The International Free Zone Authority (IFZA) is a stand-alone free zone preferred by most businesses in Dubai. It is known for its best pricing,i.e., a budget-friendly approach for all the young entrepreneurs.
Along with flexible license structures, IFZA primarily appeals to startups and SMEs looking to shop in the UAE. I would like you to know that understanding the IFZA trade license cost is essential before stepping in. Be it a freelancer, a consultant, or a growing trading firm, the fees would significantly vary depending on a few factors.
This guide breaks down how much it costs, the packages available, and other variables that may affect the investment.
What Is an IFZA Trade License?
An IFZA trade license is a formal authorisation for a company that allows it to function legally within the free zone. It is needed for business and accessing services such as office space, banking, and hiring staff.
Types of Trade Licenses:
- Commercial License: For trading goods, including import, export, and distribution.
- Professional License: For service-oriented businesses like consulting, education, and marketing.
- General Trading License: Covers multiple products under a single license.
Why Choose IFZA?
- 100% foreign ownership
- No personal or corporate tax
- Quick and fully digital setup
- Strategic location with access to global markets
Types of IFZA Trade Licenses and Their Cost Differences
Commercial License
Ideal for retail, export/import, and general trade businesses. The average cost ranges from AED 10,000 to AED 15,000. The cost includes basic admin charges but may not cover visa allocations or office space.
Professional License
Designed for solo professionals like consultants and freelancers. These licenses are relatively cheaper, starting around AED 8,000, and go up depending on the number of employees and services.
General Trading License
Offers greater flexibility for businesses that deal with multiple goods. It’s more comprehensive and hence, more expensive; costs usually range between AED 15,000 and AED 20,000.
Freelance & Consultancy Licenses
Perfect for independent contractors. Basic packages start at AED 7,500 to AED 10,000. Costs increase with added services like visa allocation or workspace.
Factors That Influence IFZA Trade License Cost
Business Activity
Due to regulatory checks and added permissions, a complex business activity like import/export will cost more than a basic consulting license.
Number of Visas
A trade license with zero visas is the cheapest. Each additional visa can add AED 4,000 to AED 7,000 to your overall cost. Planning your visa needs upfront can help you save.
Office Space Requirements
IFZA offers flexi-desk, shared offices, and private spaces. Flexi-desks are the most economical option, while private offices can increase your budget significantly.
Company Size and Complexity
Bigger operations might require more paperwork, specialised approvals, and professional services—each adding to your cost.
License Validity Period
IFZA offers 1-year and multi-year license options. Choosing a 3-year license can save up to 20% compared to annual renewals.
IFZA Trade License Package Options and Their Costs
(Note: All the pricings mentioned below are estimated values & might vary depending on requirements)
Includes trade license, one visa, and flexi-desk. Ideal for solo entrepreneurs.
Cost – Approx: AED 10,000 – AED 12,000
Standard Package
Multiple visa quotas (1-3), shared office, and business address are included.
- Cost – Approx: AED 15,000 – AED 18,000
- Best for small teams looking for minimal setup.
Premium Package
It has a trade license, multiple visas (3+), and larger office options.
- Cost: AED 20,000 – AED 30,000
- Suitable for established businesses and larger teams.
Add-Ons and Custom Packages
The person can add services like crypto licenses, warehousing, or specific compliance certifications.
- Extra visa: AED 4,000 – AED 7,000 each
- Dedicated office: Starts from AED 10,000 annually
Additional Costs Beyond the Trade License Fee
(Note: All the pricings mentioned below are estimated values & might vary depending on requirements)
Visa Costs
- Investor Visa: AED 4,000 – AED 6,000
- Employee Visa: AED 4,500 – AED 7,000
- Family Visa: AED 3,500 – AED 5,000
Office Rental Costs
- Flexi-desk: AED 3,000 – AED 5,000
- Shared Office: AED 7,000 – AED 10,000
- Private Office: AED 12,000 and up
Compliance Costs
- AML/KYC: AED 2,000 – AED 4,000 annually
- Audit & Accounting: AED 3,000 – AED 6,000
Miscellaneous Fees
- Bank Account Setup: AED 1,000 – AED 2,000
- Document Attestation: AED 500 – AED 1,500
How to Reduce IFZA Trade License Costs?
Pick the Right Package
Don’t overpay for extras you won’t use. Match your package to your actual business requirements.
Maximize Visa Usage
Apply for the maximum number of visas allowed during the initial setup to avoid incremental fees later.
Go Minimal on Office Space
Start with a flexi-desk. You can always upgrade as your business scales.
Avoid Non-Essential Services
Skip optional features like additional office maintenance or paid business consulting unless you need them.
What Happens if You Do Not Renew Your IFZA Trade License on Time?
Late Fees and Penalties
IFZA imposes fines for late renewals, starting from AED 1,000 and increasing monthly.
Impact on Business
You can freeze operations and face legal consequences if not renewed on time.
Grace Period
A short grace period (usually 30 days) is given post-expiry. However, delays beyond this attract more penalties and may lead to license cancellation, increasing your overall IFZA License Cancellation Cost.
Comparing IFZA Trade License Costs with Other Free Zones in the UAE
IFZA vs DMCC
DMCC, while prestigious, is more expensive. Licenses start at AED 20,000, and office space is significantly costlier.
IFZA vs JAFZA
JAFZA is tailored for larger industrial and logistics firms. Costs can exceed AED 30,000. IFZA remains more flexible and budget-friendly.
Why Choose IFZA?
IFZA offers lower setup costs, easier processes, and better value-for-money packages for startups and SMEs.
Also Read: Select IFZA General Trading License Cost 2025
Conclusion
By the end of this article, I hope my detailed explanations and approximate cost lists of all requirements can give you a brief idea of how to proceed. By familiarising yourself with the cost structure, planning your needs appropriately, and choosing to work with the right people, you will have much more control over your final budget.
Also, remember that not always less expensive means worse or better. Choosing the freezone is a wise decision that considers different factors. At Arnifi, our experts will understand your company/business requirements and suggest free zones that suit your needs. Get Free Consultation Now!
FAQs
How much does an IFZA trade license cost? Typically between AED 10,000 and AED 30,000, depending on the package.
What is included in the cost? License fee, visa quota, and sometimes basic office space.
Are there extra costs for visas and offices? Yes. Each visa or office type has its cost bracket.
Can I reduce renewal costs? Opt for multi-year plans and avoid late renewals.
Any hidden fees? Some services, like document attestation or compliance checks, can be additional.
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