The International Free Zone Authority (IFZA) is a world-class business hub located in the United Arab Emirates (UAE), offering a host of benefits for entrepreneurs and investors intending to set up a company in the region. In this blog, we will provide a complete guide on how to set up a business in IFZA Free Zone Dubai, covering everything from the benefits and types of companies to the registration process and required documents.
What is IFZA
IFZA stands for the International Free Zone Authority, which is a free zone located in the United Arab Emirates (UAE). IFZA provides a world-class business environment and a wide range of business activities for entrepreneurs and investors to establish their businesses in the region. The IFZA free zone is a popular destination for setting up businesses due to its strategic location, easy business registration process, and access to global markets.
Types of Companies in IFZA Free Zone
- Free Zone Establishment (FZE)
Free Zone Establishment (FZE) is a single shareholder company that is allowed to carry out permitted IFZA free zone activities. The shareholder can be a person or a corporate unit.
- Free Zone Company (FZCO)
Free Zone Company (FZCO) is a limited liability company that requires a minimum of two and a maximum of five shareholders. FZCOs are allowed to carry out any permitted activity in IFZA Free Zone.
- Branch of a Foreign Company
A Branch of a Foreign Company is an extension of an existing foreign company that is permitted to hold out the exact business activities as the parent company. The foreign company must have a valid license in its home country and provide a certificate of incorporation, memorandum and articles of association, and a board resolution authorizing the establishment of the branch.
- Branch of a UAE Company
A Branch of a UAE Company is an extension of an already-running UAE company that is permitted to carry out the exact business activities as the parent company. The UAE company must have a valid license and provide a certificate of incorporation, memorandum and articles of association, and a board resolution authorizing the establishment of the branch.
The Process of Business Setup in IFZA Freezone
- Choose a Business Activity
The first step in setting up a business in IFZA Free Zone Dubai is to determine the type of business activity you wish to hold out in the free zone. IFZA Free Zone offers a wide array of business activities, comprising trading, consulting, manufacturing, and more.
- Choose a Company Type
The second stage is to select the appropriate company type that aligns with your business needs. IFZA Free Zone offers various types of companies, including Free Zone Establishment (FZE), Free Zone Company (FZCO), Branch of a Foreign Company, and Branch of a UAE Company.
- Choose a Business Name
The next stage is to select a special and relevant business name that complies with IFZA Free Zone’s naming conventions. Your business name must not be similar to any current company name in the UAE and should not contain any offensive or religious words.
- Submit Required Documents
Once you have chosen your business activity, company type, and business name, the next step is to submit the necessary documents. You will need to provide passport copies of shareholders and directors, proof of residential address of shareholders and directors, a business plan, a company formation application form, and many more. You can connect with one of the seasoned consultancies such as Start Any Business (SAB) to know completely about the documents’ demands and the submission procedure of documents.
- Obtain Licenses and Permits
After submitting the required documents, you will need to obtain the necessary licenses and permits from relevant authorities to operate your business in IFZA Free Zone. The type of license and permit you require will rely on your business activity and company type. In order to know about IFZA free zone license cost, you can get in touch with Start Any Business experts.
- Register Your Company
Once you have obtained the necessary licenses and permits, the final step is to register your company in IFZA Free Zone. You will need to sign the Memorandum and Articles of Association, pay the required registration fees, and obtain your company registration certificate.
Benefits of Business Setup in IFZA Free Zone
- 100% Foreign Ownership
One of the significant benefits of setting up a business in the IFZA Free Zone Dubai is that 100% foreign ownership is allowed. This means that entrepreneurs and investors can establish their companies without the necessity for a local sponsor or partner. They can own and manage their companies independently.
- 100% Repatriation of Capital and Profits
IFZA Free Zone allows businesses to repatriate 100% of their capital and profits without any limitations. This means that entrepreneurs and investors can transfer their money and profits to their home country without any hurdles or limitations.
- 0% Personal and Corporate Income Tax
IFZA Free Zone offers 0% personal and corporate income tax. This means that entrepreneurs and investors can enjoy the benefits of setting up their businesses without worrying about taxes.
- 0% Import and Export Tax
IFZA Free Zone also offers 0% import and export tax, making it an attractive destination for businesses involved in import and export activities.
- Easy and Fast Company Registration
IFZA Free Zone offers an easy and fast company registration process, allowing entrepreneurs and investors to establish their businesses quickly and efficiently.
- Affordable Business Setup Costs
IFZA Free Zone offers affordable business setup costs, making it accessible for small and medium-sized businesses.
- Access to World-Class Infrastructure
IFZA Free Zone is located in the heart of the UAE, offering businesses access to world-class infrastructure, including modern offices, state-of-the-art technology, and excellent transportation links.
Required Documents for Business Setup in IFAZA Free Zone
To set up a business in IFZA Free Zone, you will need to provide the following documents –
• Passport copies of shareholders and directors
• Proof of residential address of shareholders and directors
• Business plan
• Company formation application form
• Memorandum and Articles of Association
• Shareholder declaration form
• Board resolution authorizing company formation
• Power of Attorney (if applicable)
Conclusion
Setting up a business in IFZA Free Zone Dubai offers several benefits for entrepreneurs and investors looking to set up an existence in the UAE. By following the steps outlined in this guide and providing the required documents, you can easily register your business and start operating in IFZA Free Zone.
