LET US SHOW YOU THE WAY ... TO THE TOP
A free zone is best defined as an area in UAE that is designated for the incorporation of different business entities that are required to follow a specified set of rules.
Dubai Silicon Oasis Free Zone is strategically located at a 15 minutes drive distance from Dubai International Airport and an almost equivalent distance (15 minutes drive) from Dubai’s Business District. Further, the distance between this free zone and Jebel Ali Port & Port Rashid is a 30 minutes drive distance. This free zone was established back in 2004 after which Dubai Silicon Oasis companies came into operation.
The Dubai Silicon Oasis Authority has over the years strategized on the provision of an excellent living and working integrated community. The Authority has worked towards ensuring that it caters for the needs of high tech industries that are incorporated in the free zone. This is by making a huge capital infrastructure investment that has in turn ensured that companies enjoy support services like advanced telecommunications and 8 power stations that have a capacity of 1600MW. DSO enjoys an amazing road network that has helped a great deal in allowing easy accessibility of the free zone using the major highways in Dubai.
Service: Registered business entities allowed to carry out services specified in the licenses.
Trade: Holders allowed engaging in activities that are in relation to imports/exports and the distribution of goods and items that are specified in the licenses. General trading licenses require a minimum share capital of AED 3 million while licenses for trading for specific products require a minimum share capital of AED 100,000.
Industrial: Allows holders to deal in importing raw materials, manufacturing, processing, assembling, packaging and exporting finished products.
Business Operation Permit: This is a special type of license that allows its holders to operate in Dubai Silicon Oasis Free Zone Authority’s administrative zone using a Dubai Economic Department license. These administrative zones are simply areas that are owned by private developers. The best thing about these licenses is that they do not require any minimum share capital.
Entrepreneurial Business: This license is structured in a way that it helps in accelerating the successful development of youthful entrepreneurs and their business through the availability of a wide range of support services and resources. However, this license is limited in that it is only available to Dubai Silicon Oasis incubator program members.
Free Zone Establishment (FZE): Only one shareholder and a minimum share capital of AED 100,000.
Free Zone Company (FZCO): At least two shareholders and a minimum capital requirement AED 100,000.
Local/Foreign Branch or Subsidiary: No capital requirement in the establishment of this entity.
Tax exemption edges out as the main factor as to why incorporating a free zone company is an economically viable option. The Dubai Silicon Oasis Free Zone has full exemptions on corporate and personal tax. This acts as one of the key attraction factors responsible for attracting existing and potential investors to set their companies in the free zone.
Three preferred names to be used for the company should be forwarded to the authority for approval purposes.
At least one director / manager. Should be individual as corporate not allowed.
At least one shareholder (either individual or corporate).
Minimum share capital stands at AED 100,000 with the exclusion of a general trading license that requires a minimum capital of AED 3,000,000. The share capital is required to be deposited to the company’s bank account and an official proof of the deposit forwarded to the authority.
The validity of trade licenses is one year after which the licenses should be renewed before the expiration date or within 30 days after the license expires.
The Company should conduct an annual financial audit that should then be forwarded to the authority. In normal situations, the reporting date is one calendar year but companies are free to set their own dates as far as they are not less than 6 months and not more than 18 months.
The office size of a company is the key determining factor as far as the number of visas to receive is concerned. Usually, one visa goes for 10 square meters which each visa issuance being handled separately and in respect to the business activities carried out by the applicant. Processing of visa applications takes about 4-7 working days though it may be longer due to approvals that need to be done by the immigration department.