Trading Company SetupGlass Bottles Trading

IFZA license that allows to сonduct commercial activities.

As part of the company registration process with this business activity, no additional approvals are required.

The minimum share capital requirement for IFZA companies is AED 10,000, its contribution is optional.
If the shareholder plans to obtain an investor visa, the shareholder's share in the share capital should be at least AED 48,000.

IFZA has the following basic requirements for company names:

• The trade name can include the shareholder's full name (First-, Middle- & Last Name).
• The trade name should not have obscene or indecent words and should not be offensive to the general public.
• The trade name should not indicate the names of Allah or God and include any form of religious wording.
• The trade name cannot start with words like “international”, “Middle East”, “global”, “universal” etc., and their translation into Arabic. It also shall not be identical or similar to local/global brand, or trademark registered in the Ministry of Economy.
• The trade name should reflect the business activity of the company.

Entrepreneurs are provided with the opportunity to open a corporate account in classic banks with physical branches, as well as in digital banks and in payment systems.

When choosing a bank to open a corporate account, factors such as the level of service, fees, available currencies, convenience of online banking, the reputation of the bank and other conditions that may be important for business should be taken into account.

Successful corporate bank account opening requires a well-prepared document package, which may vary depending on the specific requirements of a particular bank.  Incorrectly or incompletely submitted documents may negatively affect the final decision of the bank in processing the application for opening a corporate bank account.

IFZA offers a diverse range of business services and solutions for local and international companies looking to establish or expand their operations in the UAE. Let's consider the key advantages of IFZA:

• Streamlined and optimized business registration process with minimal paperwork and bureaucracy.
• Possibility of remote opening of a company.
• A variety of attractive business incentives: tax exemptions, 100% foreign ownership, access to world-class infrastructure and facilities.
• Laws and regulations in IFZA provide convenient and predictable business conditions, ensuring the protection of company interests.
• Cost-effective for entrepreneurs and small business owners.
• Flexible office space options and comprehensive services.
• Full capital repatriation is possible.
• 100% exemption from import and export taxes.
• 0% customs duties.
• Professional and commercial activities can be consolidated under a single IFZA license.

Additionally, IFZA provides comprehensive support and assistance to enterprises throughout their entire business lifecycle, from creation to expansion. This includes access to networking events, training and development programs, as well as business consultancy services.

IFZA offers different company forms depending on the number of shareholders and the specifics of the business: 

• Free Zone Company (FZCO) is a limited liability company with a minimum of 2 and a maximum of 50 shareholders. The license of such a company gives the right to operate within the freezone and does not authorize the company to operate outside the freezone. However, the company may operate outside the UAE in accordance with the laws of another country;
• IFZA Offshore Limited. IFZA provides offshore company registration services in Seychelles;
• LLC (Limited Liability Company) is a company whose liabilities are limited to paid-up capital. With an LLC, owners can sponsor employees and open bank accounts;
• Branch - foreign incorporated companies can register their branch with the IFZA.

The number of company founders can be from 1 to 3 as part of the standard license package. The number of shareholders can be increased if necessary.

IFZA offers 6 types of office solutions: 

1. Virtual Office (AED 0/year): Basic solution, its cost is included in all service packages. The company is provided with a corporate address, the ability to receive and send mail from this address;
2. Flexi Desk (starting from AED 7,900/year): shared work area, access 10 hours per week, 1 hour of free use of the meeting room per month;
3. Flexi Desk+ (starting from AED 11,900/year): shared workspace, individual address, unlimited access (during business hours), 5 hours of free use of meeting room per month, 1 parking space;
4. Dedicated Workspace (starting from AED 18,500/year): workspace with partitions in a shared office, individual address, unlimited access (during working hours), 5 hours of free use of a meeting room per month, 1 hour of free use of a conference room per month, 1 parking place;
5. Private Office (starting from AED 2,000 per 1 sq.m./year): white-walled office, individual address, unlimited access, 7 hours free use of meeting room per month, 2 hours free use of conference room per month, 1 parking space;
6. Personalized Office (starting from AED 1,925 per 1 sq.m./year): office that can be decorated; individual address, unlimited 24-hour access, 7 hours of free use of meeting room per month, 5 hours of free use of conference room per month, 2 parking spaces.

There is no requirement to have a physical office for company registration up to 3 visas. 

IFZA offers businesses a special tax regime and flexible profit management:

1. Corporate Income Tax: IFZA does not impose corporate income tax. This means that profits earned by the company are exempt from taxation at the local level.
2. Value Added Tax (VAT): IFZA exempts companies from paying VAT within the free economic zone.
3. Customs Duties Incentives: IFZA provides customs duty and import duty incentives for the import and export of goods.
4. 100% Foreign Ownership: Companies registered in IFZA have the right to 100% foreign ownership, granting full control over the business and its profits.
5. No Inheritance and Gift Taxes: IFZA does not levy taxes on inheritance and gifts, facilitating smooth transition planning and asset transfer.
6. Full Capital Repatriation: Companies registered in IFZA can freely repatriate profits and capital beyond the free economic zone.

Profit management in IFZA depends on specific business strategies and goals. Thanks to tax incentives and flexible rules, entrepreneurs can effectively manage their profits and minimize tax obligations.

IFZA offers various types of visas for investors, employees, and their family members who wish to reside and work in the UAE, as well as enjoy the benefits associated with resident status.

Here are some of the main types of visas available through IFZA:

1. Investor Visas: These visas are granted to investors who have made investments in businesses registered with IFZA.

2. Family Visas: Family members of investors, including spouses and children, can obtain visas that allow them to reside in the UAE with the primary applicant.

3. Employee Visas: IFZA also assists companies in obtaining work visas for their employees, enabling them to legally work within the UAE.

Let's consider the key aspects of obtaining a resident visa through IFZA:

• The number of required visa quotas should be determined during the company registration process, as it affects the cost of the IFZA license package. After obtaining the license, the company needs to acquire an Establishment card, which initiates the process of obtaining resident visas.

• For obtaining up to 3 visas, there is no requirement for a physical office. However, if you need more than 4 visas, you must have an office of at least 16 square meters, with a calculation of 4 square meters per employee.

• While there are no specific requirements for insurance policies, it is strongly recommended to have one in place.

• To qualify for an investor visa, the minimum share capital must be at least 48,000 AED per shareholder. If there are two shareholders, the minimum share capital required will be 96,000 AED.

• When applying for work visas, certain positions may require educational qualifications to be verified.

No source of funds confirmation is required to obtain a license in IFZA, if the company's paid-up capital is less than 150,000 AED.