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IFZA licenses start from AED 12,500 all-in for a single-activity company with a flexi-desk. Setup takes 5 to 7 business days. IFZA is one of the most cost-effective UAE free zones for consultants, freelancers, trading companies, and tech startups. A 3-year visa option is available from the first year.
IFZA (International Free Zone Authority) is located in Dubai Silicon Oasis and regulated by the Dubai Development Authority (DDA). It launched in 2018 and has grown rapidly due to competitive pricing, fast processing, and flexible activity combinations — allowing up to 3 business activities on a single licence.
This is an independent review. Henry Club is not affiliated with IFZA. We cover costs, process, visa options, and limitations honestly so you can decide clearly before committing.
IFZA Setup Cost 2026 — Full Breakdown
IFZA pricing depends on the number of activities, visa allocation, and office type. The table below shows transparent costs for the most common configurations.
| Package | Activities | Visas | All-In Cost (AED) |
|---|---|---|---|
| Starter — Flexi Desk | 1 | 0 | ~12,500 |
| Standard — Flexi Desk | 1 to 3 | 1 | ~15,900 |
| Growth — Flexi Desk | 1 to 3 | 2 | ~20,500 |
| Executive — Private Office | 1 to 3 | 3 to 6 | ~35,000+ |
What is included: IFZA licence fee, DDA registration, establishment card, flexi-desk for 1 year, courier fees, and government processing charges.
What is NOT included: UAE residence visa stamping fees (AED 3,500 to 5,000 per visa), medical fitness test (AED 700), Emirates ID (AED 370), health insurance (mandatory, AED 700 to 2,000 per year).
IFZA 3-Year Licence Option
IFZA offers a 3-year licence package that reduces the effective annual cost. The 3-year all-in price starts around AED 28,000 to 32,000 depending on activities — roughly 25% cheaper per year than renewing annually. This is worth considering if you plan to operate for more than 2 years.
IFZA vs DMCC vs SPC — Which Free Zone Is Right for You?
The three most commonly compared affordable UAE free zones for small businesses and startups are IFZA, DMCC, and SPC Free Zone. Each suits a different profile.
| Criteria | IFZA | DMCC | SPC Free Zone |
|---|---|---|---|
| Starting cost (AED) | ~12,500 | ~18,000 | ~6,875 |
| Location | Dubai Silicon Oasis | Jumeirah Lakes Towers | Sharjah |
| Activities per licence | Up to 3 | Up to 3 | Up to 3 |
| Crypto and Web3 licence | Yes | Yes (DMCC preferred) | No |
| Prestige and banking ease | Good | Excellent | Moderate |
| Processing time | 5 to 7 days | 7 to 14 days | 1 to 3 days |
| Best for | Consultants, tech, trading | Commodities, crypto, finance | Budget-first startups |
IFZA sits in the middle ground — more credible than SPC for banking purposes, more affordable than DMCC for most non-commodities businesses. If your primary concern is bank account opening ease, DMCC is stronger. If cost is the priority and you do not need a Dubai address, SPC is cheaper. IFZA is the default recommendation for most service and trading businesses that want a Dubai licence without DMCC pricing.
Who Should Choose IFZA?
IFZA works well for:
- Freelancers and consultants who need a legitimate UAE licence to invoice clients
- E-commerce businesses selling internationally (not primarily to UAE mainland)
- Tech startups and SaaS companies with remote teams
- Marketing, PR, and media agencies
- General trading companies importing and re-exporting goods
- Individuals relocating to Dubai who want a cost-effective company for residency
IFZA may not be ideal if:
- You need to trade directly with UAE mainland clients regularly — you will need a mainland licence or a local distributor arrangement
- You are in commodities trading or crypto — DMCC has stronger credibility and specific licences for these sectors
- You need more than 6 visas — IFZA visa quotas are limited at the flexi-desk level
- Your business requires a physical warehouse or manufacturing facility
How to Set Up in IFZA — Step by Step
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The IFZA setup process is straightforward and can be completed remotely without visiting Dubai in most cases.
- Choose your business activities — IFZA allows up to 3 on one licence. Select from their approved activity list or ask an advisor to confirm your activities are permitted.
- Submit your application online — provide passport copy, personal details, and intended business activity. No prior UAE experience required.
- Receive your initial approval — typically within 1 to 2 business days.
- Sign your lease agreement — IFZA flexi-desk agreement is included in the licence fee. No separate tenancy contract needed.
- Pay the licence fee — full payment required before the licence is issued.
- Receive your licence and establishment card — issued within 5 to 7 business days of payment.
- Apply for your UAE residence visa — use your IFZA establishment card to begin the visa process through an approved typing centre or PRO service.
IFZA Visa Process and Costs
An IFZA licence entitles you to apply for UAE residence visas. The number of visas depends on your package — 0 for the starter package, up to 6 for executive packages.
| Visa Cost Component | Approx Cost (AED) |
|---|---|
| Entry permit | 1,200 to 1,500 |
| Status change (if in UAE) | 600 to 800 |
| Medical fitness test | 700 |
| Emirates ID | 370 |
| Visa stamping | 1,100 to 1,500 |
| Total per person (approx) | AED 4,000 to 5,000 |
Visas are valid for 2 or 3 years depending on the package selected. The IFZA 3-year licence includes a 3-year visa option, which reduces administrative renewal overhead significantly.
IFZA and UAE Corporate Tax — What You Need to Know
IFZA is a designated free zone for UAE corporate tax purposes. IFZA companies can qualify for the 0% corporate tax rate as a Qualifying Free Zone Person (QFZP) — but only if they meet the substance requirements and do not earn income from UAE mainland sources above the de minimis threshold.
If your IFZA company provides services to UAE mainland businesses directly, that income is classified as Domestic State Sourced Income. If it exceeds 5% of total revenue or AED 5 million (whichever is lower), your company loses qualifying status for that entire tax year and the 9% rate applies on all profits above AED 375,000.
All IFZA companies must register for corporate tax with the FTA regardless of profit level. See our UAE corporate tax guide for full registration steps and deadlines.
Frequently Asked Questions
Q: What is the cheapest IFZA package in 2026?
The cheapest IFZA package starts at approximately AED 12,500 all-in for a single-activity licence with a flexi-desk and no visa allocation. This is suitable for freelancers and consultants who already have UAE residency through another route.
Q: Can I open a UAE bank account with an IFZA licence?
Yes. IFZA licences are accepted by most UAE banks including Emirates NBD, Mashreq, RAKBank, and several digital banks. Bank account approval depends on your business activity, nationality, and transaction profile — not just your free zone. IFZA has reasonable bank account opening success rates for most standard business activities.
Q: How long does IFZA setup take?
Initial approval takes 1 to 2 business days. Full licence issuance takes 5 to 7 business days after payment. The entire process can be completed remotely without visiting Dubai.
Q: Does IFZA allow crypto or Web3 business activities?
IFZA does offer technology and software licences that can cover some Web3 and blockchain-related activities. However, for regulated crypto trading or exchange operations, DMCC with its VARA-regulated crypto centre is the stronger choice. Confirm your specific activity with IFZA before applying.
Q: Can I run my IFZA company from outside the UAE?
Yes. IFZA does not require you to be physically present in the UAE to maintain your licence. Many IFZA licence holders are non-resident business owners who use the licence to invoice internationally. If you want UAE residency, you will need to apply for a residence visa and spend at least 6 months per year in the UAE to maintain it.
Not Sure If IFZA Is Right for Your Business?
The cheapest free zone is not always the right one. The right free zone depends on your activity, visa needs, banking requirements, and whether you plan to trade with UAE mainland clients. Henry Club reviews your specific situation before you pay anything.
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About the Author
Dubai-based independent advisor on UAE visa, immigration, and offshore structuring. Founder of Henry Club UAE with 90+ published guides. Advisory-first — clarity before commitment.