IFZA Company Formation - License, Visa, and Cost

Setting up a business in Dubai has never been faster, leaner, or more founder-friendly — and the IFZA Free Zone is proof of that. Known officially as the International Free Zone Authority, IFZA Dubai has become one of the most popular gateways for entrepreneurs, digital founders, and global investors.

Company formation in IFZA is a strategic move for anyone seeking a cost-efficient and reputable base in the UAE. From streamlined IFZA business setup procedures to flexible IFZA free zone packages.

But here’s the real story: while forming a company in IFZA is refreshingly straightforward, banking can still be a hurdle — especially if you operate in high-risk or regulated sectors like fintech, crypto, iGaming, or forex. 

Many founders discover that after securing their shiny new IFZA business licence, banks start asking tough compliance questions about beneficial ownership, AML controls, and source-of-funds proofs. And that’s where most applications stall.

At that point, it’s no longer just about IFZA company registration — it’s about navigating the banking maze: finding the right EMI, choosing between local or international banks, and understanding which institutions are genuinely open to your industry profile.

In this guide, we’ll walk through everything you need to know about IFZA company setup in 2025 — including IFZA Dubai company formation costs, licence types, visa quotas, IFZA free zone licence cost, tax implications, and of course, how to actually open a business bank account that works for your model.

By the end, you’ll know not just how to get an IFZA licence, but how to make it operational — with your company incorporated, your visas issued, your bank account activated, and your compliance boxes ticked.

What Is IFZA (and Why It Matters)

The International Free Zone Authority (IFZA), based in Dubai Silicon Oasis, has become one of the UAE’s most efficient and entrepreneur-friendly jurisdictions for modern businesses. It’s the go-to destination for founders seeking a cost-effective, transparent, and globally recognised route to company formation in IFZA Dubai.

Why IFZA?

• 100% Foreign Ownership, Zero Paid-Up Capital
  Every company established under IFZA Dubai can be fully owned by foreign shareholders, with no capital deposit required — a major advantage for startups and international investors.
• Wide Range of Activities
  The IFZA Free Zone allows more than 500 business activities, covering trading, consultancy, e-commerce, technology, industrial and even regulated sectors. Certain “amber” activities simply require third-party or government approvals, which can be arranged during your IFZA business setup.
• Flexible Visa Structure
  Visa allocation in IFZA depends on your office package. Flexi-desk and private-office options determine how many residence visas you can issue for shareholders and staff. It’s an agile model designed for both lean founders and growing teams.
• Banking & Residency Compatibility
  IFZA company formation comes with documentation that UAE banks fully recognise — making corporate account opening and residency visa processing far smoother than in many other jurisdictions.
• Clean, Scalable, and Efficient Governance
  Business setup in IFZA offers a quick path to operational status with minimal bureaucracy. The authority is known for its digital onboarding, straightforward renewal process, and investor-first approach.

If you’re after a legitimate Dubai presence with speed, flexibility, and clean compliance, IFZA Freezone Dubai ticks every box. The ability to start lean and scale visas or activities later makes it one of the most practical choices for entrepreneurs in 2025.

Legal Forms & Licence Types at IFZA Dubai

When planning your company formation in IFZA, it’s important to choose the right legal structure and licence category from the start. The IFZA Free Zone offers flexibility for entrepreneurs, SMEs, and international groups looking to establish a presence in Dubai.

Legal Forms under IFZA

Businesses registered within IFZA Dubai can operate under several structures:

• FZE (Free Zone Establishment): Single shareholder entity — ideal for solo founders or individual investors.
• FZCO (Free Zone Company): Multiple shareholders — suitable for partnerships or small corporate groups.
• Subsidiary: A locally registered IFZA entity owned by a foreign parent company.
• Branch Office: A direct extension of a foreign or UAE company, operating under its existing legal identity.

Each form offers 100% foreign ownership, no paid-up capital requirement, and limited liability protection — making IFZA company setup straightforward and low-risk.

Licence Categories in IFZA

The Dubai IFZA UAE licence system is divided into several categories to match your operational model:

• Professional / Service Licence – For consultants, IT firms, marketers, designers, and other service-based professionals.
• Commercial / Trading Licence – For import/export, e-commerce, and product distribution.
• Industrial / Light Manufacturing Licence – For light assembly, production, or packaging operations within approved facilities.
• Branch Registration – To legally operate a Dubai branch under your parent company’s name.

IFZA Business Activities — What You Can Actually Do

The IFZA Free Zone offers one of the widest activity ranges in the UAE, making it a flexible base for almost any modern business model. From consulting and e-commerce to logistics, fintech, and light manufacturing — IFZA accommodates over 500+ business activities under its official directory.

You can set up:

• Trading and commercial companies (import/export, retail, distribution).
• Professional and service firms (IT, design, marketing, consulting).
• Industrial or light manufacturing entities (assembly, packaging, production).
• Specialised sectors (education, healthcare, real estate, travel, and media).

For transparency, each activity in IFZA Dubai is categorised by code and clearly marked if third-party or government approvals are needed. You can explore the complete list at .

Regulated or “Amber” Activities

Certain IFZA business activities — such as education, healthcare, financial services, travel, or money exchange — fall under the “regulated” category. These require external approvals from relevant Dubai or UAE federal authorities.

To simplify this, IFZA maintains a live, searchable Activities Directory that highlights which licences need additional approvals.

Choosing the right licence at the start of your IFZA company formation helps avoid banking delays, VAT mismatches, and compliance issues down the line.

IFZA Company Formation Cost 2025 — Packages & Fees Explained

Setting up a business in IFZA Dubai is refreshingly affordable compared to other UAE free zones. Costs vary depending on the number of visas, office solution, and whether you choose a bundled plan that includes immigration and establishment services. The figures below reflect realistic 2025 market averages based on public packages and verified providers.

IFZA License Cost (Packages)

• 0-visa: ~AED 12,900
• 1 visa: ~AED 14,900
• 2 visas: ~AED 16,900–18,500
• 3 visas: ~AED 18,900
• 4 visas: ~AED 20,900

These rates include your Dubai IFZA UAE licence, registration, and basic administration, but it’s important to confirm inclusions such as the establishment card, immigration file, and medical/Emirates ID costs.

• Special Licence Add-Ons AED 5,000 – 20,000+

Certain sectors (e.g. IFZA crypto licence) may require extended verification, blockchain-activity declarations, or central-bank review.

Government & Immigration-Linked Add-Ons

• Establishment Card: ~AED 2,000 (first year) / ~AED 2,200 renewal
• Residence Visa Processing: ~AED 3,750 per person
• Medical Test: AED 450 (standard) – AED 850 (VIP)
• Emirates ID: ~AED 390

Office & Workspace Options (Visa Quota Drivers)

Your chosen workspace determines how many visas your IFZA Free Zone licence can support.

• Flexi-Desk: from ~AED 6,300 / year
• Flexi-Desk Plus: ~AED 9,000 / year
• Dedicated Office: ~AED 960 per m² / year
• Private Office: ~AED 1,600 per m² / year

IFZA Business Setup Total Cost — What to Budget

Most service or trading SMEs should expect to spend:

• AED 15,000 – 25,000 for the first-year licence + establishment card, and
• AED 4,500 – 5,500 per visa (medical, ID, processing).
• Additional AED 10,000 – 30,000 — high-risk or regulated sector

Total costs depend on your office solution, visa count, and whether your provider bundles government fees and renewals.

Share Capital, Ownership & Required Documents

One of the biggest advantages of company formation in IFZA Dubai is the ease of ownership and capital flexibility. Unlike many other jurisdictions, the IFZA Free Zone does not require any paid-up share capital — making it ideal for startups and remote founders who want to stay lean in their first year.

Ownership Structure

• 100% foreign ownership is allowed for all shareholders — whether individual or corporate.
• There are no local sponsor requirements, no minimum capital deposit, and no currency restrictions.
• Profits and capital can be repatriated freely, adding to IFZA’s global appeal.

Standard Document Set for IFZA Company Registration

To register your company, you’ll typically need:

• Passport copy and recent photo of each shareholder/director.
• Completed IFZA company formation application forms.
• UBO (Ultimate Beneficial Owner) declaration — as required under Cabinet Resolution No. 58 of 2020.
• Proof of address or residency (for each shareholder).
• Parent company documents (for subsidiaries or branch setups).

Have all foreign documents notarised and, if required, legalised or apostilled before submission to avoid delays in your IFZA company registration process.

Visa Quotas, Emirates ID & Family Sponsorship

When setting up in IFZA Dubai, your visa quota depends on the size and type of your office solution — flexi-desk, dedicated office, or private office. The rule is simple: more space equals more visas. This system allows businesses to scale their workforce as they grow.

How Visa Quotas Work

• Flexi-desk packages generally include one to three visas, depending on your plan.
• Dedicated or private offices offer larger quotas, with the option to upgrade later.
• IFZA allows quota extensions as your business expands or relocates within the free zone.

Residency Visa Process — Step by Step

Once your IFZA company setup is complete, the residency process follows these standard stages:

1. Entry Permit (valid for 30 days; extendable).
2. Status Change (in-country or out-of-country).
3. Medical Examination (blood test + chest X-ray).
4. Biometrics and Emirates ID application.
5. Visa Stamping (now digitally linked to your Emirates ID).

Most applications are processed quickly. Emirates ID cards are typically issued within 7–10 days after visa stamping, though the e-version is usable immediately.

Family Sponsorship under IFZA

Shareholders and employees with valid UAE residency visas can sponsor family members under their IFZA entity. Key requirements include:

• Minimum salary of AED 4,000, or AED 3,000 + accommodation.
• Valid tenancy contract and proof of relationship (marriage or birth certificates).

Good to know: IFZA companies enjoy the same visa rights as other UAE entities, so dependants can access healthcare, education, and local services seamlessly once their visas are issued.

Corporate Tax for IFZA Companies — 0% vs 9%

Since 1 June 2023, the UAE levies 9% CT on taxable profits above AED 375,000, with 0% below that threshold (general rule). Free zones have a special regime: a Qualifying Free Zone Person (QFZP) can keep 0% on “Qualifying Income” and pays 9% on non-qualifying income. Key points from the FTA’s Free Zone Guide:

• 0% applies to qualifying activities and transactions with other free-zone persons when the recipient is the beneficial recipient, and the income is not an Excluded Activity.
• De minimis rule: if your non-qualifying revenue exceeds the lower of AED 5m or 5% of total revenue, you lose QFZP status for that period.
• Permanent Establishment on the mainland (e.g., onshore staff/sales) jeopardises QFZP benefits. Read the FTA’s official guide (2024) + KPMG’s summary for orientation.

IFZA companies can legally enjoy 0% CT on qualifying income if you structure flows correctly. Sell too much directly to UAE mainland individuals? You’ll likely be in 9% land. Get advice before you invoice.

UAE VAT (5%) — Do You Need to Register?

Mandatory VAT registration at AED 375,000 taxable turnover (last 12 months or next 30 days). Voluntary at AED 187,500 (expenses or supplies). Official FTA guidance is crystal-clear.

Free zone ≠ VAT-free. Many IFZA businesses must register, charge 5%, and file returns. Ignore this and banks/compliance systems will notice — usually at the worst time.

Banking: Opening Your UAE Corporate Account

Opening a corporate bank account is the final (and often most crucial) step in completing your IFZA company formation. The good news? As of 2025, UAE banks are increasingly open to IFZA Free Zone entities — provided your file is clean, compliant, and complete.

Reality check (2025): UAE banks are open to well-prepared free-zone companies — including those formed in the IFZA Free Zone. Expect detailed KYC and document checks; onboarding usually takes 2–6 weeks depending on your profile, activity, and responsiveness.

IFZA Dubai and professional advisors provide clear, step-by-step support and bank-ready packs to simplify the process.

What banks expect (typical):

• Clean shareholder / UBO trail
• Verified source of funds
• Business plan, sample invoices, or initial contracts
• Proof of office lease (Flexi-desk or dedicated office)
• VAT registration (if applicable)
• Logical inward / outward trade flows

For high-risk or regulated sectors (crypto, fintech, iGaming, forex) Banks apply enhanced due diligence (EDD) and may request AML policies, risk statements, or compliance manuals.

Some institutions require higher minimum balances (AED 25,000 – 100,000) or use specialised onboarding teams. Consider EMIs and digital banking alternatives approved for IFZA company formation — faster, compliant, and multi-currency friendly.

Step-by-Step: IFZA Business Setup

1. Choose activities & structure
   Decide your business activities and legal form — FZE (single owner), FZCO (multi-shareholder), subsidiary, or branch.
2. Reserve company name & prepare KYC
   Submit your trade-name options and complete the KYC pack (passport, photo, UBO form, proof of address, parent-company documents if applicable).
3. Secure external approvals (if regulated)
   If your activity involves education, travel, finance, healthcare, or crypto, you’ll need additional sign-offs from the relevant Dubai or UAE authority.
4. Sign & submit incorporation docs
   Once approvals are cleared, sign the MoA/AoA and application forms (digital signing accepted) and pay your IFZA licence fee.
5. Receive licence & company documents
   Your business is officially incorporated — you’ll receive your trade licence, Certificate of Incorporation, and share certificates from IFZA Dubai.
6. Apply for Establishment Card & immigration file
   This enables visa issuance for shareholders and staff. Required for any visa-eligible IFZA company setup.
7. Apply for entry permits & complete residency
   Steps include: entry permit → status change → medical → biometrics → Emirates ID → e-visa stamping. The Emirates ID usually arrives within 7–10 days after stamping.
8. Choose your office solution
   Select between a Flexi-desk, dedicated, or private office based on your team size. Larger offices = higher visa quota.
9. Open your corporate bank account
   Prepare a bank-ready file with KYC docs, source of funds, business plan, and contracts.For high-risk sectors (crypto, fintech, iGaming, forex), add AML policies and compliance statements.
10. Go live
    Register for VAT (if required), issue invoices, onboard staff, and start operations.Typical timeline:

Average end-to-end completion: 3–6 weeks for a standard IFZA company setup; longer for regulated or high-risk businesses.

Bottom Line — Why IFZA Company Formation Is Worth It

The IFZA Free Zone strikes the perfect balance between credibility, cost-efficiency, and ease of doing business. You get 100% foreign ownership, minimal bureaucracy, and access to one of the most reliable jurisdictions in the UAE — all without the heavy overheads of mainland setups.

For startups, digital entrepreneurs, and global founders, company formation in IFZA offers a fast, flexible route to building a genuine Dubai presence. And for regulated or high-risk businesses — from crypto and fintech to iGaming and forex — the right structure and banking strategy can turn complexity into opportunity.

With expert guidance, your IFZA company setup isn’t just paperwork — it’s the foundation for regional growth, global banking access, and full UAE residency benefits.

In short: IFZA lets you start lean, scale fast, and operate globally — and with Binderr managing your formation, visas, banking, and compliance, you’ll be ready to do it right the first time.

IFZA Business Setup - FAQs