IFZA Company Formation
IFZA, the International Free Zone Authority, is a Dubai free zone for trading, services and online businesses. It is the route we use most for UK, Irish and Australian owners, mainly because banks are comfortable with it. Here is who it suits, what it costs, and how it works at the bank.
Talk to us about IFZA- IFZA is a Dubai free zone for ordinary trading, services and online businesses. It is not for commodities or regulated finance.
- It is the free zone we use most, mainly because banks are comfortable opening accounts for IFZA companies.
- You can own it 100%. The cost depends on how many people need a visa, not how many shareholders you have.
- A realistic setup is around AED 45,795 in the first year for one person on a visa, and less in renewal years.
- We are licensed IFZA agents, so we deal directly with IFZA ourselves rather than passing the work to another firm.
- Not for everyone. Commodities, regulated finance, a holding structure, or selling into the UAE market all point somewhere else.
What IFZA is known for — and how we handle it
Based on real client reviews of IFZA — rated 4.8 from 2,948 Google reviews.
What IFZA actually is
A standard Dubai free zone, the same kind of entity as RAKEZ or any other free zone, positioned at the lower-cost end. An IFZA company is 100% foreign-owned, can invoice clients anywhere, and runs under free-zone rules rather than mainland company law. What sets it apart in practice is not the law. It is that banks are used to IFZA companies, and that IFZA checks the business before it issues the licence.
Why we use IFZA most often
Banks are comfortable with it. In our experience UAE banks open accounts for IFZA companies with less back-and-forth than for most other free zones. Part of the reason is that IFZA checks the activity and the ownership before it issues the licence, so some of what a bank would ask has already been dealt with. Part of it is simply that banks have seen a great many IFZA companies and know what to expect.
The substance it asks for is realistic. Banks now want to see a real business behind the company: a UAE office, someone they can reach, signs that work is actually happening here. IFZA sits in a working business district with offices at a range of prices, so the substance you show the bank is one the business would keep anyway.
We work inside it. We are licensed IFZA agents, so we deal with IFZA's licensing and compliance directly and are accountable for what we submit, rather than passing it to a sub-broker. It is also why we can recommend IFZA without a conflict: we are just as ready to send you to DMCC, DIFC, ADGM or mainland when one of those fits better.
How IFZA compares
IFZA is the everyday free zone. The premium free zones are not better versions of it; they exist for specific needs:
- Commodities and large-scale trading belong in DMCC.
- Regulated finance, funds, or an English-law holding structure belong in the DIFC or ADGM.
- Selling directly to customers inside the UAE needs a mainland licence.
For an ordinary trading, consulting, software or e-commerce business with no regulated activity, IFZA does the same job for far less. The full side-by-side is in Free Zones in Dubai and IFZA vs RAKEZ vs Meydan vs DMCC.
IFZA, in full
These are our firm's prices for a setup with one person on a residence visa. The number of shareholders does not change the cost. What changes it is how many people need a visa under the company, so each extra visa adds to the figures below. We show three years because the residence visa renews on a two-year cycle and the first year carries one-off costs the later years do not.
- IFZA trade licence, AED 15,645 a year. Passed through at the registry price, no mark-up. Includes the licence, the Memorandum and Articles of Association (the company's founding rulebook), share certificates, the record of who owns the company, the company stamp, and an attested board resolution prepared to the standard banks expect.
- Establishment card, AED 3,000 a year. The document that lets the company sponsor visas. Renewed each year.
- Residence visa, one person, AED 8,500 every two years. Covers the full cycle: medical, biometrics, Emirates ID, transport between appointments, and full assistance.
- Each additional person who needs a visa, AED 8,000. Same service for each person. Each extra visa also adds AED 2,100 a year to the trade licence, because IFZA prices the licence by the number of visas it carries.
- Bank account setup, AED 12,000 one-off. We run the whole application: look at the activity and ownership, speak to the bank directly about the company, gather the documents and source-of-funds evidence, submit it, and handle the compliance review. The signing is timed to your Emirates ID trip, so you do not need a second flight. The bank's own charges are separate. For some low-turnover companies a basic business account is enough, and we can help with that for AED 3,000.
- Corporate address, AED 6,000 a year. Provides the company with a real UAE business address, which forms part of the substance banks expect to see. Renewed each year.
- Corporate tax registration, AED 650 one-off. With the Federal Tax Authority. Required for every UAE company.
- Accounting, from AED 1,000 a month, on request. The rate depends on how many transactions you have and how complex they are. Some owners only need year-end work.
The three-year picture:
- Year 1, AED 45,795: trade licence, establishment card, one residence visa, corporate address, bank account setup, corporate tax registration.
- Year 2, AED 24,645: trade licence, establishment card, corporate address. No visa this year, because it renews on the two-year cycle, and no one-offs.
- Year 3, AED 33,145: trade licence, establishment card, residence visa renewal, corporate address.
The first-year figure does not include the bank's own account charges, accounting if you take it, or any activity-specific approval your licence might need.
How long it takes
Once the application goes in, the licence is issued in about a week. The establishment card follows in a few days, then the entry permit, so roughly two and a half to three weeks to that point, most of it handled remotely. You then come to Dubai for about two weeks for the residence visa: the medical and biometrics, the visa itself, and the Emirates ID, which arrives a few days later. The bank account follows: a small, low-risk single-owner business usually opens one in three to four days, a larger company with more shareholders or higher revenue in seven to ten days, and a higher-risk, third-party-approval or regulated activity can take up to three months. The residency steps have to be done in person and you need to stay until the visa is issued, so we plan it as one trip.
What IFZA means at the bank
Banks are comfortable with IFZA companies, but the account is never automatic. The bank still looks at the activity, the owners and the substance, and the decision is always theirs. What we can tell you is how we work: we speak to the bank directly about the company before we set it up, so the activity, the structure and the documents line up with what they have told us they need.
We are careful about who we take on. If a business is the kind banks will not open an account for, we say so at the start rather than taking it on and hoping. So by the time we begin we expect the account to open, and every client we have taken on has opened one so far. The decision is still the bank's, and if your case looks difficult we will tell you before you commit. How UAE bank accounts actually work is covered in full on How to Open a UAE Business Bank Account.
Corporate tax
Like any UAE company, an IFZA company pays 9% corporate tax on profit above AED 375,000. A free zone company that meets the conditions can apply 0% on its qualifying income, and many younger businesses qualify instead for Small Business Relief while their revenue is under AED 3 million. Which one fits depends on the business, and we work it out case by case. The detail is on UAE Corporate Tax for foreign-owned entities.
Is IFZA right for your business?
IFZA suits a business that genuinely operates, has no regulated activity, and whose owners will keep a real presence in the UAE. Typical examples:
- Consultancies and professional-services firms billing clients outside the UAE
- Software, SaaS and online businesses
- E-commerce businesses
- Trading companies that do not need commodity-specific infrastructure
- Agencies and media businesses
- A simple holding company over one operating business, where you do not need a common-law structure like the DIFC or ADGM
It does not suit commodity trading, regulated finance, family-office work, or selling directly into the UAE market. For those, IFZA's low cost buys nothing you need, and DMCC, the DIFC, ADGM or mainland is the right route. If that is your situation, we will tell you.
Gareth and his team (Emma and Ola) helped me set up my business in IFZA. Throughout the process, they have been incredibly supportive right from answering questions (and I had lots and lots of questions), being responsive, providing complete clarity about every step of the process and making sure that everything worked with pin-point precision. In a service business all of these things are crucial particularly when dealing with people across borders. Gareth is highly knowledgeable about local issues, laws and regulations and this is absolutely critical in ensuring that you start out on a right footing. I would highly recommend speaking with Gareth if anyone is considering a move to Dubai.
Deepak Bhandari · 5-star Google review, 22 January 2025
Frequently asked questions
What is IFZA?
The International Free Zone Authority, a Dubai free zone for trading, services and online businesses. It is one of the more widely used free zones for owners setting up in Dubai.
Can you set up in a free zone that is not listed here?
Yes. These are the free zones our clients use most often — not the only ones we work with. The UAE has more than forty free zones, and we can set up in any of them. If you are considering one that is not covered here, ask us and we will talk it through.
Is IFZA a good free zone?
For an ordinary trading, consulting, software or e-commerce business, yes. It is one of the more practical choices in Dubai, mainly because banks are comfortable with IFZA companies and the cost is reasonable. It is not the right home for commodities (DMCC), regulated finance or holding structures (the DIFC or ADGM), or selling directly into the UAE market (mainland).
Can a foreigner own an IFZA company?
Yes. An IFZA company can be 100% foreign-owned, with no local partner required and no share capital to deposit.
Will I need a physical office in Dubai?
Not always, but a shared desk that was fine a few years ago often is not enough for the bank now. We work out the right substance around your business and how much time you will spend in the UAE.
Is IFZA tax-free?
No. UAE corporate tax is 9% on profit above AED 375,000. A free zone company that meets the conditions can apply 0% on qualifying income, and many younger companies qualify for Small Business Relief while revenue is under AED 3 million.
Can I open a bank account with an IFZA company?
Usually, yes, and it is one of the main reasons we use IFZA: banks are comfortable with IFZA companies. The account is never automatic, though. The bank looks at the activity, the owners and the substance, and the decision is theirs. We only take on businesses we expect to be able to bank, and we speak to the bank about the company before we set it up.
What does the setup cost?
Around AED 45,795 in the first year for one person on a visa, then AED 24,645 in Year 2 and AED 33,145 in Year 3, as the visa renews every two years. Each additional person who needs a visa is AED 8,000 and adds AED 2,100 a year to the licence. We will cost it for your exact numbers.
How long does an IFZA setup take?
About two and a half to three weeks to the entry permit, most of it remote, then roughly two weeks in Dubai for the visa and Emirates ID. The bank account follows: usually three to four days for a small, low-risk business, seven to ten days for a larger company, and up to three months for a higher-risk, third-party-approval or regulated activity.
Can I set up an IFZA company without visiting the UAE?
The company stage runs remotely. The residency stage does not: the medical and biometrics are done in person, and you need to stay until the visa is issued. The bank signing usually needs you here too, so we plan it as one trip of about two weeks.
Where to read next
These are the free zones we use most for our clients. If the one you are considering is not here, we can set it up too — just ask.
Not sure IFZA is the right route?
Tell us what the business does and where your customers are, and we will tell you whether IFZA fits, or whether DMCC, the DIFC, ADGM or mainland is the better route.
Talk to us about your setup