IFZA free zone business setup
Company Formation in IFZA, Dubai
KGRN Chartered Accountants provides professional guidance for company formation in IFZA, the International Free Zone Authority business community in Dubai Silicon Oasis, Dubai, UAE. We help founders, consultants and international investors plan their IFZA business setup: choosing activity groups and a licence, structuring the company, and preparing the documents IFZA's online process requires.
IFZA now asks for financial statements at every licence renewal, so we also plan the bookkeeping, Corporate Tax and VAT that follow from day one.
- Activity groups checked for Green or Amber status
- Licence, visas and office matched to your plans
- Books ready for renewal financial statements
- Advisors based in Business Bay, Dubai
IFZA setup advice from a chartered accountancy firm
KGRN Chartered Accountants is a UAE professional services firm providing audit, accounting, tax, advisory and business setup services from its office in Business Bay, Dubai.
Chartered accountancy backgroundSetup choices checked by people who also prepare and audit accounts.
UAE professional servicesWorking knowledge of IFZA, other free zones and the mainland.
Dubai-based advisoryMeetings in Business Bay, or by phone and WhatsApp.
Business setup guidanceActivity groups, visas and structure explained first.
Accounting and tax knowledgeRenewal statements, Corporate Tax and VAT planned early.
Compliance-focused approachUBO declarations, AML and renewals kept on track.
Overview
What Is IFZA Company Formation?
IFZA company formation is the process of setting up a free zone company (FZCO) or a branch of a foreign company through IFZA, the International Free Zone Authority, in Dubai Silicon Oasis, and obtaining a licence for approved business activities. IFZA companies are incorporated under the framework of the Dubai Integrated Economic Zones Authority (DIEZ), not licensed by Dubai's Department of Economy and Tourism.
IFZA is often chosen by consultants, service firms and trading startups because one licence can combine commercial and professional activities, and owners do not need to be in the UAE during incorporation. Our IFZA free zone guide covers the wider picture.
How IFZA company formation works
Most IFZA companies are FZCOs: limited liability companies with one or more shareholders, at least one director, a manager and a secretary. The licence lists the approved activities.
Why business activity selection matters
Each activity is Green, needing no external approval, or Amber, needing approval from a Dubai or federal authority. Activities also shape how banks assess your account and how income is treated for Corporate Tax.
Why licence selection matters
A standard licence covers up to three activity groups, and visa numbers depend on the package and office space. A package chosen only on price can mean amendments and extra fees later.
Key considerations
Why Consider IFZA for Company Formation?
IFZA suits many service, consultancy and trading businesses that want a flexible activity mix. Each point below depends on IFZA's current packages and authority requirements.
Dubai business environment
Access to Dubai's banks, logistics and professional firms, depending on your activities.
Free zone company structure
An FZCO or a branch of a foreign company, governed by the DIEZ Implementing Regulations 2023.
Ownership considerations
Generally open to full foreign ownership by individuals or companies, subject to IFZA's compliance checks.
Activity flexibility
Commercial and professional activities can share one licence, with up to three activity groups as standard.
Setup convenience
Owners need not be in the UAE during incorporation, and legal forms are signed electronically.
Visa considerations
Visa numbers depend on the package, and larger allocations may need office space.
Facility options
Basic packages can start from a virtual office, with desks and private offices as teams grow.
Dubai commercial ecosystem
A base in Dubai Silicon Oasis, an integrated technology district with offices, services and homes.
Suitability
Who Can Consider IFZA Company Formation?
IFZA usually appeals to founders who want a mixed activity profile and a light office footprint at the start. Every activity still has to be confirmed against IFZA's current list and approval rules.
Worth confirming before you choose IFZA
- Whether each activity is Green or Amber
- How many visas you will need
- Whether you will trade onshore in Dubai
- Whether you need office space or substance
EntrepreneursA first Dubai company without a large upfront commitment
StartupsTesting a model before adding office space
SMEsA UAE entity alongside an existing business
ConsultantsManagement, IT, marketing and advisory services
Professional service providersIncluding Amber activities that need approval
International foundersIncorporation without travelling to the UAE
InvestorsHolding and investment activities, where permitted
Digital businessesE-commerce, software and online services
Trading or service businessesGeneral or specific trading, where permitted
Licensing
IFZA Business Activities and Licensing
IFZA issues commercial and professional licences, and one licence can combine both. The appropriate licence depends on your business activity, business model, company structure, facility requirements, visa requirements and the applicable authority rules.
Green and Amber activities
IFZA classifies every activity by whether outside approval is needed.
No external approval. The activity is licensed after IFZA's standard review.
External approval needed from a specified Dubai or federal authority, which the licensee must obtain.
What decides your licence
Business activityThe groups you select, and their Green or Amber status.
Business modelServices, trading or both, and where customers are.
Company structureFZCO or branch; individual or corporate owners.
Facility requirementsVirtual office, flexi desk or private office.
Visa requirementsOwners and staff needing residence visas.
Authority rulesIFZA terms, DIEZ rules and external approvals.
Each activity beyond the included groups is charged separately, so we check IFZA's current activity list with you before you commit.
Process
How Company Formation in IFZA Works
IFZA company formation typically follows nine steps in three stages. Timing depends on IFZA's review, your documents and any Amber approvals, so treat any timeline as an estimate.
Stage 1
Before you apply
Decisions that set the licence, cost and visas.
Understand the business activity
Map what you will sell and to whom, then check each activity's Green or Amber status.
Select the appropriate licence
Choose commercial, professional or combined, plus the visa allocation and office you need.
Determine the company structure
Choose an FZCO or branch, and confirm shareholders, director, manager and secretary.
Stage 2
Registering with IFZA
Online review, electronic signing and issuance.
Prepare documentation
Gather passports, photos, UBO details and any parent company documents.
Submit the application
Documents go through IFZA's portal for compliance review.
Complete authority requirements
Sign the e-legal forms and memorandum electronically, and obtain any Amber approvals.
Receive formation and licensing documents
IFZA issues the licence and company documents electronically.
Stage 3
After the licence
Getting ready to operate and stay compliant.
Proceed with visas and related steps
Where applicable, arrange the establishment card, entry permits, medicals, Emirates ID and visas, and apply for a bank account. See our visa services in Dubai.
Set up accounting and ongoing compliance
Register for Corporate Tax, assess VAT and keep books that support renewal financial statements.
Documentation
Documents Required for IFZA Company Formation
Individual shareholders typically need a passport copy, a digital photo and beneficial ownership details, submitted online; corporate shareholders add their own company documents.
| Document or information | Individual shareholder | Corporate shareholder |
|---|---|---|
| Passport copy | Required | For its representatives and beneficial owners |
| Passport-size digital photograph | Required | For its representatives |
| Emirates ID and UAE visa copy | If UAE resident | For UAE-resident representatives |
| Applicant, shareholder and beneficial owner details | Required | Required |
| Proposed company details and business activities | Required | Required |
| Address or facility information | Where applicable | Where applicable |
| Board resolution approving the IFZA company or branch | Not needed | Required, notarised and attested |
| Certificate of incorporation, trade licence, memorandum and articles | Not needed | Required, with attestation where needed |
Exact documentation requirements can vary depending on the company structure, business activity, shareholder profile and current authority requirements.
Additional documents may be requested for Amber activities or complex ownership, and IFZA's e-legal forms are signed electronically.
Cost
How Much Does IFZA Company Formation Cost?
There is no single fixed price. IFZA sells licences as packages, and the total depends on the licence term, activity groups, visa requirements, office needs, any Amber approvals and other applicable authority charges, plus professional fees. The split below shows what usually sits inside the package and what is added.
Usually in the package
Priced together by licence term and visas
Licence feesFor the chosen licence term.
Registration chargesCompany registration and incorporation documents.
Business activityUp to three activity groups.
Visa allocationThe number of visas the package allows.
Package prices usually scale with the licence term and the visa allocation.
Usually priced separately
Added according to your plans
Extra activitiesEach activity beyond the included groups.
Establishment-related chargesThe establishment card and similar items.
Visa requirementsEntry permit, medical, Emirates ID and visa per person.
Office or facility requirementsDesk or office space for larger visa allocations.
Additional approvalsExternal approvals for Amber activities.
Professional service feesAdvisory, documents and coordination.
Other authority chargesAmendments, certificates and renewals.
Renewal statementsAccounting, and an audit above IFZA's thresholds.
Discuss Your IFZA Setup
Share your activities, shareholders and visa plans, and we will show which package elements and add-ons apply before you commit.
Comparison
IFZA vs Dubai Mainland
An IFZA company is incorporated under the DIEZ free zone framework; a mainland company is licensed by Dubai's Department of Economy and Tourism (DET) and can trade directly across the UAE. Neither is better in every case; it depends on your business model and customers.
| Factor | IFZA | Dubai Mainland |
|---|---|---|
| Business structure | FZCO or branch of a foreign company, under the DIEZ framework. | Commonly an LLC, sole establishment or branch, registered with DET. |
| Licensing | Commercial, professional or combined licence, issued through IFZA. | Issued by DET, with added approvals for regulated activities. |
| Ownership | Full foreign ownership is generally available, subject to applicable rules. | Full foreign ownership is permitted for many activities; some remain restricted. |
| Office requirements | With a basic visa allocation, a virtual office can be enough; larger allocations may need office space. | Registered premises, usually with an Ejari tenancy contract, depending on activity. |
| Market access | Free zone and international business. Onshore Dubai activity needs a DET licence or permit plus free zone approval (Executive Council Resolution No. 11 of 2025). | Can trade directly across the UAE, including with government entities, subject to their requirements. |
| Visa considerations | Depends on the package and office space, subject to eligibility. | Depends on eligibility, business premises and approvals. |
| Renewal filings | Financial statements at each renewal; audited if turnover exceeds AED 3 million or staff exceed nine. | Depends on the legal form and tax position; confirm case by case. |
| Corporate Tax | A Qualifying Free Zone Person (QFZP) may apply 0% to qualifying income if every condition is met. | 0% on taxable income up to AED 375,000 and 9% above that. |
This comparison is general; confirm current rules before deciding. See also our mainland company formation in Dubai service, or compare other zones on our free zone business setup page.
Why KGRN
Why Work With KGRN for IFZA Company Formation?
IFZA companies file financial statements at every renewal. As chartered accountants, KGRN tests each setup choice against how the company will keep its books, renew its licence and file its tax returns.
Choose the licence with your first renewal in mind.
Talk to our business setup teamPractical setup guidance
Recommendations on activity groups, licence and visas, with the trade-offs explained.
Accounting perspective
Books kept so renewal statements, simplified or audited, are ready on time.
Corporate Tax awareness
A realistic view of Qualifying Free Zone Person status before you rely on 0%.
VAT considerations
Turnover watched against thresholds, with compliant invoicing from the start.
Compliance awareness
UBO declarations, AML duties and renewal dates tracked.
UAE business knowledge
IFZA weighed against other free zones and the mainland for your plans.
Professional advisory approach
Advice based on your facts, including what IFZA may not suit.
Clear communication
Plain-language updates and written next steps at each stage.
Scope of support
How KGRN Supports Your IFZA Setup
IFZA, the authorities that approve Amber activities, UAE immigration, the Federal Tax Authority and banks make the formal decisions. KGRN assists around those processes so applications are complete and obligations are clear.
KGRN professional assistance
Where KGRN assists
- Business setup guidanceOptions compared through our business setup services
- Activity discussionActivity groups and Green or Amber status checked
- Licensing guidanceLicence type, visa allocation and office reviewed
- Documentation coordinationChecklists, resolutions and e-legal forms
- Accounting setupChart of accounts and accounting services
- BookkeepingMonthly records through outsourced bookkeeping
- Corporate TaxRegistration and QFZP review with our Corporate Tax services
- VATThreshold checks and VAT consultancy
- ComplianceUBO declarations and AML compliance
- Business advisoryBusiness advisory and business valuation
After formation
What Happens After Setting Up Your IFZA Company?
Incorporation is the first stage. An IFZA company then takes on accounting, tax, reporting and renewal obligations, starting with Corporate Tax registration.
Within 3 months
Corporate Tax registration
Register with the Federal Tax Authority, even if you expect to pay 0% (FTA Decision No. 3 of 2024).
From day one
Accounting, bookkeeping and records
Record transactions monthly and keep records for at least seven years.
As revenue builds
VAT registration, where applicable
Mandatory above AED 375,000 of taxable supplies and imports over 12 months; voluntary above AED 187,500.
At each renewal
Financial statements and UBO declaration
Submit the last completed year's statements and the UBO declaration; report ownership changes within 14 days.
Within 9 months of year end
Corporate Tax return
File the return and pay any tax due for the period.
If covered
AML compliance
Designated businesses, such as dealers in precious metals and stones, register on goAML and keep AML controls. See AML compliance.
From 2027
eInvoicing readiness
In-scope businesses below AED 50 million revenue appoint an Accredited Service Provider by 31 March 2027 and go live on 1 July 2027. See UAE eInvoicing.
Throughout
Business reporting and advisory
Management accounts and periodic reviews keep the licence, visas and tax position aligned.
Avoid rework
Common Mistakes to Avoid When Setting Up an IFZA Company
IFZA packages are quick to buy, so these decisions deserve a second look before you apply.
Selecting the wrong business activity
An activity that does not match your invoices causes banking and tax problems. Check its Green or Amber status too.
Choosing a licence without considering the business model
Pick commercial, professional or combined from how you earn revenue, not from the lowest package price.
Ignoring future visa requirements
Visa numbers follow the package and office space, so plan for the team you expect to have.
Not considering office or facility requirements
Larger visa allocations and Corporate Tax substance can require office space, not just a virtual address.
Looking only at initial setup costs
Extra activities, visas, office space, renewals and financial statements all add to the yearly cost.
Ignoring accounting requirements
Renewal needs financial statements, which are hard to produce without monthly bookkeeping.
Ignoring Corporate Tax and VAT considerations
Late Corporate Tax or VAT registration brings penalties, and simplified renewal statements do not meet the 0% audit condition.
Assuming all free zones have identical rules
Activity classes, visa rules and renewal filings differ between IFZA and other zones.
Not verifying current authority requirements
IFZA's packages and procedures change, so rely on current information rather than older guides.
FAQs
Frequently Asked Questions About IFZA Company Formation
Straight answers to common IFZA questions. For advice on your own activities and structure, speak with our team.
Ask a question through our contact pageIFZA, the International Free Zone Authority, is a free zone business community in Dubai Silicon Oasis, Dubai. It sets up free zone companies (FZCOs) and branches for commercial and professional activities, under the framework of the Dubai Integrated Economic Zones Authority (DIEZ).
IFZA companies in Dubai operate within the framework of the Dubai Integrated Economic Zones Authority (DIEZ), which Law No. 16 of 2021 made the legal successor to the Dubai Silicon Oasis Authority from 1 January 2022. The DIEZ Implementing Regulations 2023, IFZA's terms and federal tax laws apply.
Choose your activity groups, licence and visa package, then submit documents through IFZA's online portal for compliance review. Once approved, you e-sign IFZA's e-legal forms and the digital memorandum and articles, and IFZA emails the licence. Amber activities also need external approval.
There is no single price. IFZA sells licence packages, usually priced by licence term and visa allocation, with extra activities, visa processing, office space, Amber approvals and professional fees added. Renewals and financial statements recur, so budget beyond year one.
Individuals usually provide a passport copy, a passport-size photograph, beneficial ownership details and, if in the UAE, an Emirates ID and residence visa copy. Corporate shareholders add a notarised and attested board resolution, trade licence, certificate of incorporation, and memorandum and articles.
Yes. IFZA companies can generally be fully foreign-owned by individuals or companies, and owners do not need to be in the UAE during incorporation. Ownership is subject to IFZA's compliance checks, and visa applicants complete the medical and Emirates ID steps in the UAE.
IFZA licenses commercial activities, such as trading, and professional activities, such as consultancy, and one licence can combine both, with up to three activity groups as standard. Green activities need no external approval; Amber activities need a Dubai or federal authority's approval.
Yes, subject to eligibility. An IFZA company can sponsor residence visas for shareholders and employees, who may then sponsor eligible family members. The number of visas depends on the package you choose and the office space you hold.
Not always. Companies with a basic visa allocation can operate from a virtual office, and IFZA offers flexi desks and private offices. Larger visa allocations may need office space, and a Qualifying Free Zone Person may need free zone premises and staff to show substance.
An IFZA company is incorporated under the DIEZ free zone framework and mainly serves free zone and international customers. A mainland company, licensed by Dubai's Department of Economy and Tourism (DET), trades directly across the UAE. IFZA companies may also operate onshore in Dubai with a DET licence or permit and free zone approval.
Yes. An IFZA company is a taxable person under Federal Decree-Law No. 47 of 2022 and must register with the Federal Tax Authority within three months of incorporation if formed on or after 1 March 2024, even if it expects 0% as a Qualifying Free Zone Person.
Only once it meets a threshold. Registration is mandatory when taxable supplies and imports exceed AED 375,000 over the previous 12 months, or are expected to within the next 30 days, and voluntary above AED 187,500. Free zone status alone does not remove VAT obligations.
It depends on size. Since 30 September 2025, IFZA requires financial statements at licence renewal: simplified if turnover was AED 3 million or less with no more than nine employees at any point, otherwise audited by a registered UAE auditor. A Qualifying Free Zone Person always needs audited statements.
Yes. KGRN Chartered Accountants helps with activity and licence selection, company structure, documents and IFZA's application steps, then supports bookkeeping, renewal financial statements, Corporate Tax, VAT and compliance. Licences, approvals and visas are issued by the authorities. Call or WhatsApp +971 54 586 4906.
This page provides general information about company formation in IFZA and is not legal or tax advice. Requirements, fees and procedures are set by IFZA and other authorities and may change.
Next step
Planning to Set Up Your Business in IFZA?
Speak with KGRN Chartered Accountants before you choose a package. We will help you understand IFZA's setup requirements, licensing considerations and documentation, and the accounting, tax and compliance obligations that come with every renewal.
- Setup requirements
- Licensing considerations
- Documentation
- Accounting
- Tax
- Compliance
Speak with a KGRN business advisor
Tell us about your activities and visa plans, and we will outline your IFZA options.
KGRN Chartered AccountantsOxford Tower 1005, Business Bay, Dubai, UAE
Phone and WhatsApp: +971 54 586 4906
Prefer to write? Use our contact page.
