IFZA Company Formation Guide: Licenses, Costs & Benefits

IFZA

IFZA Company Formation Guide: Licensing Options, Costs, and Ideal Business Types

6 minutes

January 23, 2026

IFZA Company Formation Guide: Licensing Options, Costs, and Ideal Business Types
IFZA Company Formation Guide: Licensing Options, Costs, and Ideal Business Types

If you’re exploring opportunities to start a business in the UAE, the International Free Zone Authority (IFZA) stands out as one of the most flexible and cost-effective free zones in Dubai. Whether you’re a budding entrepreneur, an SME owner, or a global brand looking to expand into the Middle East, this guide breaks down everything you need to know about IFZA company formation, from license types and costs to the kinds of businesses that thrive here.

Starting with one thought in mind: ease. Setting up a business internationally can feel daunting. But when you understand the structure, options, and costs, the process becomes much more manageable. Let’s dive right in.

What Is IFZA Free Zone?

The International Free Zone Authority (IFZA) is a Dubai-based free zone that was developed to make business setup in the UAE simpler, faster, and budget-friendly for both foreign and local investors. While traditional free zones sometimes come with rigid requirements or higher costs, IFZA has positioned itself as a competitor by offering a flexible licensing system, relatively low costs, and a broad range of permitted activities.

With this context, IFZA is increasingly popular among startups, consultants, traders, and service providers.

Licensing Options in IFZA Free Zone

One of the first decisions you’ll make when planning your business setup in the IFZA free zone is choosing which license fits your business model. Like other free zones, IFZA categorises licenses based on your intended activities. Below are common categories you’ll encounter:

1. Trading License

Perfect for businesses involved in import/export activities, retail, and general trading. If your business is all about moving products, whether physical or digital, this license is your best pick.

2. Service/Professional License

If you’re offering professional services, such as consulting, marketing, tech services, or training, the service license works best. It enables you to provide your expertise as a business activity.

3. Holding License

Designed for investors holding assets, shares, and intellectual properties. This is ideal if your primary goal is strategic asset management rather than commercial trading.

4. Branch License

For international companies wishing to establish a presence in the UAE without setting up an entirely new entity. This allows your existing foreign company to operate locally under a branch setup.

Each of these license types caters to different business needs, so it’s important to align your choice with your business goals.

IFZA Free Zone Company Setup Cost

One of the biggest advantages of starting a business in the IFZA free zone is its competitive cost structure. With G12, free zone business packages start from approximately AED 5,499 for a 0-visa setup, which includes a trade license, business consultation, and flexi desk address.

For entrepreneurs seeking residency, G12 also offers IFZA packages starting around AED 11,999 that include a free visa with the license.

The exact company setup cost depends on license type, number of visas, visa quota requirements, office space, and selected business activities.

Ideal Business Types for IFZA Free Zone

IFZA’s flexible structure supports many business activities, but a few categories benefit the most:

  • Trading Companies: Perfect for import/export, e-commerce, and global product movement with fewer operational hassles.
  • Consultancy & Professional Services: Ideal for lawyers, financial experts, IT consultants, trainers, and marketers, offering 100% ownership and tax-free profits.
  • Startups & SMEs: Lower setup costs, flexible visas, and quicker approvals make IFZA highly startup-friendly.
  • Holding & Investment Entities: Great for managing assets, shares, or intellectual property through a structured holding license.

What Makes IFZA Attractive for Entrepreneurs

Here’s why many business owners lean toward business setup companies in IFZA free zone when evaluating their UAE expansion options:

1. Cost Efficiency

Compared to some more traditional free zones, IFZA has a competitive license price range, with different visa allocations to match budgets.

2. Fast Processing Times

Most IFZA licenses can be issued in around 5-7 working days once documents are in order.

3. 100% Ownership

As with other UAE free zones, foreign investors can enjoy full ownership of their entities without the need for local partners.

4. Wide Range of Activities

With access to over 800 business activities, you’re not boxed into overly restrictive categories.

5. Flexible Visa and Workspace Requirements

One major advantage of IFZA is its flexible workspace policy. Businesses can apply for up to three visas without requiring physical office space, making it ideal for consultants, freelancers, and lean teams. 

However, from four visas onwards, office space becomes mandatory, in line with IFZA regulations.

Things to Watch Out For

Of course, nothing in a business setup is without nuance. For example:

  • You’ll want to budget for renewal fees each year (license, visas, and related government charges).
  • Certain business activities may require additional approvals from external authorities, depending on the nature of operations. 

Still, with the right planning and service support, these are manageable aspects of the entrepreneurial journey.

Why Expert Support Matters

Working with professionals, especially those with deep experience in free zone setups, can make a massive difference when handling IFZA free zone company setup requirements, managing documentation, optimizing costs, and staying fully compliant with UAE regulations. Instead of stressing over legal procedures, approvals, or the business setup cost in the IFZA free zone, it simply makes sense to rely on specialists who do this every single day. That’s exactly where G12 steps in. With our guidance, businesses get clearer strategies, smoother processes, and a far more confident start in the UAE market. If you want the easy route, expert support honestly changes everything.

Partner With G12 for Your UAE Business Setup

If you’re ready to turn your business setup in the IFZA free zone or any UAE jurisdiction into reality, G12 is your trusted partner from start to finish. With 15+ years of expertise, we simplify the entire journey, right from selecting the ideal free zone and license type to managing government approvals, trade licensing, residency visas, and even corporate banking assistance. 

Our team builds personalized strategies that fit your budget, growth plans, and long-term vision. With deep knowledge of IFZA processes, IFZA free zone company setup cost, and compliance requirements, we ensure smooth, hassle-free execution. Whether a startup or global investor, build your success story with G12. 

Frequently Asked Questions

1. How long does it take to set up a company in IFZA?

Usually 5 to 7 working days, provided all documents are accurate and submitted correctly.

2. Can I own my IFZA company 100% as a foreign investor?

Yes, IFZA allows 100% foreign ownership without needing a local sponsor or partner.

3. Do I need a physical office to set up a company in IFZA?

No, IFZA offers flexi-desk and virtual office options depending on your license type and requirements.

4. What types of businesses can operate under IFZA licenses?

Trading, consultancy, services, e-commerce, holding companies, and many other approved professional and commercial activities.

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