Technology has taken over our lives, and it is no secret. It is everywhere; in our homes, at our work, and everywhere in between. A crucial aspect related to digital technology is that it has quickly moved in the last two decades and has dramatically changed how our world functions.
Dubai has always been a forerunner in all government initiatives to drive foreign capital inflow, and Dubai Internet City (DIC) is a testament to this.
Information About Dubai Internet City Free Zone
Established in the year 1999 in the heart of New Dubai, Dubai Internet City (DIC) free zone is the most significant Information and Communications Technology (ICT) business park in the entire Middle East and Northern Africa (MENA). DIC is the typical provider of a tactical and economical platform for ICT companies trying to find their share in the market. Introducing the “in5 system” in 2013 for tech start-ups in Dubai and new entrepreneurs has witnessed a great boom.
- Located 25 kilometers from Dubai, the free zone is strategically great for attracting a dynamic IT international community to set up their operations in DIC.
- DIC is the perfect place for an IT business setup as it offers the best technology start-up ecosystem and has all the elements of the ICT value chain.
- Dubai Internet City is one of the three initiatives by the Dubai government to make it the global hub for knowledge and innovation, the other two being Dubai Knowledge Village and Dubai Media City.
With excellent facilities and world-class infrastructure, a business-friendly environment, a flexible legal structure, and a pleasant ecosystem for global and regional companies and entrepreneurs to set up their IT firms in the UAE, DIC is a domicile for many global ICT companies, including Microsoft, Oracle, HP, IBM, Dell, Siemens, Canon, Logica, Sony Ericsson, Schlumberger, Cisco, as well as many of the small and medium-sized businesses and entrepreneurial ventures.
Types of Legal Entities in DIC Free Zone
Dubai Internet City is isolated from mainland UAE because the companies set up in DIC are not allowed to do business outside the free zone. However, companies have been provided with sufficient amenities to start their venture in DIC. The following entities can be legally registered in DIC:
1. Free Zone Limited Liability Company (FZ-LLC)
A limited liability company in a free zone can be owned by 1 to 50 individuals or corporate shareholders with a minimum share value of AED 1,000 and a minimum share capital investment of AED 50,000.
2. Branch of a UAE Company
This refers to a branch by an applicant who is a UAE resident. It doesn’t have any capitalization requirement.
3. Branch of a Foreign Company
A branch of a foreign company in DIC can be formed by an applicant who is a foreign national, and such a company doesn’t have any capitalization requirement.
Activities Permitted in Dubai Internet City
DIC allows all types of businesses to be set up in the free zone, but these are the most prominent businesses:
This includes any activity related to developing, installing and/or modifying the company’s software products or a third party.
2. Telecommunication and Network
This includes any activity related to developing, installing, modifying, and/or operating networks or providing relevant services designed for operating network-based applications or services for self or third parties.
This includes any activity related to individual services and products to third parties through electronic media, such as an internet search engine, portal, website, social media, etc., to sell goods and services.
4. IT Service
An IT service encompasses any activity related to developing and providing standardized, repeatable IT-based services, including security solutions, localization, training, and corporate learning.
5. Internet and Multimedia
This department includes any activity related to developing and distributing internet or multimedia content. Other activities may include distributing goods or services via the internet, such as providing an online platform and acting as an intermediary between multiple companies or individuals.
Dubai Internet City License Cost
|Activity||1st Year (in AED)||2nd Year (in AED)|
|License Cost per Segment||15,020||15,020|
|Additional Cost per Segment||10,010||10,000|
Dubai Internet City Company Formation Procedure
To start a company in Dubai Internet City, one can follow these steps:
Application Form - Submit a business license application along with the proposed business plan and passport photocopies of all shareholders, managers, and directors to the Free Zone Authority.
Initial Approval - DIC Authority will review the application and grant a provisional approval letter to the applicant with a checklist of required legal documents. The applicant must accept a provisional approval letter, sign, stamp, and send it back to DIC.
Documentation - Submit all legal documents within 15 working days from the acceptance of the Provisional Approval Letter [there are different legal documents to be submitted depending on who the applicant is – a corporate body, branch of a foreign or UAE company, or an Individual).
Documents Required to Start a Company in DIC Free Zone
- Passport copies of the founders
- Passport copies of the managers and directors
- Details of the legal representative
- A license application form
Further Approval -DIC will review the legal documents, send the applicant a Customer Confirmation Letter and check if the required office space is available. The applicant has to return a signed and duly stamped Customer Confirmation Letter to the DIC.
Fee Payment- After receiving the Customer Confirmation Letter, DIC will issue an invoice for initial payment (fee for license and registration and 34% rental of the total annual lease).
Company Registration - DIC will issue Personnel Sponsorship Agreement and office space Lease Agreement after receiving the initial payment. Upon receiving the signed and stamped Lease and Personnel Sponsorship Agreement, DIC will issue a trade license allowing the company to start trading.
Commitbiz has been facilitating IT start-ups, SMBs, and multinationals set up their base in DIC, by offering them business support services like business licensing and registration, administrative support, legal documentation, fully furnished office setup, etc., to foster their business growth.
Contact us for further assistance.
How many businesses have been set up in the Dubai Internet City (DIC) free zone?
More than 1600 have been set up.
When was the DIC established?
It was established in the year 2000.
What is the speciality of Dubai Internet City?
DIC is a hub for innovation in the technology, new media, science, and education sectors.
Do we need a board resolution to establish a branch of a retail company in Dubai Internet City?
Yes, you will need a board of resolution.
What are the business infrastructures in the DIC?
- Commercial offices
- Business Centers with Executive Desk and Executive Office
- Conference Facilities
- Amenities – Star Hotels, Fitness Facilities, Dining and Retail, Banking & ATM, Medical, Security and Public Safety.