Company Formation in Dubai International Academic City

by Zaara 05, Dec 2019

Company Formation in Dubai International Academic City

Founded in the year 2007, the Dubai International Academic City (DIAC) is a member of TECOM Investments. Its vision is to be a global centre for higher education providers to support and develop the United Arab Emirates. Currently, it is the largest higher education free zone in the world. The intention for Academic City is to be a base for colleges, schools, and universities, while the Knowledge Village will have training institutes and educational services organizations. The free zone will create a global academic destination that provides all institutions housed in it with opportunities for communication, experience-sharing to utilize the latest technologies and processes.

DIAC currently has 21 of the UAE’s 37 International Branch Campuses (IBC’s), from 11 different nationalities, which is the highest number in any one location in the world. It is a host to a large student community from 137 nationalities and has access to over 400 Higher Education programmes.

Activities Permitted in Dubai International Academic City

  • Academic and non-academic service providers
  • Online universities
  • Educational service providers
  • Sole traders
  • Boarding and branch schools

Features Offered by Dubai International Academic City

  • The shareholder must be an individual or a corporate entity
  • Minimum share capital required is AED 50,000 for a free zone company and nil for a branch office
  • Audit report submission is not mandatory in DIAC free zone
  • Requires a minimum of 5-6 weeks to obtain a business license
  • The license shall be renewed on an annual basis

Types of Corporate Entities in DIAC

  • Free Zone Limited Liability Company – This Company can be formed as an independent legal entity with its own shareholders. The minimum capital required depends on the business activity.
  • Branch of a Foreign/UAE Company – A branch is considered a legitimately dependent part of its parent company, even if its place of doing business is not in the main company's headquarters
  • Sole Traders – They can establish a company single-handedly without any partner

Facilities Provided by DIAC Free Zone

  • Hot Desk – This facility can be used by more than one client and mostly useful for freelancers
  • Executive Desk – This facility is furnished with one chair and a desk, a storage pedestal, and a cabinet with keys
  • Executive Office – An executive office is furnished with one executive desk and chair, visitors chair, a pedestal, and a storage cabinet
  • Fitted-Out Commercial Space – This facility offers an upper end for the business environment and includes desks, chairs, tables, projector, and audio-visual system

Procedure to Start a Company in Dubai International Academic City

Dubai Technology and Media Free Zone Authority looks after the procedure of business incorporation in DIAC. Companies wanting to start a business here can apply for licenses like fine arts training, educational service support, child skills development training etc. The following procedure must be followed for registering a business in DIAC Free Zone.

  1. Register your trade name with the registry and obtain a Certificate of Registration
  2. Fill in an application form and submit to receive an initial approval
  3. Submit the required documents for company registration in DIAC
  4. Draft and sign a Memorandum of Association
  5. Deposit a share capital after opening a business bank account
  6. Sign the lease and personnel sponsorship agreement

You will get a Certificate of Incorporation and Business License once everything is reviewed by the authorities and approved.

Documents Required for Business Incorporation in DIAC

  • Trade name certificate
  • Application for registering the company
  • Board resolution
  • Passport copy and specimen signature of the director, manager, and shareholders of the company
  • Original Memorandum and Articles of Association
  • No-Objection Certificate from the residency visa sponsor
  • Proof of share capital
  • Registration and license fee

Why Set Up a Business in Dubai International Academic City?

DIAC offers a unique cluster environment where businesses across all sectors can share a work campus committed to their business and can interact and collaborate effectively. The procedure of registration business, as listed above, is simple and streamlined with business-friendly company laws and regulations. A one-stop-shop service that provides businesspeople with licensing, traffic, and postal service, 24-hour visa service, quick access to knowledge workers due to the fast-track immigration process. Apart from these, listed below are few business setup advantages offered by DIAC.

  • 100% foreign ownership
  • Full repatriation of capital and profits
  • 50-year exemption guaranteed from personal, income, and corporate tax
  • Exemption from customs duty for goods and services

With so many advantages offered, any investor will be delighted to start their business in DIAC. If you are one of them, then we at Commitbiz can help you start a business in this Dubai free zone. Our advisors are well-versed with the legal formalities and can make this process hassle-free for you. Contact us today to know more.