Dubai free zone cbusiness setup

Dubai Silicon Oasis company formation

verified by : Andrey Ovchinnikov

08 Jan 2024

Dubai Silicon Oasis Overview

Dubai Silicon Oasis (DSO) 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. Some of the major companies that have their offices in DSO are: Cisco, IBM, Microsoft, Oracle, SAP, Siemens, Virtustream.

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.

DSO Facilities

DSO offers the following types of facilities:

  • Light industrial units
  • Office spaces
  • Workstations (subject to availability)

These 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.

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

DSO 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 Freelance Visa in the UAE.

DSO Costs

Setting up a company at Dubai Silicon Oasis can be done in two ways:

1. Getting a workstation package

It includes a work desk, license, and one visa for the owner. Work desks are subject to availability. The cost of this package is AED 30,000, plus a refundable deposit of AED 5,000.

2. Acquiring a license plus office space

Office spaces start from 7 sq meters. The cost of a license is AED 12,000. If you get a license along with a 7 sq meter office in Techno Hub, the total cost would be approximately AED 26,000.

Payment for offices can be made via 4 post-dated cheques. The cost of setting up a company at Dubai Silicon Oasis is competitive compared to other free zones in the Emirate.

DSO Business setup

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.

Once you have chosen the office, the process goes as follows:

  • Reservation of the company name
  • Pre-approval of the business
  • Signing of the lease agreement
  • Payment
  • Receiving the license

The company owner's personal visit is required at the final step. The overall formation process usually takes about 2 weeks.

Required documents include:

  • Passport copy
  • Personal photo
  • Visa or previous entry stamp to UAE copy

DSO Resident visas

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.

DSO 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.

The costs for Dubai Silicon Oasis visas are as follows:

  DSO fees, AED Medical checkup, AED Emirates ID, AED Refundable deposit, AED
Applicant in UAE 4,860 590 370 2,500
Applicant out of UAE 3,260 590 370 2,500

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

All visas are valid for 3 years.

DSO License renewal

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

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.

DSO 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 necessitates personal presence.

DSO Business 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.

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.

Exspert Opinion

Dubai Silicon Oasis (DSO) is an excellent choice for businesses seeking cost-effective office spaces within Dubai. The convenience of recruiting staff is enhanced by the availability of affordable accommodation within the same area.

Given its proximity to Academic City, businesses have the added advantage of accessing a pool of students for various company projects. Furthermore, the presence of the Techno Hub in the area ensures an ample supply of qualified professionals.
While Dubai Silicon Oasis Free Zone is a favorable option for company formation, an alternative yet more costly option is the formation of a company in DMCC (Dubai Multi Commodities Centre).

Benefits of Dubai Silicon Oasis company

  • Developed Zone with offices and residential area
  • Affordable office rent
  • Modern facility

Start your business in Dubai Silicon Oasis

Trading and service license costs in DSO free zone

Up to 2 visas

LICENSE TYPE VISAS INCLUDED TOTAL COST
Trading / Service / license + office 13 sqm no visas AED 66,586 $18,250 download breakdown
Trading / Service / license + office 13 sqm 1 visa AED 73,558 $20,200 download breakdown
Trading / Service / license + office 13 sqm 2 visas AED 80,529 $22,100 download breakdown

Up to 3 visas

LICENSE TYPE VISAS INCLUDED TOTAL COST
Trading / Service / license + office 40 sqm no visas AED 107,494 $29,450 download breakdown
Trading / Service / license + office 40 sqm 1 visa AED 114,466 $31,400 download breakdown
Trading / Service / license + office 40 sqm 2 visas AED 121,437 $33,300 download breakdown
Trading / Service / license + office 40 sqm 3 visas AED 128,409 $35,200 download breakdown

Documents for DSO free zone setup

DOCUMENTS

PROCEDURE

INDIVIDUAL SHAREHOLDER

  • Passport copy
  • Latest utility bill as address proof
  • Latest UAE entry stamp
  • Passport size photo
  • NOC from sponsor for UAE visa holders
  • 3 days- company formation
  • 1 - 3 weeks- establishment card
  • 5 days- entry permit visa
  • 1 day- medical checkup
  • 5 days- visa stamping

Top 10 questions about Dubai Silicon Oasis free zone company

  • Can I open a bank account remotely?

    No, 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.

  • 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?

    A flexi desk is a mandatory requirement for any company eligible for resident visas. It serves as the minimum physical office space that a company with individuals under its visa must have. 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 transactions occur outside the UAE. However, if goods are imported to the UAE, VAT at a rate of 5% must be added to invoices and paid.

  • Are there any other taxes to be paid?

    The UAE is free from 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, companies registered in UAE free zones are exempt from this tax if they do not make profits from activities on the UAE mainland or this profit is less than AED 375,000 per year. Branches of companies registered in free zones and carrying out activities on the mainland will be taxed at the mainland rate.

  • 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 flexi desk spaces 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.

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