Dubai Internet City or DIC is a free zone established by government of Dubai in the year 1999 and inaugurated in the year 2000, which is an Information Technology park. It is a member of Dubai Holding Subsidiary, TECOM Investments. It provides a knowledge economy ecosystem which is designed to facilitate the business development of Internet and Communications Technology (ICT) companies. DIC is an innovation hub that will boost technology, education, new media, and sciences.
It is now home to some of the largest multinationals in the world such as Facebook, LinkedIn, Google, Dell, Intel, Huawei, Samsung, SAP, Microsoft, IBM, Oracle Corporation, TataConsultancy, 3M, SunMicrosystems, Cisco, HP, Nokia, Cognizant and Accenture, as well as UAE based companies. It is located abutting to other industrial clusters such as Dubai Media City and Dubai Knowledge Village.
DIC currently has over one and half million square feet of prime commercial office space, in which over 1500+ companies with over 20,000+ workers are based. There are 25 low, mid, and high-rise office structures in the area. Dubai Internet City is one of the most developed free trade zones in the Emirate and also has one of the fastest growing Gross Domestic Products in the UAE.
Types of companies approved by DIC:
- Free Zone Limited Liability Company (FZ-LLC): It can be owned by 1 to 50 individuals or corporate shareholders with a minimum share value of AED 1,000 and a minimum share capital investment of AED 50,000.
- Branch of a Foreign Company: where the applicant is a foreign registered corporate person and doesn’t have any capitalization requirement.
- Branch of a UAE Company: where the applicant is a UAE registered a corporate person and doesn’t have any capitalization requirement.
Types of licenses available for business set up in DIC:
- Software license
- Telecommunication and Network license
- IT service license
- E-commerce License
- Internet and Multimedia License
- Trade License
What are the documents required in the setup / start of a company in DIC?
Setting up a company in DIC requires following list of documents:
- Application form
- Letter of Intent
- A business plan
- Company profile and brochure
- Annual audited financial report of the entity or a 6 months bank statement of the shareholder(s)
- Bank reference letter (Original for each shareholder)
- CV and passport copy of shareholder and manager
- No objection letter from the sponsor, if it is a UAE based company
- Initial approvals from third party authority for the Media, IT, Pharmaceutical etc.
- A legal representative
Additional requirements that may be asked for depending on the type of license are:
- Attested and notarized Memorandum of Association/Article of Association. It must be attested from the UAE Embassy at the place of origin.
- Board resolution to be resolute by the board of directors for your existing company/entity at the place of origin. Expressing intent of establishing a new setup abroad. It must be attested and notarized by the UAE Embassy (template will be forwarded by our firm).
- Certificate of registration (if applicable) for your existing company or entity, license. Or certificate of incorporation of your existing company or entity attested. And notarized by the UAE Embassy.
Steps involved in registering a company in DIC:
- Submit an application for initial approval along with Business plan and passport copy of shareholder(s) and manager(s).
- The Dubai Internet City Authority will review the application and the documents and grant provisional approval. They will also give the list of documents needed for registering the business (Within 15 days these documents are needed to be submitted to the authority).
- The provisional approval is to be accepted by getting it signed, and stamped sent back to the authority.
- DIC will then review the sent documents, and if approved, will send you the Customer Confirmation Letter to the DIC. This has to be signed, stamped and sent back to the authority.
- The DIC, after receiving your letter, will issue an invoice for the initial payment.
- After the initial payment is made, DIC will issue Personnel Sponsorship Agreement and an office space Lease Agreement, the same has to be signed, stamped and returned to the authority and after then, business license is issued by the authority where the business can be commenced.
What are the Competitive advantages of setting up business in DIC?
- No tax on personal income, corporate taxes and customs duty for 50 years guaranteed by law
- 100 per cent foreign ownership
- Market development opportunities
- Full repatriation of capital and profits
- Low-cost operations
- No currency restrictions and capital mobility
- World class communications infrastructure on new innovative technologies
What are the reasons for liquidation of a company in DIC?
There can be different cases behind closing down a company. Here are some of the reasons which may force company owners to decide on closing down a company in Dubai Internet City:
- If most of the shareholders of the company decide to liquidate the company
- If the company faces too much loss which makes it lose half of its capital
- If the court orders for the liquidation
- If an important person of the company leaves it
How to close or liquidate a company in DIC?
Entities which are unable to continue the operations of their company in DIC need to initiate the process of liquidation. Following is the process required for the liquidation process in DIC:
- Board resolution: The decision to liquidate the company is taken formally in the form of a board resolution. The shareholders also pass the resolution regarding the appointment of a liquidator who will carry out the entire liquidation process and the resolution must be attested by the Notary Public.
- Official Letter from Liquidator: After the board resolution, the liquidator(A registered audit firm in Dubai – Spectrum Auditing and Accounting is a registered audit firm) has to present a confirmation letter accepting the responsibility of carrying out the liquidation of the company in DIC.
- Application for Liquidation: An application with required documents as required for liquidation has to be submitted to the free zone authority to initiate the liquidation process. The DIC officials will verify the documents and will notify the management.
- Notification of Liquidation: A notification about the liquidation of the company should be published in a local newspaper to announce the company’s liquidation. There will be a 45-day grace period granted by the DIC during which any creditors or clients can come up with any claims over the company.
- Vat and Branch Deregistration: The company management should apply for VAT account deregistration with the Federal Tax Authority (FTA). The management should also ensure that they have shut down the branches or subsidiaries if they have any.
- Clearance letter from Service providers and Customs: The company should obtain a no due letter from the utility service providers and also customs clearance letter if applicable.
- Cancellation of Visa, Bank account: The entity must cancel the visas of the employees, and also close the bank account and obtain a closure letter from the bank.
- Liquidation report: The official liquidator will submit the liquidation report to the free zone authority.
Why choose Spectrum Auditing?
Spectrum Auditing is an expert firm in the Company Formation and Company Liquidation process. Our passion and heart lie in serving the clients and we aim at utmost client’s satisfaction. We are registered Auditors under the Ministry of Economy UAE and also registered Tax Agent from Federal Tax Agency UAE, Dubai providing dedicated Audit, Accounting, Tax services and various Business Advisory Services complying regulatory requirements. DIC requires all companies registered in the free zones to submit audit reports on an annual basis. We help in submitting the reports on time by complying with the regulatory requirements.
Reach us to have a frills free life in your journey in Dubai, UAE. We at Spectrum will assist you in taking care of all the legal procedures involved in the setup of company in DIC and de-registration of your company in DIC. Call us today for any kind of assistance at +971 4 2699329 or email us at [email protected] to get all your queries addressed. Spectrum is your partner in your success.