How to set up a business in Dubai Internet City
On the global stage, Dubai may still be in its infancy as a technology hub. However, it’s gaining a growing reputation for its modern infrastructure, enabling business policies and liberal tax regime which are fast establishing it as a viable alternative to the more established tech hubs of San Francisco, London, Beijing and Tokyo.
Dubai Internet City (DIC), a free trade zone established in 2000, is now one of the emirate’s premier technology centres and has attracted tech giants such as Facebook, Google, Microsoft, Cisco and IBM to base their regional headquarters there.
This article examines some of the benefits of company incorporation in DIC and offers information on the main considerations and associated costs.
Key Words:
Business setup in Dubai Internet City
What types of businesses can be set up in Dubai Internet City
DIC
DIC setup costs
How to set up a business in Dubai Internet City?
On the global stage, Dubai may still be in its infancy as a technology hub. However, it’s gaining a growing reputation for its modern infrastructure, enabling business policies and liberal tax regime which are fast establishing it as a viable alternative to the more established tech hubs of San Francisco, London, Beijing and Tokyo.
Its enviable location at the crossroads between East and West provide businesses with easy access to 2.4 billion consumers across the MEASA region and 75% of the global population can be reached within an 8-hour flight.
Dubai Internet City (DIC), a free trade zone established in 2000, is now one of the emirate’s premier technology centres and has attracted tech giants such as Facebook, Google, Microsoft, Cisco and IBM to base their regional headquarters there.
But what has attracted such high-profile companies? And why should you consider establishing a business presence in DIC?
The free zone advantage
One of the linchpins of Dubai’s success in attracting foreign investment is without doubt its free zones. There are 46 of these special economic zones across the UAE and more than 30 of them are located in Dubai.
They are considered as separate jurisdictions from the mainland and as such operate under their own legislation and governance. Some of the major benefits that free zones offer include 100% foreign ownership, 100% repatriation of capital and profits and full exemption from customs duty and corporate and income tax.
Each free zone is usually centered around one business sector with an infrastructure and support network built around it, which offers great opportunities for collaborations with other businesses and exchange of services and ideas.
What types of businesses can be set up in DIC?
DIC caters exclusively to the IT industry and offers business licences for the following sectors:
- E-Commerce
- Consultancy
- Internet and Multimedia
- IT services
- Software Development
- Telecommunications
Benefits of setting up in DIC
One of the major selling points of DIC is the variety of setup options that it offers, catering to businesses at every stage of development and tailoring its services to the differing requirements each company has.
Its ‘Gofreelance package is a flexible, easy to set up licence that offers a one-year or three-year visa option and once registered it provides the holder with access to ‘marketplace.ae’, an online platform that connects companies and freelancers to help generate business opportunities.
Other business structures that can be used in DIC include a Limited Liability Company (LLC), a branch of a UAE company or a branch of a foreign company.
In5
The In5 innovation centre was launched by DIC in 2013. it is a community for tech entrepreneurs and startups, intended to offer the necessary support to help startups get their ideas to market and scale their businesses effectively.
It does this by providing access to training and mentorship programmes, networking events and funding.
To date, the in5 incubation centre has supported more than 4,000 tech entrepreneurs and secured in excess of AED 58 million in funding from prominent angel investors and venture capitalists.
In5 also has a partnership in place with Dubai Future Foundation (DFF) which helps to link the private sector with the public sector and provides an avenue for businesses to collaborate with government organisations on solving existing challenges with new technology.
How much does it cost to set up a company in DIC?
DIC setup costs will depend on the type of company you want to establish as well as your office and visa requirements. In all cases you will be required to pay a one-time registration fee of AED 3,520. Thereafter, you’ll have to pay the licensing fee, which is AED 15,020 or AED 7,500 for the freelance permit.
A free zone LLC (FZ-LLC) will require minimum paid up capital of AED 10,000 but for branches of UAE or foreign companies there is no minimum share capital requirement.
Visa costs will range from AED 3,280 to AED 4,910 and will require an additional AED 2,500 as a visa guarantee deposit and AED 1,240 for the mandatory medical test and ID and photo expenses.
Premises and workspaces
There are a variety of available premises and workspace options. From warehouses to light industrial units and a selection of private and shared office spaces. There are three categories of available office spaces, as follows:
- Fully furnished private office (2+ visa allowance, parking eligibility) – AED 4,500/month
- Private desk (2 visa allowance, parking eligibility) – AED 3,000/month
- Shared desk (1 visa allowance, no parking eligibility) – AED 2,500/month
DIC also boasts a number of other venues its members can access such as amphitheatres for concerts and social gatherings, an auditorium for corporate events, and sound stages and studios for gala dinners, fashion shows and product launches.
FAQs
How do I obtain the business licence?
There are three steps required to set up a business in DIC:
- Submit an application
- Submit the necessary documentation and make payment
- Sign and collect your documents
Can I carry out business in other emirates?
No, the business licence only permits you to trade within the jurisdiction of the free zone. In order to conduct business in other emirates, you will need a dual licence.
Is it possible to transfer my existing licence to DIC?
Yes, subject to approval by the Dubai Development Authority (DDA).
Does DIC impose a limit on the number of employees I can hire?
Yes, employee numbers are based on the amount of leased office space. 1 visa is allocated for each 60 sq. ft. of leased space.
How can Global Link help?
Global Link has over 16 years of experience working with local and global businesses, providing bespoke consultancy services for company incorporation in Dubai and the wider UAE.
If you need advice on establishing a business in Dubai Internet City or for any other company incorporation, visa or PRO service, please get in touch with us on +971 4 553 9901 or email us at [email protected] and we will be happy to assist you