Dubai Silicon Oasis (DSO) is one of Dubai’s most popular free zones for technology and innovation-focused businesses. It was created as a smart, integrated community where companies can work, grow, and innovate in one place. With modern offices, industrial spaces, residential areas, and strong digital infrastructure, DSO offers a complete ecosystem for businesses that want to be part of Dubai’s tech-driven future.
Today, Dubai Silicon Oasis is home to thousands of companies, including startups, global tech firms, software developers, electronics manufacturers, and digital service providers. Backed by the Dubai government, the free zone focuses on future-ready industries like IT, AI, software development, electronics, and e-commerce. Businesses in DSO benefit from 100% foreign ownership, tax advantages, and a smooth company setup process, making it a strong choice for both new and growing companies.
If you are a startup, tech company, entrepreneur, or small to medium-sized business who are thinking about business setup in Dubai Silicon Oasis, here’s your complete guide.
What Is Dubai Silicon Oasis Free Zone?
Established in 2004, Dubai Silicon Oasis (DSO) is a 100% government-owned free zone designed to be a global leader in technology and knowledge-based industries. It is managed by the Dubai Integrated Economic Zones Authority (DIEZA) and serves as a specialised technology park that offers a unique 24/7 environment where people can live, work, and innovate in one place.
Key Industries Supported in Dubai Silicon Oasis:
DSO isn’t just for software developers; it is a high-tech ecosystem that supports a wide range of future-facing sectors. If your business is in any of the following fields, DSO is built for you:
- Advanced Tech & AI: From machine learning startups to large-scale artificial intelligence R&D.
- Electronics & Engineering: Specialised facilities for semiconductor design, hardware assembly, and robotics.
- Digital Services: Including cloud computing, cybersecurity, Web3, and fintech solutions.
- Information Technology (IT): Software development, SaaS, and IT consultancy.
- Future Mobility: DSO is a testbed for smart city tech, including autonomous vehicles and drone delivery systems.
- Research & Development (R&D): With its proximity to top universities and its own labs, it’s the region’s hub for deep tech and scientific advancement.
Types of Licenses Available in Dubai Silicon Oasis
To start a business in DSO, you need to choose a license that matches your daily operations. Here are the primary license types available, along with specialised options for startups and existing mainland businesses.
1. Service License
This is the most popular choice for professionals and tech-based consultants. It allows you to provide expert services rather than physical goods. It is best for IT consultants, software developers, marketing agencies, and legal or accounting firms.
2. Industrial License
An industrial license is issued to businesses involved in manufacturing, assembly, or production activities within Dubai Silicon Oasis. These companies usually require warehouse or industrial space. It is suitable for Robotics assembly, 3D printing labs, and light manufacturing of electronic components.
3. Trade License
A trade or commercial license is suitable for businesses involved in trading and commercial activities within Dubai Silicon Oasis. This includes the buying, selling, and distribution of approved products, especially tech-related goods.
4. Other Specialised License
- Innovation / Technology License: Dubai Silicon Oasis also supports innovation-driven and emerging technology businesses through specialised licenses focused on research and development.
- Business Operation Permit: The permit is for companies already licensed by the Dubai Economic Department (DED) Mainland. It allows you to operate inside DSO without setting up a completely new legal entity
- Dtec Startup License: The specialised license is for tech entrepreneurs and early-stage startups. This is highly affordable; it includes access to the Dtec coworking space and community events.
What are the Company Structures in Dubai Silicon Oasis?
Choosing the right structure is important, as it affects ownership, liability, and future expansion.
1. Free Zone Company (FZCO)
The FZCO is the most common and flexible structure in DSO. Under the latest regulations, this is now the standard for both single and multiple shareholders. You can have between 1 and 50 shareholders. These can be individuals, other companies (corporate shareholders), or a mix of both. It is a Limited Liability entity, meaning your personal assets are protected if the business faces financial trouble.
2. Branch of an Existing Company
If you already have a successful business elsewhere and want to open an office in Dubai Silicon Oasis, you can register a Branch. A branch is not a separate legal entity; it is an extension of your parent company. The branch is 100% owned by the parent company. However, the branch must perform the same business activities as the parent company.
3. Dtec Startup (Entrepreneur) Setup
For solo founders and early-stage tech innovators, DSO offers a specialised startup structure through the Dubai Technology Entrepreneur Campus (Dtec). Usually set up as an FZCO but with a simplified process. You’ll have access to mentorship, networking, and the most affordable flexi-desk options in the region.
Documents Required for Business Setup in DSO
The exact requirements may vary slightly based on your license type and company structure, but below are the common documents needed for most DSO business setups.
Documents for Shareholders & Directors:
- Passport copy (valid for at least 6 months)
- Recent passport-size photograph (white background)
- UAE visa copy (if already in the UAE)
- Emirates ID copy (if available)
Company-Related Documents:
- Proposed company name options
- Business activity details
- Memorandum & Articles of Association (MOA & AOA)
- Board resolution (for corporate shareholders)
- Certificate of Incorporation (for branch or corporate setups)
Documents for Branch of a Foreign or UAE Company:
- Parent company trade license
- Parent company MOA & AOA
- Board resolution approving the DSO branch
(All foreign documents must be attested and legalised.)
Office Space & Address Documents:
- Office lease agreement or Flexi-desk contract
- Ejari or facility agreement (as applicable)
Additional Documents (If Required):
- NOC from current sponsor (if applicable)
- CV or qualification certificates (for professional licenses)
- Bank reference letter (in some cases)
How to Set Up a Company in Dubai Silicon Oasis?
Below is a complete breakdown of how company formation in DSO works:
1. Choose Your Business Activity
The first step is to clearly define what your business will do. Dubai Silicon Oasis mainly supports technology, innovation, and digital-focused activities, so it’s important to select an activity that aligns with DSO regulations.
2. Decide the License Type and Company Structure
Once the activity is finalised, you need to choose:
- The license type (commercial, professional, industrial, e-commerce, or tech/innovation)
- The company structure (FZE, FZCO, or branch)
3. Reserve Your Company Name
Next, you submit a few proposed company names for approval. The name must follow UAE naming guidelines and should reflect your business activity.
Key naming rules include:
- No offensive or religious words
- No reference to political entities
- Must be unique and relevant
4. Submit Application & Get Initial Approval
After name reservation, you submit the application along with the required documents to the Dubai Silicon Oasis Authority (DSOA). Once reviewed, you receive initial approval, allowing you to proceed with the setup.
5. Choose Your Workspace
DSO requires every business to have a physical address. You don’t need a massive office right away; you can choose:
- Flexi-Desk: A shared workstation (ideal for startups and 1–3 visas).
- Executive Offices: Fully furnished or “shell and core” (blank) spaces.
- Industrial Units: Warehouses for manufacturing and logistics.
Note: Once you choose, you will receive a digital Lease Agreement to sign.
6. Fee Payment & E-Agreement
After initial approval, you will receive an invoice. Once paid, the authority issues a digital E-Agreement. For FZCO setups, you’ll typically need to show a bank letter confirming the deposit of share capital.
7. License Issuance & Company Registration
After office selection and final approvals, your trade license is issued. This officially registers your company in Dubai Silicon Oasis and allows you to start business operations.
8. Apply for Visas & Emirates ID
With the license in place, you can apply for:
- Investor visa
- Employment visas
- Family visas (if required)
9. Open a Corporate Bank Account
The final step is opening a business bank account in the UAE. Banks may request Company documents, Shareholder details, Business plan or activity explanation.
Need expert help? Company formation in Dubai Silicon Oasis involves multiple approvals, documentation, and compliance steps. With AE Setup, you get end-to-end business setup assistance, so you can start your business smoothly and without costly mistakes.
What is the Cost of Company Formation in Dubai Silicon Oasis?
The business license is the core cost of company formation in DSO. On average, license fees usually range between AED 12,000 and AED 25,000 per year, depending on:
- Type of license (professional, commercial, industrial, e-commerce, or tech)
- Number of business activities included
- Company structure
Additional Costs to Consider:
- Flexi-desk or shared office: Starting from around AED 5,000 – AED 10,000 per year
- Investor or employment visa: Around AED 3,500 – AED 6,000 per visa
- Medical & Emirates ID: AED 1,000 – 1,200 per person
- Name reservation and initial approval fees
- Document attestation and legalisation (for foreign shareholders)
Why Set Up a Business in Dubai Silicon Oasis?
Here are the key reasons why startups, tech firms, and SMEs choose DSO for their business setup:
1. Built Specifically for Tech & Innovation Businesses
Unlike many free zones that cater to a wide mix of industries, Dubai Silicon Oasis is designed with technology at its core. From IT and software companies to AI, electronics, and R&D firms, DSO offers the right ecosystem for innovation-led businesses to grow, collaborate, and scale.
2. Cost-Effective Setup Compared to Other Tech Freezones
When compared to premium tech-focused zones like DIFC or some specialised innovation hubs, Dubai Silicon Oasis often offers more affordable license and office options.
3. Integrated Live–Work–Business Community
One of DSO’s biggest advantages is that it’s a fully integrated community. Offices, warehouses, residential areas, schools, retail outlets, and leisure facilities are all located within the same area.
4. Easy Business Setup & Smooth Regulatory Process
The company formation process in Dubai Silicon Oasis is structured and efficient. From licensing to visas and office space, everything is handled under one authority, reducing paperwork, delays, and coordination issues that businesses often face in other locations.
5. 100% Foreign Ownership & Profit Repatriation
Businesses in DSO enjoy 100% foreign ownership, along with full repatriation of profits and capital. This is a major advantage for international entrepreneurs and companies looking to maintain complete control over their operations.
6. Strategic Location within Dubai
Located close to major highways and key areas of Dubai, DSO offers easy access to airports, business districts, and residential zones. This makes it convenient for clients, employees, and logistics operations.
Build Your Business with AE Setup
Dubai Silicon Oasis stands out as a smart choice for businesses that want to be part of Dubai’s growing tech and innovation ecosystem. If you’re thinking about taking the next step, having the right guidance can make all the difference.
AE Setup helps you through every stage of the journey — from choosing the right license and company structure to handling approvals, visas, office setup, and bank account support. With expert assistance, you can avoid costly mistakes, save time, and focus on building your business while the paperwork is taken care of. Get in touch today!
