Company Formation in DIAC (Dubai International Academic City)

Company Formation in DIAC (Dubai International Academic City) is your gateway to the largest education hub in the MENA region. The free zone is part of TECOM Group's portfolio and is devoted entirely to higher education: it hosts campuses of international universities from Australia, the UK, India and beyond, and its community exceeds 27,000 students and academic staff.
Content reviewed:
Serhii
Serhii
Senior Attorney at Dynasty Business Adviser
Content reviewed
Updated: 07.08.2026 Reading time: 4 minutes
Company Formation in DIAC (Dubai International Academic City)
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Participation is flexible — from a full university branch campus to a training centre, an edtech venture or a freelance permit under the GoFreelance programme. Education activity in Dubai’s free zones is additionally regulated by KHDA, the Knowledge and Human Development Authority, and this is a key factor when planning timelines.

Company Formation in DIAC (Dubai International Academic City), image 1

Why choose DIAC

An education project needs more than a licence — it needs an ecosystem: students, partner universities and a clear regulator. DIAC brings all of this together on one campus.

  • The largest academic cluster in MENA: international universities and 27,000+ students on your doorstep
  • A clear regulatory framework: the zone licence plus a KHDA permit for education programmes
  • 100% foreign ownership and full profit repatriation, standard across UAE free zones
  • Flexible space options: build-to-suit campuses, ready-made offices, D/Quarters coworking and land for development
  • An easy entry point for smaller players: the in5 incubator and the GoFreelance package for teachers
  • A growing market: the zone’s student community grew 15% year on year, according to TECOM Group

Steps to register a company in DIAC

The main decision is made at the outset: a university branch offering degree programmes, or a training centre issuing certificates. This drives the KHDA requirements, the timelines and the budget.

  1. Choose the format: university branch, training centre, edtech company or freelance permit
  2. Submit the application to DIAC and reserve the company name
  3. Clear the education activity with KHDA; for universities, accredit the programmes
  4. Prepare the documents and pay the registration fees
  5. Choose your premises: a campus, an office or a desk at D/Quarters coworking
  6. Obtain the licence, arrange staff visas and open a bank account

A training centre can realistically launch within a few weeks. A university branch with accredited degree programmes is a project measured in months: KHDA reviews every programme, and these timelines should be built into your student-intake plan.

Cost of setting up a company in DIAC (2026)

TECOM Group does not publish DIAC tariffs openly: the estimate is built around your activity format and floor space. The budget breaks down as follows.

Cost item Amount, AED Comment
Registration fees on request One-off payments when incorporating the company
Zone licence on request Depends on the format: university, training centre, edtech
KHDA permit on request A separate procedure for education activity
Rent: campus, office or coworking on request The main budget line, calculated by floor area
GoFreelance package on request A budget entry route for solo teachers
Residence visa on request Medical test and Emirates ID are paid separately

Get a quote

Request a quote from DIAC and KHDA at the same time: the regulatory fees for programme accreditation sit separately from the zone licence. For a university, it is these fees and the premises that shape the final estimate.

Taxation in DIAC

DIAC residents operate under the UAE’s general tax regime: 9% corporate tax on profit above AED 375,000 a year and 0% below that threshold. Where the conditions are met, Qualifying Free Zone Person status is available, with a 0% rate on qualifying income. VAT is 5%, though certain education services in the UAE fall under the zero rate — the FTA defines the list of conditions, and for universities this noticeably affects pricing. Bookkeeping and filing via EmaraTax are mandatory for every company.

Company Formation in DIAC (Dubai International Academic City), image 2

Who DIAC suits

  • International universities and colleges opening a campus in the UAE
  • Training centres, language schools and providers of professional certifications
  • Edtech companies and independent teachers who value a student audience close by

“In DIAC it is vital to lock in the format from day one: a training centre and a university branch mean different budgets, different KHDA timelines and different premises requirements. Switching format halfway through is expensive”, notes a senior lawyer at Dynasty Business Adviser.

Open a company in DIAC with Dynasty Business Adviser

We will help you choose the format for your education project, clear it with KHDA, obtain the DIAC licence and open a bank account. We will prepare an estimate based on official TECOM Group data before you sign your first contract.

Get a consultation


    Pricing data is accurate as of the publication date (13 July 2026) and verified against open sources, including diacedu.ae; before making any payment, confirm the tariffs directly with the zone administration.

    Content reviewed by
    The company's lead attorney
    An expert with over 14 years of legal practice experience, possessing a deep understanding of corporate legislation and regulatory requirements across international jurisdictions. Specializes in international tax planning, business structuring, and corporate governance, with practical experience in the business and legal environment of the countries of the GCC.
    Who will you communicate with?
    Customer Service
    Manager
    We will discuss your request and issue, find the optimal solution, and pass the project to the appropriate specialist. We will provide information about the company's services and introduce you to leading specialists within the company.
    Legal
    Consultant
    After consultation with the customer service manager, the legal consultant conducts a more in-depth analysis of your request and develops project strategy options and preliminary organization of all processes.
    Lead Company
    Lawyer
    Will coordinate with you the strategy and stages of further work and conditions. Will be responsible for coordinating the work of the legal consultant, ensuring the correct implementation of the strategy, providing individual approach, and ensuring compliance of the team's activities with legal norms.
    Project
    Manager
    Manages your project within the company, coordinates team activities, and ensures that project goals are achieved on time. Responsible for planning, executing, and monitoring assigned tasks.
    Public Relations
    Manager (PRO)
    Represents your interests in government agencies, including handling company registration and subsequent processes, obtaining additional permits, and accompanying you during visits to government agencies.
    Accounting Department
    Manager
    Will communicate directly with you regarding accounting issues, transactions, and necessary documentation. Ensures the correctness and order of your financial flows functioning.

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    Serhii
    Serhii Senior Attorney at Dynasty Business Adviser

    Frequently asked questions

    Is a KHDA permit mandatory to operate in DIAC?

    Yes. Education activity in Dubai’s free zones requires a KHDA permit in addition to the zone licence. For a university’s degree programmes the review runs deeper and longer than for certificate courses.

    How does a training centre differ from a university branch in DIAC?

    A training centre issues course certificates and can launch within weeks. A university branch teaches accredited degree programmes — its KHDA requirements, timelines and fees are considerably higher.

    Can I work in DIAC as a freelance teacher?

    Yes — that is exactly what the GoFreelance package is for, TECOM Group’s official freelance permit for the education sector. It is the most affordable way into the cluster, with the cost confirmed on request.

    How much does a DIAC licence cost?

    There is no published price list: TECOM Group builds the estimate around your activity format and floor space, while KHDA adds its own regulatory fees. Request both components in writing before you start the project.

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