How to Setup a Business in Dubai IFZA Free Zone
IFZA Freezone Company Formation in Dubai is fast becoming the go-to choice for entrepreneurs and SMEs looking to start a business in the UAE.
Dubai’s business-friendly ecosystem, combined with IFZA’s cost-effective packages and streamlined process, makes launching a company easier than ever.
Whether you’re an international investor, a startup founder, or a freelancer, this guide will walk you through everything you need to know – from IFZA Free Zone benefits and license options to the step-by-step company formation process and insider tips to secure your free zone license in Dubai.
By the end, you’ll understand why IFZA stands out for company formation in Dubai and how to get your venture off the ground smoothly, with expert support along the way.
Dubai’s modern infrastructure and pro-business policies have made it a global hub for company formation. Free zones like IFZA offer foreign investors an easy entry into this thriving market.
Key Takeaways
- IFZA Freezone = Fast & Affordable: IFZA Dubai offers one of the quickest and most cost-effective routes to start a company in the UAE, with license packages from AED 12,900 and setup in as little as one week
- 100% Ownership & Tax-Free: Entrepreneurs enjoy full foreign ownership, zero corporate or personal taxes, and 100% profit repatriation when establishing a company in IFZA – maximizing control and financial benefits.
- Flexible Business Options: You can combine up to several business activities under one IFZA license and upgrade visa allowances or office space as your business grows, thanks to the free zone’s flexible policies.
- Minimal Requirements: No paid-up share capital is required to form an IFZA company, and you can complete the incorporation process remotely without visiting Dubai – lowering barriers to entry for international investors.
- Expert Support Available: Partnering with a UAE business setup expert like CBS ensures a smooth journey – from choosing the right license to handling PRO services (visas, banking, legal paperwork) – so you can confidently launch your Dubai venture with IFZA’s advantages.
What is IFZA Free Zone?
IFZA stands for the International Free Zone Authority, a free zone jurisdiction originally established in 2018 in Fujairah and later relocated in 2020 to Dubai Silicon Oasis (DSO).
This strategic move placed IFZA in the heart of Dubai’s innovative business park, enhancing its appeal for investors.
IFZA Free Zone is licensed to offer a wide range of business activities and company structures, functioning as a one-stop hub for business setup.
Key characteristics of IFZA Free Zone:
- Wide Range of Activities: IFZA allows businesses from over 800 (now even 1,000+) approved activities across trading, services, consulting, e-commerce, industrial, and more.
Unlike some sector-specific free zones, this means you have the flexibility to pursue multiple business lines under one umbrella.
In fact, IFZA lets you combine up to seven activities under a single license (up to three included by default) without extra fees if they fall under the same license type.
- Location and Infrastructure: Now situated in Dubai Silicon Oasis, IFZA offers state-of-the-art infrastructure in the IFZA Business Park.
Being in Dubai means access to world-class amenities, a prestigious business address, and proximity to major transport links.
(Originally, IFZA’s roots in Fujairah provided access to seaports on the east coast, but its Dubai base gives even better connectivity to global markets.)
The free zone provides modern offices, warehouses, and even residential and retail facilities within its ecosystem, ensuring that as your business grows, you have suitable facilities available.
- Regulatory Authority: IFZA is a government-authorized free zone regulator.
Companies registered here are governed by IFZA’s regulations and enjoy the same legal benefits as other UAE free zones – notably, 100% foreign ownership, full capital and profit repatriation, and exemption from local taxes.
- The authority also offers business support services (from banking assistance to legal and visa services) to help new companies settle in.
Benefits of IFZA Freezone Company Formation in Dubai
Choosing IFZA for your company formation in Dubai comes with an array of advantages that cater to business owners’ financial, operational, and strategic needs.
Here are some of the top benefits of setting up in IFZA Free Zone:
- 100% Foreign Ownership: Like all UAE free zones, IFZA allows full foreign ownership of companies.
You don’t need a local sponsor or partner – you retain complete control of your business. This is a major draw for international investors who want sole ownership and decision-making power.
- Zero Corporate and Income Tax: IFZA offers a tax-free environment – no corporate tax and no personal income tax on profits earned.
This 0% tax regime means you can maximize profits and reinvest in growth.
(Note: UAE introduced a federal corporate tax in 2023, but free zone companies like IFZA remain exempt if they do not conduct business with the mainland, preserving the tax-free advantage for compliant free zone entities.)
Additionally, there are no import/export duties on goods traded within IFZA or re-exported, and no currency restrictions on transactions.
- Cost-Effective Setup Packages: IFZA is widely regarded as one of the most affordable free zones in Dubai.
License packages start at a very low cost compared to other jurisdictions. For instance, as of 2025 the IFZA license cost starts from about AED 12,900 for a zero-visa package – this includes the trade license and the ability to conduct up to three business activities under one license.
Even packages with visas (for you or employees) are competitively priced, making IFZA arguably the budget-friendly option for setting up in Dubai.
- No Paid-Up Share Capital Requirement: Unlike some jurisdictions that require you to deposit a minimum capital, IFZA has no upfront share capital mandate.
You can setup a company without the need to block funds in a bank, which lowers the entry barrier for new businesses.
- Quick and Easy Incorporation: Speed is another hallmark of IFZA. The company registration process is very streamlined and can often be completed within 3–5 business days once your documents are in order.
The procedures have been simplified by the free zone authority, enabling businesses to start operations quickly.
Approvals for name and initial application come through in a matter of days, and final license issuance is swift after payment.
- Remote Setup (No Physical Presence Required): IFZA permits remote company incorporation.
You do not need to be physically present in the UAE to register your company or obtain the license. All paperwork can be handled via email and through a business setup consultant in Dubai Like Corporate Business Services (CBS).
This is incredibly convenient for entrepreneurs abroad – you can complete IFZA Freezone company formation from your home country and simply travel to Dubai when you’re ready to start operations or to process visas.
- Multiple Business Activities Under One License: With IFZA, you have the flexibility to carry out diverse activities under a single license.
You can combine related activities (for example, consulting, trading, and e-commerce together) without needing separate licenses, as long as they fall under the allowed categories.
IFZA allows up to 3 activities by default (and more can be added for a nominal fee). This is a great benefit for entrepreneurs with multi-faceted business plans, as it reduces cost and administrative hassle of maintaining multiple licenses.
- Flexible Office Solutions: IFZA offers flexible workspace options to meet different needs and budgets.
You are not forced to lease a full physical office if you don’t need one – you can opt for a Flexi-desk or virtual office facility to fulfill the minimal office requirement.
These come at low cost and still provide you with an official business address and access to meeting rooms. Of course, if you need a dedicated office or warehouse, IFZA has those too within Dubai Digital Park – ranging from co-working desks to private offices and storage units, all with modern amenities.
- Strategic Location & Networking: Being in Dubai, IFZA companies benefit from the emirate’s robust business network and connectivity.
You’ll be part of a vibrant community of entrepreneurs and have easy access to clients and markets in both the East and West.
IFZA also frequently holds networking events, training (through IFZA Academy), and provides a platform to connect with other businesses. The Dubai Silicon Oasis location places you in a tech-focused free zone with plenty of collaboration opportunities.
In short, IFZA provides an investor-friendly environment with supportive policies and a thriving business community.
- Full Repatriation of Capital and Profits: As an IFZA company owner, you can remit all your profits back home without any restrictions.
There are no foreign exchange controls. You are free to repatriate 100% of your capital and earnings in any currency, at any time. This assurance is crucial for foreign investors wanting flexibility in moving funds.
- Limited Liability & Asset Protection: An IFZA company (whether a Free Zone Establishment or Company) gives you limited liability – essentially similar to an LLC structure.
Your personal assets are protected, as the company is a separate legal entity. Additionally, IFZA maintains strong privacy and confidentiality standards for business information, giving peace of mind that your company data and intellectual property are secure.
These benefits make IFZA a compelling choice for anyone exploring company formation in Dubai via a free zone.
In essence, you get the trifecta of low cost, low hassle, and high flexibility – a combination that’s hard to beat. Now, let’s look at how you can actually set up your company in IFZA step by step.
How to Set Up a Company in IFZA Dubai (Step-by-Step)
Setting up a company in IFZA is designed to be straightforward. In fact, the process is so streamlined that you can often complete it in a week or two.
Below is a step-by-step breakdown of IFZA Free Zone company formation:
1.Choose Your Business Activity and License Type:
Decide on the business activity (or activities) you want to pursue. IFZA supports a broad range – from trading and consulting to media, IT, and import/export.
Ensure your desired activities are in IFZA’s approved list (chances are, they are, given 1,000+ options). Based on the activity, determine the appropriate license type: Commercial, Professional/Service, Industrial, or even a General Trading license if you have a wide trade scope.
2.Select a Company Structure:
Choose the legal entity form. With IFZA you can set up either a Free Zone Establishment (FZE) – if you have a single shareholder – or a Free Zone Company (FZCO) for multiple shareholders.
Both are essentially limited liability entities. Alternatively, an existing foreign company can register a Branch in IFZA.
Determine what works best for your ownership and investment needs. (Most entrepreneurs go with an FZE/FZCO as new entities.)
3.Reserve a Company Name:
Pick a unique name for your company and submit it for approval. The name should comply with UAE naming regulations – generally, it must not infringe on trademarks, not contain obscene or religious words, and if it includes a person’s name (e.g., your surname), that person must be a partner or owner.
IFZA will check and approve the name if it meets the criteria. This trade name reservation step is quick, usually done within 1-2 days.
4.Apply for Initial Approval:
Fill out IFZA’s application form for company registration and prepare the required preliminary documents.
Typically, you’ll need shareholder passport copies, a brief description of intended business activity, and your chosen license package details.
5.Submit Legal Documents:
Upon initial approval, you will need to sign the incorporation documents. This includes the Memorandum and Articles of Association (prepared in IFZA’s standard template), board resolution (if applicable), and passport-sized photos of owners.
6.Choose Office Space (if required):
At this stage, you will confirm the facility you’ll use. If you opted for a flexi-desk or virtual office in the package, IFZA will allocate it.
If you need a physical office or warehouse, you’ll finalize the lease agreements. (Many small businesses start with the flexible desk option and upgrade later as needed.)
This step is formally required because IFZA, like all free zones, must assign every company a physical address or desk.
7.Pay License Fee and Collect License:
Once everything is approved, IFZA will issue an invoice for the license package and registration fees. Upon payment, the trade license is issued.
Congratulations – your IFZA company is now officially formed! You will receive the Trade License Certificate and Certificate of Incorporation, and your company is recorded in the IFZA registry.
8.Establishment Card & Visa Processing:
Along with the business license, IFZA will process your Establishment Card (also known as Immigration Card) which allows the company to sponsor visas.
The establishment card typically costs AED 2,000 for first year and is ready in a few days. With that in hand, you (and your employees, if any) can apply for UAE residency visas under the company.
IFZA’s visa process involves an entry permit, medical test, Emirates ID, and visa stamping. Each residence visa costs around AED 3,750 in government fees plus medical and ID fees.
Throughout this process, Corporate Business Services (CBS) can be your trusted partner. Company formation involves paperwork and coordination with authorities – which CBS’s experienced PRO specialists handle on your behalf, making the journey truly hassle-free.
From preparing your application to liaising with IFZA officers, CBS’s business setup consultation ensures each step is completed correctly and promptly.
This professional support lets you focus on planning your business while we take care of the formalities.
IFZA License Packages and Costs
One of the reasons IFZA Free Zone is so popular is due to its transparent and affordable license packages.
Here’s an overview of the license options and costs as of 2025:
- Zero Visa Package – AED 12,900: This is the entry-level package for a solopreneur or investment holding company that doesn’t require visas.
It includes your IFZA trade license and allows up to 3 business activities under that license. Renewal cost annually is also AED 12,900, making it extremely budget-friendly to maintain.
- 1 Visa Package – ~AED 14,900: Includes the license plus eligibility for one resident visa (typically for the owner).
If you plan to physically work and reside in Dubai, you’d opt for at least this package.
- 2 Visas Package – ~AED 16,900; 3 Visas – AED 18,900; 4 Visas – AED 20,900: IFZA allows up to 4 visas under a standard license package.
These packages are ideal for small teams or if you have co-founders and staff. The cost scales with each additional visa slot.
Even the 4-visa license at ~AED 21k is priced very competitively compared to other free zones in Dubai.
Each visa you actually apply for will have additional government fees (as mentioned earlier: approx AED 3,750 per visa, plus medical and Emirates ID fees).
There’s also a one-time registration fee (often included in the package price) and the establishment card fee (~AED 2,000 first year).
Office space costs: If you choose to rent a dedicated office, those costs are separate. IFZA’s flexi-desk options come with minimal annual fees (a few thousand dirhams).
Private offices in IFZA Business Park start around AED 18,240 per year for a small furnished office space.
However, taking an office is optional unless your visa requirement or business activity specifically calls for it. Many new companies start with the flexi-desk (which might be bundled for free or a nominal cost in the package).
No hidden fees: Apart from the above, there are typically no surprise charges.
IFZA does not mandate share capital deposit, as noted, and also there are no annual audit requirements for most small private companies (unless you later need it for bank compliance or so).
This keeps your ongoing costs low. License renewal each year will cost the same as initial (sometimes even a bit less if promotions apply).
Documents Required for IFZA Company Formation
One more thing to have in order is your documentation. Thankfully, IFZA’s requirements are quite standard and minimal:
- Shareholder Passport Copy: A clear colored copy of the passport for each shareholder (and the manager, if different). Passports should be valid for at least 6 months.
- Passport Photos: Two passport-size photographs (recent, white background) for each shareholder and intended company manager. Digital photos are usually acceptable.
- Proof of Address: A utility bill or bank statement showing the current residential address of each shareholder (dated within last 3 months). This is to satisfy due diligence/KYC norms.
- Business Plan (if applicable): Generally required only if your activity is of a special nature (for example, certain consultancy or financial services) or if requested by IFZA.
Most normal trading or service activities do not need a detailed business plan as part of the application.
- No Objection Letter: If a shareholder is/was a UAE resident with a visa (from employment or another business), a NOC from the current sponsor may be needed. For new foreign investors, this is not applicable.
- Existing Company Documents (for branch or corporate shareholder): If you’re opening a branch of an overseas company, you’d need that company’s Certificate of Incorporation, Board Resolution to open branch, etc., duly attested. Not needed for a new FZE/FZCO.
Launch Your Dubai Business with IFZA and CBS
Embarking on IFZA Freezone company formation in Dubai is a smart move for anyone seeking a friendly, efficient start in the UAE market.
With its unbeatable combination of benefits – 100% ownership, tax exemptions, broad activities, and low costs – IFZA truly lowers the entry threshold for new businesses.
It’s no surprise that IFZA is often hailed as an ideal gateway for startups and international companies looking to tap into Dubai’s dynamic economy.
When you’re ready to take the next step, Corporate Business Services (CBS) is here to turn your plans into reality. As an Emirati-owned business setup consultancy, CBS has the local expertise and professional team to handle all aspects of your company formation in IFZA.
We’ll guide you through each step – from picking the perfect license package and preparing documentation to obtaining your IFZA free zone license in Dubai without a hitch. Our comprehensive PRO services cover visa applications, bank account opening assistance, and ongoing compliance, so you can focus on growing your business from day one.
Ready to start your IFZA company? Contact CBS today for a free consultation. Let’s collaborate to make your entrepreneurial dream in Dubai a success story.
