All You Want to Know About Setting Up a Software Company in Dubai
“It’s not about ideas. It’s about making ideas happen.” – Scott Belsky
The IT industry has been reaching different heights and the last few years have witnessed unprecedented growth in new software industries coming up all around the world. Dubai – the Pearl of the Gulf, has been experiencing an IT boom with newer software companies coming up rapidly. It has been gaining the title of ‘The Silicon Valley of the Middle East’. Be it the pandemic, tech-savvy populace, or innovative growth opportunities, there is no looking back for Dubai professionals now.
Setting up a software company in Dubai has been offering rewarding returns and multi-faceted opportunities. There has been complete support from the government to promote the expansion of software organizations in Dubai. No wonder why – the territory is bubbling with skilled IT professionals and entrepreneurs.
There are a variety of software organizations coming up – companies offering commercial off-the-shelf software, custom software development companies for different industry segments or geographical locations, organizations offering SaaS-based services, application service providers, etc.
Are you planning to set up a new software company in Dubai?
The first question that may arise in your mind is how to open a software company in Dubai and what are the advantages of doing so. All these queries will be answered, as you read further.
Advantages of Setting Up a Software Company in Dubai
- Low tax rate, favorable taxation regime and freedom from corporate taxes
- Huge potential for software market in UAE and GCC countries
- Easy to set up business with less restrictions and widened global reach
- Access to skilled professionals in various regimes
- Ideal infrastructure, support including hardware, software, legal and public relations
- Good investor and venture capital firms to assist in investment
- Hotspot for modern-day investors and promising entrepreneurs
- Strong support from Dubai government for businesspersons, startup, and innovation
- Availability of free zones for software businesses and startups
- Fast developing economy and infrastructure – offices, equipment, roads, telecommunications etc.
Key Steps for Software Company Formation in Dubai
Thanks to the ever-amicable Dubai and its government, the processes involved are easily managed and get you a step closer to your dream.
Here is a simple, easy to understand, step by step process to start off a software company in Dubai:
- Select the apt business activity with respect to your requirements, aspirations, capabilities, and financial competencies
- Considering the activity, the nature of business with be defined i.e.
- Commercial License for trading/ reselling of ready & encrypted solutions
- Professional License for providing consultancy and customized solutions.
- Choose the Authority with which you want to register your company i.e. Mainland Authority or Free Zone Authority.
- Prior to registration, think of a few options for a trading name keeping in mind the rules and regulations
- Identify appropriate Business activity before applying for License.
- Choose the location where you want to register your office place.
- Apply for the License after defining legal structure, Authority, Name and Business activity.
- Sign and Notarize the company’s Memorandum of Association (MOA) and Article of Association (AOA) as required by concerned Authority.
- As eligible, have your employment visa/residency visa intact for all business owners in Dubai
- Open a corporate bank account for handling payments
Cost Considerations for Software Company in Dubai
Following are the probable cost considerations that must be kept in mind while setting up a software company in Dubai:
- Company registration fee starts from USD 3000
- License and application fee
- Office and infrastructure costs
- Accounting and marketing costs
- Hardware costs for entire staff
- Utility costs like electricity, Internet, equipment etc.
- Costs for application and system software procurement
- Salaries for employees
It must be kept in mind that the cost factors may vary and funds should be sufficient to manage the business smoothly for the first few months till it generates revenue.
Software Company Licenses in Dubai
The very first step is to get a software development business license in Dubai, for the entire business to start off officially. The license can be obtained by applying for incorporation of your company after submitting all identity and residence proofs.
Once all details are fed, the license is issued from the Department of Economic Development in Dubai. Depending upon the portfolio, there could be certain special licenses that may be needed, based on the nature of work.
Documents Needed for Forming Software Company in Dubai
While formation of the company in Dubai, a list of documents that must be kept handy are:
- 3 company names (in order of preference)
- Color Passport copy (Shareholder/s and General Manager)
- Visa copy / last entry stamp in UAE (Shareholder/s and General Manager)
- Complete address details in home country and residing country (Shareholder/s and General Manager)
- Contact Mobile Number & Email address (Shareholder/s and General Manager)
- Digital Photo (Shareholder/s and General Manager)
- Payment proofs of approval fees
Based on certain scenarios, there could be requirement for certain other documents prior to setting up the organization.
Get Set Go – Start Planning for your Dream Software Company in Dubai
This is the right time to kick off your dream to start a software company in Dubai. A positive and confident attitude, perfect planning, and a consortium of knowledgeable business consultants in company setup is what you need to start off.
We @ Horizon Biz Consultancy possess skilled expertise of over 6 decades in business consultation, company setup, trading licenses, accounting tax and financial consulting etc. in the UAE. React out to us, we are just a step away! Our expert consultants will be glad to understand your requirements and help you fulfil your dream of starting a new software company in Dubai.