Starting a business in Dubai’s International Free Zone Authority (IFZA) begins with one critical decision: selecting the right business activity for your license. This choice shapes everything from your operational scope to your visa allocation, banking relationships, and long-term growth potential.
IFZA stands as one of Dubai’s most cost-effective free zones, offering entrepreneurs over 800 business activities across professional, commercial, and industrial sectors. Understanding which activities align with your business goals can mean the difference between seamless operations and costly amendments down the line.
This guide walks you through IFZA’s complete business activities list, helping you make informed decisions to set up your business in IFZA.
Disclaimer: The content in this article is for informational purposes only and should not be considered legal, financial, or professional advice. While we verify information against official UAE sources, regulations and fees may change without notice. JSB Incorporation recommends consulting with licensed business setup professionals to confirm current requirements before proceeding with your IFZA company formation.
The International Free Zone Authority operates from Dubai Silicon Oasis, providing a strategic hub for entrepreneurs seeking to establish a presence in the Middle East. IFZA distinguishes itself through competitive pricing, flexible licensing options, and a streamlined setup process that typically takes just one week.
Business activities define the legal scope of work your company can perform in the UAE. The activities listed on your trade license determine whether you can offer consulting services, trade physical goods, manufacture products, or provide digital solutions. Operating outside your licensed activities carries legal implications and potential penalties.
Now that you’re aware of the compliance landscape, let’s explore what business activities actually mean in the IFZA context. Business activities in the context of UAE free zones refer to the specific commercial, professional, or industrial operations your company is authorized to conduct. Your chosen activities appear on your trade license and define your legal operational framework.
These activities determine several critical aspects of your business setup. Your license type depends on your primary activity category. The number of visas you can sponsor correlates with your business scope. Banking institutions evaluate your activities when processing corporate account applications. Most importantly, regulatory authorities reference your licensed activities when assessing compliance.
To simplify the selection process, IFZA categorizes business activities into two distinct regulation types, streamlining the approval process and setting clear expectations for setup timelines.
Green activities require no external approvals from Dubai or UAE federal government entities. These activities encompass most professional services, trading operations, and standard commercial activities. The setup process for green activities typically completes within 2-5 business days.
Examples of green activities include management consultancy, IT consulting, digital marketing services, general trading, e-commerce operations, software development, graphic design, and business advisory services.
In contrast to green activities, amber activities require approvals from specific Dubai or UAE federal government regulatory bodies. These activities involve sectors where public safety, professional standards, or specialized oversight applies. The approval process extends your setup timeline to 7-10 business days, depending on the specific regulatory authority involved.
Common amber activities include healthcare services requiring approval from these authorities for different things:
The timeline differences between green and amber activities reflect the additional verification and compliance requirements imposed by regulatory authorities. Planning for these timeframes ensures realistic expectations when launching your business.
Professional licenses serve service-based businesses that provide expertise, consultancy, or skilled services without trading physical goods. This category suits consultants, advisors, digital service providers, and professional practitioners.
Professional licenses cover management and business consultancy, including:
On the other hand, commercial licenses apply to businesses engaged in trading activities, whether importing, exporting, or conducting trade within the UAE market. This license type provides the most flexibility for businesses dealing with physical goods.
Commercial activities include general trading with broad import/export capabilities, specialized trading in electronics, textiles, automotive parts, and building materials, e-commerce and online retail operations for B2B and B2C markets, wholesale and retail distribution, re-export operations, food and beverage trading, and medical equipment trading.
For businesses focused on production and manufacturing, industrial licenses support manufacturing and production operations. Companies holding this license can import raw materials, engage in production and assembly activities, package finished goods, and export manufactured products.
Industrial activities encompass light manufacturing, assembly operations, food processing and packaging, textile manufacturing, electronics assembly, and packaging services.
Regardless of which license type you choose, IFZA allows up to three business activities per license without additional fees. You can add more activities beyond this threshold, with a maximum of seven total activities per license. Additional activities incur extra costs during initial setup or through the amendment process.
One notable advantage: IFZA permits mixing professional and commercial activities under a single license. This flexibility allows businesses to offer services while also trading goods, reducing the need for multiple licenses as your business evolves.
Your activity selection directly impacts visa allocation and office space requirements. More complex business models with multiple activities may qualify for additional visa slots, supporting larger team sizes as you scale operations.
Also Read: How to Get a Commercial License From UAE IFZA Free Zone: JSB Guide
General trading provides the broadest scope, allowing import and export across multiple product categories simultaneously. This flexibility makes it one of the most sought-after activities for entrepreneurs entering diverse markets.
Specialized trading focuses on specific product categories, including electronics and technology products, textiles and apparel, automotive parts and accessories, building materials and hardware, furniture and home furnishings, medical equipment and supplies, cosmetics and beauty products, and industrial machinery and equipment.
E-commerce and online retail activities support both B2B and B2C business models. You can operate online stores, manage digital marketplaces, run drop-shipping operations, facilitate Amazon FBA and similar platforms, and conduct digital product sales.
Wholesale and retail distribution activities cover supply chain management, warehousing operations, product distribution networks, and retail partnerships.
For those offering expertise rather than products, professional services represent another major category. Management consultancy encompasses business strategy development, organizational restructuring, process optimization, change management, and performance improvement consulting.
Financial advisory and accounting services include bookkeeping and accounting, tax advisory and planning, audit services, financial planning, investment advisory, and corporate finance consulting.
Legal consultancy services operate with specific limitations in the UAE. Activities include contract drafting and review, corporate legal advisory, intellectual property consulting, and compliance advisory.
HR and recruitment consultancy covers talent acquisition, executive search, HR process consulting, organizational development, payroll management, and employee relations advisory.
Marketing and advertising services encompass brand strategy and development, digital marketing campaigns, social media management, content marketing, public relations, market research, and advertising creative services.
Business development services include partnership development, market entry strategy, sales strategy consulting, and business expansion advisory.
In today’s digital economy, technology services remain among the fastest-growing sectors. Software development and programming activities cover custom software development, mobile application development, web application development, enterprise software solutions, and software maintenance and support.
IT consulting and system integration includes IT strategy consulting, systems analysis and design, enterprise resource planning (ERP) implementation, customer relationship management (CRM) solutions, and technology infrastructure consulting.
Cybersecurity services encompass network security consulting, data protection services, security audits and assessments, penetration testing, and security awareness training.
Cloud computing solutions include cloud migration services, cloud infrastructure management, software as a service (SaaS) development, platform as a service (PaaS) solutions, and cloud security services.
Artificial intelligence and machine learning development covers AI algorithm development, machine learning model training, natural language processing solutions, computer vision applications, and predictive analytics services.
Digital transformation services include business process digitization, digital strategy consulting, technology adoption planning, and innovation consulting.
Closely related to technology services, creative and media activities continue gaining traction in Dubai’s market. Digital marketing and social media management include social media strategy, content creation and curation, community management, influencer marketing, paid social advertising, and social media analytics.
Content creation and copywriting cover blog and article writing, website content development, marketing copy, technical writing, creative storytelling, and content strategy.
Graphic design and branding encompass logo and brand identity design, marketing collateral design, packaging design, user interface and user experience design, and brand guidelines development.
Video production and photography includes commercial photography, corporate video production, promotional video creation, event coverage, product photography, and video editing services.
Public relations services cover media relations, press release writing and distribution, crisis communication, reputation management, and corporate communications.
Event management includes corporate event planning, conference organization, exhibition management, product launch coordination, and virtual event management.
As the UAE prioritizes human capital development, education and training activities offer significant opportunities. Corporate training and workshops encompass leadership development programs, technical skills training, soft skills development, industry-specific training, and professional certification courses.
Professional development programs include career coaching, executive coaching, management training, and professional skills enhancement.
Language training covers English language instruction, Arabic language courses, business language training, and translation services.
E-learning and online course development include learning management system development, instructional design, online course creation, virtual training delivery, and educational content development.
Educational consultancy services require KHDA approval when operating as formal education institutions. Consultancy activities include education strategy consulting, curriculum development advisory, and education technology consulting.
Dubai’s thriving property market creates demand for real estate services. Real estate brokerage requires registration with the Dubai Land Department (DLD). Activities include residential property sales and leasing, commercial property transactions, real estate investment advisory, and property valuation services.
Property management covers tenant management, maintenance coordination, rent collection, property inspections, and lease administration.
Interior design services include residential interior design, commercial space design, design consulting, furniture selection and procurement, and project management for interior fit-outs.
Facility management encompasses building maintenance, cleaning services coordination, security management, utilities management, and vendor management.
Leveraging Dubai’s position as a global logistics hub, many entrepreneurs pursue supply chain activities. Freight forwarding services coordinate international shipments, arrange cargo transportation, manage customs documentation, and provide import/export logistics support.
Warehousing and storage includes inventory management, storage facility operations, order fulfillment, and distribution center management.
Supply chain management covers supply chain strategy consulting, procurement optimization, demand planning, logistics network design, and supply chain technology implementation.
Distribution services include last-mile delivery coordination, transportation management, route optimization, and distribution network management.
Logistics consulting encompasses supply chain analysis, transportation consulting, warehouse optimization, and logistics technology advisory.
As online commerce continues its rapid expansion, e-commerce activities attract entrepreneurs worldwide. Online retail operations support both B2B and B2C models. You can sell products directly to consumers, operate business-to-business platforms, manage digital marketplaces, and integrate multiple sales channels.
Drop shipping business models allow you to sell products without holding inventory. This activity works well for entrepreneurs testing market demand before investing in stock.
Digital product sales cover software and app sales, digital content licensing, online courses and training materials, templates and digital assets, and subscription-based digital services.
Marketplace management includes Amazon seller operations, Noon marketplace management, eBay store operations, Etsy shop management, and other e-commerce platform integrations.
The F&B sector, while regulated, offers substantial opportunities in Dubai’s diverse market. Food trading requires Dubai Municipality approval and proper product registration through the Food Import and Re-export System (FIRS). Activities include packaged food trading, beverage distribution, specialty food imports, and organic food trading.
Catering services cover corporate catering, event catering, institutional catering, and meal delivery services.
Food processing and packaging require industrial licenses along with Dubai Municipality approvals. Activities include food preparation, food packaging, quality control, and product development.
Restaurant consulting includes menu development, kitchen design consulting, restaurant operations advisory, and food service training.
For those establishing regional headquarters or investment vehicles, holding company activities provide strategic advantages. Asset management covers investment portfolio management, fund administration, wealth management services, and investment advisory.
Equity investment activities include venture capital investments, private equity operations, startup investing, and growth capital provision.
Intellectual property holdings encompass patent management, trademark administration, copyright management, and technology licensing.
Real estate holdings include property investment, real estate portfolio management, and property development investments.
Finally, for production-focused businesses, industrial activities support manufacturing operations. Light manufacturing covers small-scale production operations, custom manufacturing, prototype development, and limited production runs.
Assembly operations include product assembly, component integration, quality testing, and packaging for distribution.
Food processing requires both industrial licenses and Dubai Municipality approvals. Activities include food preparation, preservation, packaging, and quality control.
Textile manufacturing encompasses fabric production, garment manufacturing, textile processing, and custom textile creation.
Beyond these established categories, IFZA continuously updates its activities list to accommodate evolving business trends. Recent additions include:
These emerging sectors reflect Dubai’s commitment to economic diversification and technological advancement. If your business operates in a cutting-edge field, verify specific activity availability and any special approval requirements with IFZA directly.
Also Read: Choose the Right Free Zone: IFZA vs Meydan vs RAKEZ
Your licensed activities must accurately reflect your business operations. This alignment ensures compliance with UAE regulations and prevents issues during inspections or audits. Consider both current services and products you offer today, along with immediate expansion plans for the next 6-12 months.
Avoid the temptation to select generic activities hoping to “cover all bases.” Overly broad selections can raise questions during bank account opening processes or visa applications.
While you can amend your license later, adding activities during initial setup proves more cost-effective than amendments. The amendment process costs AED 2,000 as a base fee plus AED 1,000 per additional activity.
Consider your business roadmap for the next 2-3 years. If you plan to expand from consulting into trading or add e-commerce to your professional services, include those activities initially. IFZA allows up to three activities at no extra charge, providing flexibility for growth.
Research market demand in the UAE and your target markets before finalizing activities. Some sectors experience higher demand and faster growth, positioning your business for success. Dubai’s digital economy, e-commerce sector, professional services, technology solutions, and healthcare consulting show particularly strong growth trajectories.
Another crucial factor in your decision: regulated activities require additional approvals, extending your setup timeline and potentially increasing costs. Evaluate whether your chosen activities fall into the amber category and factor approval timelines into your launch schedule.
Healthcare services need DHA approval, typically requiring 2-4 weeks beyond standard license processing. Financial services require Central Bank licensing, which involves extensive documentation and compliance reviews.
Educational institutions need KHDA approval, including facility inspections and curriculum reviews. Food-related activities require Dubai Municipality registration and product approvals.
Different activity types impact your overall setup costs. Commercial trading licenses with multiple activities typically cost more than single-activity professional licenses. Industrial activities requiring physical facilities command higher office and warehouse rental costs. Regulated activities may incur approval fees from government entities.
Budget for the complete setup, including license fees, office space requirements, visa processing if you plan to sponsor employees, regulatory approval costs for amber activities, and potential consultant fees for complex setups.
Beyond regulatory considerations, your business activities significantly influence corporate bank account applications in the UAE. Banks conduct thorough due diligence on business activities, assessing risk profiles and compliance requirements.
Certain activities attract more favorable treatment from banking institutions. Technology services, professional consulting, trading with established suppliers and customers, and e-commerce with clear business models typically experience smoother account opening processes.
Some activities may complicate banking relationships, requiring additional documentation or limiting account features. Plan accordingly if your activities fall into higher-scrutiny categories.
Similarly, if your business relies on online payments, your activities affect payment processor approvals. Platforms like Stripe, PayPal, and regional payment gateways evaluate business activities when approving merchant accounts. E-commerce and online retail generally enjoy straightforward approval processes, while some service categories face additional scrutiny.
Begin by identifying your primary business activity and up to two additional activities you want to include at no extra cost. Review IFZA’s complete activities list through their official portal. Ensure your selected activities accurately describe your business operations and comply with UAE regulations.
Based on your selected activities, determine whether you need a commercial, professional, or industrial license. This choice flows naturally from your activity selection. Service-based activities require professional licenses, trading activities need commercial licenses, and manufacturing operations demand industrial licenses.
Documentation requirements differ for individual and corporate shareholders.
Individual shareholders need passport copies with at least six months’ validity, digital passport-sized photographs with white background, Emirates IDs, and visa copies for UAE residents, and an application form including Ultimate Beneficial Owner (UBO) information.
Corporate shareholders require the following things:
After gathering your documents, submit your application through IFZA’s online portal or through an authorized professional partner. The digital submission process streamlines documentation review and accelerates processing times.
IFZA’s team reviews your application within 24-48 hours for completeness. They may request additional information or clarification on specific activities.
For non-regulated green activities, approval typically processes within 2-5 business days. No external approvals are required, allowing for rapid license issuance.
However, for regulated amber activities, IFZA coordinates with relevant government entities on your behalf. This process takes 7-10 business days depending on the specific regulatory authority.
Healthcare activities through DHA, financial services through the Central Bank, educational services through KHDA, and food-related activities through Dubai Municipality each follow their respective approval protocols.
Once all approvals are secured, IFZA issues your trade license with your specified business activities clearly listed. You receive a digital copy immediately via email, with original documents available for collection from IFZA headquarters in Dubai Silicon Oasis.
After receiving your trade license, proceed with office space selection and visa applications for yourself and any employees you plan to sponsor. IFZA offers flexible office solutions, including virtual offices, flexi desks, private offices, and executive suites, based on your business needs.
Healthcare activities require approval from the Dubai Health Authority (DHA) or the Ministry of Health and Prevention (MOHAP), depending on your specific services.
Common healthcare activities include medical consultancy services, healthcare planning and advisory, medical equipment trading, health and wellness consulting, telemedicine platform operations, and pharmaceutical distribution.
DHA licensing involves verifying professional qualifications, demonstrating clinical experience, passing DHA-approved examinations or assessments, obtaining professional liability insurance, and securing facility approvals for clinical operations.
Healthcare license costs range from AED 3,000 to AED 10,000 depending on your specialty and service scope. Timeline for approvals extends 2-4 weeks beyond standard license processing.
Similarly, financial services activities require approval from the Central Bank of the UAE (CBUAE) or the Securities and Commodities Authority (SCA) depending on your specific offerings.
Regulated financial activities include securities dealing, investment advisory, asset management, insurance brokerage, money exchange services, payment services, and financial consulting.
The approval process involves demonstrating financial stability through minimum capital requirements, establishing robust compliance frameworks, implementing anti-money laundering (AML) and know-your-customer (KYC) systems, securing professional indemnity insurance, and appointing qualified compliance officers.
Financial services approvals can take several months and involve extensive documentation requirements. Additional costs range from AED 10,000 to AED 100,000 depending on the specific license category and service scope.
Educational institutions and training centers require approval from the Knowledge and Human Development Authority (KHDA).
Educational activities include private school operations, training institute management, language center operations, professional development programs, corporate training services, e-learning platform operations, and educational consulting.
KHDA approval requirements include curriculum submission and approval, facility inspection and safety clearance, qualified teaching staff with appropriate credentials, educational materials and resources meeting standards, and operational policies aligned with UAE education regulations.
Processing timelines for KHDA approvals extend 4-8 weeks depending on the complexity of your educational offerings. Costs vary significantly based on facility size, program scope, and staff requirements.
Food trading, processing, and distribution require Dubai Municipality approval.
Food activities include food trading and import, food processing and packaging, beverage distribution, catering services, food supplement trading, and restaurant operations.
Dubai Municipality requirements include a trade license with food-related activities, registration on the Food Import and Re-export System (FIRS) portal, product label compliance with Dubai Municipality standards, lab testing for food safety and quality verification, and facility inspection for food processing operations.
Each food product requires individual registration with Dubai Municipality. Processing time for product approvals typically spans 7-14 days. Registration fees vary by product category but remain relatively modest compared to other regulated sectors.
Real estate brokerage requires registration with the Dubai Land Department (DLD) and obtaining a real estate broker card.
Real estate activities include property sales and purchase brokerage, rental and leasing services, property management, real estate investment consulting, and property valuation services.
DLD registration involves completing approved training programs, passing the real estate broker examination, demonstrating professional experience, obtaining professional indemnity insurance, and maintaining annual registration requirements.
Aviation-related activities may require approval from the UAE General Civil Aviation Authority (GCAA). Maritime activities might need approval from the Federal Transport Authority (FTA).
You can include up to three business activities at no additional cost under your IFZA license. IFZA permits a maximum of seven total activities per license. Adding activities beyond the initial three incurs additional fees of AED 1,000 per activity.
2. Can I change my business activity after getting an IFZA license?
Yes, you can modify your business activities through IFZA’s amendment process. The process typically takes 3-5 working days for non-regulated activities and costs AED 2,000 as a base amendment fee plus AED 1,000 for each additional activity. For regulated activities requiring new government approvals, allow 7-10 working days.
3. What is the difference between regulated and non-regulated activities in IFZA?
Green (non-regulated) activities require no external approvals from Dubai or UAE government entities, allowing setup within 2-5 business days. Amber (regulated) activities require approvals from specific government authorities like DHA, Central Bank, KHDA, or Dubai Municipality, extending setup timelines to 7-10 business days.
4. Which business activities are prohibited in IFZA?
IFZA prohibits activities involving gambling and betting operations, arms and ammunition trading without special permissions, and alcohol production or trading without specific licenses.
This also includes activities violating UAE public morals and decency standards and cryptocurrency exchange services requiring regulatory licensing (though blockchain technology development, Web3 platforms, and digital asset consulting for permitted applications are allowed).
Always verify with IFZA directly if you’re uncertain about a specific activity’s permissibility.
5. How long does it take to get an IFZA license for different activities?
Non-regulated (green) activities typically process within 2-5 working days. Regulated (amber) activities requiring external approvals take 7-10 working days. Healthcare activities needing DHA approval may extend 2-4 additional weeks. Financial services requiring Central Bank licensing can take several months. Educational activities needing KHDA approval typically add 4-8 weeks to the process.
6. What are the most profitable business activities in IFZA?
Profitability depends on execution, market conditions, and your expertise rather than activity selection alone. However, certain sectors show strong performance. E-commerce businesses benefit from low overhead and global reach.
IT services and software development command premium rates with minimal physical infrastructure. Management consulting offers high margins for experienced professionals. Trading businesses with established supplier and customer networks generate substantial revenues. Digital marketing agencies scale efficiently while serving multiple clients.
7. Do I need a physical office for all IFZA business activities?
Office requirements depend on your selected activities. Professional services like consulting, IT services, and marketing can operate from virtual offices or flexi desk arrangements.
Trading businesses typically function effectively with virtual or shared office solutions. Industrial and manufacturing activities require physical facilities, including warehouses or production spaces.
Healthcare services needing DHA approval require approved clinic or medical facility spaces. Educational institutions must provide facility space meeting KHDA standards.
8. Are freelancers allowed to get IFZA business activity licenses?
Yes, freelancers can obtain IFZA licenses, typically through professional licenses listing their specific service offerings.
Common freelance activities include content writing, graphic design, photography and videography, web development, digital marketing, business consulting, and translation services. IFZA’s zero-visa packages suit freelancers working independently without immediate plans to sponsor employees.
9. What are the tax implications for different IFZA business activities?
IFZA companies benefit from 0% corporate tax when they meet Qualifying Free Zone Person (QFZP) criteria and earn qualifying income. Qualifying income includes transactions with other free zone entities and income from qualifying activities with non-free zone persons.
Non-qualifying income from mainland-sourced operations exceeding AED 375,000 annually faces the standard 9% corporate tax rate. Personal income tax remains at 0% regardless of activity type. Proper structuring of activities and operations helps optimize your tax position.
IFZA’s advantages extend beyond activity selection. The free zone offers 100% foreign ownership, complete profit and capital repatriation, zero corporate tax on qualifying income, straightforward setup processes, and competitive costs compared to other Dubai free zones. These benefits, combined with Dubai’s world-class infrastructure and strategic global positioning, create an ideal environment for entrepreneurial success.
Your journey toward business success in Dubai begins with informed decision-making. Research activities thoroughly, consult with business setup experts when facing complex scenarios, verify all regulatory requirements for your chosen activities, and plan for realistic growth trajectories when allocating activities.
Ultimately, the UAE’s entrepreneurial ecosystem rewards preparation, strategic thinking, and compliance. By selecting the right business activities for your IFZA license, you position your venture to capitalize on the tremendous opportunities this dynamic market offers.
Book your free consultation call today with the experts of JSB Incorporation to set up your business in the IFZA free zone.
Office No 20, 4th Floor, Al Moosa Tower 2,
Sheikh Zayed Road Dubai, United Arab Emirates P.O. Box 27614.
+971 4 824 4842
info@jsbincorporation.com
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