INTERNATIONAL FREE ZONE AUTHORITY MIGRATION: AMPLIFYING BUSINESS PROSPECTS IN DUBAI SILICON OASIS

This article was updated on July 7th, 2023

This article has been researched and written by Scott Cairns and the team at Creation Business Consultants and has not used AI in generating this article.

International Free Zone Authority (IFZA) originated in August 2018 in Fujairah and announced the relocation of its full operations to Dubai on October 2020 after an agreement signing ceremony between H.E. Dr. Mohammed Al Zarooni, Vice Chairman and CEO of Dubai Silicon Oasis Authority (DSOA) and Secretary-General of Dubai Free Zones (DFZ) Council, and Martin G. Pedersen, Chairman of IFZA. IFZA was the first freezone in the history of the UAE to perform a move from one emirate to another.

IFZA and Dubai Silicon Oasis Authority (DSOA), the organisation in charge of regulating Dubai Silicon Oasis (DSO), the integrated free zone technology park, signed a contract with the aim to increase the flexibility of conducting business in the UAE by allowing both new and current IFZA firms to operate from DSO. IFZA is currently under the patronage of DSOA. Through this arrangement, entrepreneurs and startups had the chance to collaborate with hundreds of tech companies, specialists, and startups situated in Dubai Digital Park (DDP), Dubai Technology Entrepreneur Campus (Dtec), and the DSOA headquarters, as well as build their businesses.

Below we have listed some of the main FAQ’s and tips for preparing a seamless transition of IFZA companies to Dubai.

Dr Mohammed Al Zarooni made the following comment on the agreement: “As an integrated free zone technology park, Dubai Silicon Oasis serves as an open platform for conducting businesses and forging strategic partnerships with leading technological and advanced companies based in DSO.”

Al Zarooni also added: “The agreement between DSOA and IFZA is a gateway for companies from different industries registered with IFZA to work from DSO and benefit from the advanced infrastructure, modern facilities, and the countless opportunities it provides to the business sectors locally, regionally and globally.”

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WERE THERE ANY ADDITIONAL COSTS FOR THE COMPANY MOVE?

IFZA had clarified that there would be no costs levied from the Government for the company migration to Dubai.

The IFZA company remained operational, provided the company license was still valid. In case the IFZA company was due to expire, and payment was made, the license would have automatically been transferred and renewed under IFZA Dubai.

WHAT HAPPENED ONCE THE TRANSFER WAS COMPLETED?

The business remained operative as normal and a copy of the updated trade license was shared with the correspondent bank for Know Your Customer (KYC) updates.

WHAT HAPPENED WITH THE UAE RESIDENCY VISA?

Any visa that had previously been issued via Fujairah Immigration will continue for the remainder of the visa validity. Once the visa expires, it will be renewable under IFZA Dubai. If an investor was due to start his/her UAE residency visa at that time, the company transfer would have been required to be completed first. Then, the company establishment card would have been required to be completed. Thereafter the company would have been able to start the residency visa application process.

WHAT IS THE CURRENT IFZA COMPANY SETUP TIMEFRAME?

The timeline to setup a company in IFZA may vary depending on the completion of requirements and approval from authorities. There are four basic steps involved with the business registration:

Step 1: Arrange your free zone consultation with Creation Business Consultants.
Step 2: Discuss and determine the licence type and activity.
Step 3: Select company structure type.
Step 4: Decide on which business facilities to lease/choose your space.
Step 5: Documentation and preparation of required documents.
Step 6: Fulfil the external approval licensing requirements, if applicable.
Step 7: Company license approval and issuance.

WHAT WILL CREATION DO TO ASSIST WITH THE TRANSITION?

Creation Business Consultants’ priority is ensuring the company is moved and the transfer is completed as quickly as possible to enable business continuity. Following on, once Creation has the official instructions from IFZA, Creation Business Consultants will direct you on the following:

Documentation to be completed.
Matching of business activities from the options available in Fujairah to Dubai.
Providing company owners with a draft shareholder resolution to be completed.
Coordinate with the free zone on the updated company trade license.

TAKEAWAY

Creation Business Consultants has a dedicated Corporate Structuring team with extensive experience of advising foreign investors on corporate structuring and related issues in the UAE. If you have any questions, please contact the experts at Creation Business Consultants via email at [email protected] or call UAE at +971 4 878 6240.