Steps to Setup a Software Company in Dubai, UAE

Steps to Setup a Software Company in Dubai, UAE

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Business Setup in Dubai
Steps to Setup a Software Company in Dubai

The technology industry has witnessed a massive rise and gaining momentum in the Dubai, UAE market, placing Dubai as the Silicon Valley in the Middle East and North Africa ( MENA) region.

Over the years, we’ve seen some tech giants like Apple, Microsoft, and Google having their regional offices in Dubai and the influx of many small software startups establishing their presence in this innovative market.

However, it might seem like the Dubai tech market is saturated with software companies offering the latest technological innovations through various services and products. Therefore, to thrive in this competitive market, you must clearly define your company’s unique value proposition, focus on identifying the specific problems you’ll solve, and pinpoint your target audience. This approach will help differentiate your business from competitors.

Knowing the right way to setup your software company in Dubai is essential for your business growth, and in this article, we’ll break down the steps to register your company in Dubai.

The Benefits of Starting a Software Company in Dubai

The advantages of business formation in Dubai extend beyond its strategic location and thriving tech sector. Dubai offers many incentives to local and foreign businesses, such as 100% business ownership to foreign investors.

Some of the other benefits you could gain in setting up your software company in Dubai include:

  • 0% personal income tax and a low corporate tax of 9%.
  • Unrestricted to transferring capital and profit.
  • Strong social-political regime.
  • Stable and growing economy.
  • Fast and stable internet access.
  • Vast Market Potential.
  • Ability to sponsor your immediate family in UAE.

How to Setup a Software Company in Dubai

Once you’ve chosen to setup a software company in Dubai, your first decision will be to get a business license in Dubai mainland or a freezone jurisdiction offering the type of business activity you offer.

You will also have to decide on your business’s legal structure, which determines your tax obligation in UAE and the ownership structure of your business. You can read more on the available options here.

Business License in Dubai Mainland vs Business License in Dubai Freezone.

Choosing whether to setup a mainland or freezone company in Dubai will depend solely on your company goal, target audience, and budget.

  • Getting a business license for starting your software company in Dubai mainland will give you access to trade and provide services to the entire UAE market and beyond. However, you may need a local sponsor to hold 51% of your company share.
  • A business license in Dubai freezone provides 100% ownership of your company with 0% tax rates. But, you will be limited to operating your company within the freezone jurisdiction.

The Key Steps to a Company Formation in Dubai

To setup a company in Dubai, it is mandatory to comply with the rules and regulations of registering a business in Dubai. Below are the steps to open a business in Dubai.

  • Draft a business plan stating your legal structure and license type, which in this case will be a commercial license in Dubai that permits the trading and provision of the business activity of your software company.
  • Choose your preferred jurisdiction to setup your business.
  • Choose a unique name for your company and apply for a trade name certificate from the Dubai Department of Economy and Tourism ( DET).
  • Collect the business registration form from DET or the preferred freezone authority.
  • Apply for initial approval from all relevant authorities.
  • Apply for a tenancy contract and secure an office in Dubai.
  • Once all initial approval is complete, apply for your company license in Dubai.
  • Next, pay all related fees and wait a few days to obtain the license.
  • Get your business license, apply for visas, and open a company account in a reputable bank in the UAE.

What is the Cost of Starting a Software Company in Dubai?

Regarding the cost of incorporating a company in Dubai, there’s no one-size-fits-all. The initial company formation cost in Dubai is determined by the following factors:

  • Your preferred legal structure.
  • Your business activities.
  • Number of visas required.
  • Your preferred jurisdiction.

We offer Expert Business Setup and Consultancy Services in Dubai, UAE.

If you are ready to open your company in Dubai and the UAE, Corporate Business Services (CBS) can assist you with the process from start to finish. We are an Emirati-owned business consulting company in Dubai specializing in company formation and licensing.

Our expert business consultant brings extensive knowledge and will guide you in every stage of the process. You can book a free consultation now to get started.  

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