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Dubai Internet City Company Setup: Licence Types, Costs and Application Process

Learn how to set up a company in Dubai Internet City, including licence types, permitted activities, costs, documents, visas, tax rules and application steps.

Published13 Aug 2026Read time9 min
Dubai Internet City Company  Setup: Licence Types,  Costs and Application Process

Dubai Internet City is one of the UAE’s best-known business districts for technology companies. It gives software developers, cloud providers, cybersecurity firms, digital platforms and established technology groups a sector-focused base in Dubai.

The district is part of TECOM Group and company registration is handled under the Dubai Development Authority. According to an official TECOM Group update on Dubai Internet City, the district is home to around 4,000 companies, more than 31,000 professionals and over 20 research and development centres.

Still, the location is not the cheapest option in Dubai. Before applying, you should check whether the permitted activities, office requirements and overall cost match the way your company plans to operate.

What Is Dubai Internet City?

Dubai Internet City, commonly called DIC, is a free zone business district created for information and communications technology companies. It offers commercial offices, flexible workspaces, startup support and business services within a large technology community.

The Dubai Development Authority, or DDA, is responsible for company registration and licensing. TECOM Group manages the district and its commercial spaces.

DIC suits businesses working in:

  • Software development

  • Artificial intelligence and data analytics

  • Cloud computing and cybersecurity

  • Internet platforms and mobile applications

  • IT consultancy and network services

  • Telecommunications support

  • Data hosting and data centres

The official DDA activity list also covers gaming, the Internet of Things, virtual and augmented reality, blockchain services excluding cryptocurrency-related activities and robotic process automation.

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Why Set Up a Company in Dubai Internet City?

The strongest reason to choose DIC is its sector focus. Your company operates near potential clients, suppliers, employees and technology partners.

100% foreign ownership

Foreign investors can own the full share capital of a free zone company. A local shareholder is not generally required.

Recognised technology address

A DIC address can help a technology business build a credible regional presence, especially when dealing with enterprise clients or overseas partners.

Workspace choices

The district offers commercial offices and flexible options. Early-stage founders can explore in5 Tech, while independent professionals may use the GoFreelance route.

Centralised services

TECOM’s axs platform gives business partners access to licensing, leasing, visas, permits and related services in one place.

Access to Dubai’s market

A DIC company can serve overseas customers and other free zone businesses. It can also work with mainland clients, subject to its licence, contracting model and any approvals required.

Read Nexture’s guide on Dubai mainland vs free zone setup before choosing a jurisdiction.

Dubai Internet City Licence Categories

The DDA groups DIC activities into several main segments.

Licence segment

Examples

Published annual fee

Software

Software development, AI, cloud computing, cybersecurity and applications

AED 15,000

Internet and Multimedia

Online platforms, gaming, social media and web-based services

AED 15,000

Telecommunication and Network

Network development, telecom support and infrastructure services

AED 15,000

IT Services

IT consultancy, integration, security and big data analytics

AED 15,000

Data Centre

Hosting, processing, disaster recovery and data-centre operations

AED 15,000

ICT Freelancer

Approved independent technology professions

AED 7,500

A standard DIC licence allows up to five activities within the selected segment. The data-centre segment allows up to three. A freelance permit covers one approved activity.

Activity selection matters. A company selling its own software may need a different activity from a firm implementing third-party software. Choosing a broad label without checking the official description can cause problems when opening a bank account or signing contracts.

Review the official DDA licence categories for Dubai Internet City before applying.

Free Zone Limited Liability Company

An FZ-LLC is a separate legal entity. It can have individual shareholders, corporate shareholders or both. This structure usually suits founders creating a new technology company in Dubai.

DDA rules set a general minimum paid-up capital of AED 10,000 for an FZ-LLC unless the activity has a separate requirement. Paid-up capital is company capital, not a government fee.

Branch of a UAE or foreign company

An existing company may register a branch in DIC. The branch remains legally connected to the parent and normally carries out activities within the parent’s authorised business.

Freelance licence

An approved technology professional can operate under their own name through a freelance permit. This route suits developers, data professionals and IT specialists who do not need a separate company.

For a wider comparison, see Nexture’s business setup in Dubai guide.

Dubai Internet City Company Setup Cost

Your total cost depends on the structure, activity, workspace, number of visas and any external approvals.

Cost item

Published amount

FZ-LLC or branch registration

AED 3,500

Standard annual DIC licence

AED 15,000

General minimum paid-up capital for an FZ-LLC

AED 10,000

Freelance permit

AED 7,500

Freelance establishment card, where required

AED 2,000

One-year freelance visa

AED 4,600

Two-year freelance visa

AED 5,042

Knowledge Dirham and Innovation Dirham

AED 10 each per applicable transaction

The registration, licence and freelance permit figures come from the published DDA fee schedules. The establishment card and visa figures are listed under the official GoFreelance service. Fees can change, so confirm the complete invoice before proceeding.

Office or coworking charges come on top. DIC does not publish one fixed price for every space, so you need a current quotation based on size, building, lease term and visa requirement.

For an FZ-LLC using a standard AED 15,000 licence, the published registration and licence components begin at AED 18,500. This excludes workspace, visas, immigration charges, medical testing, Emirates ID, insurance and professional fees.

The official DIC business setup page explains its workspace routes. Ask for an itemised quotation instead of relying on a headline package price.

Documents Required

For an individual-shareholder application, you will usually prepare:

  • Completed application form

  • Passport copies of the proposed directors and general manager

  • UAE residence visa copy, where applicable

  • Incorporation resolution

  • General manager appointment declaration, where applicable

  • Power of attorney, if a representative files the application

  • External approval, where the activity requires it

  • Workspace or lease documents during setup

Corporate shareholders must also provide the parent company’s incorporation certificate, good-standing or continuity certificate and constitutional documents. Certain papers may need notarisation, UAE embassy attestation and legal translation.

The DDA’s FZ-LLC registration service lists the current requirements.

How to Set Up a Company in Dubai Internet City

  1. Confirm the activity

    Write down what the company will sell and how it will earn revenue. Match this model to the DDA activity description.

  2. Select the legal structure

    Choose an FZ-LLC, branch or freelance permit. Consider ownership, liability, hiring plans and future investors.

  3. Choose the workspace

    Select a commercial office or an eligible flexible option. The lease can affect visa allocation and annual cost.

  4. Reserve the company name

    Submit trade-name choices that follow the authority’s naming rules.

  5. File the application

    Upload the application and documents through the free zone platform or work with the relevant relationship manager.

  6. Receive provisional approval

    DDA publishes an estimated period of 10 working days for provisional approval. Regulated activities may take longer.

  7. Sign documents and pay

    Complete the incorporation documents, lease process and required payments.

  8. Receive the licence

    DDA lists an estimated two working days for the registration stage after provisional approval. You should then receive the incorporation documents and commercial licence.

  9. Complete post-licence work

    Apply for establishment and immigration services, visas and Emirates IDs where needed. Then open a bank account and arrange bookkeeping, tax registration and employment records.

    Nexture’s company formation service can help coordinate the activity check, registration, visas and post-licence work.

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Corporate Tax and VAT

A free zone licence does not automatically make all income tax-free.

A Qualifying Free Zone Person may receive a 0% corporate tax rate on Qualifying Income when it meets the relevant conditions. Other taxable income may be subject to the applicable corporate tax rate. Free zone companies should review their registration, substance, accounting and filing duties.

The Federal Tax Authority’s Free Zone Persons guidance explains the framework. Nexture’s UAE corporate tax guide gives a practical overview.

VAT registration generally becomes mandatory when taxable supplies and imports exceed AED 375,000, subject to the law and the company’s circumstances.

Is Dubai Internet City the Right Choice?

DIC is a strong option when your company needs a recognised technology address, a real office, access to skilled professionals and proximity to major technology businesses.

A lower-cost free zone may suit you better when you run a small remote consultancy or want the lowest possible renewal cost. Mainland setup may work better when your business depends heavily on local tenders, unrestricted onshore operations or activities that fit Dubai’s mainland licensing system.

Check the activity, tax position, office commitment, visa needs and expected customer base. For online sales models, Nexture’s e-commerce licence guide can help you compare another route.

Common Setup Mistakes

Do not choose an activity based on its name alone. Read the official description and confirm whether you develop products, provide consultancy or resell third-party solutions.

Do not budget only for the licence. Workspace, visas, establishment services, insurance, tax compliance and renewal costs can materially change the first-year total.

You should also avoid assuming that every free zone company receives 0% corporate tax on all revenue. The treatment depends on the company’s income, transactions and compliance with the qualifying conditions.

Conclusion

Dubai Internet City offers a specialist base for software, IT, cloud, cybersecurity, network and digital-platform businesses. The published licence fee for its main technology segments is AED 15,000 a year, while company registration is AED 3,500. Your final budget will be higher after adding workspace, visas and operating requirements.

Confirm the exact activity and request a complete cost sheet before applying. A carefully planned setup is easier to bank, renew and grow.

Frequently Asked Questions

How much does a Dubai Internet City licence cost?

The official annual fee is AED 15,000 for the main licence segments. Registration, workspace, visas and other services are charged separately.

Can a foreigner own 100% of a DIC company?

Yes. A foreign investor can generally own 100% of an FZ-LLC registered in the free zone.

How long does DIC company registration take?

DDA publishes 10 working days for provisional approval and two working days for registration. Delays may occur when documents, approvals or lease arrangements are incomplete.

Is office space mandatory?

A registered office or approved workspace forms part of the setup. The right option depends on the company type, team size and visa requirement.

Can I start as a freelancer in Dubai Internet City?

Yes. Approved ICT professionals can apply for a freelance permit. The published fee is AED 7,500, with visa and establishment-card costs charged separately.

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