IFZA Free Zone License Cost in 2025 | Business Setup in Dubai

It is easier than ever to get a business set up in the UAE. Among entrepreneurs, one of the most recommended choices is the International Free Zone Authority (IFZA).

IFZA has, in no time, emerged as a top choice for startups and SMEs because of its flexibility, affordability, and a smooth, expedited process.

However, the actual IFZA free zone license cost must be understood before decisions are made for a better business setup.

In this article, we are going to break down the full cost structure, cost packages, and hidden costs for complete clarity.

What Is IFZA? Free Zone at a Glance

Located on Dubai Silicon Oasis, thanks to a strategic location, one benefits from the UAE’s logistics network and proximity to major business hubs.

This free zone was created to welcome foreign investors and local entrepreneurs who want a simplified, cost-effective business setup.

Who Should Consider IFZA?

IFZA supports a wide range of business types, including:

• Commercial businesses: import/export companies, wholesalers, and product distributors
• Professional businesses: consultants, freelancers, service providers
• General trading firms: those handling a wide variety of goods
• Consultants and freelancers looking for one-person operations
  

Why Do Entrepreneurs Choose IFZA?

Some of the standout benefits include:

• 100% foreign ownership
• Full repatriation of profits
• No personal or corporate income tax
• No import/export duties within the free zone
• No need for a local sponsor
• A fully digitized setup process and flexible office options
  

Businesses in IFZA also enjoy access to modern office infrastructure, warehousing solutions, and a strong support network that makes long-term operations smooth and scalable.

Types of Business Licenses Offered by IFZA

Before looking at costs, it’s crucial to know the different types of licenses IFZA offers. Each license has a different price tag and set of permitted activities.

1. Commercial License

Best suited for businesses involved in trading goods whether importing, exporting, or distributing. It can include activities like electronics trading, food, clothing, etc.

2. Professional License

This is for individuals or firms offering services. Ideal for marketing consultants, IT experts, designers, and freelancers. The license allows the provision of professional services without physical trading.

3. General Trading License

This covers a broad range of trading activities under one license. Companies can deal with multiple unrelated products (e.g., cosmetics, food, electronics) using one license. It’s perfect for wholesalers and large trading firms.

4. Freelance or Consultancy License

IFZA provides licensing for solo professionals looking to work independently. This is ideal for individuals in tech, media, design, education, or business consulting.

5. Specialized Licenses

IFZA also offers bespoke options for holding companies, industrial activities, and logistics-based operations, although these are less common and may involve additional regulatory approvals.

The Cost of an IFZA Free Zone License

Now let’s get to the part that matters most—how much does it really cost?

Basic License Cost Breakdown

Depending on your business type and setup, here’s a general breakdown:

• Commercial License: Starts around AED 11,000 to AED 13,000
• Professional License: Usually in the AED 10,000 to AED 12,000 range
• General Trading License: Slightly higher, generally AED 15,000 to AED 20,000
• Freelance License: Starts from AED 9,000, ideal for solo operators

These figures often include the license only and do not cover visa quotas, office space, or other extras.

Factors That Influence IFZA License Costs

Several variables can push your cost up or down:

• Business activity: High-risk or heavily regulated activities cost more.
• Visa requirements: Each visa slot can add AED 3,000–AED 5,000.
• Office space: Flexi-desks cost less than dedicated or private offices.
• Number of shareholders: Additional names can incur extra admin fees.
• Package chosen: Bundled deals with visas and office space often provide savings.

Comparison with Other UAE Free Zones

Compared to zones like DMCC or JAFZA, IFZA remains one of the most cost-effective. For example:

• DMCC license cost: AED 30,000+
• JAFZA license + warehouse: AED 40,000+

In contrast, IFZA offers packages starting at less than half of those rates, with fewer administrative bottlenecks.

Available Packages and Services in IFZA

To make things easier, IFZA has bundled licensing with visa quotas and office options into tiered packages.

Basic Package (Starting around AED 11,900)

• 1-year license (commercial or professional)
• 0 to 1 visa quota
• Access to flexi-desk (shared workspace)
• Good for solo entrepreneurs or startups with no physical office needs
  

Standard Package (Around AED 14,000–AED 17,000)

• Includes 2 to 3 visa allocations
• Flexi-desk or shared office access
• Ideal for small businesses hiring staff
  

Premium Package (AED 18,000+)

• Up to 6 visa slots
• Dedicated or private office space
• Additional services like business address, mail handling, etc.

Extra Services Available

• Flexi-desk: Shared desk use (low-cost option)
• Dedicated Office: Private space with full-time access
• Warehousing: Available for trading or logistics businesses
  

Additional Costs Beyond the License

It’s easy to assume the license is the only cost, but that’s rarely the case. Here’s what else you need to budget for.

Visa Costs

• Investor visa: AED 3,750–AED 5,000 (3-year validity)
• Employee visa: AED 4,000–AED 6,000
• Medical testing, Emirates ID, and stamping are usually extra (approx. AED 1,500–AED 2,000 per visa)

Office Space

• Flexi-desk: AED 5,000–AED 7,000/year
• Dedicated office: AED 12,000–AED 20,000+
• IFZA also offers virtual office options, which cost less and are ideal for remote operations
  

Other Mandatory Costs

• Establishment Card: AED 1,000–AED 2,000
• Health insurance (mandatory): Starting at AED 800 per person
• Legal/admin fees: Not always included in packages
  

How to Reduce Costs When Setting Up in IFZA

A smart approach can save you thousands. Here’s how:

1. Choose the Right Package

Don’t just go for the cheapest. Think about visa requirements, office needs, and scale of operations. You may save more in the long run by choosing a slightly higher-tier package.

2. Optimize Visa Allocation

Only apply for as many visas as you need. Adding extra later is easy and avoids upfront overpayment.

3. Flexible Office Use

Opt for a flexi-desk or virtual office if your team works remotely. This alone can cut costs by 50%.

4. Keep an Eye on Offers

IFZA occasionally offers discounted packages for new entrepreneurs or during promotional periods. Check with a business consultant or visit IFZA’s official site regularly.

Long-Term Costs and License Renewal

Renewal Fees

Annual license renewal typically mirrors the initial setup cost around AED 10,000 to AED 15,000 depending on your license and visa quota.

Recurring Costs

• Office rent
• Visa renewal (every 2-3 years)
• Accounting services if required
• Regulatory compliance for certain industries

Always factor these into your long-term business plan.

Is Setting Up in IFZA Cost-Effective for Your Business?

Absolutely! IFZA offers one of the lowest entry barriers for businesses in the UAE. If you’re:

• A solo entrepreneur
• A service-based company
• A trader with modest space needs
  

You get flexibility, cost-efficiency, and simplified setup without compromising on credibility or compliance.

Startups especially benefit from the low setup cost and fast licensing process, while still enjoying Dubai’s reputation as a global business hub.

Conclusion

Understanding the IFZA free zone license cost is more than just checking a price list; it’s about aligning your business needs with a setup that works today and scales for tomorrow. From basic licenses to full-fledged packages with multiple visas and dedicated offices, IFZA offers something for everyone.

If affordability, flexibility, and speed are your priorities, IFZA is worth serious consideration. Ready to take the next step? Speak to a business setup consultant who can tailor the best package for you, without breaking the bank.