When it comes to setting up a company in Dubai, IFZA or the International Freezone Authority is a popular point of contact for many. This is because German / Scandinavian-run companies offer high service quality, fair prices and many licenses.
This comprehensive guide explains how to set up a company via IFZA, what you need to bear in mind and the costs involved in setting up a company.
Why IFZA?
One of the most important questions you should ask yourself before setting up a company in the UAE is: Which free zone is right for me? There are now over 30 different freezones in Dubai and some of them differ greatly in terms of infrastructure and services (licenses).
- Accessibility IFZA offers excellent support via telephone and e-mail, and in many cases even in German. Physical accessibility is also very good, as IFZA is located in the Silicon Oasis. It is close to the freeway and can be easily reached from both Downtown and Marina / JBR.
- Organization The company was founded and built up by Germans and Scandinavians. The quality standards of the services are correspondingly high, especially in comparison to other freezones.
- Infrastructure IFZA offers a good infrastructure, not only in terms of support, but also additional services such as bookkeeping and accounts. There are also various office spaces that can be used as required.
- Licenses With over 800 licenses, there is a suitable license for almost every company or activity. These licenses can also be combined and extended.
Procedure
The process of founding a company is divided into several steps. Below is a graphic representation of all the steps, as well as a description of the most important steps.
Contact & offer
The first step is to contact a registered partner such as Dubai Setup or IFZA directly. Once you have provided the basic information about the company, licenses and VISA, you will receive an offer. This offer must then be accepted and the invoice paid in advance.
The costs are usually the same, depending on the provider.
Application form
If you apply directly via IFZA, you will receive a multi-page application form which must be completed in full. Otherwise, the registered partner will fill it out correctly. The application form contains all the information needed to set up the company. Important decisions must be made here, some of which cannot be corrected afterwards. This includes, among other things, the specification of
- Company name (German & Arabic)
- License selection and combination
- Number of VISA
- Type of VISA (Partner, Investor, Employment...)
- Further master data such as place of birth, address, etc...
Submission of the application
Once you have completed the multi-page form, it must be submitted directly to IFZA, together with the proof of payment.
KYC
In accordance with local regulations, there is also a KYC, i.e. a Know Your Customer procedure, in which you have to verify yourself. This is usually done via a link.
Signature
This is followed by the digital signature, in which all previous details are signed and confirmed again. Once the company name has been officially confirmed by the authorities, the Shareholder Resolution & MOA (shareholder agreement) is signed again.
Foundation & Documents
As a rule, the establishment process only takes 3-5 working days. You will then receive the documents (Unit Lease Agreement, foundation circular, MOA and optional Establishment Card) by e-mail via a download link. You can also collect these directly from IFZA if required. As a rule, the Establishment Card takes 2-3 days longer than the foundation itself. However, the Establishment Card is crucial for many banks and for hiring employees.
Experience
In our experience, you can set up a company directly with IFZA if it is purely about setting up a company, but not about emigrating to Dubai. Emigration involves many more aspects such as clarification of exit taxation, VISA process on site with the authorities (medical test, biometrics), VISA for family members, real estate search and, most importantly, opening a bank account on site.
Costs
Die Kosten für eine Firmengründung hängen stark von der Anzahl der VISA, sowie der Art und Kombination der Lizenzen ab. In der Regel kann man aber pauschal sagen, dass eine Firma mit einem VISA und 3 Dienstleistungslizenzen rund 5.000 – 6.000€ kostet, je nach Wechselkurs and aktuellem Angebot.
However, this does not include opening an account, the VISA process on site with the authorities (medical test, biometrics & Emirates ID), tax registration and accounting. Other aspects that are crucial when emigrating (real estate, driver's license, VISA for family members, etc...) are also not included.
Summary
To summarize, the process of setting up a company with IFZA can be carried out directly with a contact person from IFZA itself or via a registered partner. The prices are generally the same, but if you contact IFZA directly, you have to take more things into your own hands and do not have a partner to help you decide on important issues.
If you are planning to emigrate to Dubai, you will miss many of IFZA's services, such as support with the VISA process on site, insurance, questions about real estate, document transfer (driver's license...), additional VISA for family members, opening bank accounts (private and business) and much more.
