Are you looking to open a company in IFZA? Well, you have taken the right decision. This free zone is the ideal location to start a new company due to the numerous benefits and perks it offers to entrepreneurs and investors. If you don’t know anything about business setup in IFZA free zone, fret not, this guide can help. Read on to find out everything about the process, requirements, IFZA license cost, and benefits of establishing a business in IFZA free zone in Dubai.
About International Free Zone Authority (IFZA)
One of the most well-known free zones in the United Arab Emirates is IFZA or the International Free Zone Authority. It has unquestionably made a name for itself as one of the UAE’s top investment hubs over time.
On the list of the UAE’s most lucrative free zones, IFZA comes in at number one. This is because it is situated in one of the most desirable areas in the UAE. It is also quite economical in comparison to other free zones. The economic zone is strategically situated, barely 20 minutes from both Dubai International Airport and Downtown Dubai.
Dubai Silicon Oasis Authority oversees the operations in the free zone. Additionally, this jurisdiction offers a variety of IFZA free zone packages for experienced business owners and new entrepreneurs. These packages offer a wide range of advantages while still being quite affordable. When starting a business, entrepreneurs have the choice of flexi-desks or office space which are the facilities of the IFZA.
The free zone offers business owners countless chances to develop and thrive in the UAE. For instance, it offers a range of packages with numerous advantages for businesses and startups. One such package is the one that gives the investors an IFZA lifetime visa. The cost of an IFZA visa is among the lowest in the UAE. There are also several affordable Ifza visa packages available for businesspeople.
The International Free Zone Authority Dubai has developed a reputation for being the most cost-effective free zone in the Emirates. The free zone has more ideas in the business sector, which opens up countless growth and business opportunity prospects for businesspeople.
Facilities
A variety of office solutions are available in IFZA. The buildings are situated in Dubai’s Silicon Oasis neighborhood. The most recent amenities at Silicone Business Park are available in this free zone:
- Offices
- Flexi-desks
The cost of renting a dedicated office space in IFZA is very reasonable. The following facilities are included in office packages:
- Usage of a meeting room
- WiFi
- Electricity
- Furniture
- Access to copy machine, printer, and scanner
- AC
Activities
A huge number of activities are offered by IFZA. One license can contain up to 7 different business activities. It is possible to combine activities from many categories. E-commerce does not exist as a business activity, but you can use a regular trade license to sell things online. The Dubai Department of Economic Development serves as the source for all corporate ventures in IFZA.
The following types of business enterprises are legal in the International Free Zone Authority:
- Trading
- Consulting
- Service
Remote Company Formation and Fast Setup
This free zone makes it simple to register a business quickly and issue licenses in just two business days. The typical licenses that are issued in the free zone are as follows:
- Industrial licenses
- Consulting licenses
- Investment licenses
- Service licenses
- General trading licenses
- Commercial trading licenses
The least expensive general trading license is issued by IFZA in Dubai. Typically, obtaining a general trading license (covering a wide variety of commodities) requires paying a high license fee as well as a significant deposit into a bank account.
In this free zone, general trading activity fees are quite reasonable and licenses can be issued without requiring proof of capital. Other than in general trading activity, It also enables investors to add a particular activity. Being a new free zone, IFZA has created company setup packages to meet the needs of foreign businessmen of the new generation. Investors don’t need to travel to the UAE to get a license or register a company.
Business Networking Events in IFZA
IFZA is very popular for its ongoing interaction with client investors and partners. Each year, it holds a month-long Polo tournament at the Dubai Al Habtoor Polo & Beach Resort, and client investors have the possibility to go with their business friends.
The opportunity to network for business with high-net-worth people, international celebrities, and owners of global businesses is also greatly enhanced by this event.
Why Choose IFZA for Business Setup in Dubai?
Due to its high service standards in its core business sectors, IFZA is one of the most important worldwide investment centers for business owners and investors. Here are some other positive reasons to choose this jurisdiction for setting up a business in the UAE:
Flexible Licence Downgrading or Upgrading
Business setup package categories range from zero visa allocations to six visa allocations in the IFZA. According to the regulations, it allows the flexibility to start at zero or one visa and can increase on the basis of your business needs.
It encourages young business owners to make a minimal investment in a business setup.
Cost-effective Business Setup
In comparison to company formation in other Emirates, the company setup cost in IFZA is less.
To catch the attention of new businesses, business owners, and startups, the free zone maintains a defined pricing structure and provides the most affordable business setup options.
Fast Company Incorporation Process
Without a physical office, anybody can form a corporation with the help of IFZA. In addition, the jurisdiction provides a quick and simple approval process from the authorities.
Required Documents for IFZA Company Formation
The following documents are needed for setting up a business in IFZA free zone:
- Copy of Emirates ID
- Complete application form
- Visa copy
- Passport copy of business owners
- Two passport-sized colored photographs with white background
Steps for Company Formation in IFZA Dubai
The following steps are required to set up your company in Dubai International Free Zone Authority:
- First, choose the most suitable company structure for your business.
- Next, apply to register your company.
- Then, submit the required documents to the relevant authorities.
- Pay the license fee.
- After paying the fees, IFZA will issue an e-agreement.
- Sign the issued e-agreement and share capital letter (only applicable for FZCO & FZE)
- Finally, you will be issued an e-license.
Advantages of IFZA Company Setup
There are various advantages of the IFZA company formation such as:
- 100% foreign ownership
- No export and import duties but you are not allowed to import into mainland
- No corporate, personal, or income taxes
- 100% repatriation of profits and capital
- Strategic location boosting opportunities
- No requirement for paid-up share capital
- Different business activities are legal
- Quick and simple business setup process
- Top-rated infrastructures
- Leasing options
- Global connectivity
Legal Business Entities in IFZA
The term ‘FZCO’ is used for A branch and an LLC established at IFZA.
The following types of legal business entities can be incorporated under IFZA authorities:
Branch
If the parent firm and the branch will engage in the same activity, then existing businesses can open a branch in IFZA. The identity of the branch is regarded as merged with the identity of the parent company for the purposes of obligations, profits, debts, gains, expenses, returns, and liabilities.
Limited Liability Company (LLC)
In this legal structure, the company’s liabilities do not become the shareholders’ personal liabilities and are the company’s own liabilities. The scope of the shareholder’s liability is capped by the value of his investments in the company. An LLC’s assets are acquired under the company’s name, not those of its shareholders.
Special Benefits to Set Up a Company in IFZA
Because of the free zone’s special advantages and the prospects it offers to businessmen and investors, IFZA is a leading free zone community in the UAE that stands out from the other ones. These benefits consist of the following:
- Investors or entrepreneurs are not necessary to be present in person in IFZA to start a business
- The investor is not required to submit a yearly audit report to the IFZA authorities.
- Employee guarantee deposit to the jurisdiction is not necessary.
- The country grants owners and staff visas valid for up to three years.
Business Licenses in IFZA Free Zone Dubai
The price of an IFZA license is very reasonable. In IFZA, the starting price for a business setup is also reasonable. These packages range from ones with no visas to ones with six visas. The Department of Economic Development (DED) is the source for all commercial operations allowed in IFZA.
As we mentioned before, there are a number of benefits to incorporating in the IFZA. Another significant benefit is that IFZA permits up to 7 activities under a single license. The following are the licenses that the jurisdiction issues:
- Holding license
- Consultancy license
- Industrial license
- Service license
- General license
- Trading license
IFZA is one of the few economic zones in the UAE that permits the combination of activities from various categories. E-commerce is not acknowledged as a different activity either. But with an IFZA general trading license, one can still sell goods on online marketplaces.
General Trading License In IFZA Dubai, UAE
A general trading license is an option for any business that intends to launch a business operation for trading different products that may or may not be connected to a particular industry. The company has a general trading license and can trade, export, and import different products and goods everywhere in the UAE.
A general trading license permits the import and export of products such as furniture, building supplies, clothing, accessories, and electronics. This license will cover all of your trading activities, even if they are spread across several different industries.
Companies are permitted to trade a wide range of goods. But the types of goods that the government forbids, such as ammunition, tobacco, arms, alcohol, and rifles, are an exception. Although general trading licenses in the UAE are more expensive than other options, they have their own advantages, such as the perk to cover a variety of activities under one license. A General Trading License in the IFZA Dubai allows business owners to engage in up to three legal corporate activities. The free zones and mainland in the UAE both grant general trading licenses.
License Renewal in IFZA
Business renewal in the IFZA free zone is a very straightforward and affordable process. You must submit the signed lease agreement for your facility together with paying the renewal fee in order to complete the renewal process for your business license. You can renew your license through an agency without being physically present in the UAE.
IFZA Visa
Costs for IFZA visas are quite affordable. Additionally, the free zone frequently introduces lower prices and promotions to help businessmen and entrepreneurs looking to begin a business setup in the IFZA.
About UAE Residence Visa
Remote processing is possible for resident visas. Business owners’ and employees’ visas are good for three years. Also, there is no requirement for health insurance for visa processing at IFZA.
Required Timespan for Visa
The common time-frames for UAE residence visa would be as follows:
- 3 days for company setup
- 7 to 10 days for an establishment card
- 5 days for entry visa
- 5 to 6 days for Emirates ID, visa stamping, and medical check-up
There is always a way to accommodate a person of any nationality, as this list is changing and differs between Emirates. But due to Dubai’s relaxed immigration laws, it is typically advised for nationals of high-risk countries to establish their businesses in the UAE.
You need to meet the following requirements to issue dependent visas for your family and bring them to the UAE:
- Translate the birth certificate and marriage certificate into Arabic.
- Rent an apartment in the Emirates. For that, a tenancy contract must be made in the sponsor’s name.
- Attest the birth certificate of the children and marriage certificate of the spouse in the Ministry of foreign affairs in the UAE and in the UAE Embassy in the country of origin.
Company Liquidation in IFZA Free Zone
In the case of any unforeseen events or business losses, company liquidation in the IFZA is a well-structured process that enables investors to exit their business ventures with ease.
To finish the liquidation process, you will have to submit fees to the government. At the time of license liquidation, investors will need to provide a thorough audit report.
Just like license renewal, business liquidation can be completed through an agency and does not require the owner’s actual presence.
Step By Step Process of Business Liquidation In IFZA
The steps involved in a company closing take around a month to complete and are as follows:
Step 1.
First of all, the Investor needs to submit the Board resolution to the authorities confirming that all shareholders have accepted the company’s liquidation procedure.
Step 2.
At least one month prior to canceling your trade license, you need to send the request to the free zone to close the business.
Step 3.
Next, you need to submit the business documents and the Board resolution to the free zone authorities.
Step 4.
The investor is responsible for canceling all the employee visas and paying all payments owed to third parties and free zone authorities.
Step 5.
Before the company is closed, all accounts with suppliers and other partners must be paid completely.
Step 6.
To obtain the Trade Licence Cancellation Certificate, you need to give the auditor liquidation certificate to the IFZA. The Trade license cancellation form requires payment of a charge. Additionally, the free zone must receive the refund request form before issuing any refunds.
Step 7.
Obtain the Trade Licence Cancellation certificate from the IFZA and the refund from the free zone in accordance.
Company Setup in IFZA Freezone with Smart Business Creation
That was all about business setup in IFZA free zone. The process is quite simple and requires only a few steps to do so. But, to complete the process smoothly, we do recommend taking help from professional business setup experts in Dubai.
To learn more about the choices available to start your company in International Free Zone Authority, contact Smart Business Creation CONSULTANCY, one of the leading business setup consultants in Dubai, UAE. Your business-related questions will be answered, and we will also provide you with the best possible options for establishing a free zone business in the IFZA.
FAQs – Frequently Asked Questions
How much does it cost to set up a business in Dubai free zone?
The business setup cost in Dubai free zone varies from case to case and also depends on a number of factors.
How do I start a free zone business?
Here are the steps for a free zone company formation:
- Pick the type of legal entity
- Choose a trade name for your company
- Apply for a business license for your company
- Pick an office space for your company
- Issue pre-approvals, register your company, and get your business permit
How much does it cost to set up a company in Sharjah free zone?
The cost to set up a company in Sharjah free zone depends on the type of business, chosen business activity, industry, and many other factors.
Can a free zone company do business in Dubai?
Firms operating in free zones are permitted to do business with other firms there as well as internationally, but they are not allowed to trade with customers in Dubai or the rest of the UAE.
