What is a Free Zone?
Free zones are financial areas where goods and services can be traded. Free zones like the International Free Zone Authority in Dubai are popular with privacy-conscious entrepreneurs because there’s 100% foreign ownership with no open directory of company details. 100% foreign ownership implies that sensitive corporate information such as shareholder details are never divulged to the public.
The advantages of Dubai free zones
Each free zone provides investors and business people with substantial access to bustling areas and services all over Dubai. Within each free zone authority, numerous corporate activities can be undertaken. For example, infrastructure, media, education, construction, and retail are among some of the companies that could be established within free zones.
IFZA Free Zone in Dubai
Dubai IFZA is one of the recent additions to the free zones in the UAE. It is overseen and regulated by the government regulatory structure known as the International Free Zone Authority. IFZA quickly gained an excellent reputation and earned the respect of the business community as one of the most reasonable and fastest-growing free zones in the UAE. IFZA is situated in the Emirate of Dubai with offices in Dubai.
Since its launch, IFZA Free Zone has been established to be the cheapest free zone in the UAE. It has introduced different license packages which have gained considerable popularity amongst the business owners in the UAE and around the world.
Because of its adaptable, cost-effective, and creative licensing solutions, Dubai IFZA is now a free zone of choice for a large majority of the entrepreneurs and new businesses being established in the UAE.
IFZA doesn’t require the shareholders to travel to its offices for signing any application forms or the memorandum and articles of association for the incorporation of the company. The whole process of company formation can be finalized remotely irrespective of the location of the shareholders. The normal time for free zone company formation with IFZA is 3 working days.
In comparison with other free zones in Dubai and other Emirates in the UAE, IFZA has been established as the most competitive in its pricing and one of the fastest in terms of the time taken to incorporate companies. The free zone has set up a thorough process to guarantee that it takes care of the end-to-end process for the company formation as well as the issuance of residence visas in a consistent manner.
There is no requirement for a paid-up capital to be fixed into a bank account for setting up the company in this free zone and the bank accounts for IFZA free zone companies can be opened with almost all banks in the UAE.
Why set up a Dubai Free Zone Company in the IFZA
IFZA is one of the most durable and cheapest free zones in Dubai, UAE. The jurisdiction is known for granting packages tailored to suit the requirements of anyone looking for competitive pricing to set up a Dubai free zone company. Also, IFZA provides Dubai free zone company formation of the highest standard. Additionally, IFZA offers adaptable workspace options in the form of desks, private offices, and office suites.
Advantages of Establishing Your Business In IFZA
IFZA is considered the perfect location for businesses to establish their presence in the UAE market. IFZA gives the lowest prices, easy-to-follow procedures, and minimum requirements to investors who want to establish their business in the UAE.
Other benefits of Dubai Free Zone Company Formation with IFZA
- Large range of commercial, services and trading activities available.
- Shareholders are not expected to be physically present in the UAE for IFZA company formation.
- IFZA free zone companies have limited liability.
- 100 percent repatriation of capital and profits.
- 100 percent foreign ownership permitted.
- 0% corporate or personal income tax.
- No minimum paid-up capital requirement.
- Fast company formation process.
- Various visa and non-visa packages are available.
- Over 60 percent of the world’s population is easily accessible by flight routes.
- IFZA companies can do business with free zone and mainland companies and also operate outside of UAE.
- IFZA does not require a no-complaint certificate from your employer.
- Various activities can be combined under one IFZA License.
Types of IFZA licenses and companies
Dubai IFZA offers more than a thousand business activities to the companies incorporated in the free zone. These license activities can serve small start-ups to large multinational companies.
Below are the types of licenses offered by the free zone:
- Consultancy License: This includes activities for consultancy services for experts.
- Service License: this includes activities for the provision of services. It is suggested for service providers for the production, transformation, and distribution of services.
- Trading License: this includes activities for trading in goods. It is endorsed for the import, export, distribution, and storing of goods indicated on the license.
- General Trading License: this includes activities for trading a wide range of products.
- Holding License: this includes activities of holding assets or shares in other companies and it is recommended for holding standalone assets or shares in other companies.
IFZA enables the combination of up to seven activities that may belong to a single license or different license types.
Since its foundation, Dubai IFZA has offered business setup packages directed at fulfilling the needs and desires of businessmen from across the world. The investors can effortlessly obtain licenses and register their companies without having to travel to the UAE.
IFZA allows the incorporation of the following types of companies:
- Limited liability company: This is a legal structure wherein the liabilities of the company are its own and do not become the personal liabilities of the company’s shareholders. The shareholder’s liability is bound to the extent of his investment in the company.
- Branch: Existing companies can open a branch in IFZA if the branch and the parent company will carry out the same actions. For the motives of profits, returns, debts, and liabilities the identity of the branch is considered cooperative with the identity of the parent company.
IFZA business setup process
The steps of setting up your company in Dubai IFZA involve the following:
- Agree on the suitable company structure
- Apply for business registration
- Submission of all needed documents
- Pay the necessary license fee
- Issuance of e-agreement from IFZA
- Sign e-agreement and share capital letter
- Issuance of e-license
The necessary documents for setting up a company are as follows:
- Complete application form
- Passport copy of owner or owners
- Visa copy
- Emirates ID copy
- Two colored passport-sized photographs with white background
Special features about IFZA business setup
IFZA is one of the few free zones in the UAE that stands out for its extraordinary benefits and the opportunities it provides investors. These benefits include:
- IFZA authorities do not need the investor to submit an annual audit report.
- The jurisdiction offers up to 3 years visa for proprietors and employees.
- Physical presence of investors is not required for company formation.
Similar to renewal, company liquidation also does not need the physical presence of the owner and can be accomplished through an agent. You will be required to pay a government fee to complete the liquidation process.
To find out more about different options available to set up IFZA company, let’s go ahead together and contact your Damalion expert now. Our experts help you solve your business-related queries by offering you solutions best suited for your IFZA company formation in the UAE.
