Limited Liability Company Registration in Dubai Internet City (DIC) Free Zone, Dubai. Service offer

[1] VAT of 5% is applied.

[2] The cost of package may vary depending on the number of shareholders, type of licence, and size of office (office size dictates how many residence visas a company can have).

[3] The description of the account opening stages and the conditions for charging an additional success fee can be found below, in the Fees section.

Company registration in DIC includes the following steps:

• must not be identical or similar to the name of an existing company;
• can use Latin characters;

DIC issues licences for carrying on business in the following segments:

• Software – activities related to developing, installing and/or modifying software products of the company or of a third party.
• Internet and Multimedia – activities related to developing and/or distributing Internet or multimedia content. Other activities may include distributing goods or services via the Internet, such as by providing an online platform and acting as an intermediary between multiple companies or multiple individuals. Additional activities may include providing different applications through a network.
• Telecommunications and Network – activities related to developing, installing, modifying, and/or operating networks or providing relevant services designed for operating network-based applications or services. Manufacturing physical components within the Free Zone and direct sale of physical components and goods in the Emirate’s market is not permitted.
• IT Service – activities related to developing and/or providing standardized repeatable IT-based services, which may also include security solutions, localization, training and corporate learning.
• E-commerce (Internet sales) – activities related to providing individual services and products to third parties through electronic media such as an Internet search engine, portal, website, social media etc. for the purpose of facilitating sales activities.
• Data Centre - Companies conducting activities related to providing Data Hosting, Processing, Distribution, and Disaster Recovery solution. This activity includes cloud computing, hybrid and on-premises data centres.
• Gaming & E-Sports - Companies involved in designing, developing, creating, publishing, organizing and promoting any interactive and electronic/digital games software and hardware related to gaming & E-Sports.
• Advertising & Communication - Entails the process of publishing promotional material through online platforms such as social media, search engines, websites, and any other program that can be accessed digitally. Online advertising includes email marketing, search engine marketing (SEM), social media marketing, many types of display advertising (including web banner advertising), and mobile advertising.
• Media and Marketing Services - Provision of a number of advertising related services, including sales promotion, market research, PR and event marketing.

(either originals or notarized copies):

• internal and international passports;
• proof of address (unless the internal passport contains an address stamp);
• CV;
• copy of the passport page with a UAE entry stamp.

The shareholders need to additionally provide:

• personal data in the form of a letter: phone, email, residential address, country of residence, mother's name, marital status, religion, and citizenship.

The shareholders will need to sign a Client Questionnaire Form for completing compliance procedure, and a Contract for administration.

The following documents are prepared for submission to the registration authority:

• Application for company registration (signed by the shareholder);
• Business Plan;
• No Objection Letter (from the sponsor) – where there is a valid UAE visa issued by another company.

Before registering a company, the Free Zone authority must check the shareholders and directors of the company (Security Check). At this stage they may request additional documents, for example, a police clearance certificate. The check normally takes 2 to 4 business days.

Once the check is done, the company is registered. Upon registration, the Free Zone authority issues the following documents:

• Certificate of Incorporation indicating the registration number and date, type of licence, details of shareholder and share capital of the company;
• Licence for the declared type of business (valid for 1 year);
• Office lease agreement (for 1 year);
• Share Certificate;
• Memorandum & Articles of Association.

A company seal is also issued.

Upon registration of the company, you can proceed with visas and bank account opening. A company can open a bank account both at a UAE bank and at a foreign bank – please contact your GSL consultant for details.

The fees for translation, notarization, legalization and apostille are charged additionally.

The UAE does not have such concept as a residence permit. UAE migration rules require the issuance of residence visas, which in practice are similar to a residence permit.

A residence visa can normally be obtained on the following grounds:

1. based on owning a UAE onshore company – investor visa;
2. by making an employment contract with a UAE onshore company – work visa.

The number of residence visas depends on the business package chosen during registration of the company.

Getting a visa requires purchasing a health insurance from a local insurance company.

A residence visa is issued for 2 years. Upon expiration, a visa can be renewed.

(a visa can only be applied for after registration of the company):

1. Opening an Establishment Card (the migration file of the company) – 3-5 days. This document is necessary for the company to be able to apply for residence visas in the future.

2. Submitting documents for a residence visa and obtaining an Entry Permit (permission to enter the country) – 5-7 days.

To obtain a residence visa, an individual must enter the UAE with an Entry Permit.

If at the time of issuing of Entry Permit the applicant is already in the UAE, then in order to complete the issuance of a residence visa without leaving and re-entering the country, it is necessary to change the status of the visa. The service of changing the status of a visa is provided upon request and is subject to additional charges.

3. Visiting the UAE to obtain a residence visa – in most cases, a visa can be obtained within 5 working days.

The applicant needs to:

• undergo a medical examination (blood test and chest X-ray);
• submit biometric data (retina and fingerprints scan).

After receiving a passport with a residence visa inserted into it, one can leave the country.

4. Obtaining a resident ID card - ID Emirates.

The card is issued a few days after the issuance of a visa. Personal presence is not required to receive it.

The fees for obtaining a residence visa in DIC start from USD 4 200. Please contact your consultant for more details on the application.

The director can be an individual. There are no requirements as to the residence of director.

The minimum number of directors is 1, the maximum is 5.

The manager can be an individual. There are no requirements as to the residence of manager.

The maximum number of managers is 1; can be the same person as director.

The minimum number of members/shareholders in a company is 1, the maximum is 7. Both individuals and legal entities can be shareholders. There are no residence requirements.

A company can only issue one class of shares of equal par value. Bearer shares are not permitted.

The capital can be denominated in UAE Dirhams (AED) only. The minimum capital is AED 10 000, a higher share capital can be required for certain business activities.

It is no longer necessary to deposit the share capital into a trust account of the regulator (Dubai Development Authority) prior to registering a company.

Upon registration the company and the Free Zone authority sign an office lease agreement; the address of such office is considered the official registered office address of the company.

DIC offers various office packages depending on the needs of clients in terms of type and number of licences, number of visas, the need for substance and placement in the Free Zone: from smart desk (a separate workstation in first-class business centres) to a proper office.

The company must annually renew the licence, by paying a relevant fee, and the lease agreement.

Companies registered in UAE free zones are exempt from capital gains tax, property tax and other taxes, except corporate tax and VAT.

A federal corporate tax was introduced in the UAE on 1 June 2023. Free zone companies may be subject to both the standard rate of corporate tax (9%) and a zero rate. The application of a particular rate depends on a number of factors such as the company’s income, the types of its activities (whether they are excluded or qualifying, or not), counterparties, whether the company maintains adequate economic substance in the UAE, and other aspects.

From 1 January 2018, the UAE introduced a Value Added Tax.

VAT as a general consumption tax applies to all transactions with goods and services, unless such transaction is exempted or taxed at 0% rate.

There is no obligation to register for VAT unless sales turnover within the country exceeds the registration threshold, which is AED 375 000 (~ USD 100 000) in the UAE.

Registration as a VAT taxpayer is required in the following cases:

• there is reason to believe that the taxable turnover in the next 30 days will exceed the registration threshold (for example, a contract has been made);
• at the end of the month, the taxable turnover for the previous 12 months actually exceeded the registration threshold;
• the company receives services to be included in the return using the reverse charge method, in excess of the registration threshold.

It is possible to initiate a voluntary registration after exceeding the threshold of taxable transactions in the amount of AED 187 500 (~ USD 50 000).

Registration with the UAE Federal Tax Administration and allocation of the company’s Tax Reference Number (TRN) takes 20 business days, on average.

Upon registration with the Federal Tax Administration and allocation of the VAT number, a company must quarterly (or monthly in the case of annual turnover exceeding AED 150 000 000 (~ USD 40 830 900)) prepare and file a VAT return, and pay the resulting VAT within 28 days of the VAT period end.

Before registering a company, we recommend that you consult a specialist of the non-resident audit department and a tax adviser to assess the company’s tax burden and discuss subsequent administration of the company.

Every company registered in Dubai Internet City must keep accounting records sufficient to confirm its financial position and reflecting up-to-date information about the assets and liabilities of the company. It is also necessary to prepare annual financial statements of the company and have them audited.

The company’s first accounting period begins on the date of incorporation and lasts 6 to 18 months. Every subsequent accounting period lasts exactly 12 months from the end-date of the previous period.

At each reporting date, company directors must prepare financial statements of the company, including auditor’s report, and produce them to the annual general meeting within six months of the financial year-end.

Within 7 days after the annual general meeting, the company must submit to the Registrar a copy of financial statements and the auditor’s report[4].

Companies that have subsidiaries (more than 50%-owned) are required to prepare consolidated financial statements for the group.

Before registering a company, we recommend that you consult a specialist of the non-resident audit department and a tax adviser to assess the company’s tax burden and discuss subsequent administration of the company.

The company must annually renew the licence, by paying a relevant fee, and the lease agreement.

The company’s renewal date is the anniversary of the issue of the licence. In the case of late payment, the Free Zone authority reserves the right to charge fines, as well as suspend the licence.

The company renewal costs include renewal of the office lease agreement, of the licence, and the P.O. Box. Upon renewal, an updated licence is issued.

[4] Audited financial statements must also be submitted to the Authority when renewing the licence.

[5] VAT of 5% is applied.

[6] The cost of package may vary depending on the number of shareholders, type of licence, and size of office (office size dictates how many residence visas a company can have).

[7] For more details on how fees for account opening assistance are charged, please contact your GSL consultant.

[8] The fees for preparing financial statements and conducting an audit are charged based on the time spent at hourly rates ranging from USD 100 to 400, depending on the type of work and qualification of a specialist involved, but not less than USD 2 200 – fees for audited financial statements with a minimum number of transactions.