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How to Start an IT Company in Dubai, UAE?

start IT company in dubai
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Dubai, often referred to as the “Silicon Valley of the Middle East,” has drawn some of the industry’s best to its shores, and it’s quite easy to understand why. The emirate’s location and time zone make it ideal for trading and collaborating with other innovation centres worldwide.

Also, a low corporate tax environment, favourable business climate, and hassle-free business setup are major draws for investors looking to start an IT company in Dubai, UAE.

Still looking for more reasons to be convinced? Here are some more reasons why you should consider setting up an IT company in Dubai.

Why You Should Start an IT Company in Dubai?

  1. Government’s support—The Dubai government leads in this aspect. It has been involved in technology-driven programs to establish Dubai as a significant technological hub in the area. It is taking significant measures to make Dubai the Middle East’s new Silicon Valley by offering many subsidies and starting pitching contests.
  2. Tech-savvy population: IT startups thrive in areas with rising demand for technology-based goods and services. Dubai’s residents are more demanding and technologically savvy. It holds world-class international events like the World Expo 2020 and other technological conferences.
  3. Rapidly growing e-commerce sector: More consumers in Dubai are getting comfortable using online platforms and realizing the benefits of online marketplaces, and the e-commerce industry is rapidly developing. Dubai is leveraging this fact to quickly establish itself as a hub for technology companies.
  4. Passion for innovative technology: Dubai is quickly becoming a significant playground for top IT startups bringing in cutting-edge technologies. From high-tech vehicle tech to healthcare solutions to hardcore tech such as AI, Augmented Reality, and Virtual Reality. So on, Dubai is working to establish the world’s most sophisticated technology-driven ecosystem!
  5. Increased funding activity for tech startups: The number of funded IT startups is steadily increasing in Dubai. As a result, Dubai-based IT startups are raising more money through different transactions than ever before! Astute investors continue to pour money into Dubai’s most promising startups.

Steps to Open IT Company in Dubai

As with all other businesses set up in Dubai, opening an IT company in Dubai has certain key steps to be followed. They are

1. Reserving your company trade name

Your Information Technology company in Dubai must adhere to all the legal trade name criteria specified by the government. In any way, it should not be disrespectful, inflammatory, or derogatory to anybody. Also, use your complete name rather than an abbreviation or nickname.

2. Finalizing your Location

    It is important to be thoroughly aware of the UAE’s numerous location options. Choosing the correct location for your company’s operations will help you save a lot of money and make your firm run more smoothly. Choose whether you want to set up an IT company in Dubai’s mainland or one of the UAE’s free zones.

    3. Submitting the Necessary Paperwork

      Starting a technology company in Dubai entails many legal duties and paperwork submissions. A business setup consultant may assist in smoothing down the procedure and ensuring that all paperwork is authorized simultaneously. The documentation includes reserving a trade name, obtaining a valid trading license, etc.

      4. Applying for Visas

        Apply for your visa and the visas of your partners and staff (if the jurisdiction permits). After your entry permission, medical fitness test, and other requirements are verified, you will receive an official visa stamping.

        What documents are required to Start an IT company in Dubai?

        To start a technology company in Dubai, you must submit the following documents to Dubai’s Department of Economic Development (DED):

        • Passport documents of the individual requesting the license and his/her partners
        • Proof of first approval fee paid
        • A passport copy and Emirates ID of a UAE national who will act as an agent of the company (if applicable)
        • An NOC for expatriate partners from their sponsors (if applicable)
        • Take lease agreement
        • Issue License

        How much does it cost to start an IT company in Dubai, UAE?

        The cost to establish an IT Company in Dubai, UAE, will depend on your selected jurisdiction. If you opt for Mainland, the cost can range between AED 14,500 and AED 19,500, and for Freezone, the cost can range between AED 5,750 and AED 12,500.

        Please note that the above cost is only the licence cost of opening an IT Company in Dubai. The final cost can vary based on your individual requirements, which include the number of Visas required, the number of shareholders in the company, and other factors. 

        Some Key Points to Note When Opening an IT Company in Dubai 

        How do you start a technology company in Dubai? This question will feel smooth if you know all the required documents and the correct process for setting up a tech company in Dubai. We want to address a few factors before you start the process of registering an IT Company in Dubai or the UAE.

        • Decide whether the firm will be established on Dubai’s mainland or in one of the city’s free economic zones.
        • Choose the legal entity under which the firm will function (most of the time, a limited liability corporation is chosen)
        • Begin the process of setting up a tech Company in Dubai by reserving a Company name and deciding on the company’s activity.
        • Depending on where the firm will operate, the company registration procedure will be performed with the Trade Register in Dubai or the freezone administrations.
        • Since 2018, all Dubai firms have been obliged to register for VAT; hence, this is essential when establishing an IT firm in Dubai.
        • The license will be awarded by the Department of Economic Development ( Ministry of Economy) or the local free zone authorities.

        Our Dubai company formation advisors can provide you with more information and guidance on opening an IT Company in Dubai. We can even help you determine whether you should go for a free zone or mainland business setup for your IT company formation in Dubai.

        How can Avyanco Help You Start an IT Company in Dubai?

        Now that you’ve made the smart move to set up an IT company in Dubai, all remains for you to choose the perfect consultant to help with business setup in Dubai.

        Our experienced consultants can assist you and would be delighted to take on the task of establishing your IT firm in Dubai while maintaining your confidentiality.

        You also can checkout: How to Start a Software Company in Dubai?

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        About the Author

        jashvant-avyanco-business-setup-consultancy-ceo

        Jashvantkumar Prajapati

        (Founder and CEO of Avyanco Group of Companies; Business Setup Consultancy, Avyanco Tax and Accounting LLC, and Avyanco Auditing LLC.)

        He keeps a varied portfolio with core expertise in investment management, corporate structuring, commercial law, business consultancy, lead management, business planning and market research. Aspire to help potential entrepreneurs and investors to come ahead and form their companies in highly emerging economies like UAE.