Dubai Silicon Oasis company formation

Company setup from 12,000  AED 

Mandatory office rent 28,392 AED for 13,5 sq. m

Registration from 2 weeks

Bank account Guaranteed

Residence visas for 2 years

Emirabiz experts’ opinion

Is DSOA suitable for your business?

— Yes

• If you have a startup in the IT sector, online services, industry, research, and development and plan to further develop and grow into a large company, DSOA has a subsidiary free zone called DTEC, where new businesses can affordably establish a company. After five years, they have to move to DSOA.
• If you have a large IT company and are looking for a suitable networking community and infrastructure, DSOA has a technology park with ready-made and fully equipped modern technology offices. This free zone hosts the offices of major IT companies.
• If you wish to work and live in one place, DSOA has residential buildings with a wide range of amenities that are home to 60,000 tenants. 
• If you have a light manufacturing enterprise, DSOA has suitable facilities for it.

— No

• There are no options available for freelancers in DSOA. You’d better look at DMCC Freelance License or Go Freelance by TECOM.
• If you engage in heavy manufacturing Dubai Silicon Oasis will not suit you because it does not have appropriate facilities. Instead, try UAQ Free Zone, JAFZA Free Zone, or Hamriyah Free Zone.

DSOA company formation process

Company registration can be done remotely regardless of if you are in the UAE or abroad, your company can be registered in 2-3 weeks.

Dubai Silicon Oasis company formation starts with picking up of an office facility. It is better to view them to get a full understanding of the offers.

Step 1. Determine which type of license offered by the DSOA free zone suits you.

It is crucial to approach this question carefully, as choosing the wrong activity, registration authority, or location can lead to errors during company registration, creating problems with opening a bank account or getting a residence visa.

Step 2. Prepare the necessary documents. DSOA requires a minimal documentation package.

• Passport with a 6-month validity
• Photo
• Email address and residential address, as well as a mobile number
• Visa or the previous entry stamp to the UAE

This set of documents is required if a shareholder (shareholders) is (are) an individual(s). If the shareholders form a company, then they will need to provide notarized documents of the company:

• Memorandum and AoA
• Certificate of incorporation
• Trade license

After all the documents have been compiled and the necessary paperwork has been drafted, it is required to pay the necessary fees for the registration process to proceed with the application.

Step 3. Receive the license and registration documents for the company, namely

• Certificate of incorporation
• Trade license
• Lease agreement
• MoA and Articles of Association

Step 4. Receive an establishment card that contains information about your company and makes it eligible to sponsor residence visas.

Step 5. Apply for an entry permit.

If you apply from inside the UAE, after the entry permit is issued you have to change your visa status from the previous visa to a residence visa. If you are outside the UAE, then arrive in the country, get your entry permit stamped and then proceed with the rest of the residence visa process, submitting the necessary documents.

Step 6. Undergo a medical checkup and submit documents for a residency visa.

Step 7. Apply for an Emirates ID.

Step 8. Complete biometrics procedure in one of the Emirates ID centers.

Step 9. Once you have the results of your medical test and biometrics you can submit all the details for a visa approval. Your electronic visa will be sent to you by email. You can also find it in the UAE ICP app.

Step 10. Receive your Emirates ID. After the residence visa is issued, the Government prepares a plastic identity card which is an important document that is required to open a bank account, rent an apartment, pay bills or fines, etc. It also entitles you to many local services and discounts.

Step 11. Open a bank account. Apply to a UAE bank to open a corporate bank account. The approval may take a few weeks.

After receiving the account details, you can start running your business in the UAE.

DSOA licenses and cost

The cost of a license in DSOA starts from 12,000 AED.

Office rent is mandatory when setting up a company in the DSOA free zone. The smallest office is 13,5 sq m. Payment for offices can be made via 4 post-dated cheques.

Dubai Silicon Oasis offers the following types of licenses:

• Service license - allows to provide professional services specified in the license.
• Trade license - allows to engage in activities related to import, export and distribution of goods stated in the license.
• Industrial license - allow to set up a company which needs to import raw materials, process, manufacture products and export them.

DSOA business activities

Dubai Silicon Oasis Free Zone follows the business activity list of the Department of Economic Development. Up to 7 different activities from the same segment (trading, service, or potentially industrial) can be included in your license.

However, some activities, only available in the mainland, are excluded.

Freelance category is not available in this free zone. If you are looking for a freelance license, check out DMCC Freelance License or Go Freelance by TECOM.

DSOA facilities

DSOA offers flexible plans of facilities suitable for all categories of licensees, from startups to large corporations:

The office spaces can be leased either in any business tower within Silicon Oasis or the following towers managed by the free zone:

• Headquarters Building (rent inclusive of utilities)
• Dubai Digital Park Offices
• Techno Hub

All offices are equipped with raised flooring, ceilings, and curtain blinds.

DSOA authorities provide flexible rental rules. Companies can rent an office either under free zone management or from any other landlord within Silicon Oasis, i.e. in freehold areas. Furthermore, companies registered with the Department of Economic Development of Dubai can also rent offices in this free zone.

DSOA visa costs

Companies in Dubai Silicon Oasis Free Zone are eligible for a specific number of visas based on the size of the office - every 9 sq. meters makes a company eligible for one resident visa. For instance, a 50 sq. meter office entitles you to 5 visa slots.

DSOA visa costs (AED):

DSOA does not issue Investor or Partner visas. All visas will have some managerial designations. Importantly, the company's General Manager must hold a resident visa from Dubai Silicon Oasis.

Additional fee of 5,000 AED will apply to applicants over 60 years old.

All visas are valid for 2 years.

DSOA company license renewal

Annual renewal of a company is essential and involves the payment of office rent and license fees. 

The renewal process usually lasts about 2 weeks.

Additionally, you're required to submit annual audit reports of your company. Notably, the first audit should be conducted 18 months after the company's registration date.

DSOA company amendments

Common amendments made to companies include:

• Transfer of shares
• Change of company name
• Amendment to the business activity
• Change of company manager

Amendment fees for companies in Dubai Silicon Oasis Free Zone start from AED 500 and can reach up to AED 2,000. While some amendments can be executed remotely, a change of shareholders might necessitate personal presence.

DSOA company liquidation

Dubai Silicon Oasis has simplified the liquidation procedure and significantly reduced the associated costs. The current fee for company closure stands at approximately AED 2,000. The process takes about 1 month. It consists of these major steps:

1. Visa cancellation  (7-10 working days) - if there is a visa in the company.
2. Establishment card cancellation (7-10 working days) - if it was a visa eligible company.
3. License cancellation.

In the event of liquidation, you're required to provide a final audit report and return all original company documents. Any existing lease agreements should be terminated and visas closed.

If you had a corporate bank account, it should be closed before applying for company liquidation. You should obtain a letter proof from the bank confirming that. 

After the company is dissolved, you will get an official deregistration letter from the free zone as a formal confirmation of the liquidation.

About Dubai Silicon Oasis

Dubai Silicon Oasis (DSOA) is a Dubai free zone and technology park. It was established in 2004 by the Dubai government and is home to over 4,000 companies, including multinational corporations, start-ups, and research and development centers.

Dubai Silicon Oasis stands as a premier free zone and a vibrant business and residential community in Dubai. Serving as an innovative technology hub, it accommodates businesses specializing in IT, online services, industry, research, and development.

In addition to being a commercial center, Dubai Silicon Oasis hosts Dubai Digital Park, offering state-of-the-art workspaces and residences, ready for immediate occupation. It provides an array of amenities for its residents, such as over 80 restaurants, retail outlets, a shopping mall, schools, and a hospital.

Strategically located, it can be accessed via any road, minimizing traffic congestion. This makes it one of the most sought-after locations for business setup in the UAE.

All technological initiatives of the Dubai government are implemented and tested in Silicon Oasis.

FAQ

Can I open a bank account remotely?

Basically no, as a personal visit to the UAE is required as per the regulations of the UAE Central Bank. Local banks require this visit to verify the client's identity. However, some banks allow remote account opening through their digital bank applications or website.

Do banks give debit and credit cards or loans?

In most cases, you can obtain a debit card for your newly opened company, especially if there is only one shareholder. However, a credit card is usually issued against a fixed deposit. As for loans, banks may consider your eligibility based on your company's operations and profits. It is recommended to apply for a loan after at least one year of company operations.

Can a free zone company have offices outside the free zone?

Officially, the office of a free zone company should be located within the free zone where it is registered. However, if you need an office in Dubai, you have the option to rent space in a Business Center and use it on a flexible basis. It is important to note that the minimum required space (flexi desk) in the free zone cannot be canceled.

Why do I need a flexi desk or office?

Having a facility within the freezone/jurisdiction where a company is registered is a mandatory requirement, especially for companies sponsoring residency for its shareholders or employees. A flexi desk is the minimum office space that a company can have. This flexi desk comes with an address which will be the official company’s address (in case the company does not rent a bigger office). Additionally, a flexi desk can facilitate bank account opening as banks require evidence of a company having some form of office or physical presence.

Do free zone companies need to pay VAT?

VAT obligations depend not only on the place of registration but also on where the business activities take place. VAT becomes applicable when the taxable turnover reaches AED 375,000. If a free zone company's trading activities take place abroad, the turnover is not considered taxable as long as the goods or services are supplied outside the UAE. However, if the goods or services are supplied to customers within the UAE, the 5% VAT will be applicable.

Are there any other taxes to be paid?

The UAE is free from personal income tax. However, there is a 5% import tax on goods brought into the country and a 5% VAT on trading or service transactions that occur within the UAE.

On June 1, 2023, the UAE introduced 9% corporate tax, however, the UAE freezone companies that meet certain requirements as outlined by the Federal Tax Authority will be able to benefit from tax reliefs and possibly file the 0% corporate tax.

Why would a free zone company be better for me than an offshore or mainland entity?

The suitability of a free zone company versus an offshore or mainland entity depends on your business model and requirements. However, a free zone setup offers advantages such as 100% foreign ownership, eligibility for resident visas, the ability to conduct business both within and outside the UAE, and greater favorability with banks compared to offshore companies. Additionally, free zones often offer a flexi desk option instead of executive offices, making it a cost-effective way to start a business without unnecessary obligations.

Can you guarantee the opening of a bank account?

While we strive to make the account opening process as smooth as possible, we cannot guarantee the approval as it ultimately depends on the bank. Each case goes through several bank departments for approval, and the bank may contact you directly for clarifications. Providing a clear picture of your business to the bank increases the chances of successful account opening. We do our best to prepare you and your company for a smooth and fast account opening process.

When and how should I renew my company? How much does it cost?

Your company should be renewed annually, and the cost is typically lower than the initial setup cost. The renewal fees depend on your company package, and you can obtain the price by downloading the Estimate from our website. Company renewal does not require the personal presence of the owner and can be done by your agent. After renewal, the new license must be presented to the bank to extend the bank account, which is included in our renewal service.

How can I pay the fees?

You have multiple options for fee payment. You can make payments via bank transfer, cash, or online using a card.