6 Easy Steps to Setup an IT Company in Dubai, UAE

6 Easy Steps to Setup an IT Company in Dubai, UAE

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Business Setup in Dubai
Setup an IT Company in Dubai, UAE

Dubai offers a robust and thriving market for the information technology (IT) sector. It has successfully attracted prominent industry leaders, including Google, Amazon, Microsoft, and Oracle, underscoring its significance as a key player in the global IT landscape in Dubai.
Over the years, many tech entrepreneurs have found Dubai, UAE, a fertile ground for setting up an IT company. One reason is that Dubai offers a lucrative market in the information technology ( IT) sector and continues to promote entrepreneurship by providing foreigners with 100% company ownership.
In this article, we describe how to easily setup an IT company in Dubai and recommend some freezones in Dubai for starting an IT Company.

Setup an IT Company in Dubai, UAE

Why Setup an IT Company in Dubai?

Given Dubai’s advancement in tech innovations, the city hosts 93% of the UAE tech startups and is often referred to as the Silicon Valley of the Middle East.

Setting up an IT company in Dubai can be a strategic move for any aspiring entrepreneur and established companies looking to expand their market in the region. Thanks to its strategic location, favorable business policies, and specialized freezones with cutting-edge infrastructure designed to support the various business activities related to the tech sector, such as APP development, Saas, Fintech, Artificial Intelligence (AI), and, of course, computer hardware and networking services.

However, some of the major reasons why Dubai is a perfect launchpad for IT companies include:

  • Dubai offers the opportunity for 100% foreign ownership when establishing a company.
  • The process of setting up a business in Dubai is notably more streamlined compared to many other countries. Furthermore, there is no personal income tax, and the corporate tax rate is competitively low, ranging from 0% to 9%. This favorable tax environment positions Dubai as one of the most attractive business destinations globally.
  • Establishing a company in Dubai also enables the sponsorship of family members, including spouses, children, and parents, to reside in the UAE. Additionally, the UAE market is highly competitive, providing excellent access to business opportunities across Europe, Asia, and Africa.

Business Structures in Dubai for Starting an IT Company

Choosing the right legal structure for setting up a company in Dubai is vital. Dubai offers several options for foreign investors and entrepreneurs, allowing you to select the ownership structure best suited for your company. Below are the two most common options available:

  • Sole Proprietorship: A sole proprietorship company structure allows for a single ownership of the company.
  • Limited Liability Company (LLC): An LLC is the most common business structure in Dubai; it allows for up to 50 shareholders.

Choosing Between Mainland and Freezone Business Setup in Dubai

Choosing whether to set up your tech company in Dubai is crucial. Your choice of business jurisdiction will influence how you operate and do business in Dubai and the UAE.

Ideal Freezones for IT Company Formation in Dubai

Although Dubai is the home of over 20+ freezone authorities, some freezone in Dubai are specifically designed for the tech industry and are ideal for IT company formation in Dubai. Let’s explore some ideal freezones for opening a tech startup in Dubai.

  • Dubai Internet City Freezone ( DIC): Dubai Internet City Freezone (DIC) is a prominent hub for leading technology companies, including Microsoft, Sony Ericsson, HP, and Oracle. Established in 1999, DIC provides a robust infrastructure that supports the growth and development of emerging tech enterprises, fostering an environment conducive to innovation and collaboration.
  • Dubai Silicon Oasis Freezone (DSO): The DSO freezone serves as an excellent destination for technology professionals in Dubai. It provides access to a tier 3 data center featuring robust business infrastructure and substantial networking opportunities. Additionally, DSA offers a streamlined company formation process, facilitating a more efficient establishment of operations.
  • Dubai Techno Park (DTP): The Dubai Techno Park freezone presents an excellent opportunity for launching a software company. It is home to several multinational IT companies, making it a prime location for fostering innovation and collaboration within the technology sector.

6 Easy Steps to Open an IT Company in Dubai

Launching an IT company in Dubai, whether as a mainland or free zone entity, can be a straightforward endeavor when supported by an experienced business setup service provider.

For tailored assistance throughout the company registration process, our business consultants are available to guide you at every stage, ensuring a smooth experience from inception to completion.

Here is how you can easily setup your tech company in Dubai.

  1. Draft a clear business plan outlining your business objectives, activities, and legal structure.
  2. Decide on whether to setup a mainland or freezone company in Dubai.
  3. Select a suitable and unique name for your company and secure a trade name reservation from the Dubai Department of Economy and Tourism (DET).
  4. Make ready all required documents with the help of a business advisor and apply for initial approval from relevant authorities.
  5. Apply for your business license in Dubai and pay the related cost.
  6. Obtain your business license and apply for Visas, open a business bank account in UAE, and start your business operation.

Please be aware that the process may vary based on your specific jurisdiction and legal requirements. For this reason, it is advisable to consult with a qualified business advisor in the UAE to ensure compliance and effectiveness.

Required Documents to Apply for a Tech Business License in Dubai

  • Passport copies of all company’s shareholder
  • An Application form from DET or your chosen freezone
  • A proof of address.
  • Copy of UAE visit or residency visa
  • A No Objection Certificate is required.

Get in Touch With an Expert Business Consultant in Dubai

If you are considering establishing an IT company or seeking business consulting services in Dubai and the UAE, our team at Corporate Business Services (CBS) is here to assist you.

As an Emirati-owned consulting firm, we specialize in supporting investors and entrepreneurs in setting up and managing their businesses in Dubai.

We invite you to request a free consultation. During this consultation, we will provide comprehensive guidance to ensure the successful launch of your venture in Dubai.

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