In UAE, free zones are usually associated with Dubai as this emirate took most interest in the formation of these economic zones. Dubai mostly encourages the private sector for the construction of free zones. But the government is also own free zones where required. One such important free zone is the Dubai Silicon Oasis (DSO).
What is Dubai Silicon Oasis (DSO)
DSO was established in 2004. Since then, it is providing all the facilities to the companies that are available in any other free zone. This unique free zone provides both working and living facilities for companies’ employees. The main area of interest for this specific free zone is technology, design, and development.
Large numbers of companies related to telecommunication, IT, engineering are located here. The standard of this free zone is obvious from the presence of a large number of world-renowned companies. It includes Western Digital, SAP SE, Fujitsu, Schneider Electric, AMD and several others.
The focus of DSO is to accommodate technology-based companies but other companies and businesses can also enjoy the facilities available here. These companies are law firms, consultants, automobile, oil & gas, aerospace, biotech, etc.
Benefits of Company Setup in DSO
The huge presence of these high-tech companies is due to several facilities and benefits available in DSO. Few of the most important ones include:
- Business setup and licensing process is quick and simple thanks to one-stop business services
- As compared to most of the other Dubai-based free zones, the cost of operations here is quite low
- The proximity of Dubai International Airport, Jebel Ali Port and Port Rashid
- Exemption from income tax, corporate tax, and import/export tax
- A combined fire, water, and irrigation supply system
- Rules and regulations are clear and easy to follow
- Modern IT infrastructure and tier 3 data center
- Complete repatriation of capital
- Complete foreign ownership
Types of Licenses
Dubai Silicon Oasis provides business opportunities to a large number of companies and individuals. In order to cater the needs of businesses, it provides two types of licenses: Business Licenses and Special Licenses:
Business Licenses in DSO
Business licenses are General licenses that are given according to the type of business. There are three types of licenses under this category:
This type of license allows the registered entity to perform trading activities. Companies holding this license can import, export and distribute goods.
This license is for companies providing services to their clients. These companies (business consultants, lawyers, accounting firms, etc.) can provide services according to rules.
This license allows a company to import raw material in UAE. These companies can manufacture, process, package and also export the finished products abroad.
Special Licenses in DSO
Apart from these general business licenses, DSO also provides a few special licenses and permits on extraordinary conditions. These special licenses include:
Business Operation Permit
This special permit is for companies that are using a license issued by DED (Dubai Economic Department) and doing business owned by private developers. This type of license requires no share capital. This permit is based on the type of license issued by DED.
Entrepreneurial Business License
Entrepreneurial Business License (EBL) is for those entrepreneurs who are members of the EBL Incubator Program. This is a low-cost license that provides numerous support services with very little stake. It is especially beneficial for new and emerging entrepreneurs.
Business Setup in DSO
As stated above, the company formation process is quick and simple. All these different types of companies have their own registration process and necessary documents. You can complete this process conveniently by following all rules and regulations according to your business type and activity.
Following are the types of companies that can be established in DSO:
- Free Zone Establishment (FZE): registered by a single shareholder (can be an individual or a corporate)
- Free Zone Company (FZCO): a legal entity with a minimum of two shareholders (either corporate or individuals)
- Branch of a company: any local (UAE-based) or foreign company can establish its branch in DSO
- DED registered companies: a company registered by DED (Dubai Economic Department)
- Startup businesses and entrepreneurs: for startup businesses and entrepreneurs in DSO
Steps for company registration
The following steps are necessary for all business types:
- The first step is to submit an application form. You can do this by registering on the customer portal of DSOA.
- In the second step, the applicant will submit all legal documents and pay the necessary fee.
- After reviewing these documents, DSOA will issue initial approval to the client.
- The authority will then issue a lease agreement. The digital lease agreement will be sent on email through the DSO portal.
- The applicant will now sign the lease agreement and return it to DSOA along with a bank share capital letter.
- In case of an individual owner, sign and submit tenancy contract to DSOA
- After reviewing all details, DSOA will issue e-license and e-registration
The completion of the entire application process usually takes no more than 7 days.
The following documents must be submitted by the applicant to DSO authority.
- Duly filled application form
- Company’s business plan
- Passport copies
- Letter of intent
- Bank statement/reference letter
If you are willing to take full advantage of DOS by opening any of the above companies in this designated free zone, then the easiest way to do so is by contacting Riz & Mona Consultancy. We are available via WhatsApp # 971-56-9971225 or email address email@example.com. We have assisted in the successful registration of several companies in DSO (Dubai Silicon Oasis) and other free zones in Dubai and other emirates of UAE.