Company Setup in IFZA | IFZA License – Dubai Free Zone

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:

1. Offices
2. Flexi-desks

The cost of renting a dedicated office space in IFZA is very reasonable. The following facilities are included in office packages:

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:

1. Trading
2. Consulting
3. 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:

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:

Steps for Company Formation in IFZA Dubai

The following steps are required to set up your company in Dubai International Free Zone Authority:

Advantages of IFZA Company Setup

There are various advantages of the IFZA company formation such as:

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:

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:

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:

High-Risk Nationalities

In IFZA, a few countries are considered high-risk including the following:

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:

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 RIZ & MONA

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.