Authorities in the UAE each offer specific services. The DIFC and ADGM are most suitable for financial activities. Sharjah Media City is the go-to option if you’re into media. Dubai Silicon Oasis (DSO), on the other hand, welcomes mainly knowledge and innovation.
No wonder giants like Microsoft, IBM, and HP, are operating there.
Differences aside, if you get officially established in the UAE free zone, you will benefit from 100% tax exemptions and 100% foreign ownership.
If you are considering a world-class jurisdiction to form a company in, this 7.2 million square-meter community might be the best option for you.
We wrote this blog to give a comprehensive introduction to DSO, its benefits for entrepreneurs, and how to get established there.
A Broad Introduction to DSO
Dubai Silicon Oasis (DSO) is home to over 8,000 companies spanning various industries, making it a vibrant hub for technology and innovation. This figure boastfully highlights significant growth in attracting startups, SMEs, and multinational corporations since its establishment in 2005.
Moreover, fDi Insights named it the #1 Global Zone for SMEs and R&D.
DSO falls under the umbrella of Dubai Silicon Oasis Authority (DSOA), which also includes other developments such as Silicon Park.
The Silicon Oasis has created a dynamic ecosystem through its 11 industry clusters, which are designed to promote innovation and economic growth. We will talk about these clusters later in the blog.
DSO Process of Establishment
The steps to get established in DSO are similar to other jurisdictions in the UAE; Start by choosing a name and an initial demand and continuing all the way until you receive your license. The following steps are what you have to do in detail:
- Choose a Company Type
Decide on the type of company you wish to establish, such as a Limited Liability Company (LLC), Free Zone Company (FZC), or a branch of a foreign company.
- Choose a Company Name
Obtain approval for your preferred company name and its associated business activities from the Dubai Silicon Oasis (DSO). The name must be unique and should not be offensive or misleading.
- Prepare Required Documents
Gather all necessary documentation, which typically includes a completed application form.
- Submit Application
Submit the completed application form along with the required documents to DSO. This can be done online or in person.
- Payment of Fees
Pay the registration fee, which generally starts around AED 1,000, along with any applicable licensing fees based on the chosen company type and activities.
- Receive Initial Approval
DSO will review the submitted documents and conduct an activity and security check. Once approved, you will receive initial approval along with invoices.
- Sign Lease Agreement
Sign the lease agreement for your office space within DSO and return it along with any necessary share capital letters, if applicable.
- Collect Trade License
After final approval, collect your trade license from DSO, which officially permits you to operate your business within the free zone.
- Compliance Requirements
Ensure ongoing compliance with regulations, including maintaining accounting records and submitting any required notifications or reports as mandated by DSO.
From UAE to the rest of the world
Documents Required
1. Completed Application Form: This form details the company’s structure and activities.
2. Memorandum of Association (MOA): This document outlines the company’s scope and structure.
3. Articles of Association (AOA): This document defines the internal regulations and governance of the company.
4. Passport Copies: Clear copies of the passports of all shareholders and directors are required.
5. Passport-Sized Photos: Recent passport-sized photos of all shareholders and directors are needed.
6. Business Plan: This is required for Limited Liability Companies (LLCs) and Free Zone Companies (FZCs) and should detail the business objectives and operations.
7. Letter of Intent: A formal letter expressing the intention to establish the business.
8. Bank Reference Letter: A letter from a bank confirming the financial standing of shareholders, or an audited financial report for branches, is required.
DSO Industry Clusters Overview
DSO’s clusters enable knowledge transfer, collaboration, and access to specialized talent, aligning with Dubai’s broader economic objectives.
Future Mobility: Focuses on advancements in transportation technologies, including electric vehicles and smart transportation solutions.
Education and R&D: Supports educational institutions and research initiatives, promoting innovation in learning and development.
AI & IoT: Concentrates on artificial intelligence applications and the Internet of Things, driving technological integration across sectors.
Robotics: Encourages the development and application of robotics in various industries, enhancing automation and efficiency.
3D Printing: Promotes additive manufacturing technologies, facilitating rapid prototyping and production processes.
Cybersecurity: Aims to enhance security measures for digital infrastructures, addressing increasing cyber threats.
Web 3.0: Focuses on decentralized internet technologies, including blockchain applications and cryptocurrency innovations.
Sustainability & ESG: Encourages sustainable practices and environmental responsibility across industries.
xTech: Integrates technology with various sectors such as fintech, healthtech, and edtech to drive innovation.
Entrepreneurship & Investment: Supports startups and investment opportunities, fostering a culture of entrepreneurship.
Professional Services & Creative Industry: Encompasses a range of services including consulting, marketing, and creative design.
Benefits of Establishing in DSO
Just a short drive to central Dubai and within easy reach of the emirate’s air and seaports, DSO offers various benefits to entrepreneurs and companies. They include:
- 100% Foreign Ownership: Companies can be fully owned by foreign nationals without the need for a local partner, offering greater control and flexibility.
- No Corporate Tax: Businesses operating in Dubai Silicon Oasis benefit from a 0% corporate tax rate on qualifying income, making it an attractive option for both startups and established companies.
- Streamlined Licensing Process: The process for obtaining business licenses is efficient, allowing for quick setup and incorporation, often within just a few days.
- State-of-the-Art Infrastructure: DSO provides modern facilities, including high-tech office spaces and research centers, designed to support technology-driven businesses.
- Access to Industry Clusters: DSO features various industry clusters focusing on sectors such as AI, robotics, cybersecurity, and more, promoting collaboration and innovation among businesses.
- Supportive Ecosystem: The authority offers a range of support services, including access to funding, accelerators, incubators, and advisory services tailored to technology companies.
- Community Amenities: DSO includes residential areas, schools, healthcare facilities, and recreational spaces, creating a balanced work-life environment for employees.
Governing Authority
Dubai Silicon Oasis Authority (DSOA): DSOA is the official governing body that oversees operations within Dubai Silicon Oasis. It provides regulatory frameworks, issues business licenses, and offers infrastructure support to companies operating in the area.
Dubai Integrated Economic Zones Authority (DIEZA): While DIEZA manages various free zones in Dubai, including some that may encompass Dubai Silicon Oasis, the specific governance of Dubai Silicon Oasis falls directly under DSOA.
Legal Framework
Established by Law No. 16 of 2005: This law formally established DSO as an independent authority, allowing it to function as a free trade zone with specific incentives for businesses.
Free Zone Regulations: Qualities such as 100% foreign ownership, no corporate tax on qualifying income, and streamlined business licensing processes are for all free zone companies.
Tokenova, Your DSO Establishing Partner
The similarities between different jurisdictions may confuse many and make the decision hard. Because none of the jurisdictions fall short of offering the services they claim to give. All you need is a team of experienced consultants and lawyers to point you in the right direction and take care of the bureaucracies. Once established in the DSO or any other regulatory, the governing authority will provide guidance for your company or startup to operate there successfully.
