How to Open a Software Company in Dubai

Dubai’s IT industry is one of its kind with different factors like pro-business government, flourishing economy, tech-savvy investors, and not to mention the state of the art infrastructure contributing to its success. And, within the IT sector, software companies are the centre. Software companies in Dubai have grown substantially in recent years; this is mainly due to the innovative ideas used in public services in Dubai.

We are going to explain in detail the prime requirements for opening a software company in Dubai. By taking help from business consultants in the UAE like Blackswan Business Setup Services, the opening of any business, particularly a software company can be done in a hassle-free manner.

Where to open a software business in Dubai?

The IT sector of Dubai is growing tremendously, as said earlier. It is estimated through different surveys that by the year 2020, around 22 billion AED would be generated through this sector. To start a software business in Dubai, one can register either in the Dubai mainland or in one of the free zones. Free zones which are specifically designed to accommodate IT companies are listed below:

• Dubai Media City
• Dubai Silicon Oasis
• Dubai Knowledge Village
• Dubai Internet City

Requirements to open a Software Business in Dubai

In order to set up or establish a software business in Dubai, certain requirements must be met. The first aspect is the business registration procedure which includes

• Arriving at the final destination for the company, whether Dubai mainland or any of the free zones.
• Choosing the corporate entity under which the company operates (in most cases the LLC is the much preferred one).
• Starting the procedures for business incorporation by reserving a business name, and having the Articles of Association chosen.
• Depending on the site of operation of the business, the business registration procedure will be completed with either the Trade Register in Dubai or the free zone authority.
• As of 2018, all companies in Dubai are obliged to register for VAT, and this is a mandatory step for opening a software company.
• The license will be issued either by Dubai Companies Register or by the free zone authority depending on the zone.

A business license for the software business, i.e. a professional license allows an individual or company to engage in business activities. This professional license is provided by the DED (Department of Economic Development). The initial step involves hiring a local agent who can deal with obtaining the permit, employment visa, and other mandatory documents.

Software business can be registered as a professional business which allows full foreign ownership or as a sole proprietorship. There are provisions to permit civil companies in the presence of one or more partners. Still, the amount must be stated in the Articles of Association of the firm.

Documents Required

The following documents are required to register a software company in Dubai

• Passport copies of both owners and shareholders
• Payment proof of the initial approval fee
• Copy of the local partner’s naturalization book
• A NOC in case of expatriate partners from their sponsors
• Signing the partnership agreement in front of the notary.

Dubai is the most preferred Emirate when it comes to opening a business, particularly one in the IT sector as the local government supports foreign and local investors.

Opening a software business becomes simple and straight forward with the help of Blackswan Business Setup Services. The consultants have years of experience in the field and a thorough knowledge of legal procedures. You can contact us for more info.