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Dubai Internet City (DIC), a member of TECOM Group, is one of the leading business hubs in the Middle East, dedicated to the information and communications technology (ICT) sector. Established in 2000, DIC has grown to become a vibrant community for innovation, housing a diverse range of technology companies, from global giants to dynamic startups. Setting up a business in DIC offers numerous benefits, including a strategic location, world-class infrastructure, and a supportive ecosystem designed to foster growth. This article provides a detailed guide on how to establish a business in Dubai Internet City.

Before delving into the specifics of setting up a business in DIC, it’s essential to understand why this free zone is a preferred choice for tech companies:

Strategic Location: Located in the heart of Dubai, DIC is well-connected to major global markets. Its proximity to Dubai International Airport and Dubai World Central (Al Maktoum International Airport) makes it an ideal base for companies with international operations.

Tax Benefits: DIC offers a tax-free environment, with 100% exemption from corporate and personal income taxes for 50 years. This is a significant advantage for businesses looking to maximize profits and reinvest in growth.

Full Ownership: Companies setting up in Dubai Internet City can enjoy 100% foreign ownership, meaning that there is no requirement to have a local partner, unlike in many other parts of the UAE.

Cutting-Edge Infrastructure: DIC provides state-of-the-art infrastructure tailored to the needs of technology companies. This includes high-speed internet connectivity, robust IT support, and access to modern office spaces designed to foster collaboration and innovation.

Thriving Community: DIC is home to a diverse range of businesses, from multinational corporations like Microsoft, Oracle, and Google, to innovative startups. This creates a collaborative environment where companies can network, share knowledge, and form strategic partnerships.

Access to Talent: Dubai is a global hub for skilled professionals, and DIC’s proximity to top universities and training institutes ensures that businesses have access to a pool of highly qualified talent.

Supportive Regulatory Environment: DIC operates under the jurisdiction of the Dubai Technology and Media Free Zone Authority (DTMFZA), which provides a streamlined and business-friendly regulatory framework.

License Types

Businesses looking to set up in DIC can choose from a variety of licences, depending on the nature of their operations. The main types of licences include:

Software Licence: This license is for companies involved in developing, installing, and/or modifying software products of any kind.

Internet and Multimedia Licence: Suitable for businesses that deliver content through the internet, including news, e-commerce, and entertainment services.

Telecommunication and Network Licence: This license is for businesses offering telecommunication and network services.

IT Service Licence: Ideal for companies providing IT-related services, including consultancy, training, and development.

E-commerce Licence: For companies that conduct commercial transactions online, including buying and selling goods and services.

Freelance Permit: DIC also offers a freelance permit for individual professionals in fields such as IT, media, and web development.

Setting up a business in DIC

Here’s a step-by-step guide:

Determine Your Business Activity and Licence Type: Before starting the setup process, decide on the type of business activity you intend to pursue and the corresponding license required.

Submit an Application: Complete the application form for the chosen license and submit it to the Dubai Technology and Media Free Zone Authority (DTMFZA). This will include providing details about the company, its shareholders, and directors.

Approval Process: After submission, the application will undergo a review by the DTMFZA. If approved, you will receive an initial approval, allowing you to proceed with the setup process.

Lease Office Space: Companies operating in DIC are required to lease office space within the free zone. DIC offers a range of office solutions, from flexi-desks for startups to larger office spaces for established companies.

Prepare Legal Documentation: Prepare and submit the necessary legal documents, including the Memorandum of Association (MOA), Articles of Association (AOA), and a share capital certificate.

Register the Company: Once all the documents are in place, you can register the company with the DTMFZA. This involves paying the registration fees and obtaining the commercial license.

Open a Bank Account: After obtaining the commercial license, the company can open a corporate bank account in the UAE to manage its financial transactions.

Visa Processing: Depending on the size of the office space leased, the company will be eligible for a specific number of visas for its employees. The process involves submitting applications, undergoing medical examinations, and obtaining residency permits.

Commence Operations: With the license in hand and visas processed, the company can now commence its operations in DIC.

The cost of setting up a business in DIC varies depending on the type of license, the size of the office space, and the number of visas required. Key costs to consider include:

Licence Fees: These vary based on the type of license and range from AED 15,000 to AED 50,000 per year.

Office Space: The cost of office space in DIC depends on the size and location, with prices typically ranging from AED 1,500 per square meter for flexi-desks to AED 3,000 per square meter for premium office spaces.

Registration Fees: The registration fee is a one-time payment, usually around AED 3,500 to AED 9,000, depending on the business activity.

Visa Costs: Visa costs include the initial application fee, medical examination, and residency permit issuance, which can range from AED 3,000 to AED 7,000 per visa.

Other Costs: Additional costs may include insurance, utilities, and other administrative expenses.

In addition to the tax advantages and strategic location, businesses in DIC benefit from access to a thriving tech community and opportunities for networking through events, workshops, and conferences. The free zone also provides a one-stop shop for all administrative services, including visa processing, legal services, and business support, making the setup process seamless and efficient.

While DIC offers numerous benefits, there are some challenges to consider:

Initial Costs: The initial setup costs can be high, particularly for startups. However, the long-term benefits often outweigh these initial expenses.

Regulatory Compliance: Although the regulatory environment is business-friendly, companies must adhere to local laws and regulations, which can be complex for newcomers.

Competition: As a leading tech hub, DIC attracts many businesses, leading to intense competition in certain sectors. Companies need to differentiate themselves and offer unique value propositions to succeed.

How CBD Can Assist

CBD Corporate Services specializes in helping businesses establish themselves in DIC, providing end-to-end support from initial consultation to obtaining licenses, legal documentation, and beyond. Our experienced team is well-versed in the regulatory requirements and processes, ensuring a smooth and efficient setup for your business. Whether you’re a startup or a multinational corporation, CBD Corporate Services is here to help you every step of the way. Contact us today to start your journey in Dubai Internet City and take advantage of all that this premier tech hub has to offer.

Contact us at: uae@cbdcorporateservices.com for tailored assistance and further information.

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