for renewals typically range from AED 10,000 to AED 18,000 depending on license type and visa requirements. Budget for these annual expenses.

Penalty avoidance strategies involve calendar reminders, early preparation, and maintaining updated contact information with IFZA.

2. Ongoing Compliance

Annual audit requirements mandate independent auditor review of financial statements. Appoint qualified auditors and maintain proper records throughout the year.

Financial Statement Submissions must be filed annually with IFZA and relevant authorities. Late submissions can impact license renewals.

Activity Reporting Obligations require notification of significant business changes, new activities, or operational modifications.

License amendment procedures allow updates to business activities, shareholder changes, or other modifications as your business evolves.

Alternative Options and Comparisons

Understanding your options helps you make informed decisions about the best free zone for your specific commercial operations.

1. IFZA vs. Other Dubai Free Zones

DMCC (Dubai Multi Commodities Centre) offers premium positioning and extensive trade infrastructure. However, setup costs typically start around AED 40,200 for IT consultancy activities, significantly higher than IFZA’s AED 26,600 comparable package.

JAFZA (Jebel Ali Free Zone) provides excellent logistics infrastructure and port access. Costs and processing times generally exceed IFZA’s streamlined approach.

Meydan Free Zone offers a prestigious Dubai location with moderate pricing around AED 14,250 for single visa packages. However, it focuses primarily on service activities rather than comprehensive commercial operations.

The processing time comparison shows IFZA’s 1-2 week timeline compares favorably to 2-4 weeks for most other Dubai free zones.

2. Free Zone vs. Mainland Commercial License

Operational flexibility differs significantly between options. Mainland licenses allow trading throughout the UAE without restrictions, while free zone licenses may have limitations for local market access.

Market access considerations include geographic restrictions. Free zone companies often require additional approvals for mainland UAE operations.

Cost Structure Differences show mainland setup costs starting around AED 15,990 with mandatory office requirements, while IFZA offers more flexible and often lower-cost alternatives.

Scalability factors favor the mainland for domestic market focus, while free zones excel for international trade and export-oriented businesses.

Frequently Asked Questions (FAQs)

1. How long does it take to get an IFZA commercial license in 2025?

The complete process typically takes 1-2 weeks from application submission to license issuance. This timeline assumes complete documentation and standard security clearance processing.

2. Can I apply for an IFZA commercial license without visiting Dubai?

Yes, IFZA allows complete remote application processing. You only need to visit Dubai for visa processing, medical examinations, and Emirates ID applications if you’re obtaining residence visas.

3. What happens if my IFZA commercial license application is rejected?

Rejections usually stem from documentation issues, security clearance problems, or activity misalignment. You can resubmit after addressing the specific rejection reasons. IFZA provides detailed feedback on rejection causes.

4. Can I start business operations immediately after license approval?

You can commence operations once you receive your trade license and complete the banking setup. However, physical presence requirements depend on your chosen visa package and operational needs.

5. What is the total cost of an IFZA commercial license, including all fees?

Total costs range from AED 15,000 to 25,000 for basic setups, including license fees, establishment cards, and essential documentation. Additional costs for visas, medical tests, and office space vary based on your specific requirements.

6. Do I need to file annual returns with the IFZA commercial license?

Yes, annual financial statements and audit reports are mandatory. You must also renew your license annually and maintain compliance with UAE regulations.

7. Can I amend my IFZA commercial license activities later?

License amendments are possible through IFZA’s modification procedures. Additional activities can be added for approximately AED 1,000 per activity, subject to approval.

8. What happens if I don’t renew my IFZA license on time?

Late renewals incur penalty fees and may result in business operation suspension. Penalties typically range from AED 1,000 to 3,000 depending on delay duration.

Taking Action 

Getting your IFZA commercial license offers an excellent pathway to establishing your business presence in Dubai’s thriving economy. The combination of competitive costs, streamlined processes, and comprehensive support makes IFZA an attractive choice for commercial enterprises.

Remember to budget for all associated costs beyond the basic license fees and maintain ongoing compliance to ensure long-term business success. IFZA’s transparent approach and established reputation provide a solid foundation for your Dubai commercial venture.

Book your free consultation call today with the experts of JSB Incorporation to secure your IFZA commercial license in the UAE.