Dubai, with its business-friendly ecosystem, strategic location, and world-class infrastructure, acts like a magnet for entrepreneurs and businesses around the globe. IFZA (International Free Zone Authority) is the most attractive opportunity for setting up a business in Dubai. This blog particularly highlights the benefits, requirements, and steps to ensure a smooth process of IFZA company setup in Dubai.
Introduction to IFZA
The International Free Zone Authority (IFZA), introduced in 2018, is one of the most dynamic and highly regarded free zones in the UAE. Since the UAE has shifted the country’s focus away from gas and oil, they’re now investing heavily in other areas and encouraging entrepreneurs to invest in the country, IFZA is the most encouraged investment for the sake.
Located in Dubai Silicon Oasis, IFZA offers a wide range of business activities and license types, making it an ideal choice for entrepreneurs looking to set up a company in Dubai.
IFZA in 2024: Updates!
IFZA has seen a 25% increase in new setups in the first quarter of 2024
compared to the same period in 2023.Technology and consultancy sectors are leading with a 30% increase in setups.Over 10,000 new jobs have been created through companies established in IFZA in the past
year. IFZA has attracted foreign direct investment (FDI) worth $1.2 billion in 2023, with projections to reach $1.5 billion by the end of 2024.
Dubai Chamber of Commerce revealed that 78% of businesses in IFZA reported increased
profitability and growth potential due to the flexible and supportive regulatory environment.
(Survey)
Why Choose IFZA for Your Company Formation?
● Flexibility: With a variety of license types and business activities, IFZA caters to a diverse range of business needs.
● Strategic Location: IFZA is situated in Dubai Silicon Oasis, providing easy access to major business hubs, airports, and ports.
● Cost-Effective: When establishing a company in a UAE free zone, the primary
challenges are the time and cost required. IFZA Dubai provides a swift and cost-effective solution for company setup, with all processes completed within Dubai. In contrast, other free zones tend to be more costly, often have longer processing times, and demand more extensive documentation before the setup can take place.
● Modern Infrastructure: IFZA boasts all the modern amenities that Dubai provides, including cutting-edge infrastructure and the option to have your own flexi-desk or office within the free zone. IFZA’s advanced facilities cater to the needs of new entrepreneurs who require office space, making it a vibrant center of high-level business activity where you can establish global connections.
● Business-Friendly Policies: IFZA provides 100% foreign ownership, zero corporate and income taxes, and no currency restrictions.
● Comprehensive Support Services: From visa processing to office space solutions, IFZA offers extensive support to ensure your business runs smoothly.
Licenses Offered by IFZA
● Industrial License: For manufacturing and industrial activities.
● Commercial License: Suitable for trading and general commercial activities.
● Holding License: For companies looking to hold assets and shares in other
companies.
● Service License: Ideal for businesses offering services such as consulting, IT, and other professional services.
Business Activities Permitted in IFZA
IFZA allows a wide range of business activities, including but not limited to:
● Trading and retail
● IT and technology
● Media and marketing
● Education and training
● Healthcare and medical services
● Consultancy and advisory services
● Real estate and property management
Licenses Offered by IFZA
● Industrial License: For manufacturing and industrial activities.
● Commercial License: Suitable for trading and general commercial activities.
● Holding License: For companies looking to hold assets and shares in other companies.
● Service License: Ideal for businesses offering services such as consulting, IT, and other professional services.
Business Activities Permitted in IFZA
IFZA allows a wide range of business activities, including but not limited to:
● Trading and retail
● IT and technology
● Media and marketing
● Education and training
● Healthcare and medical services
● Consultancy and advisory services
● Real estate and property management
Trends in Business Activities: 2024!
In 2024, there has been a notable surge in IT and technology-related businesses, which now constitute 40% of the new setups in IFZA, driven by Dubai’s push towards becoming a global tech hub.
Steps to Set Up Your Company in IFZA
Step 1: Determine Your Business Activity and License Type
The first step is to decide on the business activity you wish to undertake and the appropriate license type. This decision will influence the rest of the setup process.
Step 2: Choose a Company Name
Select a unique name for your company that complies with IFZA’s naming conventions. The name should not include any offensive or blasphemous terms and must be available for setup.
Step 3: Submit the Required Documents Prepare and submit the necessary documents, which typically include:
● Proof of address
● Passport copy of the shareholder(s)
● Passport-sized photos of the shareholder(s)
● Business plan (if applicable)
Step 4: Choose Your Office Solution
IFZA offers various office solutions, from virtual offices to physical office spaces. Choose the option that best suits your business needs and budget.
Step 5: Obtain Initial Approval
Once your documents are submitted, IFZA will review and provide initial approval for your setup.
Step 6: Sign Legal Documents and Pay Fees
Sign the legal documents provided by IFZA and pay the relevant setup fees. These fees vary based on the license type and office solution chosen.
Step 7: Receive Your Business License
After completing the necessary formalities, you will receive your business license, allowing you to commence operations in Dubai.
Benefits of IFZA Company Formation
Freely repatriate 100% of profits and capital. Conduct business in any currency without restrictions. Enjoy full ownership of your company without the need for a local sponsor. Strategic location near Dubai International Airport, access to a large consumer market. Enjoy 0% corporate income tax, personal income tax, and import/export duties within the zone (UAE general tax applies outside: 0% up to AED 375,000, 9% above).
Visa Options for IFZA Companies
IFZA companies can apply for multiple visas depending on their office package. The visa process is straightforward, and IFZA provides support throughout the application process. Types of visas include:
● Investor Visa
● Employee Visa
● Dependent Visa
Visa Trends – 2024!
In 2024, there has been a 15% increase in the issuance of employee visas, reflecting the growing workforce and employment opportunities within IFZA.
Office Solutions at IFZA
IFZA offers a range of office solutions to meet different business needs, including:
● For businesses that require a dedicated office space (their private offices).
● Provides access to a shared office space with essential amenities, flexi desk.
● Ideal for startups and entrepreneurs who do not require a physical office space i.e.
virtual office.
● Available for companies involved in manufacturing and storage activities by offering warehousing facilities.
Compliance and Regulatory Requirements
IFZA companies must comply with local laws and regulations, including:
● Financial Audits: Conduct annual audits if required by the nature of your business.
● Annual License Renewal: Ensure timely renewal of your business license to avoid penalties.
● Employee Regulations: Adhere to UAE labor laws and regulations for hiring and managing employees.
Conclusion
Setting up a company in IFZA, Dubai, presents a wealth of opportunities for entrepreneurs and businesses looking to tap into the thriving UAE market. By following the outlined steps and leveraging the benefits offered by IFZA, you can establish a successful business presence in one of the world’s most dynamic cities.
For more insetup and personalized assistance with your IFZA company setup, feel free to contact our team of experts at ‘AB Capital’. We are here to guide you through every step of the process, ensuring a seamless and successful setup in Dubai.
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