Starting Business in Dubai Silicon Oasis Free Zone (DSO)
Dubai Silicon Oasis (DSO) stands out as a vibrant centre for technology and innovation among the top free zones in the United Arab Emirates. Dubai Silicon Oasis Authority, a 100% government-owned free zone, was established following Law No. 16 of 2005 by the Government of Dubai with the mission to facilitate and promote modern technology based industries and to support the regions demand for business expansion. DSO is designed as a high-tech ecosystem which offers businesses a plethora of advantages including a state-of-the-art infrastructure, in-house business services and strong business support such as technology investment incentive for large enterprises, entrepreneurial support, incubation centre and venture capital funding.
Infrastructure and Setting
DSO’s urban master-planned community spans 7.2 million square meters and has been carefully divided into 5 main pillars based on industrial, commercial, education, living, Residences and public facilities. DSO is one of the largest technology parks in the area and is well-situated in the centre of Dubai, making it convenient to reach important routes like Sheikh Mohammed Bin Zayed Road and Dubai International Airport. Modern office spaces, cutting-edge laboratories, cutting-edge research facilities, and first-rate amenities are all part of the DSO infrastructure specifically created to fulfil the demands of tech companies.
Benefits of Setting up in Dubai Silicon Oasis
Full Foreign Ownership: Like other UAE free zones, DSO allows foreign investors to completely own their businesses without needing a local partner. Companies operating in DSO enjoy a tax-free environment, including exemption from corporate and personal income taxes. Other advantages include:
- 100% repatriation of capital and profits.
- No currency restriction.
- Intellectual Property Protection: Companies in DSO benefit from robust intellectual property laws and enforcement mechanisms, safeguarding their innovations and patents.
- Collaborative Ecosystem: The tech park's ecosystem encourages collaboration and knowledge-sharing among companies, startups, and entrepreneurs, fostering innovation and growth.
- Access to Talent: DSO's proximity to educational institutions and research centres allows businesses to access a skilled and diverse talent pool.
Business Structures and Requirements
To establish your company within DSO, you simply need to register it and then obtain a licence. To register, you need to select the company and license types from the following:
- Branch: Any established company, whether in the UAE or abroad, can register its branch in DSO. The stated business activity must be identical to the activity conducted by the parent company.
- Free Zone Establishment (FZE): An FZE is a legal entity incorporated/registered by a single shareholder.
- Free Zone Company (FZCO): A company structure allowing multiple shareholders.
Below is a summary of the key requirements for business registration:
| Requirement | Details |
|---|---|
| Minimum share capital | AED 100,000/- (for FZE & FZCO) / AED Nil/- (for branch office) |
| Shareholder | Can be Individual or Corporate entity |
| Director | Individuals only |
| Renewal | License has to be renewed on annual basis. Penalty would be charged by the authority if license is renewed after expiry date. |
Business Licences and Sectors
DSO primarily focuses on technology-driven industries and offers various license types to cater to different business activities. Permitted activities include Mobile Technology, Internet, Data Centre, Arabization and Localization Technologies, Software, Software-As-A-Services and Semiconductor.
Available Operating Licences:
- Service licence: Enables a registered organisation to perform just certain services.
- Trade licence: Enables the registered entity to engage in operations relating to importing, exporting, and distributing commodities and merchandise.
- Industrial licence: Entitles the registered firm to import raw materials, manufacture, process, assemble, package, and export final goods.
Special Licences:
Business Operation authorization: This is a unique authorization for businesses using a Department of Economy and Tourism (DET) licence to conduct business in the Administrative Zone of the Dubai Silicon Oasis Authority (DSOA). Additionally, the Entrepreneurial Business Licence (EBL) is intended to support young entrepreneurs to launch their companies.
Support for Innovation: Dtec
Dtec (Dubai Technology Entrepreneur Campus) is a globally renowned startup hub with hundreds of innovative startups from over 70 nations, providing cutting-edge facilities and services to nurture and empower technology startups and enterprises. Dubai Silicon Oasis offers a range of programs, workshops, and events to support the expansion of startups and small enterprises to promote an innovative and entrepreneurial culture.
