IFZA Cost: What You Actually Pay to Set Up and to Run

You were quoted a number. Probably something starting with "from AED 12,900". Then you asked a follow up question and the number moved. Then you asked about a visa and it moved again.

That is not a trick being played on you. IFZA is genuinely one of the cheaper ways into Dubai, and the headline figure is a real licence. But the licence is sold in tiers priced by how many visa slots you want, and several real costs sit outside the tier entirely. Nobody walks you through that upfront, because the person quoting you earns a commission when you sign and has no reason to talk you into a smaller package.

Here is the part that almost never comes up on the first call. Your year one cost and your year two cost are different numbers, and year two is the one you will pay every year after that.

It is also worth knowing that "one of the cheaper ways into Dubai" and "one of the cheaper ways into the UAE" are not the same sentence. If the Dubai address is not something your clients or your bank actually need, a Northern Emirates zone costs meaningfully less for the same legal entity and the same residence visa. We are a channel partner for both RAKEZ and UAQ Free Zone, so that comparison is worth having before you sign anything.

We set companies up in IFZA and we do the accounting for them afterwards, which means we see the second year, the third and the fourth. This page is written with those years in mind rather than just the first invoice.

The Short Answer

An IFZA licence is commonly quoted from around AED 12,900 for a zero visa package, rising through tiers as you add visa slots, into the AED 30,000 range for the largest. Published figures vary between providers and change without much notice, so treat all of them, including these, as indicative. IFZA's own quotation is the only one that binds.

Add to whatever tier you choose: the establishment card, and then each residence visa you actually issue, priced per person and including the medical test, Emirates ID and stamping. A realistic all in first year for a one visa setup commonly lands somewhere around AED 20,000 to 22,000 rather than the headline figure.

Then budget separately for what the licence does not cover at all: bookkeeping, VAT returns if you are registered, the Corporate Tax return, and an audit if you intend to claim the 0% Free Zone rate.

The Package Tier Trap

This is the specific thing that costs IFZA founders money, and it goes in both directions.

Buying more visa slots than you need. The tiers step up by visa count. If you take a six visa package because it feels like room to grow, and you issue one visa, you have paid every year for five slots sitting empty. Visa slots are not banked and they do not roll over.

Buying too few. Moving up a tier later is possible but it is not free, and it arrives at an awkward moment, usually when you have just agreed a start date with someone.

The honest way to decide is to count the visas you will actually issue in the next twelve months, not the ones you hope to need in three years. Growth is a good problem and you can pay to solve it when it arrives.

What Sits Outside the Package

The headline tier generally covers the trade licence, a set of business activities, and a flexi-desk that satisfies the registered address requirement. Outside it:

• The establishment card. Required before you can sponsor anyone, including yourself.
• Each residence visa, per person, including medical and Emirates ID.
• Extra activity groups beyond those included.
• Bank account opening, which is not an IFZA charge but is real in time and sometimes in fees.
• Anything to do with accounts and tax. None of it is in the licence.

Year One Versus Year Two

Worth separating, because they are genuinely different.

Year one includes the one off costs: incorporation, establishment card, visa issuance. It is the bigger number and the one that gets quoted.

Year two onward is the renewal, plus visa renewals when they fall due, plus the full annual compliance stack. The licence renewal is usually lower than the first year licence fee. The compliance stack is not lower, because it does not exist in year one until your first year end arrives.

That is why founders are frequently surprised in month thirteen. Nothing went wrong. The costs simply arrived in a different order than they expected.

Who IFZA Actually Suits

IFZA works well for solo founders, consultants, and early stage software or IT services businesses. The activity list is broad, setup is commonly complete within a week once documents are in order, and much of it can be done without being in the country.

It suits businesses built on expertise rather than physical stock. If you are a developer, a consultancy, an agency or a small SaaS team, this is the zone most of your peers are in, and there is a reason for that.

It is less of a fit if you need deep banking credibility with enterprise clients from day one, or you run a physical trading or logistics operation. (See JAFZA and Dubai Internet City, or Meydan if a central Dubai address matters to you.)

The 0% Corporate Tax Point, Stated Properly

An IFZA company can pay 0% Corporate Tax. Two different routes get you there, and they are not interchangeable.

Small Business Relief applies where revenue is at or below AED 3 million in the tax period. It has to be actively elected on your return. It is available only for tax periods ending on or before 31 December 2029.

Qualifying Free Zone Person status gives 0% on qualifying income, but requires genuine substance, qualifying income, no mainland permanent establishment, transfer pricing compliance and audited financial statements, assessed every year.

For a lean IFZA consultancy under AED 3 million of revenue, Small Business Relief is usually the cleaner route, because it reaches the same zero without an audit fee attached. That changes as you grow, and it changes for everyone after 2029 when the relief ends. (See does my business qualify for 0%.)

There is one substance point worth being honest about. A flexi-desk and a founder who is mostly outside the UAE is a weaker position for claiming QFZP status than it looks on paper. Cheap to set up is not the same as sound to defend.

What You Still Have To Do Every Year

Not in any setup quotation, and not optional:

1. Renew the licence annually.
2. Register for Corporate Tax, without exception, including on 0%. Late registration is an AED 10,000 penalty.
3. File a Corporate Tax return within nine months of your year end, even if nothing is owed.
4. Register for VAT once taxable supplies pass AED 375,000 in any rolling twelve months, then file quarterly.
5. Keep records, seven years for Corporate Tax and five for VAT.
6. Prepare for e-invoicing. Under AED 50 million, appoint an Accredited Service Provider by 31 March 2027, live from 1 July 2027. (See the e-invoicing deadlines and penalties.)

What Not To Worry About

The flexi-desk. It is a compliant registered address. You do not need a physical room to hold a valid licence.

Being in the wrong zone. Founders move between free zones more often than the marketing suggests, and it is an inconvenience rather than a disaster. The decision that is genuinely hard to reverse is mainland versus free zone. (See the ten steps of a UAE tech business setup in the right order.)

Paying more than the headline. Everyone does. The headline was never the whole number, for any zone. What matters is that you see the whole number before you commit, not after.

How Khizr UAE Helps

We do the setup and everything that follows it. The IFZA incorporation, and then bookkeeping, VAT registration and returns, Corporate Tax registration and filing, and a straight answer each year on whether Small Business Relief or the QFZP route leaves you better off.

If a six visa package is more than you need, we will tell you that too.

See our IFZA accounting and setup service for the full scope.

Package pricing, thresholds and deadlines change. Confirm current figures with IFZA directly and your tax position with a qualified professional before committing.

WhatsApp: +971 50 428 3999

Email: info@khizruae.com