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. 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. The International Free Zone Authority Dubai has developed a reputation for being the most cost-effective free zone in the Emirates.
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
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.
Business Activities Allowed in IFZA
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
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 Dubai, 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.
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.
Steps for Company Formation in IFZA Dubai
The following steps are required to set up your company in 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.
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
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.
