IFZA License Cost 2025: Dubai Free Zone Company Formation Guide

Quick summary

  • If you’re comparing IFZA License Cost for a company setup with 1 visa in the IFZA Free Zone in Dubai, plan for the IFZA license package, the establishment card, and government fees for entry permit, status change (if you’re inside the UAE), medical fitness, Emirates ID, and visa issuance.
  • The total depends on your business activities, service speed, and whether you apply in-country or from abroad.
  • This guide explains the process, IFZA License cost, renewal, and compliance, so your business setup in Dubai stays smooth and predictable.

Last updated: September 2025

What is the IFZA Free Zone in Dubai? (International Free Zone Authority explained)

IFZA Dubai (International Free Zone Authority), is a modern free zone designed for fast, flexible company formation. It supports free zone companies across consulting, trading, and services, and provides a clear pathway to a business license in a leading free zone community. You choose your license options (commercial, professional, general trading) and activities from the official directory, then complete a streamlined setup process with digital documentation, immigration steps, and ongoing compliance. For founders who want a hub in Dubai without mainland overheads, IFZA Free Zone company formation is often the most practical way to set up a company and start business in the UAE quickly.

How to set up in IFZA Dubai: step-by-step company formation

IFZA License Cost - Minimal founder desk setup with passport and laptop in soft light.

Follow this to the letter and you’ll avoid delays:

  1. Select activities and type of license
    Pick your business activities from the IFZA directory and choose the type of license (commercial, professional, or general trading license). If you need several activities under one license, confirm eligibility first.
  2. Choose a company name
    Reserve 2–3 options that comply with Dubai naming rules used across free zones in the UAE.
  3. Prepare documents and KYC
    Passport, photo, address, UBO details, and any third-party approvals linked to your activity. This speeds up company formation in IFZA.
  4. Apply for the license package
    Submit your application for the IFZA Free Zone license and pay the quoted IFZA license cost. You’ll receive your company license digitally once issued.
  5. Get your establishment card
    This enables immigration transactions for your IFZA company.
  6. Complete immigration (1 visa)
    Entry permit → (if in the UAE) status change → medical fitness → biometrics + Emirates ID → visa issuance. This is processed via ICP and GDRFA.
  7. Post-setup essentials
    Banking (each bank runs its own KYC), VAT assessment, and a calendar for IFZA license renewal. If you plan to rely on the free-zone corporate-tax regime (QFZP), keep your financial statements and revenue mix in order.

This is an IFZA straightforward process when the paperwork is complete and the setup cost is budgeted correctly.

IFZA License Cost (1-visa): what you actually pay in a Dubai free zone

Think in three buckets: the IFZA package, government fees, and insurance.

A) IFZA package (primary)

  • IFZA license package for your chosen license options and 1-visa quota
  • Establishment card for immigration transactions
  • Renewal fees at the end of the license term

B) Government fees (UAE authorities)

  • Entry permit and visa issuance via ICP/GDRFA
  • Status change if you’re inside the UAE
  • Medical fitness and Emirates ID (biometrics + card)

C) Insurance

  • Health insurance from a DHA-approved provider (varies by plan/age)

Practical tip: request the official IFZA quotation first, then layer in the ICP/GDRFA steps you’ll actually use (in-country vs out-of-country). This gives you a precise company setup cost without guesswork.

Scenarios at a glance (To Frame Total Setup for an IFZA license cost)

Scenario (IFZA Dubai)What’s includedTypical moving parts
Zero-visaIFZA business license package (0 visa) + establishment cardNo residency; good for remote owners not relocating immediately
1-visa (standard)License + establishment card + entry permit + medical + biometrics/EID + visaMost common business setup solutions for solo founders
1-visa (in-country)Everything above + status changeSlightly higher total if you convert status inside the UAE

Use this to explain license cost in Dubai to clients who ask “why do totals vary?”

IFZA business activities and license options (commercial, professional, general trading)

  • Commercial: buy/sell, import/export, distribution.
  • Professional: services, consultancy, freelancers transitioning to a company in Dubai.
  • General Trading: broader goods categories under one license (subject to IFZA rules).
  • Activities under one license: IFZA allows grouping where relevant; some activities may require external approvals.

Clarity here avoids rework and keeps your free zone company formation timeline tight.

IFZA setup timeline in Dubai: how long company formation takes

With complete documents and quick approvals, IFZA licensing is fast. The IFZA Free Zone part is typically issued promptly; the free zone immigration flow, entry permit, status change, medical, biometrics/Emirates ID, visa stamping follows in this sequence. Because services run through ICP and GDRFA, timing depends on service level, public holidays, and whether you’re inside the Dubai emirate during setup in IFZA. Build a small buffer if you need to open a bank account straight after licensing.

Free zone company formation vs mainland in Dubai: costs and trade-offs

FactorIFZA Free Zone Company FormationMainland (DET)
Ownership100% foreign ownershipOnshore rules apply; activity-dependent
OfficeFlexible facilities in IFZA Dubai (flexi-desk, private office)Physical office usually required
ScopeCross-border/B2B friendly; external approvals may applyOnshore market access, DET oversight
ComplianceIFZA license + immigration via ICP/GDRFA; renew your license annuallyDET processes and onshore rules
Cost profileOften an affordable business setup for lean teamsHigher overhead for many activities

If you need government tenders or specific onshore activities, mainland may make sense. Otherwise, business setup in IFZA keeps overhead under control while you grow their business.

Different Facilities Offered by IFZA (Dubai Silicon Oasis)

IFZA operates in the Dubai Silicon Oasis area (including Dubai Digital Park) with workspace choices from flexi-desk to private office. The facility you pick can influence visa quotas, banking perception, and your renewal profile. For a simple IFZA business setup, many founders start lean, then upgrade office later as they scale.


Compliance you cannot Ignore (VAT, Corporate Tax QFZP, renewal)

  • VAT: Check FTA thresholds for business in the UAE—mandatory and voluntary registration levels.
  • Corporate Tax (free zones): If you want the 0% regime as a Qualifying Free Zone Person, you must meet the audited-financials requirement and the de-minimis rule for non-qualifying revenue; know what counts as qualifying income and what doesn’t.
  • IFZA license cost and renewal: Renew your license before expiry. From 30 September 2025, IFZA requires financial statements at renewal. Costing can be provide in advance so there isnt any surprise cost that will arise.
  • ESR / UBO: File where applicable and maintain documentation.
  • Trade license cancellation / company closing in IFZA: If you need to exit, follow IFZA’s official process and obtain a license cancellation certificate.

Handle these early and your first year stays clean.


Example: IFZA Free Zone company — real-world flow

Business setup flow

Founder profile: Consultant setting up a company in IFZA, working hybrid between the UAE and abroad; 1 residency visa needed.
Flow: Choose activities → company formation in Dubai (IFZA license issued) → establishment card → entry permit → (in UAE) status change → medical → biometrics/Emirates ID → visa issuance → VAT evaluation.
Outcome: Licensed, resident, banking initiated; renewal and financial-statement calendar set.

This is the default path for many service firms choosing an IFZA Free Zone company to operate from a hub in Dubai.

IFZA license Cost and Renewal: What Changes at Renewal

At renewal you’ll handle:

  • IFZA business license renewal (fees per your package)
  • Establishment card renewal
  • Visa/EID renewals when due
  • Financial statements submitted with the renewal from the effective 2025 date

Keep these dates in a tracker. Consistency here reduces risk and keeps your business setup in Dubai compliant.

Choose IFZA if you want a competitive free zone for establishing a lean consultancy or trading outfit, with business setup packages that scale. Choose Prolink TFS if you want a partner who will map license options and business activities, obtain the official quotation, manage ICP/GDRFA steps, and keep you compliant on VAT, Corporate Tax, ESR, and IFZA license renewal. It’s the fastest way to set up in Dubai without tripping over paperwork.


Conclusion

For most early-stage founders, IFZA Free Zone company formation is the cleanest way to set up a company in Dubai at a predictable license cost. Treat the IFZA License Cost as the core, then add the establishment card and immigration/ID components. Keep VAT, QFZP, and renewal in view, and you’ll have a smooth first year—ready to scale, invoice, and operate confidently in a Dubai free zone company.

FAQs: IFZA Free Zone license cost, company setup, and visas

What is IFZA License Cost for a 1-visa setup in Dubai?

It’s the IFZA-quoted business license package for your activities and one visa quota, plus IFZA’s establishment card and government charges for entry permit, status change (if applicable), medical fitness, Emirates ID, and visa issuance.

How many business activities can I include under the same license?

It depends on your license options and activity rules. IFZA’s directory lists eligible business activities; some requires TPA approvals.

Is free zone company formation faster than mainland?

Generally yes, IFZA free zone processes are streamlined, with immigration via ICP/GDRFA. Timelines still depend on document readiness and service levels.

Do I need VAT registration for my IFZA company?

If you cross the FTA thresholds, yes. Many founders choose voluntary registration earlier, depending on their business requirements and client expectations.

How does the free-zone corporate-tax regime (QFZP) actually work?

You must meet the QFZP conditions (audited accounts, de-minimis cap on non-qualifying revenue, and qualifying income rules). If you breach the conditions, you can lose the regime.

Can I cancel my IFZA license later?

Yes—IFZA offers a formal process for trade license cancellation. Budget for fees and obtain the license cancellation certificate before closing accounts and visas.

Sources

  • IFZA (International Free Zone Authority)
    • IFZA activities directory (official list of activities). activities.ifza.com
    • Commercial licence overview and activities context. IFZA
  • UAE Government (Immigration & ID)
    • U.AE portal: gateway to ICP Smart Services for visas and Emirates ID. u.ae
    • GDRFA Dubai services: status amendment/adjustment and visa-related services. GDRFAD
  • UAE Government (Tax & Corporate Tax)
    • Federal Tax Authority: VAT registration thresholds and guidance. Tax UAE
    • Ministry of Finance: corporate-tax rules for Qualifying Free Zone Person (qualifying income, excluded activities, de-minimis). MOF

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