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IFZA Free Zone License Cost: Fees and Setup Details

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IFZA Free Zone License Cost: Fees and Setup Details
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Planning to set up your business in Dubai? The IFZA Free Zone is one of the most affordable and efficient options for entrepreneurs and startups. One of the first things most founders consider is the IFZA license cost, which determines how much you’ll need to budget for setup, visas, and office space. Understanding these costs upfront can help you plan effectively and avoid unexpected expenses.

IFZA has gained popularity due to its combination of low entry costs, fast approvals, and flexible business structures. In fact, the free zone saw a 177% increase in new company registrations in Q1 2023, highlighting its appeal among international entrepreneurs. Dubai itself continues to attract global business owners, with over 35,000 new companies registered in H1 2025.

In this blog, we’ll take you step by step through the IFZA license cost, from license fees and office options to visas and renewals. This will help you understand exactly what to expect before launching your business in Dubai.

IFZA License Cost

IFZA offers a budget-friendly route for entrepreneurs aiming to start a business in Dubai. The estimated cost for the first year typically ranges between AED 25,000 and AED 30,000, including one visa. This makes it an attractive option for anyone considering a business setup in the UAE, as it combines affordability with flexibility.

Here’s a look at the key components involved in obtaining an IFZA trade license:

Cost ComponentApproximate CostDetails
Trade License (1 Visa Quota) AED 12,900 Covers the business license and registration fees for operating in the IFZA. Excludes visa processing, office space, or establishment card fees.
Additional Activity Fee AED 1,000 per activity Fee for adding extra business activities under your IFZA license.
Office Space (Flexi Desk or Registered Address) AED 5,000 – AED 7,000 Affordable option for startups or small businesses; includes shared or virtual office services.
Visa Fees (Per Person) AED 3,550 – AED 4,500 The cost for an employee or investor visa to live and work in the UAE under IFZA.
Establishment Card AED 1,500 – 1,600 Required for processing visas; must be obtained to complete visa formalities.
Special Approvals / Regulatory Fees AED 1,000 – AED 5,000+ (activity-dependent) Required for regulated businesses (healthcare, food, education, etc.).
PRO / Government Service Fees AED 1,000 – AED 2,500 Optional fees if using consultants to handle government documentation.

Note: Costs may vary based on your business requirements, number of visas, office selection, and any changes in regulations. Moreover, optional add-ons like private offices, additional visas, and PRO services can increase your total first-year investment.

If you’re looking to explore other affordable free zones, read our detailed guide on Sharjah Free Zone License Cost  to see how it measures up against IFZA.

IFZA License Costs Compare with Other Free Zones?

When planning a business setup in Dubai, the license cost is a key factor. While IFZA stands out for its affordability and flexibility, other free zones like DMCC, Dubai Silicon Oasis, or RAKEZ offer their own advantages. Here’s a detailed comparison:

FeatureInternational Free Zone Authority (IFZA)Dubai Multi Commodities Centre (DMCC)Ras Al Khaimah Economic Zone (RAKEZ)Dubai Silicon Oasis
Annual Cost (Basic) AED 11,000–15,000 AED 20,000–30,000 AED 10,000–14,000 AED 15,000–21,000
Setup Timeline 2–3 weeks 3–4 weeks 2–3 weeks 3–4 weeks
Office Requirement Flexi-desk acceptable Dedicated office space required Flexi-desk acceptable Office space preferred
Location Advantage Multiple locations in Dubai Prime location in Jumeirah Lake Towers (JLT) Northern Emirates Integrated Dubai tech hub
Market Access International International Local + International International (Tech Focus)
Tax 0% corporate tax if qualifying conditions are met 0% tax on non-mainland income 0% corporate tax  if qualifying conditions are met 0% tax on non-local profits

Entrepreneurs often compare the free zone license cost in Dubai when evaluating their options. While IFZA offers an affordable and flexible setup, other free zones like DMCC or Dubai Silicon Oasis may have different pricing structures and services.

For a more detailed breakdown of the RAK license costs, visit our blog, which offers an in-depth look at pricing, setup options, and other key factors.

IFZA License Renewal Fees and Associated Costs

Renewing your IFZA license is a straightforward process, with costs remaining relatively low. Here’s a breakdown of the key components of the IFZA license renewal costs:

Fee Type Amount (AED) Notes
Application Fee 1,035 Per application
Registration Fee 9,020 One-time; varies by free zone
Articles of Association (AoA) 2,020 Per application
Trade License 20,285 / year Varies by activity (approx. 5,750–15,000)
Establishment Card 1,825 / year Mandatory for immigration services

Note: Renewal costs may vary depending on your business size, office type, and visa count. As your company evolves, it’s important to budget for these recurring expenses to ensure smooth operations.

What is IFZA?

The International Free Zone Authority (IFZA) is a government‑regulated free zone located in Dubai Silicon Oasis (DSO). It offers a business-friendly environment with tax exemptions for company formation in the UAE. IFZA provides companies with the flexibility to operate internationally while benefiting from Dubai’s strategic location and world-class infrastructure.

Key advantages that make business setup in IFZA an attractive option for local and international entrepreneurs are:

  • Tax Benefits: Eligible IFZA companies can enjoy 0% corporate tax by meeting free zone regulations and UAE Economic Substance requirements.

  • Quick Setup: Standard IFZA licenses are typically approved within 2–3 days, with specialized activities taking slightly longer.

  • Multiple Activities: Multiple IFZA business activities can be added under a single license, improving flexibility and cost efficiency.

  • Easy Visa Packages: Flexible visa options support investors, founders, and employees, simplifying business expansion.

  • Supportive Business Environment: IFZA provides streamlined processes, professional services, and ongoing support to help businesses focus on growth.

For startups on a budget, finding the cheapest free zone license in the UAE is often the first step.

Types of IFZA Licenses

IFZA issues licenses tailored to different business activities and models. Each license type aligns with specific business goals and regulatory requirements under IFZA’s framework. Here are the key license categories:

  1. Trading License: Ideal for businesses involved in importing, exporting, or selling goods. Trade license suits retailers, traders, and distributors.
  2. Service License: Designed for businesses offering professional or consulting services, such as IT, finance, marketing, and HR.
  3. Industrial License: The Industrial trade license is ideal for businesses involved in light manufacturing, assembly, and production activities, such as production or logistics firms.
  4. Holding License: Perfect for businesses focused on managing investments and assets, such as investment firms or groups.

Each license comes with specific requirements, costs, and operational conditions.

IFZA Visa Packages: Options and Pricing

The IFZA free zone offers flexible visa packages based on the number of visas required by your company. Each package is designed to suit different business needs while keeping costs predictable.

Here’s a breakdown of the available packages:

  • Zero Visa Package: Ideal for investors or holding companies that do not require residence visas. The cost is approximately AED 12,900 for the license only.
  • 1 Visa Package: Suitable for solo founders, consultants, and small businesses that need a single investor visa. The package costs around AED 15,000.
  • 2 Visa Package: Perfect for small teams or startups and costs about AED 17,500.
  • 3 Visa Package: Designed for growing teams that require office space and additional visas, costing around AED 20,000.
  • 6 Visa Package: Suitable for expanding companies needing up to six visas, priced at AED 25,000. It typically requires a dedicated desk or private office to accommodate the higher visa quota.

Each IFZA residence visa is valid for 2 years and can be renewed easily.

Note: Visa processing costs, including medical tests, Emirates ID, and status change fees, are charged separately and are not included in the license package.

Choosing the right visa package can significantly affect your setup plan and budget. SafeLedger provides expert guidance to help you select the ideal visa package for your company and ensures a smooth, efficient setup process from start to finish.

If you’re considering other free zones (apart from IFZA), explore our Ajman Free Zone License Cost blog for easy comparison.

Do you know: How to Get a Ras Al Khaimah Business License?

What Are the IFZA Office Space Options?

A registered office address is a mandatory requirement for IFZA residence visa applications, even if your business operates remotely. The choice of office also determines the maximum number of visas your company can apply for under IFZA regulations.

The free zone offers a range of different office space options to suit different business needs:

  • Flexi Desk: A shared or virtual office option ideal for startups. This option is the most affordable and costs between AED 5,000 and AED 7,000 per year.
  • Dedicated Desk: For businesses that need a fixed workstation within a shared office environment. Ideal for businesses that need a consistent physical presence, its annual cost starts from  AED 8,000.
  • Private Office: This fully enclosed office space is perfect for businesses needing privacy. The cost starts from AED 15,000 per year.

Tip: Startups often choose a Flexi Desk to minimize costs. Meanwhile, growing businesses or those requiring multiple visas may prefer a Dedicated Desk or Private Office for better flexibility and compliance.

If you’re ready to set up your business in IFZA, SafeLedger brings years of experience and expertise to guide you through the entire process. Let us help you with a smooth and easy business setup in the UAE Freezone, ensuring your success from day one. Contact us today!

Frequently Asked Questions

IFZA (International Free Zone Authority) is a free zone in Dubai that offers tax exemptions and simple registration processes for businesses. It supports trading, services, and manufacturing. Companies operating under IFZA can benefit from Dubai’s strategic location, world-class infrastructure, and a business-friendly environment that fosters international operations.

IFZA provides several license types to suit various business models. These include Trading License, Service License, Industrial License, General Trading License, and Holding License. Each license supports specific business activities like trading, services, light manufacturing, and asset management, ensuring flexibility for all types of companies.

The initial setup cost for an IFZA business license ranges between AED 25,000 and AED 30,000. This cost includes the trade license, registration, and one visa. Additional fees apply if you add extra activities or require more visas. The affordability makes IFZA one of Dubai’s most cost-effective free zones.

Visa fees under IFZA range between AED 3,550 and AED 4,500 per person. These fees apply to both employee and investor visas, allowing you or your staff to live and work within the IFZA free zone. Each visa is valid for two years, and you can renew it with ease. Additionally, visa processing involves medical tests and Emirates ID fees, which are charged separately.

Yes, IFZA offers flexible office space options for various business needs. Startups can choose the affordable Flexi Desk, which costs around AED 5,000 annually. Businesses that require fixed desks can opt for Dedicated Desks, while those needing privacy can select Private Offices, starting at AED 15,000 annually.

The license renewal is approximately AED 12,900 annually. Additional costs include AED 1,500 for the establishment card renewal, and AED 3,000 to AED 4,000 for each visa renewal. If you lease office space, renewal costs start at AED 5,000 annually. You should also consider additional fees for any changes in your business activities.

The cost of adding additional activities under your IFZA license is AED 1,000 per activity. This fee allows you to diversify your business offerings and expand without the need for separate licenses for each activity. You can save costs while increasing your business flexibility and operational scope within the same license.

Setting up a business in IFZA is quick and efficient, typically taking just 2 to 3 days. This makes IFZA one of the fastest free zones for business setup in Dubai. The rapid approval process helps entrepreneurs start their operations without unnecessary delays, allowing them to seize market opportunities and scale faster. With such a quick turnaround, businesses can hit the ground running and focus on growth right from the start.

Yes, one of the major advantages of setting up a business in IFZA is the tax-free structure. IFZA offers businesses 0% corporate tax on profits, which significantly reduces overhead costs and increases profitability. This tax exemption is a major draw for international businesses looking to expand in Dubai.

Compared to other free zones like DMCC, IFZA stands out due to its lower setup costs (AED 25,000 to AED 30,000), faster setup time (2-3 days), and no office space requirement. While other zones may have higher setup costs and longer approval times, IFZA remains a more affordable and flexible option for many businesses.

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