IFZA company formation

Dubai’s International Free Zone Authority, better known as IFZA, was set up in 2018 as a low-cost Dubai free zone aimed at making business setup quicker and more accessible. Based in Dubai, it has become a popular choice for startups, consultants, freelancers, and international firms looking to test the waters before committing to a full regional presence. The appeal lies in its simplicity, clear licensing, fast processing, and minimal paperwork. It suits those who want to get up and running with less red tape and without a big investment upfront. This guide covers who it’s best for, how the process works, and what to expect.

Why choose IFZA?

IFZA offers a clear, efficient route to setting up in the UAE. You can own 100% of the company, even if you're the only shareholder, and there's no need for a local partner. Many entrepreneurs also like that it’s possible to group different activity types—such as consulting and trading, under one licence. The paperwork is light, and you don’t need to be in the UAE to apply. Most steps can be done online. Money can move in and out freely, with no caps on profit repatriation. For anyone looking for a fast, low-hassle way to get started, it’s a good option.

IFZA licence & company types

Licences fall into three categories: professional (for services and consultancy), commercial (for trading and retail), and industrial (for manufacturing and light production). You can combine multiple activities under a single licence, including both commercial and professional services.

Most new businesses register as a Free Zone Company (FZCO), which provides full liability separation and flexible ownership. You can also open a branch if you already operate a business elsewhere. A single individual or corporate entity can act as both shareholder and director, and neither role requires UAE residency. This keeps the structure simple, especially for overseas founders.

How to set up a business in IFZA

1. Decide on your licence and business activities
Begin by outlining what your company will do. IFZA lets you include more than one activity, so you can offer services and trade under the same licence if needed.

2. Choose a legal structure
You can either register a new company as an FZCO or set up a branch of an existing one. Both give you 100% ownership and don’t require a local partner.

3. Prepare your documents
The paperwork is minimal. A passport copy, ID photo and a few standard forms are usually enough. You can upload everything online and complete the process from overseas.

4. Get your licence
Once approved, your trade licence is issued within a few working days. After that, you can move ahead with office space, visa applications and a bank account.

Offices and facilities

IFZA offers workspace options that scale with your business. A Flexi Desk gives you access to a shared area with internet, a business address, and a few hours of meeting room use each week. It’s a practical choice for solo founders or early-stage startups needing a licence and one or two visas.

As your team grows, you can upgrade to a private office. These come furnished and ready to use, with 24/7 entry, front-desk support, and higher visa quotas. You’ll also have access to meeting rooms and event spaces, including larger boardrooms and shared areas for hosting clients or workshops. This setup gives you flexibility to expand without relocating your company or changing licence details.

Compliance and renewal

IFZA companies must meet basic compliance from the outset. This includes submitting UBO (Ultimate Beneficial Owner) details, which need to stay up to date if shareholders or ownership percentages change.

Trade licences must be renewed annually. Most companies keep the same licence and structure each year to avoid complications with banking, visa renewals, and government records. Switching to a new licence or free zone mid-way can trigger extra checks and delays.

Renewing on time keeps your registration clean and avoids fines or interruptions to business which also helps maintain your company’s credibility with local authorities and financial institutions.

Costs and comparisons

Licence packages start from around AED 11,500, which covers registration and basic government fees. The final cost depends on your business activity, visa quota, and office type. For example, adding a Flexidesk or upgrading to a private office will increase the total, as will applying for extra visas. That said, the pricing is transparent and typically more competitive than in zones like DMCC or JAFZA, where entry costs often exceed AED 20,000. IFZA’s ability to combine activity types under one licence, handle everything remotely, and avoid hidden fees makes it a cost-effective option for smaller firms and first-time entrants.

How can Sovereign PPG help?

Sovereign PPG has in-depth experience with IFZA and long-standing relationships across the UAE’s free zone network. We handle the full process on your behalf, from initial approvals and licensing to visa applications, renewals and corporate compliance.

If you need support with IFZA company formation, or any related onshore or offshore setup, restructuring, local partner or PRO support requirement in Abu Dhabi, Dubai, the wider UAE, Oman, Qatar or Saudi Arabia, please get in touch. Call us on +971 (0)4 456 1761 for Dubai or +971 (0)2 448 5120 for Abu Dhabi, email us Dubai@sovereigngroup.com, or complete the contact form below. We’ll be happy to assist you.