Dubai Silicon Oasis Freezone Company Setup

Setting up a business in Dubai can be confusing, especially with all the license types and regulations. Did you know that Dubai Silicon Oasis Free Zone offers service, trade, and industrial licenses? Explore the key steps of Dubai Silicon Oasis Freezone company setup, from selecting the right license to understanding the associated costs.

Stay tuned to learn how to make your company setup smooth and successful.

Key Takeaways

• Dubai Silicon Oasis offers three types of licenses: service, trade, and industrial. Each caters to different business needs.
  
• Companies enjoy 100% foreign ownership and are exempt from corporate and personal income taxes.
  
• Setting up a company involves several steps. These include choosing a package, getting name approval, leasing office space, and opening a bank account.
  
• Office rental costs vary by size. For example, a 13 square meters (sqm) office can cost between AED 66,586* to AED 80,529* annually.
  
• The area provides many amenities like affordable residential options. A one-bedroom apartment costs around AED 40,000* per year.
  

Why Choose Dubai Silicon Oasis Free Zone for Your Business?

Dubai Silicon Oasis offers a prime location for technology-based industries. It connects you to global markets and provides strong support for Dubai businesses.

Innovation Hub

Dubai Silicon Oasis (DSO) is known as a leading innovation center. It supports the Dubai Economic Agenda D33. This makes it a prime spot for businesses in technology and research.

Located within a free-trade zone, DSO provides world-class IT infrastructure. The Dubai government backs this area to boost technological advancement. Entrepreneurs find endless opportunities here to grow their startups.

Access to Global Markets

Dubai Silicon Oasis (DSO) offers a gateway to global markets, making it one of the most attractive business hubs. Its strategic location in the Nadd Hessa community offers easy access to Dubai Airport and Jebel Ali Port. This helps companies ship goods quickly, improve connectivity, and reach international customers faster.

Businesses in DSO benefit from free trade agreements that the UAE has with many countries. Companies can enjoy low tariffs and fewer restrictions on trading. The supportive infrastructure, such as logistics and office spaces, makes it easier for businesses to grow internationally.

Supportive Regulatory Environment

 Dubai Silicon Oasis is a free zone jurisdiction under the control of Dubai Silicon Oasis Authority (DSOA). The Dubai Silicon Oasis Authority (DSOA) provides a supportive regulatory environment for businesses. Companies enjoy 100% foreign ownership and full exemptions from corporate and personal income taxes. These rules make it easier to get started with business operations.

The DSOA offers clear guidelines for company incorporation, making the process simple. Companies can choose from service licenses, trade licenses, and industrial licenses. No corporate tax on qualifying income also makes this an attractive option for new businesses.

Types of Licenses Available in DSO Free Zone

Dubai Silicon Oasis offers various business licenses and permits suitable for different activities. Companies can choose the right license based on their specific needs.

Service License

A Service License in Dubai Silicon Oasis allows companies to offer specific services within the free zone. This license is ideal for businesses like consultancies, IT services, and other service-related activities.

Companies can combine up to three activities under one Service License. Expatriates enjoy full ownership without needing a local sponsor. The Service License also lets you include trading and consultancy activities together. This flexibility makes it easier for diverse business operations within the technology park.

Trade License

The Trade License in Dubai Silicon Oasis (DSO) allows businesses to import, export, and distribute within the free zone. Companies can also offer trading and consultancy services under this license. Fees apply for these activities. Expatriates enjoy 100% ownership of their companies since no local sponsor is required.

Starting a Dubai Silicon Oasis company with a Trade License costs from AED 11,800*. This makes it an affordable option for many entrepreneurs. The simple setup process helps new businesses establish quickly and efficiently.

Industrial License

An Industrial License in Dubai Silicon Oasis is for manufacturing and processing activities. It allows businesses to import raw materials and export finished products within the free zone. The license supports 100% foreign ownership and full repatriation of capital and profits.

The cost to set up an Industrial License starts from AED 11,800*. This amount can vary based on office size and visa needs. The setup includes company formation, getting an establishment card, entry permits, and visa stamping for staff.

Step-by-Step Guide to Business Setup in Dubai Silicon Oasis

 Get a quick look at the process from start to finish and make your Dubai Silicon Oasis company setup easy!

Initial Steps

Setting up a company in Dubai Silicon Oasis (DSO) involves several steps. The process is straightforward if you follow these guidelines. To make the process even smoother, you can contact renowned business setup consultants like Xpert Advisory for expert guidance.

1. Choose a DSOA Package
   Select the suitable package for your business needs. DSOA offers various packages customized for different types of businesses and industries.
   
2. Determine Your Business Activity
   Decide on the nature of your business. This will help in choosing the appropriate license, whether it’s a service license, trade license, or industrial license.
   
3. Company Name Approval
   Submit three proposed company names for approval. The names should comply with UAE naming conventions and must not include restricted words.
   
4. Prepare Required Documents
   Gather documents required for Dubai Silicon Oasis Freezone company setup like passport copies, lease agreement, and power of attorney (if needed). Ensure all documents are in English or Arabic.
   
5. Submit Initial Application
   Fill and submit the initial application form provided by DSOA. This includes details about shareholders, capital investment, and intended business activities.
   
6. Sign Articles of Association
   Sign the Articles of Association (AOA). This document outlines the ownership structure and operational guidelines for your company.
   
7. Pay Initial Fees
   Pay the initial registration fees as per DSOA’s fee structure. These fees cover various services like name reservation and initial approvals.
   
8. Lease Office Space
   Lease an office space within Dubai Silicon Oasis Free Zone. Having a physical office is mandatory for business operation permits.
   
9. Receive Pre-Approval Notification
   Receive pre-approval notification from DSOA after submission and payment of required fees. This step confirms that you can proceed with further procedures.
   
10. Open Bank Account
    Open a local bank account under your company name to handle future transactions smoothly.
    

Following these steps can ensure smooth company registration in Dubai Silicon Oasis.

Application Process

The application process for Dubai Silicon Oasis Freezone company setup is straightforward. Follow these steps to ensure everything goes smoothly.

1. Submit passport copy.
   
   • Make sure the copy is clear and valid.
     
2. Provide a latest utility bill as address proof.
   
   • This could be an electricity or water bill.
     
3. Present the latest UAE entry stamp.
   
   • This shows you are legally in the country.
     
4. Include a passport-size photo.
   
   • Ensure the photo meets official size requirements.
     
5. Obtain a Non-Objection Certificate (NOC) if you hold a UAE visa.
   
   • Your current sponsor must provide a non-objection certificate (NOC).
     

Post-Approval Steps

After getting your company approved in Dubai Silicon Oasis (DSO), you need to follow some steps. These are important to make your business legally operational. Please note that the below is not in any order.

1. Receive the License: Collect your granted license issued by the Dubai Silicon Oasis Authority (DSOA).
   
2. Lease Office Space: Rent an office or warehouse in Dubai Silicon Oasis.
   
3. Get Building Permits (if applicable): Secure any needed building permits if you plan to construct or modify premises.
   
4. Setup Utilities: Register for utilities like electricity, water, and internet services.
   
5. Register with Local Authorities: Inform local government bodies about your new business setup.
   
6. Open a Bank Account: Choose a bank in the United Arab Emirates. Provide the necessary documents and deposit the minimum required capital.
7. Hire Employees: Start recruiting staff based on your trading license type and business needs.
8. Obtain Visas: Apply for work visas for yourself and your employees.
9. Set Up Accounting Systems: Install accounting software to handle invoices and receipts efficiently.
   
10. Comply with Regulations: Make sure all activities comply with local laws and meet health and safety standards.
    

Cost of Setting Up and Operating Business in Dubai Silicon Oasis

Setting up a business in Dubai Silicon Oasis involves various costs. It’s crucial to plan for both initial and ongoing expenses.

Living Expenses

Living in Dubai Silicon Oasis offers many amenities. A one-bedroom apartment costs about AED 40,000* per year. Monthly groceries range between AED 1,000* and AED 1,500*. Utilities may cost around AED 500* to AED 800* a month. A monthly public transport pass costs AED 300*. Dining out averages between AED 150* and AED 300* for two people. Basic health insurance is between AED 200* and AED 400* monthly.

Office Rental Costs

Office rent in Dubai Silicon Oasis varies depending on space size and visa allocation. Below is a detailed summary of the costs in a table format.

Office rents in Dubai Silicon Oasis are structured to fit different business needs. These costs cover essential services and facilities, making it easy for businesses to start.

Facilities and Services Offered by Dubai Silicon Oasis

Dubai Silicon Oasis provides great office spaces for businesses. They also offer various support services to help your company grow.

Office Spaces

Dubai Silicon Oasis offers various office spaces to fit different business needs. Options include flexi-desks, small offices, and custom-built offices. These spaces provide flexibility for growing companies.

Rent prices range from AED 30,000* to AED 100,000* per year. This makes it possible for startups and large firms to find a suitable place within their budget constraints.

Warehousing

Warehousing in Dubai Silicon Oasis offers top-notch logistics and security systems. These facilities store goods safely and ensure smooth supply chain operations. Entrepreneurs can reduce overheads by using these services.

Companies benefit from advanced technology used in the warehousing system. This enhances efficiency and supports global business needs. Office spaces are close to warehouses, making it easy for daily operations.

Support Services

Dubai Silicon Oasis (DSO) offers top-notch support services. They provide IT support to help keep your business running smoothly. Administrative services are also available to ease daily tasks.

Businesses can access these services as part of their setup in DSO. This includes help with licenses and legal forms, making incorporation easier. Both new and established companies benefit from these supportive resources, keeping costs and hassles low.

Benefits of Setting Up a Company in Dubai Silicon Oasis

Dubai Silicon Oasis company formation offers many benefits. It allows businesses to operate in a prime location with flexible legal options.

Ideally Situated for Business

Dubai Silicon Oasis lies in a prime spot. It is part of Dubai’s 15-minute city vision, integrating business and sustainable living. This makes it easy to access both workspaces and homes within minutes.

It offers great links to global markets. Major highways and airports are close by. This helps businesses connect quickly with clients worldwide. Efficient transport systems make daily commutes smooth for entrepreneurs and employees alike.

Permits Multiple Business Activities

Company formation in the Dubai Free Zone permits businesses to engage in various activities under one license. This flexibility means that a company can run different types of operations, such as service, trade, and industrial activities.

Businesses enjoy operational freedom with no need for multiple licenses. This saves time and reduces costs. Furthermore, having the ability to perform several activities enhances growth opportunities for entrepreneurs in Dubai Silicon Oasis.

The free zone’s supportive regulatory environment allows firms to adapt quickly to market changes. Companies benefit from fewer restrictions on their operations, enabling them to stay competitive globally.

Offers Simple Legal Forms

Transitioning from multiple business activities, Dubai Silicon Oasis Free Zone company formation is straightforward. The free zone offers simple legal forms to make the process smoother.

Choose from three options: Free Zone Establishment (FZE), Free Zone Company (FZCO), or Branch. For small businesses, FZE works best. FZCO suits larger companies with more shareholders.

Branch in DSO lets existing companies open their branch office without forming a whole new legal entity. In addition to easy-to-understand forms, the regulatory environment supports entrepreneurs. These streamlined steps save time and reduce costs for all types of businesses.

Conclusion

Dubai Silicon Oasis Free Zone company setup is easy and exciting. It offers many benefits, like tax breaks and excellent support services. The area aims to provide top-notch office spaces and various affordable living options across different sectors. Set up your company here to enjoy growth in a hub of innovation and global access.

FAQs

1. What is the process for setting up a company in Dubai Silicon Oasis Freezone?

To set up a company in Dubai Silicon Oasis Freezone, you need to obtain a licence, draft a limited liability contract, and meet specific requirements.

2. How does the cost of living in Dubai affect entrepreneurs in the freezone?

The cost of living can influence your budget for apartments and other expenses while running an entrepreneurial venture in DMCC or any freezone.

3. What types of companies can be established under this setup?

You can establish various types of companies, including those with limited liability structures, with various options available to suit different business needs.

4. Are there specific contracts required for operating within this freezone?

Yes, you will need to prepare and sign specific contracts that align with the regulations governing businesses in Dubai Silicon Oasis Freezone.