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Anyone experience with IFZA / Dubai Freezones?

drain

drain

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Sep 1, 2024
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#1
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Hello!

I want to incorporate a dubai freezone company and messaged IFZA and Meydan directly. I dont really want to deal with partners who have a contract with them but prefer working with the freezone directly.

I got an offer from IFZA. They charge more than $18k for the first 2 years, including visa, license, emirates id, basically everything (except accounting etc). I think that is way too much.

Maydan is cheaper, but I prefer IFZA because I read many positive things about them.

When using some sub-agency it is often cheaper than directly with IFZA, I also told them and they said that is true.

Let me know your thoughts. Maybe anyone has experience or contacts with them.
 
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#2
Maybe you can go for DAFZA ,if you do then go with Fortune Speculator Ltd's business consulting arm.
It will be cheaper by 20% atleast if not more and very reliable.I got my DAFZA license from them.You can maybe give reference from Joe Smith they will know.
 
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#5
drain said:
When using some sub-agency it is often cheaper than directly with IFZA, I also told them and they said that is true.
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usually it is the opposite, how comes ?
 
#6
We’ve got a CSP in IFZA, and honestly, it’s one of the best options for solopreneurs or anyone looking to set up an entity and get a visa in the UAE. Banking is pretty simple too—Wio and similar options are solid choices.

I’d definitely recommend using a service provider since they can get prices up to 70% lower than what you’d pay by going directly to IFZA (assuming IFZA even gets back to you).

A couple of things to keep in mind with the new regulations:
  • You’ll need to prepare and audit your accounts annually.
  • For UAE residents, authorities don’t look favorably on taking massive salaries (over $250K USD) to avoid corporate tax.
  • The 9% corporate tax kicks in above a certain profit threshold, which I believe is widely known.
  • You’ll need to renew the entity annually and the visa every two years. However, if you’re eligible, you could apply for an extraordinary golden visa, which doesn’t require any investment or property purchase. If you seem like a legit entrepreneur, I can also point you in the right direction to get one of those.
The whole process takes about 2-3 weeks, and you’ll need to be in the UAE for at least the last week to finalize everything. In terms of costs, setting up the entity, bank accounts, and visa typically runs around $10K, with annual renewal costing ~$5K, accounting services ~$5K/year, and audits ~$3K/year.

On a related but slightly off-topic note, after the corporate tax was introduced to avoid being blacklisted, the UAE recently (and secretly) created a setup under DIFC for UHNWI to get 0% corporate tax while not being classified/reported as a UBO. It works well but is more expensive—$35K to set up and $25K annually (due to multiple entities, local trustees, etc.).

Let me know if you need more details or help with anything!
 
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#9
Although it is not yet enforced, IFZA will require an audit for FY2025 if your revenue exceeds AED 3 million (which applies to 99% of people here)
 
#10
nurredon said:
Although it is not yet enforced, IFZA will require an audit for FY2025 if your revenue exceeds AED 3 million (which applies to 99% of people here)
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I've been in touch with IFZA multiple times, must recently in early January.

They still say no audit required regardless of revenue. Can you share more about this? Are you hearing this directly from IFZA? Any written confirmation?

Also curious to hear about the 70% discount if you use a service provider. I work directly with IFZA and have never had any issues with communication. My trade license + 1 visa (valid one year) + establishment card is soon due for renewal. The cost was AED 20,100 (including VAT) last year.
 
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#11
yoyodubai said:
I've been in touch with IFZA multiple times, must recently in early January.

They still say no audit required regardless of revenue. Can you share more about this? Are you hearing this directly from IFZA? Any written confirmation?

Also curious to hear about the 70% discount if you use a service provider. I work directly with IFZA and have never had any issues with communication. My trade license + 1 visa (valid one year) + establishment card is soon due for renewal. The cost was AED 20,100 (including VAT) last year.
Click to expand...
Direct is better.
 
#12
For the principle, we prefer to go direct than with a csp. But be prepared to not be impressed with IFZA, the ambient level is not high and within an email chain, different staff will reply to you having no idea what was discussed in the previous email. If you ask 3 questions, you will get one answer out of the 3 asked and you will often wonder "How come you are so bad, where do they all find you?". For basic and straightforward operations with them, it can be ok I guess, as I am not sure there is a much better alternative. But still expect time waste and inaccuracies.
 
#13
TRGali said:
For the principle, we prefer to go direct than with a csp. But be prepared to not be impressed with IFZA, the ambient level is not high and within an email chain, different staff will reply to you having no idea what was discussed in the previous email. If you ask 3 questions, you will get one answer out of the 3 asked and you will often wonder "How come you are so bad, where do they all find you?". For basic and straightforward operations with them, it can be ok I guess, as I am not sure there is a much better alternative. But still expect time waste and inaccuracies.
Click to expand...
Makes a strong case why you should use the consulting team to get round all the bulls**t of the Freezones.They are generally always having better relationships internally and get things done much easily on the ground.These Freezones staff is highly unknowledgeable and lazy.Also they ask useless questions and keep clients waiting many times for nothing.Your waiting period again translates to dollars so you are better of using the Consulting Companies.I have had personal experience so i know .You can refer my responses above.
 
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