Company Formation in Dubai Internet City (DIC) Free Zone

Dubai Internet City (DIC) is a free trade zone and technology park located in Dubai, United Arab Emirates. Established in the year 2000, it is a hub for technology companies, startups, entrepreneurs, and innovators from around the world. The purpose of DIC is to provide a platform for the growth and development of technology companies by offering state-of-the-art infrastructure, support services, and a favorable business environment.

The development of DIC was a key initiative of the Dubai government, which recognized the need for a dedicated technology hub in the region. The aim was to create a platform for companies to develop and grow, and to provide a conducive environment for innovation, research, and development. The free trade zone is home to some of the world’s leading technology companies, including IBM, Microsoft, HP, Oracle, Cisco, and many others.

DIC offers a range of facilities and services to support the growth and development of technology companies. The free zone provides state-of-the-art office spaces, high-speed internet connectivity, and a range of support services, including legal, accounting, and marketing services. The free zone also provides access to venture capital, networking opportunities, and mentoring programs to help startups and entrepreneurs succeed.

One of the key benefits of setting up a business in DIC is the favorable business environment. The free zone offers 100% foreign ownership and full repatriation of capital and profits, making it an attractive destination for foreign investors. Companies also benefit from a range of tax incentives, including zero corporate and personal income tax, as well as customs duty exemptions on imports and exports.

Another benefit of setting up a business in DIC is access to a highly skilled and diverse workforce. The free zone is home to a large pool of skilled professionals from around the world, including engineers, software developers, project managers, and other technical specialists. Companies can also take advantage of the free zone’s training and development programs to upskill their workforce and improve productivity.

DIC also offers a range of facilities and amenities to support the well-being of employees. The free zone is home to a range of cafes, restaurants, and retail outlets, as well as fitness centers, healthcare facilities, and recreational areas. The free zone is also located close to residential areas, making it convenient for employees to commute to work.

In addition to the above benefits, DIC also provides a platform for collaboration and innovation. The free zone hosts a range of events, exhibitions, and networking opportunities to bring together entrepreneurs, investors, and other stakeholders. DIC also provides access to research and development facilities, including labs and testing facilities, to support the development of new technologies and products.

Steps to company formation in Dubai Internet City – DIC

Company formation in Dubai Internet City (DIC) can be a straightforward process if you follow the necessary steps. Here are the steps to set up a business in DIC:

Step 1: Determine the Type of Business Entity

The first step in setting up a business in DIC is to determine the type of business entity that you want to establish. DIC allows for various types of business entities, including free zone limited liability companies (FZ-LLCs), branches of foreign companies, and freelancers. The type of entity you choose will depend on your business requirements, investment capital, and ownership structure.

Step 2: Choose a Business Activity

DIC allows for a wide range of business activities, including software development, e-commerce, information technology services, and more. Before proceeding with the registration process, you need to choose the appropriate business activity that aligns with your business goals and objectives.

Step 3: Secure a Business License

To operate in DIC, you need to secure a business license from the Dubai Creative Clusters Authority (DCCA). The DCCA is the regulatory body that oversees the operations of DIC and issues business licenses. You need to submit the necessary documents and pay the relevant fees to obtain the license.

Step 4: Register Your Company

Once you have secured a business license, the next step is to register your company with the DCCA. You need to submit the necessary documents, including a copy of your business license, a company registration application form, and relevant shareholder and director documents.

Step 5: Lease an Office Space

DIC offers various office spaces that cater to the needs of different businesses, from small startups to large enterprises. You need to lease an office space that meets your business requirements and is in compliance with the DIC guidelines. The office space needs to be inspected and approved by the DCCA before you can start operating.

Step 6: Open a Bank Account

To conduct business in DIC, you need to open a bank account with a local bank. The bank account will be used for various transactions, including paying employees, suppliers, and other business-related expenses. You need to provide the necessary documents, including your business license and company registration documents, to open a bank account.

Step 7: Obtain Visas and Work Permits

To hire employees or work in DIC as a freelancer, you need to obtain visas and work permits from the relevant authorities. You need to submit the necessary documents, including a copy of your business license, to apply for visas and work permits for your employees or yourself.

Step 8: Comply with the DIC Guidelines

DIC has specific guidelines that businesses need to comply with to operate in the free zone. These guidelines cover various aspects, including commercial activities, lease agreements, visas, and permits, among others. You need to familiarize yourself with these guidelines and ensure that your business operations are in compliance with the DIC regulations.

Advantages of Business Setup in Dubai Internet City:

Dubai Internet City (DIC) is one of the fastest-growing technology hubs in the region, attracting local and international businesses to set up their operations. DIC offers various advantages that make it an ideal destination for businesses looking to expand their reach and tap into new markets. Here are some of the advantages of setting up a business in DIC:

1. Strategic Location

Dubai Internet City is strategically located in Dubai, which is one of the most accessible and well-connected cities in the world. Dubai’s world-class infrastructure, excellent transportation facilities, and proximity to major markets in Europe, Asia, and Africa make it an ideal location for businesses looking to expand their operations.

2. Tax Incentives

DIC offers various tax incentives to businesses, making it an attractive destination for companies looking to reduce their tax liability. DIC allows 100% foreign ownership, and there is no personal or corporate income tax. Additionally, businesses operating in DIC are exempt from customs duties and value-added tax (VAT) on imports and exports.

3. Business-Friendly Environment

DIC offers a business-friendly environment that makes it easy for businesses to set up their operations. The DIC regulatory framework is designed to attract businesses, with streamlined processes for company registration, licensing, and visa processing. The free zone also offers a range of business support services, including legal, accounting, and marketing services, to help businesses establish and grow their operations.

4. Infrastructure

DIC offers world-class infrastructure that supports businesses of all sizes. The free zone has a range of commercial, residential, and recreational facilities, including office spaces, warehouses, data centers, and research and development facilities. The infrastructure is designed to support businesses operating in the technology sector, with state-of-the-art facilities and advanced technologies.

5. Talent Pool

DIC is home to a highly skilled and diverse workforce, with professionals from over 160 nationalities. The free zone offers various initiatives to attract and retain talent, including training and development programs, networking events, and mentorship programs. Additionally, DIC has partnerships with leading academic institutions, providing businesses with access to a pool of talented graduates.

6. Networking Opportunities

DIC offers various networking opportunities, providing businesses with access to a range of local and international businesses. The free zone hosts various events and conferences throughout the year, bringing together industry experts, entrepreneurs, and investors. These events provide businesses with opportunities to learn about new trends, showcase their products and services, and meet potential customers and partners.

7. Access to Markets

DIC offers businesses access to a range of markets, including the Middle East, Africa, and South Asia. The free zone has strategic partnerships with various countries and regions, providing businesses with access to new markets and opportunities. Additionally, Dubai’s strategic location and excellent transportation facilities make it easy for businesses to reach markets in Europe and Asia.

8. Government Support

DIC is supported by the Dubai government, which provides various initiatives to support businesses. The government has launched various programs, including the Dubai Innovation Index and Dubai Smart City initiative, to encourage innovation and entrepreneurship. Additionally, the government has invested heavily in infrastructure development, creating a conducive environment for businesses to thrive.

9. Industry-Specific Clusters

DIC offers various industry-specific clusters, providing businesses with access to a range of specialized services and facilities. The free zone has clusters in areas such as software development, e-commerce, media and entertainment, and more. These clusters are designed to support businesses operating in these sectors, with customized facilities and services.

10. Quality of Life

Dubai offers a high quality of life, with world-class amenities, infrastructure, and facilities. The city is known for its cosmopolitan lifestyle, with a diverse and multicultural population.

Dubai offers a range of recreational activities, including sports, arts, and culture, providing residents with a well-rounded lifestyle.

Cost of setting up Business in Dubai Internet City:

Setting up a business in Dubai Internet City (DIC) requires certain costs and fees that need to be paid to the relevant authorities. In this section, we will explain in detail the costs involved in setting up a business in DIC.

1. License Fees

The first cost involved in setting up a business in DIC is the license fee. DIC offers three types of licenses: service license, trade license, and industrial license. The fee for each type of license varies depending on the nature of the business. The fee for a service license is AED 15,000, while the fee for a trade license is AED 20,000. The fee for an industrial license is AED 25,000.

2. Registration Fees

In addition to the license fees, businesses in DIC are required to pay registration fees. The registration fees vary depending on the type of license and the size of the business. The registration fee for a service license is AED 1,000, while the fee for a trade or industrial license is AED 3,000.

3. Office Rent

DIC offers a range of office spaces to businesses. The rent for these offices varies depending on the size and location of the office. The rent for an office in DIC ranges from AED 50,000 to AED 100,000 per year.

4. Visa Costs

Businesses in DIC are required to sponsor their employees’ visas. The cost of a visa depends on the type of visa and the nationality of the employee. The visa costs include application fees, medical test fees, and residence visa fees. The visa cost for an employee can range from AED 3,000 to AED 5,000.

5. Insurance Costs

Businesses in DIC are required to have insurance coverage for their employees. The cost of insurance varies depending on the type of coverage and the number of employees. The insurance cost can range from AED 3,000 to AED 5,000 per year.

6. Miscellaneous Costs

There are also miscellaneous costs involved in setting up a business in DIC. These costs include legal fees, accounting fees, and other administrative fees. The miscellaneous costs can range from AED 5,000 to AED 10,000.

The total cost of a business setup in Dubai Internet City can range from AED 80,000 to AED 150,000, depending on the size and nature of the business. It is important to note that these costs are subject to change and businesses should consult with relevant authorities and professional advisors for the most up-to-date and accurate information.