Apply for an Internet Services Business Licence in Dubai

Dubai's digital economy is expanding at pace, and Dubai South Business Hub Free Zone offers one of the most streamlined routes to establishing a licensed internet services operation in the region. This guide explains what the Internet Services Business Licence (Activity Code 6190.98) covers, who it suits, what it costs, and how to secure it at Dubai South.

Key Stats at a Glance

• Activity Code: 6190.98 | Category: ICT | Licence Type: Business Licence

• UAE ICT sector contributes approximately 4.3% to national GDP, with targets to reach 8.2% by 2031

• 100% foreign ownership permitted at Dubai South Business Hub Free Zone

• 0% corporate tax on qualifying free zone income

• Typical licence issuance: 3 to 7 working days from document submission

• Full profit repatriation with no currency restrictions

• Strategic location adjacent to Al Maktoum International Airport and Expo City Dubai

Dubai's ICT Market and Why Internet Services Belong Here

The UAE's information and communications technology sector is one of the fastest-growing segments of the national economy. The government's UAE Digital Economy Strategy targets doubling the digital economy's contribution to GDP within ten years, creating sustained demand for internet infrastructure, managed connectivity, and value-added digital services across the Emirates.

Dubai South Business Hub Free Zone sits at the heart of this opportunity. Located adjacent to Al Maktoum International Airport and Expo City Dubai, it forms part of a 145-square-kilometre master-planned economic zone designed to support trade, logistics, and knowledge-based industries. Its position makes it particularly well suited to businesses delivering internet and connectivity services to regional clients across the GCC, Africa, and South Asia.

Free zone registration at Dubai South brings significant structural advantages. Investors benefit from 100% foreign ownership, full repatriation of profits and capital, and 0% corporate tax on qualifying income under the UAE's free zone tax regime. Combined with the UAE's advanced fibre and 5G infrastructure, these conditions make Dubai South a compelling base for internet services businesses seeking regional reach.

What the Internet Services Licence Covers

Activity Code 6190.98 falls within the ICT category and is issued as a Business Licence by Dubai South Business Hub Free Zone. The licence authorises businesses to provide a defined range of internet-related services, including the provision of internet access to end users, resale of bandwidth from licensed carriers, managed connectivity solutions, and associated value-added internet services such as hosting facilitation, virtual private network resale, and internet-based communication platforms.

It is important to understand the boundaries of this licence. Activity Code 6190.98 covers reselling, value-added services, and managed service provision. It does not authorise the operation of core telecommunications infrastructure or carrier-grade network facilities. Businesses intending to operate as a primary internet service provider at an infrastructure level, or those offering public telecommunications services, are required to obtain a separate service provider licence from the Telecommunications and Digital Government Regulatory Authority (TDRA) in addition to the free zone business licence.

For most managed service providers, connectivity resellers, and cloud access businesses, the 6190.98 licence combined with appropriate TDRA notification or registration is sufficient to operate legally within the UAE.

Who This Licence Is Suited To

This licence is well matched to a broad range of operators. Internet service providers entering the UAE market as resellers, managed service providers offering enterprise connectivity packages, cloud access and bandwidth resellers, and IT consultancies providing internet-enabled solutions will all find Activity Code 6190.98 appropriate for their scope of work.

Start-ups and SMEs looking to enter the GCC digital services market benefit from the free zone's low entry costs and flexible facility options. International firms seeking a UAE base from which to distribute internet services across the wider region will also find the structure straightforward to establish and maintain.

Costs, Setup Steps, and Licensing Requirements

Licence and registration fees at Dubai South Business Hub Free Zone vary depending on the package selected, the number of visa allocations required, and the type of workspace chosen. Indicative costs for a standard business licence with a flexi-desk arrangement and one visa allocation typically begin from approximately AED 12,000 to AED 20,000 per year. Dedicated office space attracts higher fees depending on size. Applicants should request a current fee schedule directly from Dubai South or an authorised registration agent, as pricing is subject to periodic revision.

The setup process follows a clear sequence:

• Reserve your company name and confirm activity code 6190.98 is included in your licence application

• Submit required documents, including passport copies for all shareholders and directors, a completed application form, and a business plan where requested

• Select your facility option (flexi-desk, serviced office, or dedicated unit)

• Pay the applicable licence and registration fees

• Receive your Business Licence, typically within 3 to 7 working days

• Proceed with visa applications, corporate bank account opening, and TDRA registration as required

A No Objection Certificate (NOC) may be required if any shareholder is currently employed or licensed in the UAE under a different entity.

Compliance and Ongoing Obligations

Licence holders must renew annually and settle renewal fees before the expiry date to avoid penalties or licence suspension. Businesses generating revenue above the AED 375,000 threshold are required to register with the Federal Tax Authority for UAE corporate tax purposes. Those exceeding the VAT registration threshold of AED 375,000 in taxable supplies must also register for VAT.

Internet services businesses operating in the UAE are subject to data protection obligations under Federal Decree-Law No. 45 of 2021 on Personal Data Protection, as well as cybersecurity requirements under the UAE Cybersecurity Law. TDRA regulatory compliance applies to the delivery of any internet or telecommunications-adjacent services to end users within the UAE.

Commercial Opportunity and Profit Potential

The margin profile for internet service resellers and managed connectivity providers in the UAE is generally favourable. Resellers of bandwidth and managed internet services typically operate on gross margins of 20% to 45%, depending on the volume of throughput, the value-added layer of the service offering, and the client segment served. Enterprise-focused managed service providers with long-term contracts tend to achieve more stable and higher margins than commodity resellers.

Cross-border and re-export of services is permitted from Dubai South Free Zone, allowing licence holders to serve clients located outside the UAE without restriction. This is a significant commercial advantage for businesses targeting the broader GCC market, East Africa, and South Asia, all of which face growing demand for reliable managed connectivity and cloud access services.

Dubai South's integrated logistics and business ecosystem provides additional growth levers. Proximity to one of the world's largest airport cargo hubs, an established community of technology and trade businesses, and direct access to major road and air freight networks support the scaling of digital service businesses operating from the free zone.

Frequently Asked Questions

How much does an Internet Services Business Licence at Dubai South cost?

Indicative fees for a Business Licence under Activity Code 6190.98 at Dubai South Business Hub Free Zone start from approximately AED 12,000 to AED 20,000 per year for a package that includes a flexi-desk and one visa allocation. Dedicated office units, additional visa allocations, and optional services such as PRO support will increase the total cost. Fees are revised periodically, so applicants should request a current quote from Dubai South or an authorised agent before proceeding.

Can a foreign national own 100% of the company?

Yes. Dubai South Business Hub Free Zone permits 100% foreign ownership for all registered entities. There is no requirement for a UAE national shareholder or local sponsor. This applies to both individual investors and corporate shareholders from any country.

Does this licence require TDRA approval?

The free zone Business Licence issued by Dubai South is the primary licence for commercial operation. However, businesses delivering internet access or telecommunications-adjacent services to end users within the UAE may also be required to register with or obtain a service provider licence from the Telecommunications and Digital Government Regulatory Authority. The requirement depends on the nature and scope of services provided. Resellers and managed service providers operating under 6190.98 should seek clarification from TDRA or a qualified adviser to confirm their registration obligations before commencing operations.

How long does it take to receive the licence?

From the point of complete document submission and payment, a Dubai South Business Licence is typically issued within 3 to 7 working days. Delays can occur if documentation is incomplete or if additional approvals are required. TDRA registration, bank account opening, and visa processing each run on separate timelines and should be factored into the overall setup plan.

What profit margins can internet service businesses expect in the UAE?

Managed connectivity providers and bandwidth resellers operating in the UAE generally achieve gross margins in the range of 20% to 45%. Businesses offering higher-value managed services, such as enterprise network management, secure access solutions, or cloud connectivity packages, tend to command margins at the upper end of this range. Commodity resellers operating on thin-margin bandwidth agreements will sit towards the lower end. Long-term enterprise contracts and recurring revenue models significantly improve margin stability.

Can I deliver services to clients outside the UAE from this licence?

Yes. Free zone entities registered at Dubai South are permitted to deliver services to clients located outside the UAE and to engage in cross-border service provision. This makes the licence suitable for businesses that wish to use the UAE as a regional hub for internet and connectivity service delivery across the GCC, Africa, and South Asia without being restricted to the domestic market.

Do I need a physical office or will a flexi-desk suffice?

Dubai South Business Hub Free Zone offers flexible facility options to suit different business sizes and budgets. A flexi-desk arrangement is available and is sufficient for many start-ups and small operators at the point of licence issuance. Businesses with larger teams, equipment requirements, or specific operational needs may opt for a serviced office or dedicated unit. The facility requirement may also influence the number of visa allocations available to the entity, so this should be considered when selecting a package.

What is the difference between Activity Code 6190.98 and a full ISP licence?

Activity Code 6190.98 authorises the provision of internet services at the reseller and value-added services level. It covers managed connectivity, bandwidth resale, and related internet-based services delivered to end users. A full ISP or carrier-grade licence, issued and regulated by TDRA, is required for businesses that wish to operate core telecommunications infrastructure, build and manage their own network, or provide public telecommunications services at the infrastructure level. Most managed service providers and connectivity resellers will operate comfortably under 6190.98 without requiring a full ISP licence.

Conclusion

An Internet Services Business Licence under Activity Code 6190.98 at Dubai South Business Hub Free Zone gives entrepreneurs and established operators a cost-effective, fully foreign-owned base to deliver connectivity and internet-related services across the UAE and the wider region. With a clear application process, a fast issuance timeline, and access to one of the Middle East's most dynamic business ecosystems, Dubai South represents a practical and commercially attractive choice for ICT businesses at every stage of growth.

Speak to a Dubai South authorised registration agent today to confirm your activity scope, obtain a current fee quote, and begin your application.

References and Further Reading

• Dubai South Official Website

• Telecommunications and Digital Government Regulatory Authority (TDRA)

• UAE Ministry of Finance: Corporate Tax

• Federal Tax Authority UAE

• UAE Government Portal: Types of Business Ownership

• UAE Cabinet: UAE Digital Economy Strategy

• UAE Ministry of Human Resources and Emiratisation