When it comes to setting up a company in Dubai, IFZA, or the International Freezone Authority, is a popular choice for many. This is because the German/Scandinavian-managed company offers high-quality services, fair prices, and a wide range of licenses.
This comprehensive guide explains how to set up a company through IFZA, what to consider, and what costs are involved in company formation.
Why IFZA?
One of the most important questions to ask yourself before setting up a company in the UAE is: Which free zone is suitable for me? This is because there are now over 20 different free zones in Dubai, and they differ significantly in terms of infrastructure and services (licences).
- Accessibility IFZA offers excellent support via telephone and email, and in many cases, this support is even in German. Physical accessibility is also very good, as IFZA is located in the Silicon Oasis. This is close to the motorway and is easily accessible from both Downtown and Marina / JBR.
- Organisation The company was founded and built by Germans and Scandinavians. Consequently, the quality standards are high, particularly concerning the services offered, especially when compared to other free zones.
- Infrastructure IFZA offers good infrastructure, not only in terms of support but also additional services such as bookkeeping and accounting. Furthermore, there are various office spaces available for use if needed.
- Licences With over 800 licences, it's possible to find a suitable licence for almost any company or activity. These licences can also be combined and extended.
Process
The process of company formation is divided into several steps. Below is a graphical representation of all the steps as well as a description of the most important steps.
Contact & Offer
The first step is to make contact through a registered partner, such as Dubai Setup, or directly with IFZA. Once the basic information about the company, licenses, and visas has been provided, you will receive a quote. This quote must then be accepted and the invoice paid in advance.
The costs are generally the same, depending on the provider. It also makes no difference whether you set up with IFZA yourself or through a partner. The costs for the company and licence are the same.
Application form
If you go directly through IFZA, you will receive a multi-page application form which must be completed in full. Otherwise, the registered partner assumes the correct completion. The application form contains all the necessary information required for company formation. Important decisions must be made here, some of which cannot be corrected retroactively. These include, among other things, the details of:
- Company Name (German & Arabic)
- Licence choice and combination
- Number of VISAs
- Type of VISA (Partner, Investor, Employment...)
- Further master data, such as place of birth, address, etc.
Submission of application
Once the multi-page form has been completely filled out, it must be submitted directly to IFZA, along with proof of payment.
Know Your Customer
According to local regulations, a KYC, i.e. a Know Your Customer procedure, is required here too, in which you must verify yourself. This is usually done via a link.
Signature
This is followed by the digital signature, where all previous details are signed and confirmed again. If the company name has been officially approved by the authorities, the Shareholder Resolution & MOA (Shareholder Agreement) will be signed once more.
Foundation & Documents
The formation typically takes only 3-5 working days. Subsequently, you will receive the documents (Unit Lease Agreement, Certificate of Incorporation, MOA, and optionally Establishment Card) via email with a download link provided. You can also collect these directly from IFZA if needed. The Establishment Card usually takes 2-3 days longer than the formation itself. However, the Establishment Card is crucial for many banks and for hiring employees.
Experiences
In our experience, you can set up a company directly with IFZA if it's purely about company formation, but not about emigrating to Dubai. Emigration involves many more aspects, such as clarifying exit taxation, visa processes on-site with the authorities (medical test, biometrics), visas for family members, property search, and most importantly, opening a local bank account.
Costs
The costs for setting up a company depend heavily on the number of visas, as well as the type and combination of licences. However, as a general rule of thumb, a company with one visa and three service licences can typically cost around €5,000 – €6,000, depending on the exchange rate and current offers.
However, this does not include opening an account, the on-site VISA process with the authorities (medical test, biometrics & Emirates ID), tax registration, and accounting. Furthermore, other aspects that are crucial for emigration (real estate, driving licence, visas for family members, etc.) are also not included.
Summary
In summary, the company formation process at IFZA can be handled directly with an IFZA contact person or through a registered partner. The prices are generally the same, however, when contacting IFZA directly, you have to take more things into your own hands and do not get a partner who supports you with important decisions.
Anyone intending to emigrate to Dubai will miss many services at IFZA, such as support with the on-site visa process, insurance, property queries, document re-registration (driving licence etc.), further visas for family members, opening bank accounts (private and business), and much more.
However, whoever wants to found just one company can do so. There is no difference in price.
