Dubai IFZA Free Zone Company
United Arab Emirates
IFZA (International Free Zone Authority) is Dubai's fastest-growing and most cost-effective free zone, established in 2018. It offers among the lowest setup costs in the UAE with packages starting around USD 5,500 all-in including visa allocation. IFZA is popular with entrepreneurs, consultants, and digital businesses seeking UAE tax residency at a lower cost than DMCC or DIFC. The free zone permits a wide range of business activities across trading, services, and e-commerce. Banking options include RAK Bank, ADIB, and various fintech solutions. IFZA has streamlined its incorporation process and offers dedicated relationship managers for new applicants. License renewal includes ongoing visa eligibility and access to the UAE's extensive DTA network.
Formation Details
- Setup Time
- 5 days
- Setup Cost
- $5,500
- Annual Cost
- $4,500
- Corporate Tax
- 9% UAE Corporate Tax on profits over AED 375,000; 0% for Qualifying Free Zone Persons on qualifying income
- VAT Threshold
- $100,000
- Nominee Directors
- Not allowed
- Public Register
- No
- Residency Required
- Investor/employment visa included with most license packages. Flexi-desk or office space required for substance. Physical visits to UAE typically required at setup.
- Banking Difficulty
- Moderate
Economic Substance Requirements
- Physical Office
- Required
- Local Director
- Not required
- Minimum Staff
- —
- Annual Local Spend
- $1,500
IFZA requires a physical address (flexi-desk included in most packages) to maintain the licence. For the 9% UAE Corporate Tax Qualifying Free Zone Person exemption, adequate substance (staff, expenditure, and assets) within the free zone is required — the flexi-desk alone may not suffice for all activity types.
Annual Maintenance Breakdown
Typical recurring costs after formation. Most jurisdictions have additional variable costs (accounting fees, professional tax prep, statutory audits) not shown here.
| Item | Annual Cost (USD) | Notes |
|---|---|---|
| IFZA Licence Renewal | $3,000 | Approx AED 9,800-12,000/yr; includes one visa allocation in most packages. |
| Flexi-desk (included in most packages) | $0 | Flexi-desk typically bundled into the IFZA licence package; upgrade to dedicated office ~AED 12,000+. |
| Visa renewal | $700 | AED 2,000-3,000 per visa renewal cycle; amortised annually. |
| Accounting | $900 | Basic bookkeeping + tax return preparation; ~AED 2,500-4,000/yr. |
Banking Pairing Recommendations
Providers commonly used with this entity type for business banking.
US Person Considerations
Same CFC, GILTI, and FATCA considerations as DMCC. US persons must maintain diligent IRS reporting. UAE tax residency does not eliminate US obligations for citizens and green card holders.
Other Jurisdictions
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