IFZA Dubai: Comprehensive Guide to the International Free Zone Authority
One of the newest free zones in the United Arab Emirates is the International Free Zone Authority (IFZA), which was founded in Fujairah in 2018. Under the direction of the Dubai Silicon Oasis Authority, it moved to Dubai in 2020 and established itself as the most alluring and rapidly growing free zone for business owners.
The affordable Dubai Freezone Company Setup, quick and simple registration process, and remote completion of all regulations distinguish it from other Dubai free zones.
Advantages that make entrepreneurs choose IFZA
One of the lowest business registration costs in Dubai: Highly affordable startup costs for businesses.
Multi-year licenses with discounts: A 30% discount is available for licenses of 2, 3, and 5 years.
User-friendly setup process: Simple registration procedure that does not require a compliance survey.
Suitable for businesses of all sizes: Perfect for startups, companies, and freelancers.
Branch setup for foreign companies: The ability to open an overseas company’s branch.
Facilities for every need: Options include warehouses and virtual offices.
Business setup for high-risk nationalities: Inclusive of business owners from high-risk countries.
Modern, well-equipped offices: Located in the modern Dubai Silicon Oasis.
Thoughtfully designed ecosystem: Provides opportunities for networking, learning, growth, and communication.
Easy bank account opening procedure: A free zone that is convenient for banks and offers a simplified bank account creation procedure.
No capital requirements: Capital can be flexible, even if it is only 1 dirham.
No physical office rental requirement: Option for starting without renting a physical workspace.
Types of licenses and business activities in the IFZA Free Zone
You can get a professional or commercial license from IFZA.
- Commercial license: With this license, you can commercially import, export, and distribute goods and services throughout the United Arab Emirates.
- Professional license: You can provide professional services, including consulting, legal, teaching, and more, with this license.
The following categories of business licenses are available in IFZA Dubai:
- You can trade a variety of goods with a general trading license.
- Trading license: Allows you to exchange only the types of products listed in the license.
- You can legally offer professional services if you have a service license.
- Consultancy license: Permits you to offer consulting services.
- Purchasing raw materials, manufacturing goods from them, selling them in the UAE or exporting them, and assembling and packaging goods are all made possible by an industrial license.
- Holding license: Allows you to hold assets and/or stock in other businesses.
- There are many different business activities available in the IFZA Free Zone. Each company license in the IFZA Dubai covers three activities already covered by the overall price.
However, your trading company license allows you to add up to seven other operations for an additional charge. It is possible to mix activities from several categories under a single license.
General Trading License
Since IFZA offers the most affordable General Trading License in Dubai at just 12,900 AED, let’s take a deeper look at this type of license.
In the UAE, you can engage in the following types of trading activities with a general trading license:
- Import goods
- Export goods
- Distribute goods
- Re-sell goods
This can include anything from electronics to building goods, with the exception of items that the UAE government has banned.
The cost of the general trading license is very appealing given the benefits of Dubai free zones, which include 100% foreign ownership, full repatriation of profits, tax benefits, and no restrictions on foreign exchange, as well as the unique advantages of IFZA, which include no capital requirements and no office rental requirements.
These licenses are generally more costly than trading licenses; however, the International Free Zone Authority (IFZA) does not charge this fee.
You can, therefore, choose industries, activities, and product categories with a general trading license, and you can modify this list based on your needs. This gives you more freedom in your operation.
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Affordable license and visa costs
Compared to other Dubai free zones, the IFZA Free Zone offers substantial benefits at a comparatively low cost of company setup in Dubai freezone, which draws in entrepreneurs.
For just 12,900 AED, a business development bundle with no visa requirements may be obtained. Any kind of license may be granted, including trading, general trading, service, or consulting.
The cost of a package that includes one visa is 14,900 AED. A trading and services package in IFZA costs $20,900 with four visa allocations, which is still incredibly cheap.
However, there are also other costs to take into account. These include Emirates ID, visa, medical test, and establishment card fees.
|
Establishment card |
2,000 AED |
|
Medical checkup |
637,50 AED |
|
Emirates ID |
384 AED |
|
IFZA visa fee |
3,750 AED |
Depending on the free zone, some services have different prices. These additional costs come to about 6,770 AED for IFZA, the UAE.
The 30% discount on multi-year setup packages for two, three, and five years is a significant benefit of the IFZA special freezone. If you have decided on this free zone and intend to grow your company in Dubai in the future, this is very helpful.
We advise consulting with qualified business experts in Dubai to help you choose the best UAE free zone for your demands, financial situation, and company objectives. This will offer your company a strong start in the Emirates and help you avoid costly mistakes.
Quick and straightforward registration process in IFZA
It takes three business days to register a company in the IFZA free The entire process, including the medical examination, visa processing, and Emirates ID acquisition, will take about two weeks.
In IFZA Dubai, you can remotely finish the entire business registration procedure! All you have to do is visit the UAE to complete the visa application process and open a bank account.
There are simple and clear steps in the process:
- Identify the business type, license type, and business activity.
- Get the bare minimum of the necessary paperwork, such as copies of your passport, entry permits or visas, a statement confirming your company activity, and your contact information (email, phone number, and residential address).
- Provide your registration paperwork.
- Get the paperwork for the company’s registration and license.
- Get your Establishment card.
- Undergo a medical examination.
- If a resident visa is part of your package, get it.
- Obtain an Emirates ID.
- Get a bank account.
You can begin business in the UAE and take payments as soon as you get the license and the necessary paperwork for company registration. You can get debit and credit cards, create personal and business bank accounts, and access various banking services and products in Dubai, including deposits and loans.
Easy opening of bank accounts in IFZA
Opening a bank account in IFZA is quick and simple because it is a bank-friendly free zone that is well-known to banks. Without a bank account, your efforts to start and expand your company in Dubai and the UAE would be in vain.
Thus, this is a huge benefit. You must use a corporate bank account in order to make payments associated with your trade or professional operations.
The IFZA Dubai freezone demands careful document preparation for the bank account creation process. Answering the banker’s questions and providing an extensive overview of your business, financial status, and business ambitions in the UAE are crucial to the success of opening the account and, by extension, the company’s future in the Emirates.
Therefore, we recommend leaving the subject to business experts who have established relationships with investors and are knowledgeable about rules and compliance standards.
Location and facilities of IFZA
Dubai Digital Park is home to the IFZA Freezone. A deal to move the free zone to Dubai under the Dubai Silicon Oasis Authority was struck in 2020, enabling it to work with businesses in the DSO and DTEC free zones and gain from those relationships. What are these advantages, exactly?
Dubai Silicon Oasis is an integrated technology park with all the facilities needed to conduct business in the modern digital environment. The Dubai Integrated Economic Zones Authority (DIEZ), which governs Dubai Silicon Oasis and IFZA, guarantees consistency, security, and predictability in business regulations.
The IFZA Business Park is an environment that is intended to support business operations as well as expansion, both in terms of the size of the company and individual entrepreneurial experience.
There are several different workstation options in IFZA. If you are a remote worker or freelancer who does not require a permanent office, you can choose to work merely 10 hours a week from a flex desk. Alternatively, you can hire a specific office space that is all yours and open 24/7.
You always get high-speed Wi-Fi, a shared or private business address for your organization, access to conference and meeting spaces for a specific (pre-arranged) period of time each month, and parking for you and your guests.
You can also meet representatives from other companies and make useful connections at the numerous conferences and events held at the business park.
I've opened a company in the IFZA Free Zone. What is next?
You can start your regular business operations after completing the company registration procedure, receiving the necessary paperwork, and opening a bank account. Let’s examine the required steps and related expenses for license maintenance.
- License renewal: Every year, the IFZA freezone license must be renewed. The initial setup cost and the renewal cost are the same. If the license is not renewed during the 30-day grace period, a 1,000 AED late renewal fee will be charged.
- Residence visa renewal: (after the two-year period has passed). You will need to submit your biometric information once more and undergo a medical examination.
- Establishment card renewal: The renewal cost is around 2,000 AED.
- Health insurance: (needed for free zones in Dubai). The chosen insurance provider determines the price.
- Accounting and bookkeeping: Companies with a license to operate in the UAE are required by law to keep accounting records. These services can be outsourced to save your costs because hiring a full-time accountant may not always be financially feasible.
- Corporate tax registration and tax return filing: For corporate tax reasons, all businesses in the United Arab Emirates are taxable persons and are required to register with the Federal Tax Authority (FTA). If their profits for the tax period exceed 375,000 AED, they must pay 9% corporation tax. The sum over this threshold is subject to taxation. Free zones have particular requirements to reduce the tax burden. Even when the tax amount is zero, corporate tax registration and an annual tax return submission are required.
- VAT registration: Businesses that deal with UAE-based items are required to pay 5% VAT. If the business’s taxable offer totals more than 375,000 AED, VAT must be paid, and the business must register with the Federal Tax Authority (FTA) to receive VAT. Quarterly submission of VAT returns is required. Certain free zones are areas that are specifically exempt from VAT. There is no designated zone in IFZA.
- Company amendments: You will have to pay 2,000 AED for the service if you need to make changes to your IFZA freezone business.
- Company liquidation: In the event of a corporate liquidation in IFZA, a comparable sum of 2,000 AED must be paid.
Conclusion
In conclusion, international investors wishing to launch a company in Dubai could consider the International Free Zone Authority (IFZA).
Book your free consultation call today with JSB Incorporation to get started with your business setup in Dubai.
FAQs
Entrepreneurs, SMEs, and multinational companies can establish their presence in IFZA Dubai.
No, businesses can choose virtual office solutions or shared office spaces based on their needs.
Business setup costs in IFZA Dubai are highly competitive, starting as low as AED 11,500.
IFZA Dubai allows business owners to sponsor dependents, including family and domestic staff.
Yes, IFZA Dubai provides investor and employee visas with easy application processes.
Don't miss out on this limited-time opportunity!
We'd Love To Hear From You
contact us
Find us Here
Office No 20, 4th Floor, Al Moosa Tower 2,
Sheikh Zayed Road Dubai, United Arab Emirates P.O. Box 27614.
Get In touch
+971 4 824 4842
info@jsbincorporation.com