IFZA Business License | Complete Guide to Setup, Cost & Benefits in 2025

The International Free Zone Authority issues the IFZA business license in Dubai, an emerging and one of the fastest-growing free zones in the UAE.

This authority provides a simple licensing system that caters to industries of startups, SMEs, and international companies.

The issue of an IFZA business license is the most critical condition for any entrepreneur to conduct business within this jurisdiction formally. The license facilitates trade locally and internationally, issuance of visas, and adherence to regulatory practices.

This article consists of types of licenses, costs involved, the application process, and some steps for reducing the overall cost. 

Why Set Up Your Business in IFZA Area?

Strategic Location

IFZA is located in Dubai Silicon Oasis, a hub for tech and innovation with direct access to the international markets. Its location and ideal closeness to Dubai International Airport, Jebel Ali Port, and the global trading corridor ease logistics and outreach for entrepreneurs.

Business-Friendly Environment

IFZA has built credibility for quick and easy setups. Zero corporate and personal income tax benefits entrepreneurs, with no currency restrictions and 100% profit repatriation. The free zone supports various business activities from tech startups to trading companies and consultancies.

Cost-Efficiency

The cost of starting and running a business is noticeably lower regarding the IFZA business license than other UAE free zones. Flexible packages allow business owners to start small and grow without worrying about high overheads.

Whether you’re launching a consulting firm or managing import/export operations, IFZA offers a supportive and economically viable launchpad.

Types of Business Licenses Offered by IFZA

Commercial License

This license is perfect for trading, import, export, distribution, or retail businesses. Activities can include electronics trading, foodstuff import, and warehouse operations. It covers B2B and B2C transactions, with options for expanding into multiple product categories.

Professional License

Designed for service-based industries, this license fits consultants, software developers, designers, trainers, and more. It allows individuals or companies to offer services legally within the UAE while enjoying the benefits of IFZA’s infrastructure and visa services.

General Trading License

A step up from the commercial license, the general trading license lets businesses trade in multiple, unrelated product lines, such as electronics, garments, food, and even beauty products, all under one license. It’s a flexible option for entrepreneurs managing diverse product portfolios.

Freelance/Consultancy License

This license caters to individual freelancers and small teams offering specialised services like digital marketing, IT consulting, or education. You can sponsor and apply for limited employee visas, making it ideal for solo professionals.

Other Specialized Licenses

IFZA also issues niche licenses for emerging technology, media, fintech, and crypto sectors. These are tailored to businesses that require regulatory alignment with global standards and offer access to the right ecosystem and partnerships.

Each IFZA business license type comes with visa eligibility, a choice of office solutions, and low renewal costs, making them attractive for entrepreneurs and SMEs.

Cost of the IFZA Business License

Initial Licensing Fees

The base cost of an IFZA business license typically starts around AED 11,500 and can go up to AED 20,000 or more, depending on the license type and number of visas. These fees include business registration, government approvals, and the cost of issuing the license.

Package Options and Costs

• Basic Package: License with one visa and access to a flexi-desk. Ideal for solo entrepreneurs or consultants. Starts at around AED 11,900.
  
• Standard Package: Includes up to three visas and co-working space access. This package suits small teams or partnerships.
  
• Premium Package: Designed for larger businesses. Comes with multiple visas, private offices, and value-added services like PRO support and mail handling.
  

Additional Costs

• Visa Fees: Each visa (investor or employee) ranges between AED 3,500 and AED 5,000, depending on the medical and Emirates ID process.
  
• Office Rental: Flexi-desks start around AED 8,000 annually. Private offices can range from AED 15,000 to AED 30,000 based on size.
  
• Compliance Costs: AML/KYC compliance for financial services or regulated industries can add AED 3,000 to 5,000 annually.
  

Despite these costs, IFZA remains one of Dubai’s most economical free zones. Transparent pricing and bundled packages make it easier to plan long-term budgets.

The Application Process for an IFZA Business License

Step 1: Choose Your Business Activity

Your chosen activity determines the type of IFZA business license you need. Be specific whether it’s e-commerce, management consultancy, or general trading, since this will affect compliance, visa allocation, and office needs.

Step 2: Submit Required Documents

You’ll need:

• Passport copy
• Passport-sized photo
• Proof of address (e.g., utility bill)
• Business plan (for some activities)
• Emirates ID (if applying locally)
  

Step 3: Apply for Initial Approval

Once your documents are ready, IFZA reviews your application. Initial approval usually takes 2–5 business days. During this time, they verify your documents and confirm that your chosen business activity complies with their framework.

Step 4: Lease Office Space

You can lease a flexi-desk, shared office, or private space. This step is mandatory to proceed with license issuance.

Step 5: License Issuance

After office space confirmation, the license is officially issued. You’ll receive digital and hard copies, valid for one year, with options to apply for investor/employee visas.

Ongoing and Renewal Costs for an IFZA Business License

Annual Renewal Fees

Renewal costs are generally around 80 – 85% of the original licensing fee. A license that costs AED 12,000 initially may require around AED 9,500 to 10,000 for renewal, depending on visa changes or office space.

Additional Renewal Costs

• Visa renewals: AED 3,000–5,000 per visa.
• Office space: Must be renewed annually if tied to your license.
• Compliance: Updated AML/KYC checks if you’re in a regulated sector.

Renewal Process

Renewals are straightforward—submit a renewal application, an updated tenancy contract, and any required compliance documents. The process typically takes 2–3 days.

Advantages of Obtaining an IFZA Business License

• 100% Foreign Ownership: You don’t need a local partner or sponsor, giving you complete control.
• Tax Benefits: No corporate tax, personal income tax, or import/export duties.
• Fast Setup: You can obtain an IFZA business license in as little as 3–5 days, with minimal documentation and no hidden fees.

This combination of benefits makes IFZA a top choice for entrepreneurs who want a hassle-free start.

How to Minimize Your IFZA Business License Costs

• Choose the Right Package: Don’t overpay for features you don’t need. Solo professionals can start with a basic license and upgrade later.
• Optimise Visa Allocations: Only apply for as many visas as you need. Additional visas can be added later as your team grows
• Go for Shared Office Spaces: A flexi-desk offers the lowest cost option without compromising license validity.

With proper planning, your IFZA business license setup can stay within budget while allowing for future expansion.

Comparing IFZA’s Business License Costs with Other Free Zones

IFZA vs DMCC

DMCC is highly reputable but often has higher licensing and office costs. While it suits large-scale operations, startups may find the upfront investment steep. IFZA, in contrast, offers flexible packages with lower capital requirements.

IFZA vs JAFZA

JAFZA caters primarily to logistics and industrial businesses and typically demands higher investment. IFZA offers comparable services at a fraction of the cost, especially for service providers and SMEs.

Why IFZA Wins

The IFZA business license is attractive due to:

• No minimum capital requirement
• Customizable packages
• Streamlined visa processing

These features make IFZA a more cost-effective and agile option for startups and small businesses.

Conclusion

It is never a dull option for entrepreneurs to opt for an IFZA business license, as it is an inexpensive, low-risk venture to set up a legal business presence in Dubai. Because of 100% ownership, tax override, and a fast-track set-up process, among other things, IFZA continues to attract small-scale businesses, freelancers, and international companies.

Before applying, consider your business requirements, all business activity types, the number of employees, and the office space. Choose a package that corresponds to your goals and what you want to spend.

In any case, it is best to consult IFZA-licensed business setup experts for professional guidance; they will complete documentation, get approvals for you, and propose ways to cut costs.

FAQs