How to Start an IT Company in Dubai in 2024?

In this technology-driven era, starting an IT company in Dubai can surely be a rewarding endeavor for you. Launching any business always demands careful planning, analysis, and of course, cumbersome paperwork. You may ponder about the scope of an IT business in Dubai, the different tech activities that you can conduct, and most importantly the procedure to get started. This article has been written to guide all those who are interested in IT company formation in Dubai. Read on to find all the key details you need to launch your business.

Why Start an IT Company in a Dubai Free Zone?

Free zones in the UAE offer significant advantages for starting a tech business. The following are some of the benefits you can avail:

1. Remote company incorporation – Many free zones allow you to start a business without needing your physical presence in the UAE.
2. Flexi-desk – If you do not need a dedicated office space, free zones allow you the option to choose flexi-desks and co-working spaces.
3. Industry-supportive environment – Dubai has industry-dedicated free zones that organize training, workshops, and other educational events for entrepreneurs.
4. Tax benefits – Even after the introduction of corporate tax in the UAE, you can secure significant tax advantages with a free zone company if you satisfy the necessary conditions.

Process to Start an IT Company in Dubai

The following are the key steps for setting up your information technology business in a Dubai free zone:

1. Choose the Legal Structure

The type of legal structure is determined by the number of shareholders and the business liability. Examples of legal entities include Free Zone Establishment (FZE) and Free Zone Limited Liability Company (FZ LLC).

2. Select the Business Activity

Free zones in Dubai permit numerous information technology activities. Examples include consultancy, software trading, application development, etc. You can also select multiple business activities on the same license.

3. Select the Type of Office Space

You can opt for a physical office space if your business requires, and if you have a sizable staff. As mentioned earlier, free zones offer flexi-desks and co-working spaces for those looking for a minimalistic setup.

4. Obtain Pre-Approvals

If necessary, you may be required to secure pre-approvals from the relevant government authorities.

5. File an Application for a Business License

Gather the required documents and submit your application for the business license. You may need to prepare certain company documents like the Memorandum of Association (MOA) and Board resolution. It is advisable to engage the services of a Dubai business setup consultant like InZone.

IT Business Activities You Can Conduct in Dubai

Here are some tech-related activities that you can consider pursuing through business setup in Dubai:

1. Application Development

The dependency on mobile and web applications has significantly grown, leading to them now being the backbone of many businesses. Whether it is for consumer engagement or internal operations, most businesses simply cannot operate without digital applications. Hence, starting an application development business can certainly be rewarding for you because of the demand it has and the revenue that it promises.

Here are some types of applications that you can consider developing:
1. AI-based applications
2. Web-applications
3. Banking apps
4. Cryptocurrency apps

2. Consultancy

With an IT consultancy business, you can partner with and guide businesses to integrate technology solutions. Here are some of the well-known domains in which you can offer consultancy services:

1. Cybersecurity
2. Cloud computing
3. Data analytics
4. Software development

3. IT Equipment Supply

As almost all industries rely on technology, there has been a persistent demand for IT infrastructure. The growing need for digital transformation has driven up the need for tech products.

Here are some examples of tech equipment, you can consider offering:

Hardware
1. Computers
2. Printers
3. Scanners

Audio-Visual Equipment
1. Projectors
2. Sound systems

Networking Equipment
1. Routers
2. Firewalls
3. Switches

For more information on IT business activities, get in touch with us.

Why Choose Dubai as a Destination for Setting up Your IT Business?

1. Skilled and Diverse Workforce

Dubai welcomes IT professionals from all over the world ensuring there is no dearth of talent pool for you to choose from. The IT professionals seeking jobs in Dubai hail from European, American, and Asian countries, encompassing varied levels of expertise.

2. Tax-friendly Environment

The absence of personal income tax, and a low corporate tax rate are key factors that distinguish the UAE from several American, European, and even Gulf countries.

3. Tech Ecosystem

Dubai is home to tech free zones like Dubai Internet City, Dubai Media City, and the Dubai Silicon Oasis, ensuring there are ample IT hubs for you to choose from. Besides these tech free zones, you can also set up an IT company in a general-purpose free zone like Meydan Free Zone.

4. Government Policies

The government has pro-business policies in place and continues to introduce new initiatives that seem promising for the IT sector. For instance, the government has adopted a National Program and a dedicated council for Artificial Intelligence. The government’s key interest in AI adoption is best showcased by such initiatives.

Frequently Asked Questions

Here are some of the commonly asked questions about IT business setup in Dubai, and the answers to them:

1. Can you own 100% of a company in Dubai?

Yes, you can have 100% ownership of your business in Dubai even if you are a foreign national. This is possible if you set up your business in a free zone. Free zones do not have a requirement of a UAE national as a partner to own 51% of your business.

2. How much does it cost to start a company in Dubai?

The lowest cost for a Dubai free zone license ranges between AED 12,000 to AED 13,000. The price varies based on the type and number of activities you select. Also, the office space you choose has an influence on the overall cost.

3. Is it difficult to open a company in Dubai?

No, it is not difficult to start a business in Dubai if you hire a professional business setup consultant. From handling all your paperwork to liaising with the relevant authorities, a company formation consultant will assist you in every possible way to secure your Dubai business license.