Launch in Dubai

IFZA Company Setup: Costs, Benefits and Who It Suits (2026)

A practical guide to setting up a company in IFZA: indicative costs, permitted activities, visa options, pros and cons, and who the free zone is best suited to.

By Launch in DubaiLast reviewed 15 June 20268 min read

Reviewed by our UK and UAE tax specialists

The International Free Zone Authority, known as IFZA, has grown into one of the most widely used free zones in Dubai, particularly among consultants, agencies, online businesses and first-time founders setting up in the UAE. Its combination of competitive pricing, a broad activity list and a straightforward setup process makes it a natural first port of call for many UK and international entrepreneurs.

This guide covers everything you need to know to evaluate an IFZA setup: how the zone works, what it costs (indicatively), what activities it covers, the visa options available, and who it suits and who it does not. For a broader comparison of UAE free zones, see our guide to the best free zones in the UAE.

What is IFZA and where does it sit?

IFZA (International Free Zone Authority) is a Dubai free zone established in 2018 and administered under the Dubai Silicon Oasis Authority (DSOA). Its registered address is in Dubai, which matters for postal purposes, credibility and banking relationships.

Like all UAE free zones, IFZA allows:

  • 100% foreign ownership, no UAE national sponsor or partner required
  • Repatriation of profits and capital without restriction
  • No personal income tax
  • Exemption from import and export duties within the zone
  • A corporate tax environment subject to UAE federal rules (introduced from June 2023)

IFZA positions itself as a value-for-money option within Dubai. It is not the cheapest free zone available in the UAE, that distinction tends to go to Sharjah or Ras Al Khaimah zones such as SHAMS or RAKEZ, but it offers a Dubai address and a broader activity list than many budget alternatives.

Indicative costs: what does IFZA actually charge?

IFZA publishes package pricing and the figures below are illustrative based on the standard single-shareholder, single-visa setup. All costs are indicative, government fees change, package structures are updated periodically, and your actual quote will depend on the specific activities, visa numbers and office type you require.

Cost itemIndicative range (AED)
Licence fee (professional activities)5,500–7,500
Establishment card500–800
Flexi-desk / virtual office package2,000–4,000
Investor visa (one visa)3,000–5,000
Emirates ID and medical1,000–1,500
Total first-year (one shareholder, one visa)12,000–18,000

These are indicative figures only

Government fees and IFZA package pricing change regularly. The figures above give a sense of the order of magnitude but should not be relied upon for budgeting. Always request a current quote before committing, and confirm which items are included.

Annual renewal costs are broadly lower than year-one because some one-off registration and processing fees do not recur. Indicatively, ongoing annual costs for a basic single-visa licence sit in the AED 10,000–13,000 range, with visa renewals (typically every two to three years) adding further costs in the years they fall due.

For a broader look at what UAE company formation costs across structures and zones, see our cost to set up a company in Dubai guide.

Permitted activities: what can an IFZA company do?

IFZA covers a wide range of business activities across professional services, consulting, trading and technology. One of its practical advantages is the ability to include multiple activities on a single licence, which suits founders whose work spans more than one category.

Commonly chosen activities include:

  • Management consulting and business advisory
  • IT services, software development and technology consulting
  • Marketing, advertising and public relations
  • Media production and content creation
  • HR and recruitment consultancy
  • Import and export trading (on applicable packages)
  • E-commerce and online retail
  • Financial consulting (note: regulated financial activities require a different structure, typically DIFC or ADGM)

Regulated financial activities are not covered by IFZA

If your business involves regulated financial services, such as managing client investments, operating a payment service or running a fund, IFZA is not the right structure. Regulated activities in the UAE require licensing through the relevant financial regulator, typically through a financial free zone such as DIFC or ADGM in Abu Dhabi. General financial consulting (unregulated advice, fractional CFO work) can sit within IFZA.

It is worth checking IFZA's current activity list carefully before applying. The categorisation of activities affects both the licence type and which activities can be combined on a single licence.

Visa options under IFZA

A company licence in IFZA entitles the company to sponsor residence visas for its shareholder(s) and employees. The number of visas depends on the package:

Package / office typeTypical visa quota
Flexi-desk (basic)1–2 investor visas
Premium flexi-desk2–3 visas
Dedicated desk3–5 visas
Private officeHigher quota, depending on size

Investor visas issued through IFZA are typically valid for three years and renewable. They entitle the holder to UAE residency, an Emirates ID and the ability to open a personal UAE bank account, sponsor family members and access UAE healthcare and schooling.

IFZA licences do not automatically qualify for the UAE Golden Visa, which requires a separate route (property investment, exceptional talent or a qualifying business investment of AED 500,000 or more). For founders who want the ten-year Golden Visa, a company licence is often the first step to building UAE residency, with the Golden Visa pursued separately once the criteria are met. See our UAE Golden Visa guide for details.

Corporate tax: IFZA's position under the 9% regime

UAE corporate tax was introduced for financial years starting on or after 1 June 2023. The headline rates are:

  • 0% on taxable profits up to AED 375,000
  • 9% on profits above AED 375,000

Free zone companies, including those in IFZA, can potentially qualify as a Qualifying Free Zone Person (QFZP) and apply a 0% rate to qualifying income. Qualifying income broadly covers revenue from international clients (outside the UAE mainland) and transactions between free zone entities.

QFZP status requires careful income monitoring

To maintain Qualifying Free Zone Person status, a free zone company must keep its non-qualifying income below a de minimis threshold (the lower of AED 5 million or 5% of total revenue). If you generate significant income from UAE mainland clients, your qualifying income position requires monitoring. Take UAE tax advice to confirm your position before assuming a 0% rate applies.

For UK founders who have relocated to Dubai, the corporate tax position in the UAE is one part of a larger picture: the other part is ensuring the company is genuinely managed and controlled from the UAE, not from the UK, so that HMRC does not treat it as UK-tax-resident. These two issues are connected. A properly run IFZA company, with decision-making in Dubai, achieves both objectives.

A worked example

Worked example

Priya, a UK marketing consultant setting up in Dubai

Priya is a marketing consultant based in London, billing £120,000 a year to UK and European clients through her own limited company. She is planning to relocate to Dubai in April 2026. She has no employees and works primarily remotely.

Her IFZA setup:

  • Single-shareholder company, marketing and advertising consulting activity
  • Flexi-desk package, one investor visa
  • Indicative year-one cost: approximately AED 14,000 (around £3,000 at mid-2026 rates, illustrative)

Her UAE corporate tax position (illustrative):

  • Annual profit: AED 550,000 (approximately £120,000)
  • AED 375,000 at 0% = AED 0 tax
  • AED 175,000 at 9% = AED 15,750 tax (approximately £3,400)
  • Total UAE corporate tax: approximately AED 15,750

Compared with her UK position (approximate, higher-rate taxpayer):

  • UK corporation tax at 19–25% on equivalent profits: approximately £22,000–30,000
  • Additional dividend tax on extraction: significant further liability
  • Total UK-based tax: well above £30,000

The saving is material, but it depends entirely on Priya genuinely living and working in Dubai, running the company from the UAE, and keeping her UK day count within the Statutory Residence Test limits. The IFZA licence is the company vehicle; her UAE residency and UK exit planning are what make the tax position work.

All figures are illustrative and simplified. They do not account for all taxes, exchange rate changes or individual circumstances. Always take advice tailored to your situation.

Pros and cons of IFZA

IFZA advantages

  • Competitive pricing within Dubai: cheaper than DMCC or DIFC, with the Dubai address benefit.
  • Multiple activities on one licence: practical for consultants and service businesses with mixed revenue.
  • No physical office required: a flexi-desk package is sufficient for the licence and investor visa.
  • Fast setup: company formation typically completes in three to seven working days.
  • Wide activity list: covers most professional, consulting, technology and media activities.
  • 100% foreign ownership with no UAE national requirement.
  • Potential 0% corporate tax rate on qualifying income under QFZP rules.

IFZA limitations

  • Not suited to regulated financial services: DIFC or ADGM are required for those activities.
  • Trading physical goods into the UAE mainland requires additional structure or a mainland licence.
  • Visa quota is modest on basic packages: founders scaling a team quickly may need to upgrade office space.
  • Not the cheapest option overall: RAKEZ, SHAMS and other non-Dubai zones can undercut IFZA on price.
  • Address is Dubai Silicon Oasis, not a central Dubai location: relevant if a prestige address matters to clients.
  • Like all free zones, IFZA requires annual renewal and ongoing compliance to maintain good standing.

Who does IFZA suit?

IFZA works well for:

  • UK and international consultants and agencies relocating to Dubai who need a professional service licence with multiple activity coverage and do not want to pay DMCC or DIFC prices.
  • Online and remote businesses with an international client base, where the free zone location is irrelevant to day-to-day operations.
  • First-time UAE company founders who want a straightforward setup process, a Dubai address and a single investor visa.
  • Founders at the planning stage who want to establish UAE residency quickly and cost-effectively before deciding on a longer-term structure.

IFZA is less suited to:

  • Regulated financial services businesses, which need a financial free zone.
  • Businesses that sell primarily to UAE mainland clients in a way that triggers the need for a mainland trade licence.
  • Founders requiring a prestige central Dubai address, for whom DMCC's Jumeirah Lakes Towers location may be preferable.
  • Industrial, manufacturing or logistics businesses, where RAKEZ's warehouse and industrial facilities are a better fit.

Next steps

IFZA is a practical, well-established free zone that suits a wide range of service and consulting businesses. The setup process is straightforward and the costs are competitive within Dubai. But choosing the right free zone is only part of the decision: the structure you choose, the activities you register, and the way you run the company from day one all feed into both your UAE compliance and, for UK founders, your UK tax exit position.

If you would like to explore whether IFZA is the right fit for your business, or compare it with other zones, visit the IFZA free zone page for further detail. To compare across UAE free zones, our best free zones guide covers the main options side by side. When you are ready to discuss your specific situation, get in touch and our UK and UAE specialists can advise on structure, costs and the broader picture.

Frequently asked questions

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