The explosive growth of the IT (Information Technology) sector on the world stage has left an indelible imprint on the year 2020 and beyond. Even after the onset of the COVID-19 pandemic, the information technology industry remained resilient and was one of the first sectors to adjust to the “new normal.” As a result, if you are considering establishing an information technology business in Dubai, you have picked the right moment and the perfect location.
The United Arab Emirates offers specialised free zones that provide sophisticated infrastructure and a contemporary working environment for establishing an information technology business in Dubai. A software firm in the United Arab Emirates may manage a wide range of commercial operations. Creating a technology business that specialises in app development or providing SaaS (software as a service) services is a possibility. Your area of expertise may also include biotechnology, information technology for finance, and other related fields.
What is the best location in Dubai to start an IT business?
The location of your firm is one of the most important decisions you will make while establishing an IT 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). Therefore, it is less difficult to orient your company toward an international perspective and to grow your presence inside the United Arab Emirates. You must also collaborate with a local sponsor who will own 51 percent of the business’s ownership shares in order to establish a mainland limited liability corporation.
The establishment of a free zone in Dubai is a cost-effective option for business creation in the city. 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. When the business facility is located in a Dubai free zone, the expatriate may benefit from 100 percent ownership of the company. Fortunately, the United Arab Emirates offers a number of information technology-oriented free zones that make your choice simpler.
Jurisdictions that are suitable for a software business include:
A dream free zone for any tech-savvy enthusiast, Dubai Silicon Oasis (DSO) is located in the Emirate of Dubai. Every employee in this free zone is motivated to work even harder to achieve their objectives and to make the world a better place via their technological solutions because of the positive working environment. Furthermore, you will get a tier 3 data centre as well as high-end infrastructure, which will allow you to register your business in Dubai without difficulty.
Dubai Techno Park (DTP): Another free zone that may be suitable for the creation of your information technology business is Dubai Techno Park. There are no currency limitations in the area, and you may own 100 percent of your company in the region. Furthermore, many multinational corporations and global leaders have their information technology installations in DTP, making the region a prime location for you to launch your software business.
Dubai Internet City (DIC): The DIC, which is a subsidiary of the TECOM Group, provides great infrastructure for emerging information technology businesses. The free zone was established in 1999, and its mission has remained the same since then: to create cutting-edge technical solutions. It is the headquarters of renowned IT companies such as Sony Ericsson, HP, Oracle, Microsoft, and a slew of others.
It is possible to consult with Generis Global and benefit from a convenient business establishment in Dubai. When you work with Generis Global, you will get help with matters such as location, licence, documentation, and so on.
How does one go about establishing an information technology business in Dubai?
Opening an information technology firm in Dubai is simple, and as long as you follow all of the legal requirements and submit the appropriate documentation, you can have your business up and running quickly. The following are the essential stages in establishing your software business in the United Arab Emirates:
1. Make a formal trade name reservation.
Your business must adhere to all of the regulations governing legitimate trade names that have been established by the federal government. It should not be rude, inflammatory, or disrespectful in any way to anybody in any situation. Use of a person’s name for your IT business should be done with care; do not use an abbreviation or nicknames unless you have permission.
2. Decide on a location for the company.
It is critical to have a thorough knowledge of the different business locations in the United Arab Emirates. Choosing the most appropriate location for your company activities may help you save a significant amount of money while also making your operations more efficient. Make a decision on whether you want a mainland location or a location in one of the free zones.
3. Complete all of the necessary papers for your software development business.
Many legal responsibilities and document submissions are required as part of the business creation process in Dubai. In order to streamline the procedure and guarantee that all papers are authorised at the same time, a business adviser may be of assistance. The documentation involves things like reserving a trade name and obtaining a valid trading licence, among other things.
4. The application for a visa
Fill out the necessary paperwork to get your visa, as well as the visas of any additional partners or employees (if the jurisdiction permits). Following the verification of your entrance permission, medical fitness exam, and other requirements, you will be issued an official visa stamp. You are now prepared to operate your information technology business in Dubai with full permission. Don’t overlook the need of establishing a corporate bank account for your company in order to preserve financial stability.
What are the benefits of forming an IT business in Dubai?
Taxation: One of the most important advantages of starting an information technology business in Dubai is the absence of corporation taxes and the ability to repatriate earnings (if the company is located in a free zone). Furthermore, you benefit from the hassle-free availability of resources such as high-quality labour sourced from all over the globe, as well as sophisticated internet capabilities.
Ease of doing business: Dubai’s investors benefit from excellent market circumstances as well as the city’s easy global access. Start-up companies located in Dubai have a competitive advantage over their counterparts in their respective industries. The region’s embrace of information and communications technology, along with its digital application, has made it a popular destination for new-age investors and emerging businesses.
To attract local and international investors to start their companies, Dubai, the most highly regarded of all the Emirates, has established numerous free zones to assist them in starting their ventures. Business opportunities in Dubai’s information technology-oriented free zones are promising, with office buildings and housing spaces for businesses and their employees. If your information technology business is based in the United Arab Emirates, it will undoubtedly reap benefits.
Documents needed for the establishment of an IT business
In order to create an information technology business in the United Arab Emirates, you must submit specific papers to the Department of Economic Development (DED) or the relevant authority.
Prepare yourself for your software business by reviewing the following list:
Copy of the passports of the proprietor and the partner in the business.
Proof of payment of the first approval costs is required.
The sponsors must sign a No Objection Certificate (NOC) before the partnership agreement may be executed in front of a notary
A single investor is needed to pay 10,000 Dirhams as a security deposit, while partners who have a professional licence are required to pay 20,000 Dirhams as a security deposit. The company must have a physical location where it may be operated under a leasing arrangement, which the owner can negotiate.
Copy of the naturalisation books kept by a local partner
You have the option of registering information technology companies as either a fully-owned professional business or as a sole proprietorship under the administration of the UAE.
Generis Global is Your Business Companion in the World of Technology.
You made the correct decision by deciding to establish an information technology business in Dubai. The business has gained up speed in recent years and is on the verge of reaching its zenith at this point. All that remains is for you to make another excellent decision about a simple company setup in the United Arab Emirates. At Generis Global, we assist companies in establishing themselves in Dubai with our professional advice and then offer business support once they have successfully established themselves. We are here to assist you and would be delighted to take on the burden of establishing your IT business in Dubai while keeping you in complete comfort.