Setting up the right type of business at the right time and at the right place is the key to make a startup venture successful. This holds true for the entrepreneurs who opt for a tech company formation in Dubai as the emirate is focusing on rejuvenating the economy with a heightened focus on digital transformation and innovation in the wake of the COVID-19 pandemic.
What is the DIFC Innovation License?
The new Innovation License introduced by the Dubai International Financial Centre (DIFC) is in line with this strategy of the Dubai Government and aims to attract new types of startups to the emirate to boost creativity, technical advancement, and innovation. With the innovation license, the tech entrepreneurs can set up their dream startups in DIFC, which is home to over 2,500 companies and 25,000 professionals.
Related: How to set up a company in DIFC?
The license comes at a competitive price and the entrepreneurs can enjoy the benefits of ultra-modern co-working spaces, visas, and the independent legal structure in the DIFC.
The DIFC Innovation License is aimed at creating a launchpad for entrepreneurs with an innovative tech-based startup idea. There is a common misconception that the DIFC innovation license is aimed at Fintech companies but the license is sector-agnostic but all the tech startups and other companies that focus on innovation can apply for the license. For a faster company formation in DIFC, consult the best business setup consultants in Dubai, UAE.
Also read: How to set up a business in Dubai Free zones?
Benefits of the DIFC Innovation License
By initiating the startup business setup in DIFC, the investors get access to the robust regulatory and legal framework in the free zone. The new startups also get the opportunity to network with the other well-established technology enablers and innovation companies operating within the DIFC.
- DIFC Innovation License comes at a cost of USD 1500 per annum
- Tech startups can access DIFC co-working spaces with a Flexi desk facility at USD 500 per month
3. Quick and easy company registration procedure - Up to 4 visas granted on the first Flexi desk
- The benefit of subsidies visas of up to 50% for innovation companies
Other Benefits of Setting up a Business in DIFC
The sudden transformation in the economy brought about by the COVID-19 pandemic has had its impact on the IT sector as well. However, unlike many other sectors, the COVID-19 impact on the tech sector has been positive. The sector has witnessed a sudden spurt in demand as digital transformation has become a necessity for all other forms of businesses to survive. The world is now looking for tech companies with innovative ideas that can transform the economy in a better way. The emergence of the IT sector as a major sunrise industry in Dubai is likely to attract more investments into the sector. Business setup consultants in Dubai recommend the investors to set up a business in Dubai in light of the renewed interest for innovation and digital transformation in the UAE. Following are the benefits of setting up a business in DIFC:
a) Premium Financial Centre
DIFC is one of the most well-known financial centres across the world known for its highly efficient regulations and easy business setup procedures. DIFC is highly revered among the international community as it has been voted amongst the top 8 onshore financial centres in the world. DIF has been focusing on enhanced regulation and heightened visibility among the international community thereby attracting further investments.
b) Codified English Common Law
The process of business setup in DIFC gives the foreign investors the benefit of being governed by the modified version of the English Common Law rather than the UAE Federal Laws. The DIFC Courts and the Dubai Financial Services Authority (DFSA) acts as DIFC’s regulatory body and enforces international regulatory standards in the Financial Centre.
c) World-Class Office Space Solutions
DIFC offers for the IT startups world-class co-working spaces that are regarded as one of the best flexible office solutions available in Dubai. Named as the DIFC Work Hub, the co-working space is located at the FinTech Hive in the DIFC. An efficient connectivity and robust audio/video conferencing facilities are available at the DIFC Work Hub.
Also read: Pros & Cons of Setting up a Business With Flexi Desk Facility in UAE Free Zones
d) Visa Services
The IT startups in the DIFC can apply for the visas of their employees and can sponsor the families. The DIFC has a dedicated Government Services Office which facilitates the issuance and renewal of employment visas.
Related: 9 Significant Benefits of Outsourcing PRO Services in Dubai & UAE
Business Setup Consultants in DIFC
The demand for the IT industry has grown in the UAE and also across the world due to the need for digital transformation precipitated by the COVID-19 pandemic. Though the pandemic precipitated a grave crisis with health and economic implications, sectors like the tech industry have been able to create fresh opportunities. In this scenario, the Tech startup company formation in DIFC with an innovation license makes business sense.
However, the business setup in DIFC involves dealing with authorities and proper knowledge of the DIFC laws and regulations is a prerequisite for obtaining the license. A foreign entrepreneur often struggles with company formation in DIFC due to this reason but availing the services of reputed business setup consultants in Dubai such as Jitendra Business Consultants (JBC) eases this difficulty. JBC has a team of highly qualified business setup consultants in Dubai who are adept in dealing with the licensing authorities as they are well-versed in the governing laws and regulations including labour laws and immigration laws. By associating with JBC, startup entrepreneurs can incorporate their company in DIFC or any other free zones in a hassle-free manner.