Internet City Free Zone
In order to diversify economic life and rid the country of oil dependency, the OEA leadership is forced to look for alternative ways of development and new ways to attract foreign capital. One of the most successful projects in this direction was the experience of creating free economic zones.
Dubai Internet City free zone became one of the first such zones in the country. In a short time, this and other projects radically changed the structure of the economy of the whole country.
Dubai Internet City (DIC) free economic zone was established in 1999 with support and supervision of TECOM for companies in the field of internet technologies and mass media. Dubai-based Internet City Free Zone houses some 5,600 companies, both fast-growing start-ups and major multinational corporations in the industry (Microsoft, IBM, Oracle or Dell). Located 25 km south from the centre of Dubai, the free zone has modern offices with twenty-four-hour security and well-developed excellent IT-infrastructure.
What is Dubai Internet City in a nutshell? It is the largest IT infrastructure in the Middle East and has the largest commercial IP telephony system in the world. This free zone is a strategic framework for companies targeting emerging markets in a wide region, stretching from the Middle East to the Indian subcontinent, Africa and the CIS countries, covering approximately 2.2 billion people.
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Internet City Zone: license and company types and its benefits
Procedure of Dubai Internet City company formation is simplified as much as possible. The legal framework can be called transparent simple and even friendly to entrepreneurs. Bureaucratic procedures are reduced to the principle of one window and significantly saves time of registration and obtaining licenses. Visa issues are solved surprisingly quickly too. The term of Dubai Internet City company set up is only 1-2 weeks.
Companies registered in DIC have a wide range of activities to choose. The free zone offers licenses for:
- software, its development or modification of the existing applications, as well as installation;
- web and multimedia development, distribution of any web products and services;
- IT-services: education, marketing and solutions in the security sector;
- telecommunication and networks, including all the related services;
- real estate management services;
- general services, including consulting and maintenance, operation of regional offices, hotels and recreation zones.
Dubai Internet City free zone supports young talents and in this regard opened the Innovation Center called In5 innovation hub and the First Steps business center.
The following companies can be registered in the free zone:
- limited liability companies FZ-LLC;
- branches and subsidiaries of local companies;
- branches of foreign companies.
Distinctive features of Dubai Internet City LLC companies are:
- You can register FZE, which is a company that has a sole proprietor represented by its founder, or FZC which is owned by several founders (partners or shareholders).
- Both Free Zone Enterprise and Free Zone Company are completely new legal entities created within the free zone with their own rights.
- They are not dependent on any parent company, which is of great importance in terms of their tax liability;
- The responsibility of the owner of the company and the responsibility of the company are limited to the amount capital paid by them.
Registration of FZ-LLC companies in Internet City requires a minimum capital stock of AED 50,000 (USD 13,698). Subsidiaries of major companies do not require a capital stock.
Opening a branch in this free zone implies the existence of already established company somewhere outside the zone. Such a subsidiary retains the name of the parent company, and also the company's tax liability for the results of the activities of its branch maintains.
The key advantages of Internet City Free Zone:
- exemption from income and corporate taxes for a period of 50 years;
- full company management and ownership for foreign citizens;
- unlimited withdrawal of assets and profits;
- no duties on goods and services.
24 hours to register a company in the Internet City Free Zone
Features of doing business in Dubai Internet City
There are several points that every entrepreneur should know and keep in mind before he makes a final decision on Dubai Internet City business setup.
- First, the company established in this free zone has to be an operating company, that is, to be engaged in the activities specified in the license. By this, companies in free zones are fundamentally different from offshore companies. That is why the owners of companies are required to have office space at their disposal, to submit annual reports and more.
- Secondly, the company's activities should be carried out only within Dubai Internet City or outside the United Arab Emirates, but not in the UAE. In particular, the company will not be able to directly open its own store and sell goods in Sharjah, Dubai or another emirate. However, it can do it, but only under the condition of subsequent registration, which will allow this company to conduct activities in the UAE, as well as through a sales agent or by signing a regular contract for the supply of goods with the store.
- Thirdly, the production premises, including the office, warehouse or land used by the company, must be located exclusively on the territory of the free zone, while the contract for their rent between the entrepreneur and the authorities of the free zone is signed in the process of obtaining a license.
- Fourthly, the company can carry out only the type of activity specified in the license issued by the Dubai Internet City Authority upon completion of the procedure for registering a company in the free zone.
If you want to simplify the procedure of opening a company in this free zone as much as possible, as well as to learn more about all the features of this process, you should definitely contact professional consulting agency.
Experts from Brahma Business Consultancy will help you register a company in Internet City Zone open a corporate or personal account in UAE banks. Contact our office in Dubai using contact details on our website!