The UAE is one of the most thriving startup centers in the world. With competition from various sectors, the UAE is gaining significant interest worldwide, especially from technology entrepreneurs interested in investing in infrastructure to impress the UAE government.
As technology continues to evolve and accessibility through innovative products improves, companies are under tremendous pressure to stay updated with technology-related news.
Factors to Consider Before Starting a Company in Dubai
Before applying to start a software business setup in UAE, do a study of the country’s free zones..
Free zones offer universal benefits such as 100% tax exemption and repatriation of capital and profits and allow entrepreneurs to maintain ownership of their business at all times. Most also offer office and co working space, reception cover, access to meeting and conference rooms, telephone use, broadband access, and the like.
Each free zone also offers several specific benefits, some of which refer to particular industries.
As the owner of a software company, you need to find a free zone to serve the technology sector.
Decide The Business Activity
When deciding to start an IT company in Dubai, you need to determine your company’s type of services. Does your IT/technology company provide general services or specialized services?
Dedicated IT service company
There are many opportunities to offer customers and companies that specialize in IT services. Some of the specializations may include, but are not limited to:
- Network and Cloud Computing and Programming
- Big data, data recovery, and data management
- Website development and design
- Business intelligence
- Digital and analytical services
- Cybersecurity and system management
- If you choose to specialize in IT, you can establish yourself as an expert and market leader in a particular technology or service. Therefore, due to the demand for your services, you can potentially charge more per hour and run a fast-growing business.
Build Your Dream Team
Technology is the driving force behind starting an IT company in Dubai. It is equally important to have the right employees because they are your company’s most important capital. Employees must have the necessary experience and cover all your business offerings to ensure good service to your customers.
Select Trade Name
It is wise to choose a company name that fully describes what your company does. Your company name should be simple, straightforward, and easy to find, essential in today’s digital landscape and search websites.
Form a Legal Business Entity
The decision for the proper corporate structure is critical. By choosing the right corporate network, the company is present operationally and financially. It can be expensive and limit the business if one does not seek specific advice on its structure and misconceptions.
Obtain Professional License
If an investor decides to set up an IT company in Dubai, obtain the relevant license before official operations can begin. Permits for various businesses by the Ministry of Economic Development in Dubai and opening an IT company.
To obtain a license, investors must hire local agents to perform various business-related tasks, such as:
Before postponing the concession application, the investor must decide on the name and type of activity. The Dubai government has provisions that allow investors to register a professional IT company with wholly foreign ownership or register it as a sole proprietorship.
Cost of Starting an IT Company in UAE
There are many factors in the game. Are you planning on self-employed or hiring employees? Do you need permanent space, or will there be enough coworking space?
No matter the size and location of your business, doing business in a free zone can be a great way to keep startup costs down. Free zones like Dtec offer flat rates, including visa applications and the use of office facilities.
The Flexi-Desk package includes, for example, a service license, use of workstations in common areas, and authorization for two visas. This package starts from AED 18,000 per year.
Dec also offers permanent desk licenses and eligibility for three visas for AED 24,200 per year and a private furnished office, including two desk visas, for AED 47,820 per year.
Where Should You Start a Software Company in Dubai, UAE?
Over the years, the IT industry has received tremendous support from the Dubai government. The government in Dubai has created several special free zones where investors can set up IT companies.
The different free zones where IT companies can set up are Dubai Media City, Dubai Silicon Oasis, and Dubai City City. However, investors should keep in mind that before choosing a business location, a decision should be made on the type of company to be incorporated, i.e., a terrestrial company that needs a local service sponsor/agent. If there is a free zone, select it as a location where the investor has full ownership rights but is limited to doing business outside the UAE.
There are several reasons why one should choose Dubai as a location to start an IT company, and one of the main factors is the lack of corporate tax. In addition, investors will have many talented workers come to UAE from different parts of the world.
Moreover, the government has made the process of starting an IT company in Dubai hassle-free. It has also ensured that several business-friendly regulations have been put in place to keep the business running smoothly.