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Free Zone Company Registration in IFZA Dubai, UAE. Service offer

The International Free Zone Authority was founded in August 2018 in Fujairah and moved to Dubai in August 2020. It is currently under the patronage of the Dubai Silicon Oasis Authority (DSOA). This is one of the youngest free zones in the UAE. IFZA Dubai offers licences based on an assortment of scalable business set-up solutions, covering 2 000 professional, commercial and industrial activities. Establishing a free zone company implies the possibility of obtaining residence visas for members/employees, as well as their families, which is an indisputable advantage.

Major advantages of doing business in the UAE

Stable banking system, good chances of opening a bank account in the UAE;

Ability to work with US dollars;

Quick company registration;

Ability to create substance in the country of registration;

Ability to obtain a residence visa for the company’s shareholders and employees.

Budget for setting up business in IFZA Dubai

Services
Fees (USD) [1]
Company registrationin IFZA, including[2]:
- company incorporation (name check; collection, preparation and submission of documents for incorporation; selection of a licence; delivery of original corporate documents);
- liaising with government authorities regarding all matters of the company;
- maintaining the company’s online service portal with the free zone and migration authorities;
- monitoring changes in legislation, informing about changes and the need to revise the activities / structure of the company;
- compliance check;
- postal services (collection / delivery of documents and other correspondence);
- company seal.
The above price also includes the state fees billed by the Free Zone for company registration, issuance of a license for 1 type of activity and flexi desk office.
Other options are available upon request
12 500
Obtaining a residence visa
(cost of one visa – investor visa), including:
- Government fees (Entry Permit, Medical Fitness Report & Emirates ID, Visa Stamping on the Passport);
- preparing, executing and agreeing the necessary documentation with the migration authority;
- accompanying the client to a medical clinic for medical examination;
- accompanying the client to the Federal Migration Service for fingerprinting and biometrics;
- submitting to the migration authority documents for issuing and stamping a visa;
- filing an application for and obtaining a residence card;
- selecting an insurance company for medical insurance (if required);
- transport expenses.
4 200
Assistance with opening corporate and personal bank accounts[3]
500 (Stage I)
1 500 (Stage II)
500 (Stage III)
Total:
USD 19 200

Company registration

The company registration in IFZA Dubai includes the following steps:

1) Selecting:

  • company name to be checked for availability (at least three names), which name:
  1. must be in English;
  2. must not be identical or similar to the name of an existing company;
  3. must not be contrary to public order in the UAE;
  4. must end with an indication of a legal form (“FZC”).
  • company structure (director, manager, secretary, shareholder, and attorney);
  • activity and geography of business;
  • type of licence and type of office in IFZA Dubai.

In IFZA Dubai, companies can have the following types of licences:

  1. Commercial licence – allows the holder to engage in the trading of goods, including import, storage, warehousing, supply and export of permitted goods.
  2. Professional licence – allows the holder to provide the type of services specified in the licence (for example, business consulting, marketing consulting, insurance and others).
  3. Industrial licence – allows the holder to conduct activities related to the production of goods, including import of raw materials, processing, production, assembly, packaging and export of finished goods.
Some licences require approval from the relevant regulator: for example, trading in eyeglasses and contact lenses will require approval from the UAE Ministry of Health.

2) Paying fees for services

3) Providing documents for directors / managers / secretaries / shareholders / attorneys:

  • colour copy of the internal passport with a page containing an address stamp;
  • colour copy of the international passport;
  • proof of address (unless the internal passport contains an address stamp);
  • copy of visa / UAE entry stamp;
  • scanned copy of a 3.5 x 4.5 photo against a white background (the hair should not cover the face, no jewellery or accessories).
IMPORTANT: a shareholder’s prior visit to the UAE is mandatory for company registration. It is irrelevant how old the UAE entry stamp is. If a shareholder has never visited the UAE before, he/she will need to enter the country at least for one day.

The shareholders will need to sign a Client Questionnaire Form for completing the compliance procedure and a Contract for administration.

A business plan may also be required to register a company for certain types of business.

4) Preparing a package of documents for company registration, having the documents signed by the company’s officers and shareholders.

5) Submitting the company registration application

The following documents are issued upon registration of the company:

  • Certificate of Incorporation,
  • Articles of Association,
  • Share Certificates,
  • Licence to conduct business (generally valid for 1 year),
  • Registers of directors and shareholders,
  • Office lease agreement.

A company seal is also issued.

Upon registration of the company, you can proceed with visas and bank account opening. A company can open a bank account both at a UAE bank and at a foreign bank – please contact your GSL consultant for details.
IMPORTANT: Since the UAE is not party to the Hague Convention of 5 October 1961, which abolishes the requirement for legalization of foreign official documents, it is necessary to submit the documents of a local company for legalization to the consulate of a country where they will be used.

The registration of a new company takes approximately 10 days.

Visa application

The UAE does not have such a concept as a residence permit. The UAE migration rules require the issuance of residence visas which in practice are similar to a residence permit.

A residence visa can be obtained on the following grounds:

  1. based on owning a UAE onshore company – investor visa;
  2. by making an employment contract with a UAE onshore company – work visa.

The number of residence visas depends on the business package chosen during the registration of a company.

A visa is normally issued for 2 years. Upon expiration, a visa can be renewed.

The application for residence visas includes the following steps (a visa can only be applied for after the registration of a company):

1. Opening an Establishment Card (the migration file of the company) – 3 - 5 days. This document is necessary for the company to be able to apply for residence visas in the future.

2. Submitting documents for a residence visa and obtaining an Entry Permit (permission to enter the country) – 5 - 7 days.

To obtain a residence visa, an individual must enter the UAE with an Entry Permit.

If at the time of issuing of Entry Permit the applicant is already in the UAE, then in order to complete the issuance of a residence visa without leaving and re-entering the country, it is necessary to change the status of the visa. The service of changing the status of a visa is provided upon request and is subject to additional charges.

3. Visiting the UAE to obtain a residence visa – in most cases, a visa can be obtained within 5 business days.

The applicant needs to:

  • undergo a medical examination (blood test and chest X-ray);
  • submit biometric data (retina and fingerprints scan).

After receiving a passport with a residence visa inserted into it, one can leave the country.

4. Obtaining a resident ID-card - ID Emirates

The card is issued a few days after the issuance of a visa. Personal presence is not required to receive it.

IMPORTANT: One is not required to reside in the UAE permanently, but a residence visa will be cancelled if one stays outside the UAE for more than 6 months.

The fees for obtaining a residence visa in IFZA start from USD 2 500. Please contact your consultant for more details on the application.

Requirements for the company structure

Directors

- minimum number:
- one
- individual / legal entity:
- individuals only
- residence:
- no requirements

Shareholders

- minimum number:
- one
- maximum number:
- 50
- individual / legal entity:
- individual / legal entity
- residence:
- no requirements

Manager

- number:
- only one
- individual / legal entity:
- individual
- residence:
- no requirements

Secretary

IFZA companies must also have a secretary that can be either an individual or a legal entity. One person can simultaneously act as shareholder, director, secretary, manager and authorized representative of the company.

Share capital

IFZA has no minimum share capital requirement.

Registered office

During the registration, the company and the Free Zone authority sign an office lease agreement; the address of this office is considered the official registered office address of the company.

IFZA offers various office packages depending on the needs of clients in terms of the type and number of licences, number of visas, the need for substance and placement in the Free Zone: from flexi desk and flexi office (a separate room or cell in the open plan space in first-class business centres) to warehouses and land plots.

Subsequent administration of the company

The company must annually renew the licence, by paying a relevant fee, and the lease agreement.

Companies registered in UAE free zones are exempt from capital gains tax, property tax and other taxes, except corporate tax and VAT.

Corporate Tax

A federal corporate tax was introduced in the UAE on 1 June 2023. Free zone companies may be subject to both the standard rate of corporate tax (9%) and a zero rate. The application of a particular rate depends on a number of factors such as the company’s income, the types of its activities (whether they are excluded or qualifying, or not), counterparties, whether the company maintains adequate economic substance in the UAE, and other aspects.

In order to understand which corporate tax rate (9% or 0%) applies to your company, we recommend that you seek advice from our specialists.

VAT

From 1 January 2018, the UAE introduced a Value Added Tax.

VAT as a general consumption tax applies to all transactions with goods and services, unless such transaction is exempted or taxed at 0% rate.

The standard VAT rate in the UAE is 5%.

There is no obligation to register for VAT unless the sales turnover within the country exceeds the registration threshold, which is AED 375 000 (~ USD 100 000) in the UAE.

Registration for VAT is required in the following cases:

  • there is reason to believe that the taxable turnover in the next 30 days will exceed the registration threshold (for example, a contract has been made);
  • at the end of the month, the taxable turnover for the previous 12 months actually exceeded the registration threshold;
  • the company receives services to be included in the return using the reverse charge method, in excess of the registration threshold.
It is possible to initiate a voluntary registration after exceeding the threshold of taxable transactions in the amount of AED 187 500 (~ USD 50 000).

Registration with the UAE Federal Tax Administration and allocation of the company’s Tax Reference Number (TRN) takes 20 business days, on average.

Upon registration with the Federal Tax Administration and allocation of the VAT number, a company must prepare and file a quarterly (or monthly in the case of an annual turnover exceeding AED 150 000 000 (~ USD 40 830 900)) VAT return and pay the resulting VAT within 28 days of the VAT period end.

Before registering a company, we recommend that you consult a specialist of the non-resident audit department and a tax adviser to assess the company’s tax burden and discuss subsequent administration of the company.

Financial Statements and Audit

Every company registered in IFZA must keep accounting records sufficient to confirm its financial position and reflecting up-to-date information about the assets and liabilities of the company.

There is no requirement for an audit or submission of financial statements to state authorities.

To assess the company’s tax burden, we recommend that you consult a tax adviser (can be arranged upon request).

Fees[4]

Services
Fees (USD)
Company registration in IFZA, including[5]:
- company incorporation (name check; collection, preparation and submission of documents for incorporation; selection of a licence; delivery of original corporate documents);
- liaising with government authorities regarding all matters of the company;
- maintaining the company’s online service portal with the free zone and migration authorities;
- monitoring changes in legislation, informing about changes and the need to revise the activities / structure of the company;
- compliance check;
- postal services (collection / delivery of documents and other correspondence);
- company seal.
The above price also includes the state fees billed by the Free Zone for company registration, issuance of a license for 1 type of activity and flexi desk office.
Other options are available upon request.
12 500
Annual renewal of the company, including:
- maintaining communication with government agencies on all company matters;
- maintaining the company portal in the Free Zone and in migration;
- tracking changes in legislation, informing about changes and the need to adjust the activities / structure of the company);
- tracking of deadlines and making payments for company renewal and office lease agreement;
- postal services (pick-up / transfer of documents and other correspondence).
The above price also includes the state fees billed by the Free Zone for the renewal of the license.
Other options are available upon request
11 500
Obtaining a residence visa
(cost of one visa – investor visa), including:
- Government fees (Entry Permit, Medical Fitness Report & Emirates ID, Visa Stamping on the Passport);
- preparing, executing and agreeing the necessary documentation with the migration authority;
- accompanying the client to a medical clinic for medical examination;
- accompanying the client to the Federal Migration Service for fingerprinting and biometrics;
- submitting to the migration authority documents for issuing and stamping a visa;
- filing an application for and obtaining a residence card;
- selecting an insurance company for medical insurance (if required);
- transport expenses
4 200
Renewal of a residence visa
(this is the cost of one visa – investor visa)
Renewal of a residence visa (an investor visa is issued for 2 years) requires taking the same actions and paying the same fees as upon initial application
4 200

Assistance with opening corporate and personal bank accounts, including[6]:

== services of:
- analysing the company’s structure, its activities / business model / turnover OR, in the case of a personal account, information on the individual’s sources of funds / residence / account balance;
- selecting banks individually for you – up to 3 options;
- preparing descriptions of banks indicating the criteria by which they were selected;
- preparing a description of further steps in the account opening procedure;
500 (Stage I)
== services of:
- collecting and analysing the corporate and other documents required to be submitted to the selected bank;
- putting together a detailed account opening application, including complete information on the company, its owners and counterparties;
- sending the application to one of the banks of your choice;
- preparing a detailed description of all further steps in the account opening procedure;
- preparing for an interview;
- accompanying you to a personal / online meeting with a banker if necessary;
- interacting with the bank at ALL stages;
1 500 (Stage II)
== payment of the remainder of the full fee – after receiving notification from the bank that the application is under final review by the bank’s compliance team;
500 (Stage III)
== an additional success fee is charged if the account is opened faster than the average standard procedure time, which is:
- for corporate accounts – 3 months,
- for personal accounts – 1 month.
+10% to the fee
for the service
Compliance fee
Payable in the cases of:
- renewal of a company,
- liquidation of a company,
- transfer out of a company,
- issue of a power of attorney to a new attorney,
- change of director / shareholder / beneficial owner, except the change to a nominee director / shareholder,
- signing of documents.
350 (standard rate, includes the check of 1 individual)
+ 150 for each additional individual (director, shareholder, or beneficial owner) or legal entity (director or shareholder) if such legal entity is administered by GSL
+ 200 for each additional legal entity (director or shareholder) if such legal entity is not administered by GSL
450 (rate for high-risk companies, includes the check of 1 individual)
100 (signing of documents)
Keeping the company’s accounting records.
Maintaining a systematic archive of company documents and providing them to the client upon request
200 / hour
Preparing financial statements, conducting an audit and submitting financial statements to the Free Zone authorities
400 / hour[7]
VAT registration
1 500
Preparing and submitting VAT returns
200 / hour
Tax advice on VAT and other matters
from 300 / hour

[1] VAT of 5% is applied.

[2] The cost of the package may vary depending on the number of shareholders, type of licence, and size of office (the office size and the type of licence dictate how many residence visas a company can have).

[3] The description of the account opening stages and the conditions for charging an additional success fee can be found below, in the Fees section.

[4] VAT of 5% is applied.

[5] The cost of the package may vary depending on the number of shareholders, type of licence, and size of office (the office size and the type of licence dictate how many residence visas a company can have).

[6] For more details on how fees for account opening assistance are charged, please contact your GSL consultant.

[7] The fees for preparing financial statements and conducting an audit are charged based on the time spent at hourly rates ranging from USD 100 to USD 400, depending on the type of work and qualification of a specialist involved, but are not less than USD 1 900 – fees for audited financial statements with a minimum number of transactions.

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12500 USD
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