Dubai offers many investment opportunities for those looking to start a business. In the IT industry, many large companies have opened subsidiaries in Dubai, but the city also offers many smaller IT companies options. The submission process is relatively easy once you fulfill all the requirements.
In the following, we describe the basic requirements that you must meet while setting up an IT business setup in Dubai.
Eyes from all over the world have been in Dubai’s software industry for quite some time. As part of the UAE’s $ 8 billion IT market, it is home to some of the most exciting names in development.
Often referred to as the Middle East Silicon Valley, Dubai attracts some of the best in the business to its coastline, and it’s easy to see why.
The emirate’s location and timezone make it the ideal place to trade and collaborate with other technology centers worldwide. Then there is a low tax environment, a supportive business environment, and a transparent company formation process.
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What Are The Consideration To Start a Software Company in UAE?
Before applying to start a software company in Dubai, do a study of its free zones. The free zone in the UAE is often the most profitable way to start a business here.
Free zones offer universal benefits such as 100% tax exemption and repatriation of capital and profits and allow entrepreneurs to retain ownership of their business. Most also provide office and coworking space, reception enclosures, access to meeting and conference rooms, telephone use, broadband access, and the like.
Each free zone also offers several specific benefits, some of which tailors to particular industries.
As the software company owner, you need to find a free zone to serve the technology sector.
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Reasons to Open IT Business in Dubai, UAE
One of the main reasons foreign investors start IT companies in Dubai is the lack of corporate taxes and free return of profits when the company locates in a free zone. In addition to tax concerns, foreign investors have access to a wide range of talented workers who have moved to Dubai from around the world and to one of the most developed internet infrastructures in the region.
A representative from our company in Dubai can provide more information about the IT industry’s incentives in the UAE.
Requirements to Start Software Company in UAE
The IT sector has become very popular with domestic and overseas investors looking to open a Dubai business. One of the reasons this industry is so popular is that the UAE is one of the most technologically advanced countries in the Middle East and the country’s government, for that matter, thanks to the online services offered to the people and businesses in the country, is quite advanced.
Get Professional License To Start Business in Dubai, UAE
Before starting an IT company based in Dubai, he had to get a professional license that would allow him to carry out business activities. Get a professional trade license from the Ministry of Economic Development (DED) in Dubai.
The steps for getting a professional license are to reserve a name and approve the activities carried out by the Department of Economic Development in Dubai. Dubai IT company can be registered as a professional company or a wholly foreign-owned sole proprietorship.
Documents To Start Business of IT in Dubai
Submit the documents to the Ministry of Economic Development (DED) in Dubai:
- A copy of the passports
- Proof of payment of pre-approval fees,
- A copy of the local partner’s naturalization books, letters without objection to the foreign partners of their sponsors
- Partners with professional licenses are required to pay 20,000 dirhams each as a deposit. an investor must pay 10,000 dirhams,
- Sign the partnership agreement in front of a notary public.
- An IT company must have a registered office. Therefore the owner must also add a lease agreement when applying for a professional license.
Location to Start IT Business in Dubai
The IT industry has benefited from the Dubai government’s support, and foreign investors will find plenty of opportunities here. However, the development of free zones in Dubai allows IT companies to establish special free trade zones in emirates such as Dubai Media City, Dubai Internet City, or Dubai Silicon Oasis, known as “Silicon Valley” in the UAE.
Before deciding where to find an IT company, foreigners need to consider the following: To register a land company in Dubai, you need a local sponsor or partner who owns 51% of the company shares, while in Free Zone Companies, foreigners will hold the entire company. Our startup agency in Dubai can assist IT company integration in the emirate and any free zone.
If opening an IT company in Dubai includes obtaining a DED business license, the free zone authority will issue a permit to the IT company located here.
What is the Cost of Starting IT business in Dubai, UAE?
It is not easy to determine the exact cost of starting a software company in Dubai. There are many factors to this game. Are you planning to be self-employed or hiring employees? Do you need a permanent place, or is there enough coworking space?
No matter your business’s size or mindset, doing business in the free zone can be a great way to keep startup costs down. Free zones like Dtec offer flat rates, including visa applications and the use of office space.
The Flexi-Desk package includes, for example, a service license, use of a work area in a common area, and authorizations for two visas. This plan starts at AED 18,000 per year.
Conclusion
Foreign investors looking to start an IT business in Dubai can also look for mainland Dubai options, even if they need a local sponsor here. The greatest benefit one can get in starting an IT company in Dubai is its ability to provide services to customers worldwide. It is because Dubai is very trustworthy in terms of the business environment.
