Dubai Internet City Free Zone represents the largest area in the Middle East dedicated to the field of communication technology and internet. Created in 2000, the Dubai Internet City (DIC) is now the home of some of the largest companies in the field on internet and technology. DIC offers great business opportunities and an attractive taxation system; our lawyers in Dubai can present to you the DIC business environment and can help foreign investors set up their operations in Dubai.
What are the advantages foreign investors benefit from in the Dubai Internet City Free Zone?
In terms of taxation, companies in the Dubai Internet City Free Zone have the following benefits:
- no tax on personal income for 50 years guaranteed by law,
- no tax on the corporate income for 50 years,
- no tax on customs duty,
- full repatriation of capital and profits.
Moreover, full foreign company ownership is allowed in the Dubai Internet City Free Zone. The registration procedure is quite simple due to the Dubai Companies Act provisions.
What are the requirements for establishing a company in the Internet City Free Zone in Dubai?
Investors wanting to set up a company in the Dubai Internet City Free Zone are required to deposit a share capital of 50,000 AED. The company must also have at least one director and open a bank account with a local bank. The following step will be to draft the articles of association for the new company and submit them with the Dubai Internet City Free Zone authorities. The investor will then be required to apply for the appropriate business license. The following documents must be submitted with the authorities:
- a business and a financial plan,
- a description of the main activity the company will undertake,
- copies of the shareholders and directors’ passports.
Documents required for company formation in Internet City Free Zone
If you have decided to set up a company in Internet City Free Zone, here are the documents you need to draft:
- a lease agreement serving as proof of the physical address within the free zone;
- a notarized Power of Attorney designating the agent is required if a local representative agent is employed;
- personal information form completed by the applicant, any shareholders, and managers;
- copies of the passport for the applicant;
- the resume of the applicant;
- clearance from the Free Zone Authority for the planned activities;
- a trading name approval form;
- proof of the AED 50,000 as a share capital.
If you want to open a company in Internet City Free Zone that has at least one corporate shareholder, the application must contain:
- the certificate of incorporation or business license for the company;
- a board resolution issued by the company’s board of directors indicating the intention to set up the new structure in DIC.
Similar documentation is required when setting up a branch office in Dubai Internet City.
Feel free to address our Dubai lawyers once you decide the type of business you want to create in Dubai Internet City Free zone. We can also help you apply for an investment visa for Dubai, thus easing your access to setting up an enterprise anywhere in the UAE.
We are also at your disposal if you want to open a company in Dubai mainland.
Licensed business activities in DIC
DIC is set out as an international business place for local and foreign investors who have businesses in the field of communications or internet technology. If you want to open a company here, the DIC authorities will provide a business license for the following activities:
- software – companies receive a software license for the development and maintenance of software;
- internet and multimedia – the license is issued for the development and distribution of internet and multimedia products and services;
- telecommunication and network – licenses are issued for businesses which provide network services;
- IT services – the license is provided for companies which offer IT training and learning.
Even while freelancing isn’t always a reliable source of income, you can still bring your family along. You can sponsor your dependents if you have a freelance visa for Dubai. After the permit and earning a particular amount of money, you can sponsor family members. Another option is to sponsor staff to work for you.
Legal structures in DIC
When opening a company in DIC, an investor can choose from two different legal structures, available under the DIC legislation:
- branch of a local or foreign company, which is a dependent legal structure, but does not require a minimum share capital at the incorporation;
- free zone limited liability company, which can have a single shareholder, but maximum 50 (individuals or corporate) and which requires a minimum share capital of AED 50,000. Our Dubai law firm can provide you with further details about the registration process in DIC.
The freelance visa for Dubai Internet City
In the past few years, Dubai has taken important steps to adhere to international trends. This also implies the creation of the Dubai freelance visa, and Internet City Free Zone is one of the areas where such a residence permit is attainable.
This type of visa is a residence permit that allows an individual to live in the UAE without fulfilling the sponsorship requirement. In fact, this is a type of self-employment that offers freedom and independence. The visa is accompanied with a freelancing permit, which is similar to a work permit for independent contractors.
So, if you are not interested in traditional company formation in Dubai Internet City, you can always go for this option. Our law firm in Dubai can help you with the application.
How long does it take to open a company in Dubai Internet City Free Zone?
Here is a timeline you should expect when you set up a company in Dubai Internet City Free Zone:
- a few days to register the company;
- 4 to 6 weeks to obtain the desired business license;
- 7 to 10 days to obtain clearance of the residence card;
- 7 to 10 days to obtain the residence visa.
If you need further information on the Dubai Internet City Free Zone, our lawyers in Dubai can offer you details on the business market in DIC and can represent you during the incorporation process.