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Whether you are a software designer or want to set up an information technology company, Dubai is the ideal location to start your business. In this blog, I have explained why you should set up a software company in Dubai, what documents you will need, the procedure to set up your company, and the business setup costs you will have.
Why Should You Set Up a Software Company in Dubai?
- Tax Benefits: Establishing an IT company in Dubai offers significant advantages, including exemption from corporate taxes and the ability to repatriate profits without restrictions when operating as a free zone entity. Furthermore, you gain access to a hassle-free pool of resources, including a diverse and skilled labour force and advanced internet facilities.
- Business-Friendly Environment: Dubai provides investors with favourable market conditions and seamless global access, offering a competitive advantage over its competitors. The region’s swift adoption of the IT industry, coupled with digitalization efforts, makes it an attractive hub for forward-thinking investors and aspiring entrepreneurs.
- Free Zone: Among all the emirates, Dubai is top-rated for its numerous free zones, which encourage native and international entrepreneurs to launch their trade in the emirate. Dubai’s business-friendly IT-oriented free zones offer numerous business opportunities, including well-designed office facilities and accommodation options for both companies and their employees.
What are the Documents You Will Need?
To start a software company in Dubai, you need the following documents;
- Passport copies of the owner and the partners
- Copy of current Visa
- Emirates ID (If it is available)
- Business Plan
- Partnership agreement that is to be signed before a notary
- Articles of Association
You also have the right to register your IT company as a fully-owned professional company or sole proprietorship under the UAE government. Experts from Best Solution will help you gather all the right documents so that you won’t miss anything at the last minute.
Procedures to Set Up a Software Company in Dubai
As it is relatively easy to build a business setup in Dubai nowadays, setting up a software company will be very smooth and hassle-free, provided you carry out all the necessary steps. Below are the steps you have to complete to set up your software company in Dubai.
- Choosing a Trade Name: You must choose a company name that adheres to the naming guidelines of the UAE. You must ensure that your trade name or its abbreviations aren’t offensive or blasphemous in nature or tone.
- Decide Your Business Location: A majority of software companies in Dubai decide to set up base either in a free zone (which gives 0% tax and total business control) or on the mainland (which enables you to sell software throughout the UAE and obtain government contracts).
- Choose Your Business Structure: Choose whether you want to set up a sole proprietorship or a limited liability company (LLC).
- Application Process: You must submit an application for a trade licence to the necessary authorities, including the Department of Economic Development of Dubai and the Ministry of Communication and Information Technology, and you must pay any applicable costs. A local partner can assist you throughout the application procedure and ensure you submit all the necessary information.
- VAT Registration: IT companies in Dubai need to register for VAT.
- Apply for a Visa: You must secure a visa for yourself and the employees at your company. You’ll get a visa stamp after your entry permit has been verified, medical test, etc.
- Open a Bank Account: The last step is to open a bank account in Dubai to track your payments and pay your employees.
If you partner with the right business setup consultants in Dubai, like Best Solution, setting up a Dubai software company will be smooth and hassle-free. We will help you carry out the entire process while you sit back and focus on your goals.
Average Cost for Start an IT Company in Dubai
As there are a variety of factors involved with setting up a software company in Dubai, it will be difficult to provide the actual cost of the business setup. If you are starting as a sole proprietorship and want to launch in a free zone, your initial cost will be around AED 10,000–AED 20,000 with an annual renewal fee.
You can expect to invest around 50,000 AED to launch your small business if there are multiple partners, you want to hire a significant number of people, and you need a larger office. Also, you should keep in mind that there will be extra costs in addition to the basic application and company registration fees.
Best Solution For Your Business Setup
If you are planning to set up a software company in Dubai, then we will be the right partner for your trade. We will keep you updated with all the latest information regarding starting a business in Dubai. While the entire process can be a bit confusing, with Best Solution by your side, you can easily navigate through all the steps. We offer you the most rapid, reliable, and unbiased solutions for your company setup requirements.
Get in touch with us and start your IT company now!
