How to Start an Information Technology Company in Dubai?

How can you start your own Information Technology Company in Dubai?

UAE is one f the most advanced technology country in the Middle East. Almost every industrial sector has seen unprecedented growth in Dubai and the Information Technology sector has been no exception to it. As we all know that the demand for Information Technology is at an all time high during these days and Technology is needed for most of the all businesses to stay afloat in this competitive world. Obtaining an Information Technology license in Dubai and commencing operations would be your gateway to prosperity.

The strategic location and time zone of the UAE make it easy to trade and collaborate with other trade hubs of the world. Low taxation system in UAE has been immense help which attract investment from all over the world. As per the new Law, an expatriate can own 100% of an Information Technology startup in the mainland which has increased investment opportunities in the country.

UAE government has been consistently making policies to make it easy for investors so as to set up their business within the country. The government understands the importance of Information Technology in the development of businesses and the economy as a whole. That is why they continue to provide incentives to foreign entrepreneurs.

The location of your firm is one of the most important decisions you will make while establishing an Information Technology company in Dubai. If you wish to engage in cross-border trade between Dubai and the United Arab Emirates, you may choose for the Dubai mainland. The Department of Economic Development provides you with all of the legal permits you need to get your company up (DED).

The establishment of a free zone in Dubai is a cost-effective option for business creation in the city. The Information Technology businesses that are located in free zones cannot take on government contracts. However, they can do business freely across the free zone and international markets. Due to the fact that each free zone has its own legal structure, you must choose the one that best suits your company’s needs.

If you wish to set up a Information Technology business in Dubai you have below option to invest in:

  • Technology Outsourcing
  • Call Center Outsourcing
  • Network Security
  • Management of IT services like cloud hosting, backup recovery, infrastructure monitoring etc.
  • Digital Transformation through the involvement of Digital Marketing
  • Server Installation and Maintenance

The main benefits for starting up the Information Technology business in Dubai Mainland are:

  • Freedom to take on any contracts throughout the UAE.
  • Freedom to access the global IT market.
  • Freedom to diversify the business operations.
  • 0% tax on personal incomes.
  • Unlimited growth potential.

What are the requirements to start a Information Technology company in Dubai, Mainland?

As a foreigner, if you are looking to invest in the information technology industry in the UAE you must comply with the various laws and regulations the government has put into place.

Before setting up the business, you must obtain a professional license from the Department of Economic Development in Dubai. The professional license allows you to engage in business activities in the UAE.

Here are the requirements or steps to be followed while applying for Information Technology licence in UAE and Dubai in particular:

  • Decide the trading activity and business structure: Choosing between a mainland company and a free zone company.
  • Choose the Legal Entity: Choosing what type of legal entity your business will be (sole proprietorship, partnership, corporation, S corporation, or Limited Liability Company (LLC)
  • Decide on the Trade Name: Once the above decisions are made, the procedure to start the company starts with choosing a trading name and articles of association.
  • Complete the Registration Process: The registration process will be completed with the trade register of Dubai. The license for various types of businesses is issued by the Department of Economic Development in Dubai.
  • Collect the Licence: The license will be issued by the relevant authorities when all the formalities have been completed.
  • Register your company name in immigration department and get an investor/partner visa issued for the owners of the business.
  • Apply for the bank account: to trade in the UAE as per your operations and transactions.
  • Hire right Team: Having the right team of technology experts and skilled resources is critical to IT business success. Employees must have the required technical expertise to do the job well and provide good service to the clients.

What documents are required to start an Information Technology company in Dubai, Mainland?

The investor once decides to open an IT firm in Dubai has to submit various kinds of documents to the Department of Economic Development and they are:

  • Passport of the owner and the partners of the firm.
  • UAE Visa or Entry Stamp
  • The local partners chosen by the investor need to submit a naturalisation book.
  • No Objection Certificate for expatriate partners’ from the various sponsors chosen.
  • The agreement of partnership must be signed in front of the notary.
  • The proof of payment of the initial approval fee.
  • No Objection Certificate from the sponsors
  • Partnership agreement to be signed in front of a notary
  • A single investor needs to pay 10,000 Dirhams, whereas partners who possess a professional license needs to pay 20,000 Dirhams as a security deposit.
  • The company is mandated to have a registered office, for which the owner might add a tenancy contract.

The Emirate provides the flexibility to register the IT companies as a professional firm with full ownership, as well as a sole proprietorship.

How much does it cost to start an Information Technology business in Dubai, Mainland?

The cost of obtaining the information technology licence will depend on many factors based on your location, business activities, company size , activities chosen, government fee and other operational costs.

If you are looking to start an information technology business in the UAE, it is recommended that you work with company formation professionals who have exceptional expertise in business set up formalities. They also have the necessary connections that help make the whole process smooth and effortless. Remember that the process is only easy and hassle-free when the business setup is done without any error.

Infographic on how to start your Information Technology Company in mainland Dubai

how to start your Information Technology Company in mainland Dubai
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