TECOM — Technology Electronic Commerce and Media Group

TECOM company formation process

Company formation in free zones under TECOM Group has to be carried out personally by company owners or assisted by a business consultant. In the Dubai Industrial City (DIP), licenses are issued by the Dubai Department of Economic Development (DED) while in other TECOM free zones, companies are registered with the Dubai Development Authority (DDA). Although TECOM Group strives to standardize the business registration and formation process across all its free zones, there may be differences in certain setup aspects, so it’s highly recommended to seek advice or assistance from business consultants in Dubai. While license registration can be completed without the physical presence of the shareholders, after the registration, the shareholders’ physical presence would be required to sign the company documents and collect the office keys from the free zone. The formation process in TECOM free zones varies depending on the particular business community, chosen industry, company type, and other factors. While a freelance permit can be processed in one week, the issuance of an Industrial license can take a few months. Company registration requires leasing an office facility, the smallest of which is a hot desk with 1 visa quota.

1. Choose your business activities and license type. Determine the business activities of your future company and the corresponding license type. This aspect is vital for a successful business setup, as choosing the wrong activity and license can cause errors during company registration, leading to problems with opening a bank account or obtaining residency visas for yourself and your employees.
2. Determine the legal entity of your business. Specify the legal status of your business. Available legal entities for company formation TECOM free zones are:
   • Free Zone LLC (Limited Liability Company)
   • Startup Office
   • Branch of an already existing local or foreign company.
3. Prepare and file the required documentation. Prepare and submit the necessary documents together with the application form. TECOM free zones typically require the following documents for company formation:
   • Passport copies of all shareholders
   • Memorandum and Articles of Association
   • CVs
   • Trade name (at least 5 options)
   • NOC from a local partner
   • Business plan
   • Bank reference letter
   • Proof of share capital
   Also, this step involves paying all the registration and processing fees.
4. Collect the license and registration documents. Secure the license and registration documents for the company, including:
   • Business plan
   • Certificate of Incorporation
   • Business license
   • Memorandum and Articles of Association
   • Share certificate
   • Lease agreement
5. Secure your Establishment Card. Receive the Establishment Card containing information about your company and visa quotes.
6. Apply for an entry permit. Apply for an entry permit. If you’re outside of the UAE during the processing of the entry permit, you will need to come to the country when the document is issued within 60 days to complete the medical test and biometrics for your visa. If you’re in the UAE when the entry permit is issued, a status change will be done from your previous UAE tourist/residency visa to the new one.
7. Take a medical test and submit visa documents. Undergo a medical checkup and submit documents for a residence visa, as well as biometrics scanning for your Emirates ID. Different registration packages may provide for a varying number of visas available for owners and employees of the company.
8. Collect your Emirates ID. Once your visa is issued, secure your Emirates ID card.
9. Open a bank account. Apply to a UAE bank to open a corporate bank account. Once you receive your account details, you are free to start running your business.

TECOM license costs

The basic cost of a license in TECOM free zones is around AED 15,000. However, for some business setup packages that include leasing a dedicated desk, the price of a license is reduced to the cost of the registration fee, which is 3,520. Also, a Freelancer license costs AED 7,500.

Below is the estimated cost of a setup package with a dedicated desk facility.

Additional costs included in a typical setup package apart from the license fee:

• Registration fee
• Establishment Card
• Lease cost
• Visa-related fees
• Medical checkup
• Emirates ID

Is TECOM suitable for your business?

• 10 industry-specific free zones
• Great choice for companies physically residing in Dubai
• Wide range of available facilities

Yes

• If you are looking for a business setup solution in one of 10 top-notch business communities in Dubai under the auspices of TECOM Group, one of UAE’s major real estate companies supported by state-owned Dubai Holding.
• If your business is related to media, technology, manufacturing, design, education, or science. TECOM’s 10 free zones combined support a vast array of business activities.
• If you are a freelancer or an independent specialist, as TECOM’s free zones offer freelance permits with single visa quotas.
• If you prefer a free zone with highly-developed infrastructure, as TECOM’s free zones offer a massive variety of facilities and amenities suited for numerous business fields, from offices in business centers and warehouses to commercial spaces and event venues.
• If you or your staff come from countries considered as high-risk countries (such as Iran, Syria, Lebanon, Algeria, Turkey, etc.), as you will be less likely to encounter challenges when applying for resident visas or opening bank accounts in free zones such as Dubai Internet City.

You can also consider an alternative solution such as setting up a business in Sharjah Media City Free Zone, which is focused on multimedia, or Dubai Silicon Oasis, which is IT and media-oriented.

No

• If you prefer a remote business setup, as company formation in TECOM business districts often requires personal presence. In this case, an alternative option would be Ajman Media City (AMC) or IFZA.
• If you’re looking for a business setup outside of Dubai.
• If you’re planning to engage in business activities focused on heavy industry or logistics, as TECOM’s fee zones mainly focuses on other business sectors. For such activities, we would recommend applying to SAIF or JAFZA.
• If you are considering operating with a flexi-desk. Freezones under TECOM Group often require a mandatory office rental within the free zone in order to obtain a license.

TECOM licenses and business activities

In general, TECOM provides an inclusive platform for individuals, startups, SMEs, and multinational corporations alike. TECOM business districts are for the most part field-specific, each catering to certain industry sectors with a variety of related business activities under one roof. As such, the overall list of business activities available in TECOM free zones is enormous, with numerous activity categories related to media, technologies (especially IT), manufacturing, design, education, and science. All you need to do is choose the free zones that suit your business best.

In the table below, you can find the list of business licenses commonly supported by TECOM free zones and their descriptions.

• Commercial Trade License in Dubai. A Commercial License will allow you to open a business in retail, wholesale, or import-export, with access to local and global markets.
• Professional License in Dubai. With a Professional License, you can offer specialized services in fields like consulting, management, education, real estate, and more.

It should be noted that each free zone under TECOM may also have other license options specific to the particular free zone and industry sectors it supports. Also, TECOM caters to freelance professionals, offering a dedicated freelance permit. The freelance permit lets you operate under your personal name as opposed to a brand name, which sets you up as an individual expert in your field.

TECOM facilities

TECOM offers a variety of multipurpose facilities to businesses of all sizes. Certain free zones cater to specific industries and corresponding facility types, but they are united by high building standards and world-class infrastructure.

To open a company in a TECOM business community, you will need to rent a premises within the free zone. The type of premises you rent will depend on your company's business activity and size. Note that the lease is subject to 5% VAT. Also, a desk space requires an AED 5,000 security deposit, while a private quarter space - AED 10,000.

Facility options available in TECOM free zones include:

• Warehouse. A facility for companies needing storage space for goods and materials, often equipped for light industrial use.
• Light industrial unit. A space designed for businesses involved in light manufacturing, testing, or repairing.
• Commercial spaces. Spaces designed for businesses selling various types of services or products and adaptable to different business models.

TECOM residence visas

Opening a company in one of TECOM’s free zones entitles you, your personnel, and your dependents to residence visas. TECOM offers various visa packages based on the type of office space chosen. Once the business license is issued, the resident visa process is straightforward and involves:

• Establishment Card of the company
• Entry permit
• Status adjustment
• Medical checkup
• Emirates ID

TECOM free zone visa costs

All visas are valid for 2 years, and the company license will need to be renewed annually to keep this resident visa valid. The visa holder will also need to come into the country at least once every 6 months to keep the visa valid.

TECOM company license renewal

Any company residing in TECOM free zones must be renewed on a yearly basis. The procedure includes:

• Renewal of the office lease
• Renewal of the license

As such, company renewal will repeat certain costs of company registration: license fees + office rent. You also need to carry out your company's annual financial audit.

To renew your business license:

1. Submit an application form with the required documents to the free zone authorities.
2. Sign the renewed lease agreement.
3. Pay the renewal fees.
4. Wait for your license to be renewed.

If you are not present in Dubai, your representative can handle the company renewal process.

After the company renewal, it is important to inform your bank about the license extension. You need to bring the license to any branch of your bank. Business consultants in Dubai can assist you in this process.

TECOM company amendments

TECOM free zones allow company owners to make as many changes as required. The costs vary depending on the type of amendment. Amendments can be categorized as Registry Amendments or License Amendments.

Registry amendments:

• Company name change
• Operating name change
• Parent company name change
• Addition or removal of Directors
• Financial year change

License amendments:

• Manager name change
• Change of location/address in the license
• Change of business activity/addition of activity within the same segment
• Removal of an existing segment
• Removal of activity within the segment
• Adding a new publishing segment
• Adding new channels

Most of the amendments do not require the presence of the company owner and can be done by consultants specialized in business setup in Dubai.

TECOM company liquidation

If any business registered with TECOM wishes to cancel their license and deregister the company, they have to approach the free zone authority to initiate the deregistration procedures. To liquidate a company registered in one of TECOM’s free zones, its shareholders must first provide notice for company termination and appoint a liquidator for cancellation of the company (typically an auditing firm).

The liquidation procedure consists of the following steps:

1. Provide the following mandatory documents:
   • Board resolution signed by the shareholders and stating the reason for the company liquidation
   • Deregistration documentation
   • Business license and all other company incorporation documents
   • Auditor Liquidation Certificate
   • Audit report
2. Pay cancellation fees and settle other payments. Once this is done, the liquidation process is initiated.
3. All residence visas and other immigration-related documents issued under the company need to be canceled as well.
4. Once the liquidation is complete, you will be notified and receive the corresponding documents.

If you do not renew and do not cancel your license either, it becomes non-operational. In this case, the free zone authority will initiate company liquidation y itself. If you made any refundable deposits to the authority, the refunds will be made upon company deregistration.

About TECOM

TECOM, or Technology Electronic Commerce and Media Group is a large real estate company with a portfolio of 10 industry-specific business districts (free zones). It is a part of Dubai Holding, a state-owned global investment holding company. Each TECOM free zone caters to certain industry sectors and business activities with corresponding licenses and facilities.

The list includes:

• Dubai Internet City (DIC)
• Dubai Media City (DMC)
• Dubai Design District (d3)
• Dubai Industrial City (DIP)
• Dubai Science Park (DSP)
• Dubai International Academic City (DIAC)
• Dubai Knowledge Park (DKP)
• Dubai Studio City (DSC)
• Dubai Production City (DPC)
• Dubai Outsource City (DOC)

The history of TECOM Group started with the creation of Dubai Internet City in 1999, which has since become the largest Information and communications technology hub in the Middle East and North Africa (MENA) region. Today, TECOM’s free zones are home to over 11,000 companies and clients including the world's leading multinational corporations such as Microsoft, Dubai Eye, Visa, Khaleej Times, Google, CNBC Arabia, Dell, Oracle, Siemens, and others. TECOM business clusters accommodate over 124,000 professionals in various fields. As of 2022, TECOM Group’s posted net profit amounted to AED 725.6 million.

In general, the business districts of TECOM are focused on such fields as media, technology, manufacturing, design, education, and science. As such, the combined number of business activities supported by TECOM free zones is massive. Each free zone is a major business and technology ecosystem in itself, with world-class infrastructure, facilities, and amenities for all business and work needs. In addition, all of them are based in Dubai, a globally renown business hub with unmatched strategic location and ample opportunities for development and networking.

TECOM Group has also launched several innovative projects and platforms to stimulate entrepreneurs and startups, such as new business incubators and laboratories, higher education campuses, the “axs” integrated smart services platform for government and corporate services, and the GoFreelance service for freelance talents across a broad range of activities.

TECOM Group’s business communities are a great choice for anyone seeking to start or grow a business in Dubai. The group constantly strives for innovation and development, continuously implementing new solutions and projects to help businesses and individual professionals in their work. Whether you are a freelancer, a startup, an SME, or an international corporation, TECOM free zones can provide you with all the resources and support you may require.