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8/4/2019 DIC Business Setup Guide
1/23
Your step by step guide to
establishing a company in Dubai
Internet City.
Business Setup Guide
PO Box 73000, Dubai, United Arab Emirates Tel: +971 4 391 1111 Fax: +971 4 391 9000 Email: [email protected] www.dubaiinternetcity.com
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1 - The Basics of Setting Up at DIC1.1 Introduction
1.2 DIC Business Sectors
1.3 Legal Set Up
2 - The Application Process2.1 Application Submission
2.2 Application Review2.3 Approved Applications
2.4 Declined Applications
2.5 Acceptance of Provisional Approval Letter
2.6 Submission of Legal Documents
2.7 Legal Documentation Review
2.8 Customer Confirmation Letter
2.9 Initial Payment Time scale
2.10 Lease Agreement & Personnel Sponsorship Agreement (PSA)
2.11 Trade License Issuance
2.12 Balance Payment
3 - Guidelines for Completing the Application for License3.1 Application Section
3.2 Business Proposal
3.3 Legal Documents
3.4 Disclaimer
4 - Forms4.1 Application for License
5 - Checklist of Document Required5.1 Application with a Corporate Person as Shareholder(s)
5.2 Application with a Natural and a Corporate Person as Shareholder(s)5.3 Application with a Natural Person as Shareholder(s)
5.4 Application as a Branch of a Foreign Company
5.5 Application as a Branch of a UAE Company
6 - Business Plan Template
Contents
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1IntroductionDubai Internet City (DIC) ensures an environment that provides asmooth and quick process for establishing a company. Therefore,it is vital that this document be reviewed carefully. Please contactthe Sales Department on Telephone +971 4 3910000 for anyclarification or further information.DIC Business SectorsThere are six main sectors that qualify a company to be part of
DIC. Businesses from the following sectors may apply to become
part of our business community:
Regional Headquarters
Web-based
Software Development
Information Technology
Consultancy
Business Services
NB: All applications are reviewed through DICs internal
evaluation process. An initial contact with a Regional Sales
Manager is highly recommended to build an understanding of
how a companys business and its activities can benefit from being
a DIC business partner.
Legal SetupThere are three ways in which a company can be established
within DIC:
A. Branch of a foreign/UAE based company.
B. New Incorporation of a Free Zone Limited LiabilityCompany (FZ-LLC) with corporate entity/entities as
shareholder(s).
orNew Incorporation of a Free Zone Limited Liability
Company (FZ-LLC) with individual(s) as shareholder(s).
1.1
1.2
1.3
1. The Basics of Setting Up at Dubai Internet City (DIC)
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2Step 1: Application SubmissionIndividuals or entities interested in becoming part of the DICcommunity are required to complete an Application for Licenseform. This can be found in SECTION 4.The completed Application for License form along with theproposed Business Plan and passport copies of themanager/director/shareholders is to be emailed to DICs SalesDepartment ([email protected]).
Step 2: Application ReviewTime Scale: 4-6 working days
Once all the required documents are received, DIC begins an
internal evaluation process. The evaluation process covers the
following areas: business core activities, target markets, profile of
the human resources that the new entity will employ, office space
requirements and telecom requirements. During the evaluationprocess, DIC may request additional information or clarifications
from the applicant. If the additional information is not received
within 14 working days, the application is considered invalid.
Should the applicant(s) reinitiate their interest, a new application
must be submitted.
Approved ApplicationsUpon approval of the application, a Provisional Approval letter along
with a checklist of legal documents required, is sent to the applicant.
(Please refer to Section 4 for the checklist of documents required forvarious entities)
2.1
2.2
2.3
2. The Application Process
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Declined ApplicationsDIC objectively evaluates all applications. In cases where
applications are declined, a letter is issued to this effect. DIC reserves
the right not to disclose the reasons for unsuccessful applications.
Step 3: Acceptance of Provisional Approval LetterTime Scale: 2 Working Days
The applicant must sign and stamp the Provisional Approval Letter
and submit this to DIC.
Step 4: Submission of Legal DocumentsTime Scale: 15 Working Days
The applicant should forward the required legal documents within
15 working days to ensure speedy registration of the proposed
entity. For a checklist of legal documents required please refer to
section 4.
Step 5: Legal Documentation ReviewTime Scale: 1-3 Working Days
Upon submission of ALL legal documents requested by DIC, a
Customer Confirmation Letter (CCL) is forwarded to the applicant
should office space be available. Should the submitted legal
documents be incomplete, the application is put on hold, and the
applicant is informed accordingly.
Step 6: Customer Confirmation LetterTime Scale: 2 Working Days
The Customer Confirmation Letter (CCL) incorporates the following:
Company details
Details of allocated office
Payment details
Payment due date
Approved activity
If the CCL is accepted, the applicant should sign and stamp the
same and return this to DIC.
2.5
2.6
2.7
2.8
2.4
2. The Application Process (continued)
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Step 7: Initial Payment Time ScaleTime Scale: 10 Working Days
Once the endorsed CCL is received by DIC, an invoice is issued
covering license and registration fees plus 34% of the total annual
lease rental (if office space is available).
Step 8: Lease Agreement & Personnel SponsorshipAgreement (PSA)Time Scale: 2 Working Days
Upon receipt of the initial payment, the Lease Agreement and
Personnel Sponsorship Agreement (PSA) are issued.
Step 9: Trade License IssuanceTime Scale: 7 Working Days
The Business Partner receives the Trade license upon signing the
Lease Agreement and PSA.
Step 10: Balance PaymentTime Scale: 1 Month
An invoice for the outstanding amount is sent to the Business
Partner and is payable in two installments.
34% Initial payment (already paid)
33% 1st installment (4 months from initial payment)
33% 2nd installment (4 months from payment of 1st installment)
2.10
2.11
2.12
2.9
2. The Application Process (continued)
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3Application SectionPlease complete all sections of the Application for License.Incomplete applications could result in delay of the applicationprocess. A business plan must be attached (as per the templateprovided in Section 4 of this document). Kindly note that theApplication for License and Business Plan must be emailed [email protected] or to the respective RegionalSales Manager.The signatory must be an officially authorized person who, uponthe request of DIC, can present a document of proof. In cases where
the application is hand written, please use block letters.
Business ProposalThe business proposal should not disclose information that is
deemed highly confidential by the applicant. DIC evaluates the
proposed business activity to be conducted from the proposed
entity in DIC. The information provided will be utilised in the
evaluation process.
For details please refer to the Business Plan Template in Section 4
of this document.
Legal Documents(Kindly do not submit legal documents until an approval letter has
been issued by DIC)
Under the law of Dubai Technology & Media Free Zone Authority,
Article (8) of Law No. (1) 2000, a Limited Liability Company (LLC)
can be established with either a sole shareholder or with multiple
shareholders. Shareholders can be individuals and/or entities.
Branch (of a foreign company/UAE based company)
FZ-LLC Corporate entity/entities as a shareholder(s)
FZ-LLC Natural person(s) as a shareholder(s)
DisclaimerAll information submitted becomes the sole property of Dubai
Internet City. Dubai Internet City reserves the right to use the
information supplied by applicants in the manner that it sees fit.
This is not an implied non-disclose agreement.
3.1
3.2
3.4
3.3
3. Guidelines for Completing the Application for License
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This form is to be submitted as a
part of the DIC Application process.
Application for License
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2 Proposed official name of entity at Dubai Internet City (Branch Office must have same name as Parent Company)
First Choice
Second Choice
OR
I Branch (A foreign company should be at least two years old to be registered as a branch at Dubai Internet City)
Name
Full Address
P. O. Box City Country
Zip Code Phone Fax
Date of Incorporation Country of Incorporation
Type of Registration
Website
1 Proposed set-up of your business within Dubai Internet City. Please select one (1) only.
I New Incorporation of a Free Zone Limited Liability Company (authorised and issued capital must be paid up)
Shareholder(s) Information (if Individual)
Name (First, Last) Nationality Paid-up Capital (AED) Share %
Shareholder(s) Information (if Entity)
Company Name (As per the Registration Document) Country & Date of Incorporation Paid-up Capital (AED) Share %
4.1 Application for License
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6 How did you f irst hear about Dubai Internet City?
I Television/Radio I Newspaper/Magazine I Internet I Word of mouth I Brochure I Existing Dubai Internet City based company
ITrade Show/Exhibition (Please Specify)
I Other (Please Specify)
By signing below, I/we, hereby certify that, I/we am an authorised party who has the capacity and authority to make this application to Dubai Internet City.
I/we accept to settle all fee(s) that are applicable as a result of this application. I/we also certify that all information provided is correct to the best of my
knowledge. (Please contact Dubai Internet City's Account Management Team in the event clarification is required).
Name of Applicant Position
Address: Date & signature:
Phone:
Fax:
Mobile:
E-mail:
All fields are mandatory and subject to verification by Dubai Internet City at anytime. False statements/information may results in de-registration of the
entity, office closure, and/or legal proceedings.
4 Proposed office area requirements (Sq.Ft.)
Initial Requirement
Additional Requirement in 2 Years
5 Estimated Date Office Space is Required
3 Proposed visa requirements
Higher Management Middle Management Skilled Staff Support & Administrative
No. of Employees
Monthly Gross Income
Projected No. of employees in 2 years
4.1 Application for License (continued)
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Checklist of legal documentation
required to set up your business at
Dubai Internet City
Checklist of Documents Required
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1
2
3
4
Application for Registration
Details of Shareholder(s)
Original Certificate of Registration of the Company - A copy will be accepted if notarised
ANDOriginal Certificate of Good Standing of the Company (if the Company is more than 2
years old). This Certificate can be obtained from the Registrar of Companies.
Original Memorandum and Articles of Association along with a list of current Directors -
A copy will be accepted if Notarised.
Board Resolution of the Corporate Person calling for the establishment of the FZ-LLC -
Notarised and Legalised (Specimen document can be provided).
a. Appointment of the Negotiator or Legal Representative (optional).b. Original Power of Attorney for Manager - Notarised and Legalised (if not part of theResolution).
Notes:
1. All legal documents that are more than one page need to be sealed.
2. All Powers of Attorney need to be accompanied with a passport copy of the Attorney.
3. DIC reserves the right to call for any extra documents required where necessary.
4. DIC reserves the right to ask for attestation by UAE Embassy or other Embassies as necessary.
5. Originals of Documents Nos. 1 and 2 are only required for sighting and verification.
6. Board of Resolution and/or Power of Attorney for the Manager must state the Managers full name, nationality and passport number.
7. All legal documents must be in either Arabic or English. Documents in other languages must be accompanied by a certified English or Arabic translation
5.1 Application with a Corporate Person as Shareholder(s)
5 a. Valid copy of Passport of Manager for the FZ-LLCb. NOC from the current residence Visa sponsor in the UAE of the Manager - ifapplicable
c. Specimen Signature of Manager
6 a. Valid copy of Passport of Director(s)b. Specimen Signature of the Director(s)
7 Proof of Capital from bank operating within the UAE (Minimum Share Capital is AED50,000/Minimum Share value is AED 1,000).
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1
2
3
4
Application for Registration
Details of Shareholders:
a. A document setting out the personal details of individual shareholder(s) - Name, Age,Education, Work Experience.
b. Valid passport copy of individual shareholder(s).c. Original Letter of Recommendation by bank for each shareholder.
Details of Shareholder(s) - Corporate PersonOriginal Certificate of Registration of the Company - A copy will be accepted if Notarised
ANDOriginal Certificate of Good Standing of the Company (if the Company is more than 2
years old). This Certificate can be obtained from the Registrar of Companies.
Original Memorandum and Articles of Association along with a list of current Directors of
the Corporate Person - A copy will be accepted if Notarised.
a. Resolution of the Natural Person and Board Resolution of the Corporate Person calling
for the establishment of the FZ-LLC - Notarised and Legalised (Specimen document canbe provided).
b. Appointment of the Negotiator or Legal Representative (optional).c. Original Power of Attorney for Manager - Notarised and Legalised (if not part of theResolution).
Notes:
1. All legal documents that are more than one page need to be sealed.
2. All Powers of Attorney need to be accompanied with a passport copy of the Attorney.
3. DIC reserves the right to call for any extra documents required where necessary.
4. DIC reserves the right to ask for attestation by UAE Embassy or other Embassies as necessary.
5. Originals of Documents Nos. 1 and 2 are only required for sighting and verification.
6. Board of Resolution and/or Power of Attorney for the Manager must state the Managers full name, nationality and passport number.
7. All legal documents must be in either Arabic or English. Documents in other languages must be accompanied by a certified English or Arabic translation
5 a. Valid copy of Passport for Managerb. NOC from the current residence visa sponsor in the UAE of the Manager - ifapplicable
c. Specimen Signature for the Manager
7 Proof of Capital from a bank operating within the UAE. Minimum share capital is AED50,000, minimum share value is AED 1,000.
5.2 Application with a Natural & a Corporate Person as Shareholder(s)
6 a. Valid copy of Passport for Director(s)b. Specimen Signature of Director(s)
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1
2
3
Application for Registration
Details of Shareholders
a. A document setting out the personal details (Name, Age, Education and WorkExperience) of individual Shareholder(s).
b. Valid copy of Passport of individual Shareholder(s).c. Original Letter of Recommendation by Bank for each Shareholder.d. Specimen Signature of the individual Shareholder(s).
Resolution stating the following (Specimen document can be provided).
a. Appointment of the Negotiator or Legal Representative (optional).b. Original Power of Attorney for Manager - Notarised and Legalised (if not part of theResolution).
Notes:
1. All legal documents that are more than one page need to be sealed.
2. All Powers of Attorney need to be accompanied with a passport copy of the Attorney.
3. DIC serves the right to call for any extra documents required where necessary.
4. DIC reserves the right to ask for attestation by UAE Embassy or other Embassies as necessary.
5. Originals of Documents Nos. 1 and 2 are only required for sighting and verification.
6. Board of Resolution and/or Power of Attorney for the Manager must state the Managers full name, nationality and passport number.
7. All legal documents must be in either Arabic or English. Documents in other languages must be accompanied by a certified English or Arabic translation
4 a. Valid passport copy of the Manager.b. No Objection Certificate from the current residence visa sponsor in the UAE of theManager (if applicable).
c. Specimen Signature of the Manager
5.3 Application with a Natural Person(s) as Shareholder(s)
6 Proof of Capital from a bank operating within the UAE. Minimum share capital is AED50,000, minimum share value is AED 1,000.
5 a. Valid copy of Passport for Director(s)b. Specimen Signature of Director(s)
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1
2
3
For Foreign Companies
Original Certificate of Registration of the Parent Company - a copy will be accepted if
Notarised
ANDOriginal Certificate of Good Standing of the parent Company (if the Company is more than
2 years old). This Certificate can be obtained from the Registrar of Companies.
Original Memorandum and Articles of Association of the Parent Company - A copy will
be accepted if Notarised.
Board Resolution of the Company calling for the establishment of a branch in TECOM
and guaranteeing full financial commitment - Notarised and Legalised (Specimen
document can be provided).
a. Appointment of the Negotiator or Legal Representative (optional).b. Original Power of Attorney for Manager - Notarised and Legalised (if not part of theResolution).
Notes:
1. All legal documents that are more than one page need to be sealed.
2. All Powers of Attorney need to be accompanied with a passport copy of the Attorney.
3. DIC serves the right to call for any extra documents required where necessary.
4. DIC reserves the right to ask for attestation by UAE Embassy or other Embassies as necessary.
5. Originals of Documents Nos. 1 and 2 are only required for sighting and verification.
6. Board of Resolution and/or Power of Attorney for the Manager must state the Managers full name, nationality and passport number.
7. All legal documents must be in either Arabic or English. Documents in other languages must be accompanied by a certified English or Arabic translation
4 a. Valid passport copy of the Manager.b. No Objection Certificate from the current residence visa sponsor in the UAE of theManager (if applicable).
c. Specimen Signature of the Manager
5.4 Application for a Branch of a Foreign Company
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1
2
3
For UAE Companies
a. Copy of valid Trade License issued by Department of Economic Development.b. Copy of the Commercial Registration issued by the Economic Department.
Original Memorandum and Articles of Association of the Parent Company - A copy will
be accepted if Notarised.
Board Resolution of the Company calling for the establishment of a branch in TECOM
and guaranteeing full financial commitment - Notarised and Legalised (Specimen
document can be provided).
a. Appointment of the Negotiator or Legal Representative (optional).b. Original Power of Attorney for Manager - Notarised and Legalised (if not part of theResolution).
Notes:
1. All legal documents that are more than one page need to be sealed.
2. All Powers of Attorney need to be accompanied with a passport copy of the Attorney.
3. DIC serves the right to call for any extra documents required where necessary.
4. DIC reserves the right to ask for attestation by UAE Embassy or other Embassies as necessary.
5. Originals of Documents Nos. 1 and 2 are only required for sighting and verification.
6. Board of Resolution and/or Power of Attorney for the Manager must state the Managers full name, nationality and passport number.
7. All legal documents must be in either Arabic or English. Documents in other languages must be accompanied by a certified English or Arabic translation
4 a. Valid passport copy of the Manager.b. No Objection Certificate from the current residence visa sponsor in the UAE of theManager (if applicable).
c. Specimen Signature of the Manager
5.5 Application for a Branch of a UAE Company
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This document is intended as a
reference for the Business Plan
which is to be submitted as part of
the DIC Application process
Business Plan Template
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1. Guidelines
2. Executive Summary
3. The BusinessRegulations and Permits
Strategic Alliances
Product or Service
Unique features or proprietary aspects of product
Vendors
4. The MarketMarket Definition
Market Research
Market Segment
Marketing
Position
Advertising, Promotion & Trade Shows
5. Competition & RiskCompetition
Business Risks
6. Management TeamOwnership
Professional Support
Board of Directors (Advisors, Directors)
7. Capital Requirements
8. Financial PlanAssumptions
Income Statements
Balance Sheet Summary
Cash Flow and Break Even Analysis
Actual Cash Flow Statements
Forecast Cash Flow Statement
9. Exhibits
Table of Contents
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The prospect is required to submit a comprehensive Business Plan
with all sections completed This document is a guideline to the expected detail of the Business Plan
The Financial Plan section could be presented in any form as long as
it encompasses all the relevant data
The title page should include
Company name Date
Business Plan copy number [x]
Name of point man in financing
Title
Contact details
Company home page (if available)
Attachments (i.e. Financial plan)
Guidelines for Submission of a Business Plan
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1. Executive SummaryThe Executive Summary should include the main points of the
entire document. The summary should be no longer than two
pages.
2. The BusinessWhat is the core business of the company?
Regulations and Permits What kind of permits/ regulations do you need to operate in your
target market?
How will you obtain these permits?
Strategic Alliances Does the company have a strategic alliance? If so state the details
of the partner and the nature of the alliance. Please include the
risks and opportunities of this alliance.
Product or Service
What burning marketplace needs are addressed by yourproducts/services?
What value do you add to your products/services?
Provide a list of services the company offers in order of highest
sales or significance in product line?
What are the critical factors in the delivery of your
services/products?
Unique features or proprietary aspects of Product What is the uniqueness of your products and services?
What is the differentiating factor of your products and services
compared to competitors?
Vendors Do you have multiple supply sources?
Who are your suppliers, or potential suppliers?
Business Plan Template (continued)
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3. The Market
Market Definition What markets are you competing in?
What is your niche market?
What are the market facts you obtained and wish to target?
Identify where you got this information, and how up to date it is.
Market Research Has the company conducted a market study of the target market?
If so, state the supporting details to your business.
Market Segment Define your market segment.
List, in general, the types of customers you are likely to reach?
What is the weakness of your services/products in your market
segment?
Marketing
How are you planning to penetrate the above segment(s)? What will be your primary marketing channel?
What percentage of market share do you plan to obtain in your
first two years of operation?
Position How will you position your products/services? (good value for
price, top quality, cheap and fun)
Which is a position not presently being addressed by the
competition?
Advertising, Promotion, Trade Shows
What is the advertising and promotion strategy? What would be the most efficient method (product sampling,
demonstrations, pilot projects, etc)?
What trade shows are you likely to participate in?
Business Plan Template (continued)
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4. Competition & Risk
Competition Tell us about key competitors in regard to product/service, price,
location, promotion, management, and financial position.
Who do you compete directly with?
Does the competition use the same or different suppliers?
Business Risks What risk does your organization face?
What is your strategy to face these risks?
5. Management Team State the competencies of your management team
List the people in management with their titles, and attach
their CVs.
Ownership List the persons or organisations that are significant owners of
the company, list shares held and percentages of ownership.
Professional Support Do you have any professional services such as Corporate
Attorney, Accounting Firm and/or other consultants? If so list
these companies and the nature of their service.
Board of [Advisors, Directors] Does the company have a board of advisors, if so, list names,
and current positions of the individuals.
6. Capital Requirements
What is the capital required?
Provide the breakdown of funds that would be spent on: Complete development [AED] Purchase S/W, H/W [AED] Market the new/next product line [AED] Fund working capital [AED] Other [AED]
What is the payback period of these funds?
Business Plan Template (continued)
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7. Financial Plan
AssumptionsState the main assumptions of your business: Number of forecasted clients Size of forecasted clients Other related assumptions
Income statementsAn income statement, otherwise known as a Profit and Loss (P&L)statement, is a summary of a companys profit or loss during anyone given period of time, such as a month, three months, or oneyear. The income statement records all revenues for a businessduring this given period, as well as the operating expenses for thebusiness. The income statement would include: Revenue Operating expenses
Balance Sheet SummaryComment on any large or unusual items, such as other current
assets, other accounts payable, or accrued liabilities.
Cash Flow and Break Even AnalysisPlease provide the following data:
Actual Cash Flow StatementsThese should show an historic view, showing the actual flows ofcash into and out of a business that have occurred over a previoustrading period, e.g. 6 months, or 1 year.
Forecast Cash Flow StatementThe cash flow should show the expected flows of cash into and out
of a business over a trading period in the immediate future, e.g.next 3 years.
8. Exhibits
Product literature and brochures
Sales sheets
Media coverage
Clips from industry publications
Relevant patents
Market research data
Past advertising campaigns
Other
Business Plan Template (continued)