4 Reasons Why IFZA Free Zone May be the Best Choice in UAE

Selecting the right free zone for your new business in the UAE can be a daunting task. There are about 45 free zones to choose from. Most of the free zones outside the Emirate of Dubai offer similar business activities which makes it even harder for the shareholders to decide which free zone is best suited for their business needs.

From our overall comparison of these free zones, International Free Zone (IFZA) is arguably a top choice for new businesses in the UAE for the following four (4) reasons:

Related: 3 Reasons Why IFZA Free Zone is Considered to be the Cheapest Free Zone in UAE?

1. Cheapest Free Zone in UAE

Ever since its inception, IFZA has focused on offering the most competitive company formation packages compared to all other free zones. These packages are generally much lower in price considering the overall pricing of issuance of licenses together with the costs of UAE residence visa. The free zone often offers seasonal packages from time to time to attract young entrepreneurs.

The company formation packages typically include a maximum of three business (3) activities selected by the shareholders. There are five (5) different license types offered by the free zone which include consultancy license, services licenses, trading license, general trading license and holding company license. The free zone maintains standard pricing structure for all license types making it easier for anyone to carry out the calculations amongst all packages.

2. Easiest Company Formation Process

IFZA offers one of the most flexible company formation processes available in the UAE. The entire process of the company formation can be completed remotely without physical presence of shareholders or the person in charge in the UAE. The application forms and memorandum and articles of association can be signed and exchanged in scanned form. There is no requirement for any company formation documents to be presented in original. This process makes IFZA a top choice among shareholders who are either unwilling to travel to IFZA offices or are residing outside the UAE.

3. Flexibility in Upgrading Licenses

IFZA company formation packages are typically split into categories ranging from zero (0) visa allocations to six (6) visa allocations. It offers flexibility to the shareholders to start from zero (0) or one (1) visa packages and upgrade their license later to higher visa allocations depending upon their business and personal requirements in the future.

At the time of the upgrade, the free zone charges only the difference in the government fee between the current package and the new package.

This option provides a lot of flexibility to young entrepreneurs allowing them to invest minimum costs on the company formation to start their new business and only increase the quota for the UAE residence visas on their license as and when the need for such allocation arises.

4. Corporate Bank Accounts

The corporate bank accounts for these companies can be opened with any local banks in the UAE. From our experience, we have seen that it is generally easier to open corporate bank accounts for IFZA companies with RAKBANK, Noor Bank and Mashreq Bank. Corporate bank accounts with other banks may also be opened depending upon the personal profile of the shareholders, business activities of the company and the UAE residence visa status of the shareholders and/or person in charge.

The above benefits offered by the free zone have made IFZA emerge as one of the most favorable jurisdictions chosen by shareholders and entrepreneurs in and outside the UAE. The flexibility shown by the free zone attracts a host of new business formations in the UAE.

Legal Inz is a registered agent of IFZA and provides end-to-end assistance on company formation with International Free Zone Authority including the issuance of UAE visas to shareholders and employees. We further simplify the process for you and ensure smooth incorporation coupled with seasoned legal advice.