Dubai Internet City – DIC company formation

License cost from AED 15,020

Company formation from 4 to 6 weeks

Residence visas for 2 years

Emirabiz experts’ opinion

DIC authorized partner

Is DIC suitable for your business?

Yes,

• if you are looking for a business setup solution in an established and renowned free zone in Dubai, as DIC is the largest information and communications technology hub in the Middle East and North Africa (MENA) region.
•  if your business is media or tech-related, as DIC focuses on such fields as IT, multimedia, and telecommunications.
• If you are a freelancer or an independent tech specialist, as DIC offers freelance permits with single visa quotas.
• If you prefer a free zone with highly-developed infrastructure, as DIC offers a variety of facilities and amenities, from offices in business centers and commercial spaces to event venues of all sizes.
•  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 DIC.

You can also consider an alternative solution such as a business setup in  Dubai Media City or Dubai Silicon Oasis, which are also media and IT-oriented.

No,

• if you prefer remote business setup, as DIC requires personal presence for company formation. In this case, an alternative option would be Ajman Digital Media City (ADMC) or IFZA.
• if you’re planning to engage in business activities related to industry or logistics, as DIC mainly focuses on IT and tech fields. For such activities, we would recommend applying to SAIF or JAFZA.

DIC company formation process

Free zone company formation in Dubai Internet City has to be carried out personally by company owners or assisted by a business consultant. 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 typically takes about 4-6 weeks. Company registration in DIC requires leasing an office facility, the smallest of which is a hot desk with 1 visa quota.

Company registration procedure in DIC

Step 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.

Step 2. Determine the legal entity of your business.

Specify the legal status of your business in Dubai Internet City. Available legal entities for company formation at DIC include an FZ-LLC (Free Zone Limited Liability Company) and a branch of an already existing local or foreign company.

Step 3. Prepare and file the required documentation.

Prepare and submit the necessary documents together with the application form. DIC requires the following documents for an FZ-LLC company formation:

• Passport
• Business plan
• Personal bank statement for the last 3 months (required for Lebanese and Syrian Nationals) 

Registering a company branch at DIC requires the following set of documents:

• Scanned passport copies (Shareholder(s) and General Manager)
• Passport-size photos
• Mobile Number (Shareholder(s) and General Manager)
• Address (Shareholder(s) and General Manager)
• E-mail Address (Shareholder(s) and General Manager)
• CV for General Manager
• Emirates ID (If applicable)
• Trade name document of the foreign entity
• Business activities
• Business plan
• Company profile
• Memorandum and Articles of Association (notarized by the UAE Embassy in the country of origin)
• Board resolution (notarized by the UAE Embassy in the country of origin)
• Certificate of registration for the foreign entity (notarized by the UAE Embassy in the country of origin)
• Certificate of good standing for the foreign entity (notarized by the UAE Embassy in the country of origin)
• Proof of physical address of the foreign entity

While the issuance of a DIC business license itself takes only 48 hours, the company formation process also includes pre-approval period (5-7 working days) and the issuance of office lease papers (3-4 weeks). Also, this step involves paying all the registration and processing fees.

Step 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

Step 5. Secure your Establishment Card.

Receive the Establishment Card containing information about your company and visa quotes. The issuance process takes 3-5 working days.

Step 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. The issuance process for the entry permit takes 5-7 working days.

Step 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. The medical checkup and biometrics scanning each take 1 day.

Step 8. Collect your Emirates ID.

Once your visa is issued, secure your Emirates ID card. The issuance process for an Emirates ID takes 5-7 working days after the submission of biometrics.

Step 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.

DIC license costs

The basic cost of a Dubai Internet City license is AED 15,020. 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.

And here is estimated cost of a setup package with a 190 sq. m. office facility.

Additional costs not included in typical packages:

• Visa-related fees
• Medical checkup
• Emirates ID

DIC licenses and business activities 

Dubai Internet City is dedicated mainly to technology companies, providing an inclusive platform for startups, entrepreneurs, and multinational corporations alike. As such, DIC’s business activity list is quite vast, with numerous activity categories related to software development, data centers, IT consultancy, telecommunications, multimedia, and Internet-based solutions. 

In the table below, you can find the list of business licenses supported by DIC and their descriptions.

As mentioned, Dubai Internet City also 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. 

DIC facilities 

Dubai Internet City offers a variety of facilities to businesses of all sizes. These facilities include: 

• Commercial and retail spaces
• In5 centers
• D/Quarters
• Light industrial units (LIU)
• Warehouses 

To open a company in DIC, you will need to rent a premise within the free zone. The type of premise 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.

As part of TECOM Group, Dubai Internet City offers a wide range of venues for events of all sizes. Whether you're planning a concert, gala dinner, exhibition, brand activation, meeting, or conference, you'll find the perfect space for it in DIC.

Below are the venues available at DIC:

DIC residence visas 

Opening a company in Dubai Internet City entitles you, your personnel, and your dependents to residence visas. DIC 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

DIC visa costs:

All visas allocated through DIC 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.

To sponsor dependents under your visa, you will need the following documents: 

• Marriage certificate - attested by the Ministry of Foreign Affairs of UAE and legally translated to Arabic
• Birth certificate (for your child) - attested by the Ministry of Foreign Affairs of UAE and legally translated to Arabic
• Tenancy contract for an apartment in UAE 

DIC company license renewal

Any company in the Dubai Internet City 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 DIC company registration: license fees + office rent. You also need to carry out the annual financial audit of your company.

To renew your business license, submit an application form with the required documents to the free zone authorities, sign the renewed lease agreement, pay the renewal fees, and 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.

DIC company liquidation

If any business registered with Dubai Internet City 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 in DIC, 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 at DIC 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 Dubai Internet City authority will initiate company liquidation by itself. If you made any refundable deposits to the authority, the refunds will be made upon company deregistration.

About DIC

Dubai Internet City (DIC) is the largest Information and communications technology hub in the Middle East and North Africa (MENA) region. Since its inception in 1999, DIC has attracted over 1,600 companies, including some of the world's leading technology organizations and Fortune 500 companies such as Oracle, Visa, Google, and Microsoft. It is managed by Technology Electronic Commerce and Media Group (TECOM), which is a part of Dubai Holding. 

As the title implies, Dubai Internet City is a haven for tech-based businesses. IT companies, from startups to multinational giants, have the opportunity to showcase their products and services, and engage with some of the world's leading technology corporations, as well as numerous regional tech enterprises.

DIC is a great place to start or grow your business. Whether you are an entrepreneur, a small or medium-sized business, or an international corporation, DIC can offer you the resources and support you need to succeed.