Incorporating an IFZA Free Zone LLC for Korean E-commerce Sellers
Korean e-commerce sellers can establish an IFZA Free Zone LLC to access the UAE market and benefit from the 9% corporate tax regime. This structure allows for full foreign ownership and visa eligibility for founders.
Registration requires compliance with both UAE licensing regulations and South Korean National Tax Service reporting standards for foreign-source income.
Model the full outlay, not just the setup fee
- SetupVirtuzone (UAE BSC) setup$12,900
- AnnualYear 2 renewal$5,500
What the tax authority sees
UAE Federal Decree-Law 47/2022 imposes a 9% Corporate Tax on taxable income exceeding AED 375,000 for Free Zone entities.
National Tax Service; foreign-source income reporting per Income Tax Act Article 3; Korea has US tax treaty (10% treaty rate for royalties).
Use Virtuzone for IFZA setup to handle local licensing and visa processing, but ensure you maintain a physical office presence to satisfy UAE economic substance requirements.
- 01UAE economic substance requirements for tax residency
- 02NTS foreign-source income reporting obligations
- 03Potential double taxation if tax residency is disputed
From filing to funded bank account
UAE Free Zone (IFZA) vs US LLC (Wyoming)
FAQ
Start filing with Virtuzone (UAE BSC)
Formation typically completes in 2–3 weeks. Use the promo below, then click through to begin the checklist directly on the platform.