IFZA Outlines UAE Business Incorporation Procedures, Fees, and Corporate Tax Framework

According to a report published by Startup Info, international founders establishing companies through the International Free Zone Authority (IFZA) operate under the regulatory oversight of the Dubai Integrated Economic Zones Authority (DIEZA). The free zone provides infrastructure via Dubai Silicon Oasis, offering 100% foreign ownership, full profit repatriation, and multi-currency transaction capabilities. The registration process allows entrepreneurs to combine multiple commercial activities under a single license through fully remote digital verification without mandatory travel to the UAE.

Setup expenses vary according to the required immigration quota. The baseline Zero Visa package starts from AED 12,900, an option with one visa quota begins at AED 14,900, and a three-visa tier starts from AED 18,900, each typically including a shared Flexi Desk workspace. Standard compliance submissions require beneficial ownership (UBO) disclosures, lawful source-of-funds verification, passport documentation with at least six months of remaining validity, and UAE entry stamps or Emirates ID records if previously issued. Active entities may sponsor UAE residence permits valid for up to 24 months.

The publication highlights that registration does not provide unconditional tax exemption under the UAE Corporate Tax regime. Companies can only benefit from the 0% corporate tax rate by qualifying as a Qualifying Free Zone Person (QFZP), which requires maintaining real local substance, generating Qualifying Income, preparing audited financial statements, and adhering to transfer pricing rules. Non-qualifying income is taxed at the standard 9% rate, and exceeding the de minimis threshold—5% of annual turnover or AED 5,000,000, whichever is lower—results in disqualification from the 0% regime. Value-added tax (VAT) registration remains mandatory once annual taxable turnover exceeds AED 375,000, with voluntary registration open at AED 187,500.