Dubai has a well-structured IT industry and is one of the Emirates, which offers adequate conditions for setting up relevant operations. In Dubai, for instance, and particularly in the free zones produced for this form of activity, it is possible to open a software company. The IT (Information Technology) sector has been pushing forward and is successful and very efficient because of several factors. This involves federal and local policymakers’ funding and awareness that having a productive environment and tech-savvy technologies is the basis for improving urban development driven by new technology.
What is a Software Company?
In Dubai, with a series of application software and its documentation, software company allows you to understand the customer’s needs and problems, and it is relevant in different areas, medicine, accounting, and engineering. It also offers device capabilities that are designed to operate on notebooks and portable devices. There have also been recent technologies that have entered the sector. In Dubai, with a series of application software and its documentation, software company allows you to understand the customer’s needs and problems, and it is relevant in different areas, medicine, accounting, and engineering. It also offers device capabilities that are designed to operate on notebooks and portable devices. There have also been recent technologies that have entered the sector.
- Large and well-known companies producing Commercial off-the-shelf (COTS), such as Microsoft, SAP AG, Oracle Corporation, HP, Adobe Systems, and Red Hat
- Smaller companies that produce custom software for other companies and entrepreneurs, such as RIKSOF
- Companies producing specialized Commercial off-the-shelf (COTS) software, such as Panorama, Hyperion, Siebel Systems, Gazit IT, Enigma Technologies
- Companies producing Software as a Service SaaS, such as Google, Facebook, LinkedIn
- Companies producing software components, such as Developer Express, Dundas, Component One, and Sohn Software
- Application Service Provider such as Salesforce
- Companies producing bespoke software for vertical industries or particular geographical regions
In the UAE, Dubai is one of the Emirates, where they enjoy such technologies without any time and grow into a technology-arranged culture. Now is the perfect time for any business owner to establish a tech or equipment company in Dubai to take advantage of the new market trend.
How to Set Up Software Company in Dubai
In order to set up your technology company in Dubai, you first need to determine your target market. It is recommended that you set up your company on the mainland of Dubai if you wish to do more local business alongside the foreign business. The Department of Economic Development (DED), Dubai, which governs licenses on the Dubai Mainland, has introduced numerous adjustments to simplify the procedures and the cost of launching a company on the Dubai Mainland.
The other option is to set up shop in the Free Zone if your target market is strictly domestic. Free zones are governed under their own legal structure and are unable to conduct business activities on the mainland. In order to carry out their business on the local market, certain companies registered in free zones need to choose a local distributor/service agent on the Mainland but are licensed without restrictions for doing international business.
Mainland Business Setup
An expatriate must keep in mind that in order to set up an onshore or a mainland LLC company, it is mandatory to have a local sponsor hold and own 51% of the ownership shares.
Free Zone Business Setup
A free zone Entity for a foreign investor would be a more favorable choice as it provides:
- The flexibility of tax-free trading
- Complete capital ownership of 100%
- Profit repatriation that equals 100%
Dubai has a number of free specialty zones and is assigned to each area that interests foreign investors mainly and adequately. Of the several options, there are free zones situated in Dubai that are dedicated to IT businesses, whether in the TECOM group or not. For the establishment of offshore companies or the growth of onshore free zone businesses, the most preferred free zones are:
Dubai Internet City (DIC)
As part of the TECOM network, DIC provides creative, interactive strategic solutions for innovation. The DIC group is becoming the largest ICT center in the MENA region with generous regulations that promote trade success, fostering entrepreneurs, facilitating SMEs, and attracting global ICT leaders where a company accesses a huge network of information workers, diverse services providers, and universal expertise.
Dubai Techno Park (DTP)
Within the commercial/industrial zone, Dubai Techno Park (DTP) is an IT park to promote technological development, as it is part of the Jebel Ali industrial zone. It is currently home to many of the world’s leading technology companies specializing in technology, oil, gas, and petrochemicals, among other industries, making it one of the Mena region’s largest industrial hubs.
Dubai Silicon Oasis (DSO)
DSO is constructed as a hi-tech environment that offers a wide range of advantages, offering a supportive and enticing set of incentives with all the facilitation needed for a proper IT industry activity for interested business owners. This includes, but is not limited to, low-cost operational options, IT-friendly Tier III Data Center facilities, and unrestricted access to talented experts in technology and engineering.
Requirements for Setting Up a Software Company in Dubai
The tech domain in Dubai is one of the more established and important IT branches, as there are many companies that offer innovative services and public service applications in the area. It is suggested that attention should be given to the appropriate licenses and, in particular, to the technical ones issued by the Ministry of Communication and Information Technology of the United Arab Emirates for the registration of an IT business in Dubai.
Prior to making your application for a software license in Dubai, you must first define your market practices. This will help you evaluate the right license and configuration type for your business and will help organize the application for your agent for the company setup. Next, for a business, you’ll have to choose a label. It’s better to do this upfront, so you would have to record it before you can exchange in the UAE. You would have to abide by a few naming conventions on which you have to comply. Which are:
- Only full names allowed, no abbreviations.
- Cannot include any potentially offensive or blasphemous words.
- Must be available to register.
The steps for obtaining the professional license are:
- Reservation of the name
- The approval for the business activity to be undertaken with the Department of Economic Development in Dubai
- IT companies in the Emirate can be registered as professional firms with full foreign ownership and as a sole proprietorship as well
Today, with your software, you can apply for a license. You are free to make this request yourself but working closely with a free zone or business setup agent is preferable at this point. They will make sure that the submission is right to prevent any needless trouble later down the road. Before making your submission, you are normally required to have such important papers, such as a passport copy and a business plan.
The documents to be submitted with the DED in the Emirate for company formation are the following:
- Copies of passport of the person and his/her partners’ requesting the license
- Proof of payment of the initial fee for approval
- Local partner’s naturalization book’s copy
- NOC for foreign partners from their sponsors
- For professional license, partners are required to pay AED 20,000 each as a security deposit; a single investor has to pay AED 10,000
- The partnership agreement has to be signed in presence of a notary
Your software company has to have a registered office which means that the owner also required to add a tenancy contract when applying for the professional license.
Why Open a Software Company in Dubai?
Dubai is a multi-financial business hub and a great destination for creating all kinds of activities, irrespective of the chosen domain. In addition to the lucrative taxation scheme offered mainly in the Dubai Free Zones, the IT company delivering digital products and services would expand exponentially, as the authorities have centered on improving lives with the aid of technology. Mostly, public services in the Emirate are a top priority when talking about how they can be technologically advanced.
Those who want to start a Dubai tech business should choose different frameworks since this type of organization is suitable for those who want to set up a small or large corporation. A commercial or technological license, as well as other special permits issued by the Ministry of Communication and Information Technology, shall constitute the licenses required to create such a corporation. Our consultants at Riz and Mona Consultancy will assist in planning documents relevant to the start-up of a tech business in Dubai. Ask us for support with the business registration process of a tech firm in Dubai.