Foreign investors often fancy obtaining a trade license from one free zone and running the company from another zone. By doing so, the investors can get the double benefit of a cheaper license and better facilities. Both new and existing companies under the International Free Zone Authority (IFZA) can enjoy the double benefit by operating from Dubai Silicon Oasis (DSO), which is often hailed as the UAE’s answer to ‘Silicon Valley.’
IFZA signed the agreement with DSO in the latter half of 2020, which makes the process of business setup in Dubai free zones more appealing for expatriate entrepreneurs. Foreign investors can consult with the best business setup consultants in Dubai to minimize the practical difficulties associated with the process. Before considering switching your IFZA company to DSO, you need to understand IFZA, DSO and the benefits of making such a big move. Let’s discuss.
Also read: Business Setup in International Free Zone Authority (IFZA)
Who Should Opt for the Switch?
The agreement allows IFZA companies from all industries to move into DSO. However, investors and entrepreneurs who wish to run their companies from an industry-specific free zone in Dubai are most likely to opt for the switch. IFZA is a general-purpose free zone, but DSO is an industry-specific free zone that provides unique benefits and infrastructure to technology firms. In short, technology companies and startups are the ultimate beneficiaries of the agreement. Consult with the best business setup consultants in Dubai to get an IFZA license without any hassle.
How will IFZA Companies Benefit from the Switch to DSO?
Entrepreneurs with an IFZA business license should do sufficient background research before moving their operations into DSO. Business setup consultants in Dubai can help investors regarding the feasibility of the move. The following benefits await the entrepreneurs who move from IFZA to DSO:
A Cost-Effective Business License
Getting a license from IFZA is a cost-effective option in comparison to other Dubai free zones. IFZA provides a wide range of activities under professional, commercial and industrial licenses for company formation in Dubai. IFZA is known for its faster incorporation procedure, and therefore the investors can get a trade license and swiftly move into DSO.
Access to an Integrated Tech Hub
Business setup in Dubai Silicon Oasis provides the entrepreneurs with an opportunity to operate in a globally recognized free zone, which is also an integrated technology park. DSO hosts modern tech-based industries along with an urban master-planned community. Running the business from DSO is a great opportunity for IFZA-licensed companies to enjoy the benefits of state-of-the-art infrastructure and in-house business services.
State-of-the-art IT Infrastructure
A tech startup that migrates its operations from IFZA to DSO can utilize the latter’s sophisticated IT infrastructure. DSO’s IT infrastructure at its best can be described as a converged network concept that allows the transmission of data, voice and video over a single IP–based network. The company’s business value chain is bound to immensely benefit from the advanced communications systems and data centres. DSO ensures access to a cost-effective infrastructure for IFZA-licensed companies.
Office Space Options Startups & Companies
DSO provides affordable plug & play office space for startups at its Digital Park and Techno Hub 2 spaces. Techno Hub 2 features up to 20,000 square metres of office space available for immediate occupancy. Furthermore, Dubai Digital Park features eight office buildings that range from 4000 m² to 6000 m² providing flexible office spaces equipped with fully integrated smart services.
Office space options at Digital Park range from 50 m² to 10,000 m² which are housed in two full buildings linked by a bridge. In contrast to Techno Hub, the office spaces at Digital Park are designed to attract large companies. The smart buildings are equipped with modern fitted office spaces for companies to move into immediately.
Easily Access Support of Dtec
Tech startups licensed by IFZA can navigate the pre-finding struggles once they move their operations to DSO. By securing office space in Dtec, the entrepreneurs get support in the form of incubation, mentorship and early-stage investments. Dtec is a technological ecosystem operating under the DSO that provides support to budding tech startups.
Consult with Business Setup Consultants in Dubai Before Making a Decision
Companies registered with IFZA are now allowed to work from DSO, which boosts the ease of business setup in Dubai free zones. The IFZA-DSO agreement is a gateway for companies to benefit from the latter’s robust infrastructure, modern facilities, and the opportunities it provides to the business sectors locally, regionally and globally. New entrepreneurs, however, should consult with the best business setup consultants in Dubai, such as Jitendra Business Consultants (JBC), before making a move.
The employment laws and license regulations in each free zone are different. The difference will reflect on processes like visa approvals. JBC is equipped with highly qualified business consultants who can easily reduce such challenges with their legal expertise and experience. JBC has helped more than hundreds of investors to incorporate their companies in both IFZA as well as DSO. This prior experience and industry knowledge will come in handy for foreign investors. Investors aiming for company formation in Dubai free zones with zero hassle should avail of JBC’s bespoke assistance.