The International Free Zone Authority of the UAE: Location and Features

11:36 pm  |  31.03.2024

IFZA in the UAE presents significant business opportunities for entrepreneurs. This article explores the advantages of registering a business in this thriving economic zone.

IFZA stands for International Free Zone Authority. In most cases, this particular solution is attractive to potential investors and businessmen.

Legal Side

The idea of creating IFZA was first voiced in Fujairah. The implementation of the project into reality happened not so long ago, in 2020. DSO signed an agreement with IFZA. This led to transactions being carried out using the above-mentioned regulator. The main goal of this project: business expansion and assistance in establishing connections between entrepreneurs and potential investors (which is carried out within the framework of the DSO, Dtec, or DSOA systems).

Corporate Ownership

IFZA is a unique project as it offers complete freedom to foreign investors. The system does not interfere in the affairs of entrepreneurs, which ensures a maximum of freedom. This is something that some marketing directions cannot boast of, which can take up to 49% of the investor’s property.

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Unlike mainland requirements that require office space larger than 18 square meters, IFZA offers flexibility through virtual office rentals for legal entity formation.

Easy License Acquisition

IFZA streamlines the licensing process and provides simplified requirements for obtaining professional, commercial, or industrial licenses. Additionally, companies can establish branches within the zone, further facilitating business expansion.

Repatriation of Profits

Profits can be repatriated without deductions so that 100% of the income can be withdrawn from the free economic zone.

Remote Company Registration

Entrepreneurs are not required to be physically present in the UAE for business registration within the IFZA, making the incorporation process much easier.

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Customs Exemption

IFZA companies are located within the Dubai Silicon Oasis and benefit from exemption from customs duties, increasing their cost efficiency.

Residence Permit Regulations

Foreign shareholders and employees are eligible for residence visas, which facilitates a comfortable living environment in Dubai and enables financing of visas for family members.

By employing foreign workers, health insurance is not required, which reduces costs for entrepreneurs to a minimum.

Opportunities in the Free Economic Zone (FWZ)

IFZA is considered Dubai’s leading free trade zone, offering its partners world-class infrastructure and a conducive business environment. Here, let’s explore the key options available to investors when starting a business:

  • Rapid growth and scalability. By accelerating the adaptation process within the FEZ, IFZA enables rapid market entry and improved opportunities for further expansion.
  • Technological progress. For companies in innovative industries, registering with IFZA acts as a growth catalyst, providing access to an innovative ecosystem, essential business tools, and strategic partnerships.
  • Sustainable Financial Development. Operating within the IFZA offers favorable tax and customs conditions and promotes the profitability and financial stability of companies.

Possible Challenges and Obstacles

Despite the advantages of special economic zones (SEZs), investors may encounter certain challenges. Significant operating costs, including royalties and rent, can be a financial burden. Additionally, varying regulations can make it difficult to navigate local laws, potentially leading to fines and other consequences.

Additionally, the impact of economic fluctuations on businesses within the IFZA must be considered as the zone is sensitive to changes in the national and global economic landscape.

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In today’s global economy, being tied to a single location can prove unjustified. IFZA offers an attractive option for companies operating in the areas of trading, consulting, marketing, and information technology.

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