Get Commercial License From IFZA Free Zone

How To Get Commercial License From IFZA Free Zone?

Endowed with encouragement by the business environment, tax-friendly approach, and modern infrastructure, the UAE continues to allure entrepreneurs and global investors. Amidst the plethora of free zones, IFZA stands out as an immensely popular destination for setting up businesses in Dubai, offering flexibility and low costs while ensuring full foreign ownership.

Whether you consider setting up a trading office or retail outlet, or an import and export organization, getting a commercial license from IFZA is the strategic doorway to enter the Middle East and beyond. Enable your registration remotely; avail relatively cheap license packages and minimal bureaucratic hurdles make IFZA accessible to startups and SMEs.

In this blog, we will give you a detailed narration assisting you start a commercial license within IFZA-from selecting activities of trade to obtaining a trade license and finally, opening bank accounts. You shall trace every step, license types, documents needed, and practical tip checklists for avoiding mistakes. Whether you're a first-time entrepreneur or expanding your global footprint, this guide will empower you to confidently set up and operate your business in one of the UAE’s most dynamic free zones.

Why Choose IFZA Free Zone?

The International Free Zone Authority (IFZA) is among the most rapidly growing free zones in the UAE, providing the most investor-friendly environment. Positioned in the middle of Dubai Silicon Oasis, it is set to allure entrepreneurs, SMEs, and multinational companies by offering them a less cumbersome, less costly, and more flexible business setup atmosphere.

Following are the prime reasons that keep IFZA at the top:

1. 100% Foreign Ownership

Unlike mainland companies, IFZA stays 100% foreign-owned. One does not require any local sponsor or Emirati partner. It thus gives a free hand to investors in handling their businesses.

2. Tax Exemptions

Businesses enjoy total exemption from corporate and personal income taxes. No customs duties apply to goods traded within the free zone, and an investor is free to repatriate profits and capital without any restrictions. VAT gets levied only if revenue exceeds AED 375,000* per annum.

3. Affordable Licensing Packages

IFZA is the most affordably priced licensing facility in the UAE. Packages begin at AED 12,900* and offer up to 3 activities with a choice of 0 to 6 visas.

4. Flexible Office Solutions

From virtual offices to flexi desks to private offices, IFZA caters to any operational need-ideal for both startups and established companies.

5. Quick and Remote Setup

One can set up the entire process remotely, with the license being granted mostly within 3–5 working days.

6. Strategic-location

Being located in Dubai gives your business a center-stage position in global trade routes-closer to key markets in the Middle East, Asia, Europe, and Africa.

Perfectly suited for the entrepreneur who wants to set up or expand a business in a world-class jurisdiction with the least possible red tape.

Step‑by‑Step: How to Set Up

Step 1: Choose Activities & License Type

Select commercial trading activities (import, export, distribution, and warehousing). Up to 3 are included; mixing categories incurs an extra fee.

Step 2: Reserve Trade Name

Submit a name for approval — must not contain sensitive terms or offensive implications.

Step 3: Submit Documents & Initial Approval

Attach passport copies, photos, and corporate documents. Foreign directors may submit applications remotely. Processing turnaround: 3–5 days.

Step 4: Sign Legal Agreements

You will obtain MoA/AoA and other electronic legal documents. If you're abroad, a digital signature can be applied.

Step 5: Choosing the Office

Select either a virtual office, flexi-desk, or a dedicated/private space as per visa quotas.

Step 6: Making Payments

Make payments for license, establishment card, visa, medical, and Emirates ID fees. It may take somewhere between 3 days to 5 days.

Step 7: Collect the License & Documents

Get your electronic license and company documents. At this point, you should be able to assist the Company with bank account opening and visas.

Step 8: Bank Account & Visa Issuance

Open a corporate account (Mashreq NeoBiz, Wio, RAKBANK). Visa application would take 2-4 weeks and involves medical, Emirates ID, biometric, and stamping.

On-Going Renewal & Compliance

1. License Renewal

Renewed every year. The fee is the same as the original license fee unless there are upgrades or changes.

2. Visa Renewals

Renew every 1 or 2 years—AED 3,750 + medical, ID, and insurance.

3. VAT and Economic Substance

VAT registration if turnover is above AED 375,000*; economic substance reporting only in case of certain activities.

4. Accounting and Auditing

Not compulsory unless a certain activity requires so. Choose local providers with cost-effective rates (AED 1,200+/year), and don't be fooled by the markup of the agent.

How Does Flyingcolour Business Setup Help in Getting a Commercial License from IFZA?

Flyingcolour Business Setup is a reputable consultancy that aids entrepreneurs and businesses in establishing a presence in the UAE and commercial licenses from IFZA Free Zone. More than 20 years of experience in UAE company formation have made us into a company that simplifies the complex licensing processes and handles all compliances in the process.

Starting from the first consultation, our consultants will help you find the right business activity, the most cost-effective license package, the reserving of a trade name that meets IFZA legal requirements. We will handle all documentation, submissions, and approvals on your behalf, saving you time and avoiding administrative errors.

We will also assist in finding office space, including flexi-desk, shared office, or private suite, to satisfy your visa needs. Our team will coordinate with IFZA authorities for expeditious issuance of license (typically within 3-5 days) and can assist with corporate bank account opening, visa processing, medical tests, and Emirates ID registration.

What sets Flyingcolour Business Setup apart is their transparency, end-to-end service, and personalized guidance. Whether you're setting up remotely or in person, we make the process smooth, legally compliant, and cost-efficient—ensuring you start your IFZA-based business with confidence and clarity.

FAQs

Q1: Can everything be set up remotely?

Incorporation steps can be done online. Your physical presence is required, however, for medical and especially Emirates ID.

Q2: How long does it take to obtain the license?

The license issuance takes 3–5 days; the whole set-up, including visas, averages about two weeks.

Q3: Do I need paid-up capital?

No; IFZA doesn't demand paid-up share capital. The words AED 50,000*–150,000* could appear in documents sometimes; however, it's not compulsory.

Q4: How many activities can I place?

Up to 3 under one license. Others carry fees if you add more or mix categories.

Q5: Do I need a physical office?

No, you could go with a virtual office or flexi desk. Pure private offices or warehouses can be none-the-wiser.

Q6: Can licenses/visas be renewed without an agent?

Yes, after NOC, you can interface directly with IFZA, with no agent fees.

Q7: What about VAT and economic substance?

VAT is obligatory if revenues exceed AED 375K*; some activities have to submit an economic substance report yearly.

Therefore, to learn more about How to Get Commercial License From IFZA Freezone, Book a free consultation with one of the Flyingcolour Business Setup team advisors. 

The article was published on 23/06/2025. It is important to note that the federal policies and updates mentioned may have changed since then. For the most current information, please contact our consultant!