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Amee Mehta

Non-Commercial Information Services Business License in Dubai

Non-Commercial Information Services Business License in Dubai

As the UAE cements its position as a global digital economy hub, Dubai South Business Hub Free Zone offers a direct pathway for information service providers to operate under a structured, compliant framework. This guide covers everything you need to know about obtaining a Non-Commercial Information Services Business Licence (Activity Code 6399.97) at Dubai South, from setup costs and steps to compliance requirements and market opportunity.

Key Stats at a Glance

Activity Code: 6399.97
Licence Type: Business Licence
Category: ICT
Free Zone: Dubai South Business Hub
Foreign Ownership: 100% permitted
Corporate Tax on Qualifying Free Zone Income: 0%
Personal Income Tax: None
UAE Digital Economy GDP Target: 20% contribution
Typical Licence Timeline: 2 to 4 weeks

Dubai's ICT Landscape and Market Opportunity

Infographic: Non-Commercial Information Services Business License in Dubai

The UAE's ICT sector continues to expand at a significant pace, underpinned by government-led digital transformation programmes and strong private sector investment. The UAE Digital Economy Strategy aims to double the digital economy's contribution to GDP, targeting a 20% share, making it one of the most ambitious national digitalisation agendas in the region. This creates a compelling environment for information service providers seeking a stable and growth-oriented market.

Dubai South is strategically positioned adjacent to Al Maktoum International Airport, which serves as a logistics and connectivity gateway linking Asia, Africa, and Europe. This geographic advantage is particularly valuable for businesses that distribute information assets or data services across multiple regions and time zones.

Free zone ICT licences attract global operators for several reasons. Businesses benefit from streamlined registration processes, full repatriation of profits, and access to a business-friendly regulatory environment. With the UAE ranking consistently among the world's top destinations for ease of doing business, Dubai South's Business Hub Free Zone presents an efficient and credible base for information service operators looking to establish a regional or international presence.

What the Non-Commercial Information Services Licence Covers

Activity Code 6399.97 falls under the ICT category and covers the provision of non-commercial information services not elsewhere classified under the ISIC framework. This licence is issued as a Business Licence by Dubai South Business Hub Free Zone and is designed for entities that collect, process, and disseminate information without a direct commercial transaction being the primary purpose.

Permitted activities under this classification typically include data aggregation, information dissemination, reference services, and the operation of knowledge-sharing platforms. The licence distinguishes itself from commercial information service activities by focusing on the non-transactional provision of information, which may include research outputs, public interest data, or educational reference material.

Under the ISIC classification system, non-commercial information services sit apart from paid database services or subscription-based information products. This distinction matters for regulatory compliance, VAT treatment, and the nature of partnerships an organisation may form with public bodies or academic institutions.

Who This Licence Is Suited For

This licence is well suited to a range of organisations and individuals, including:

Non-profit information bodies and research dissemination organisations seeking a formal UAE presence
Knowledge-sharing platforms and open-access data initiatives targeting the Middle East and North Africa region
Entrepreneurs and SMEs that require a compliant ICT base within a free zone environment
Foreign nationals and corporate groups that wish to retain 100% ownership without the need for a local sponsor

Setup Costs, Steps, and Timelines

Setting up under Activity Code 6399.97 at Dubai South Business Hub Free Zone involves a transparent process with clearly defined stages. Indicative costs include the licence registration fee, which varies depending on the selected office package and number of shareholders. Flexi-desk arrangements are available at a lower cost than dedicated office units, making this an accessible option for lean or early-stage operations.

The step-by-step process typically follows this sequence:

Submit an initial application form to the Dubai South Business Hub Free Zone authority
Provide the required documentation including passport copies, a business plan, proof of address, and shareholder details
Await review and any requests for additional information or approvals
Receive in-principle approval and pay the applicable licence and registration fees
Collect the issued Business Licence and proceed with visa applications and bank account opening

From application submission to licence issuance, the process typically takes between two and four weeks, provided all documentation is complete and no additional regulatory approvals are required.

Key Documents Required

Applicants should prepare the following documents before submitting their application:

Passport copies for all shareholders and directors
A concise business plan outlining the nature of the information services to be provided
Proof of residential address for each shareholder
Shareholder and ownership structure details
Any applicable No Objection Certificates (NOCs) if the activity intersects with regulated information domains

Licensing, Compliance, and Regulatory Requirements

Once issued, the Business Licence is subject to annual renewal with the Dubai South Free Zone Authority. Licence holders must maintain their registered office address within the free zone and comply with all applicable free zone regulations, including timely renewal of trade licences and employee visas.

UAE Federal data protection legislation, including the Federal Decree-Law No. 45 of 2021 on the Protection of Personal Data, applies to organisations handling personal data as part of their information services. Businesses should ensure their data handling practices align with these requirements from the outset.

Foreign ownership is fully permitted within Dubai South Free Zone, meaning there is no requirement to appoint a UAE national as a sponsor or partner. This is a significant advantage for international operators and corporate groups.

With regard to VAT, the UAE applies a standard rate of 5% on most goods and services. Businesses with taxable supplies exceeding AED 375,000 per annum are required to register for VAT with the Federal Tax Authority. Non-commercial information services may qualify for exemptions or zero-rating in specific circumstances, and professional tax advice is recommended to confirm treatment for a particular activity.

Why Dubai South Is the Right Base for Information Service Providers

Dubai South offers a combination of infrastructure, talent, and tax advantages that few global free zones can match. The zone's proximity to Al Maktoum International Airport provides world-class logistics connectivity, supporting the distribution of information products and services across international markets.

The UAE's diverse, multilingual workforce means businesses can recruit professionals with expertise across technology, research, communications, and data management. This talent pool is essential for organisations building information service operations at scale.

From a tax perspective, qualifying free zone businesses benefit from a 0% corporate tax rate on eligible income, and there is no personal income tax in the UAE. These advantages, combined with full profit repatriation rights, make Dubai South a financially attractive base.

The zone's growing ecosystem of ICT businesses, proximity to government entities, and links to technology parks across Dubai further strengthen the case for information service providers seeking a well-connected, future-ready operational base.

Frequently Asked Questions

How much does a Non-Commercial Information Services licence at Dubai South cost?

Indicative costs include the licence registration fee, free zone establishment card charges, and any applicable government processing fees. The total cost varies depending on the office package selected, the number of shareholders, and the number of visa allocations required. Flexi-desk packages are the most cost-effective entry point, while dedicated office units attract higher fees. It is advisable to request a current fee schedule directly from Dubai South Business Hub Free Zone, as costs are subject to periodic revision.

Can a foreign national own 100% of this business?

Yes. Dubai South Business Hub Free Zone permits 100% foreign ownership for all registered businesses, including those operating under Activity Code 6399.97. There is no requirement to appoint a UAE national as a local sponsor, partner, or agent. This makes it straightforward for international entrepreneurs and corporate groups to establish and retain full control of their operations.

What regulatory approvals are required for Activity Code 6399.97?

In most cases, the standard Business Licence application process does not require additional sector-specific approvals for non-commercial information services. However, if the activity involves handling sensitive data categories, disseminating information related to regulated industries, or operating in areas that intersect with UAE federal regulations, a No Objection Certificate from the relevant authority may be required. The Dubai South Free Zone Authority will advise applicants if any additional approvals are necessary during the review process.

How long does it take to obtain the licence?

The typical timeline from application submission to licence issuance is two to four weeks, provided all required documents are submitted in full and no additional regulatory approvals are needed. Delays can occur if documentation is incomplete or if supplementary approvals are required. Engaging a registered business setup adviser familiar with Dubai South processes can help streamline the application and reduce processing time.

What profit margins can information service businesses expect in Dubai?

Profit margins for information service businesses in Dubai vary considerably depending on the nature of the services, the target audience, and the scale of operations. The UAE's ICT sector is characterised by strong demand for data-driven services, and non-commercial operators that partner with government bodies, academic institutions, or international organisations can benefit from grant funding and institutional contracts. Operating costs within a free zone are generally competitive, and the absence of personal income tax and zero corporate tax on qualifying income support healthier net margins compared with many other jurisdictions.

Can this licence be used for re-export of information services?

Yes. A Business Licence issued within Dubai South Free Zone permits cross-border service delivery, meaning information services can be provided to clients and partners outside the UAE. This includes the distribution of research outputs, data aggregation services, and reference materials to international recipients. The free zone's connectivity and regulatory framework support the use of Dubai South as a regional hub for information service distribution across the Middle East, Africa, and Asia.

What facility requirements apply to this licence?

Licence holders must maintain a registered address within Dubai South Business Hub Free Zone. The free zone offers flexible options including flexi-desk arrangements, co-working spaces, and dedicated office units. Flexi-desk packages satisfy the minimum physical presence requirement and are popular among lean operations or businesses in the early stages of growth. Larger organisations or those requiring dedicated facilities can lease private office units within the zone. The specific facility requirement will depend on the number of visa allocations required and the nature of the business activity.

Is VAT applicable to non-commercial information services in the UAE?

The UAE applies VAT at a standard rate of 5%. Businesses whose taxable supplies exceed AED 375,000 per annum must register for VAT with the Federal Tax Authority. Non-commercial information services may attract different VAT treatment depending on the specific nature of the activity, the recipients of the services, and whether the services are provided within the UAE or to overseas clients. Zero-rating may apply in certain cross-border scenarios. Professional tax advice from a UAE-registered tax adviser is strongly recommended to determine the correct VAT treatment for your specific activity.

Conclusion

A Non-Commercial Information Services Business Licence at Dubai South Business Hub Free Zone offers a cost-effective, fully compliant route into one of the world's fastest-growing digital economies. With 100% foreign ownership, zero corporate tax on qualifying free zone income, strong logistics infrastructure, and a clear regulatory framework under Activity Code 6399.97, Dubai South provides an ideal operational base for information service providers targeting regional and international markets.

Contact a Dubai South-registered business setup adviser today to begin your licence application and take advantage of the UAE's expanding ICT opportunity.

References and Citations

Frequently Asked Questions

What is the Non-Commercial Information Services Business License in Dubai South?

The Non-Commercial Information Services Business License (Activity Code 6399.97) is an ICT category license issued by Dubai South Business Hub Free Zone. It is designed for entities that collect, process, and disseminate information without a direct commercial transaction being the primary purpose, covering activities such as data aggregation, information dissemination, reference services, and knowledge-sharing platforms.