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UAE Free Zone (IFZA) · via IFZA·🌐Founder profile

IFZA Free Zone Incorporation for Korean E-commerce Sellers

VerifiedJul 2026
EligibilityEligible
Setup timeline21–45days
Year-1 total$12,900

Korean e-commerce sellers can establish a legal presence in the UAE through an IFZA Free Zone LLC. This structure allows for 100% foreign ownership and access to the UAE's tax framework.

Founders must comply with both UAE Corporate Tax regulations and the Korean National Tax Service reporting requirements for foreign-source income.

§ 01Cost of ownership

Model the full outlay, not just the setup fee

Renewal costs sneak up on non-resident founders. Compare year-1 filing against a 3-year total to see the real bill.
Currency · USD (live FX)
2-year cost of ownership
$25,800
≈ $1,075/month amortized·USD @ live FX
Time horizon
Line items
Amount
  • SetupIFZA setup
    $12,900
  • AnnualYear 2 renewal
    $12,900
Total$25,800
§ 02Tax residency · Korean E-commerce Sellers

What the tax authority sees

US federal / local status

UAE Federal Decree-Law 47/2022 imposes a 9% Corporate Tax on taxable income exceeding AED 375,000 for Free Zone Persons.

Home-country rule

National Tax Service; foreign-source income reporting per Income Tax Act Article 3; Korea has US tax treaty (10% treaty rate for royalties).

Editorial verdict

Utilize the IFZA Free Zone LLC structure to maintain 100% foreign ownership while accessing UAE residency visas for Korean e-commerce operations.

Key compliance risks
  • 01UAE Economic Substance Regulations compliance
  • 02NTS foreign-source income reporting requirements
  • 03Potential double taxation if tax residency is not clearly established
  • 04Mandatory annual financial audit for Free Zone entities
§ 03Setup timeline

From filing to funded bank account

Setup timeline
21–45days total, 3 phases
Milestone check
Filing · Tax ID · Banking
d0
d11
d23
d34
d45
01FilingIFZA submits formation docs
d0–d16
02Tax ID / EINLocal tax authority registration
d14–d34
03BankingBusiness account approved & funded
d27–d45
§ 04Head-to-head

UAE Free Zone (IFZA) vs US LLC (Wyoming)

Full comparison →
UAE Free Zone (IFZA)
Free Zone LLC
US LLC (Wyoming)
LLC
Entity
Free Zone LLC
LLC
Setup cost
$1,496
$102.00
Annual
$1,469
$60.00
Local director
Remote OK
Remote OK
Physical presence
Remote OK
Remote OK
Tax regime
9% CT above AED 375k; visa-eligible
0% state tax; federal only on US-source income
§ 05Questions founders actually ask

FAQ

Yes. Under the Income Tax Act Article 3, Korean residents are subject to tax on their worldwide income. You must report foreign-source income to the National Tax Service.
More profiles for UAE Free Zone (IFZA)
Korean E-commerce Sellers — other jurisdictions
Next step

Start filing with IFZA

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