25 Feb How to start an IT company in Dubai?
Start an IT company in Dubai
The world has been continuously looking at the developments in Dubai and more so in the field of information technology for some time now. Almost every industrial sector has seen unprecedented growth in Dubai and the IT sector has been no exception to it.
The investment in the IT sector currently stands to an estimated 8bn dollars, as many of the IT industry from all over the world have opened their subsidiary branches within the country. Dubai is very often dubbed as the silicon valley of the Middle East, as it has attracted some of the best industries to its shores.
Many factors have played their role in ensuring the growth of the IT sector within Dubai, such as the low taxation system within the country has been of immense help and at the same time been able to attract investments from all over the world. The strategic location and time zone of the emirates make it easy to trade and collaborate with other trade hubs of the world.
Requirements to open an IT company in Dubai
The IT sector within Dubai has proven to be quite attractive to investors from all over the world as the government has been consistently making policies to make it easy for investors so as to set up their business within the country.
The government at the same time has been making laws that are business-friendly, thereby making the process of setting up companies within the country easy. Before opening an IT company in Dubai certain requirements need to be fulfilled
- The first thing investor must decide is the location of the company i.e. Mainland Dubai or Freezones within Dubai.
- Next, the investor must decide which type of company will be set up i.e. kind of legal entity.
- Once the above decisions are made, the procedure to start the company starts with choosing a trading name and articles of association.
- The registration process will be completed with the trade register of Dubai. otherwise with the free zone authority, depending upon the location that will be chosen by the investor.
- Accordingly, the license will be issued by the relevant authorities when all the formalities have been completed.
Obtaining a professional license for an IT company in Dubai
Once an investor decides to start an IT company in Dubai, it is necessary to obtain a relevant license before formal operations can be started within the country. The license for various types of businesses is issued by the Department of Economic Development in Dubai and the same is the case when opening an IT company.
In order to obtain a license, the investor needs to hire a local agent who will carry out various tasks related to the business such as moving an application for the employment visa, the license itself, and other documents.
Before moving the application for a license, the investor needs to apply for the name reservation and the type of activity that will be undertaken. Dubai government has a provision in place that allows an investor to register IT firms’ professional firms having full foreign ownership or can be registered as sole proprietorships.
Documents required to open an IT company in Dubai
The investor once decides to open an IT firm in Dubai has to submit various kinds of documents to the Department of economic development.
- Passport of the owner and the partners of the firm.
- Entry Stamp / UAE Visa
- The local partners chosen by the investor need to submit a neutralization book.
- NOC for expatriate partners’ from the various sponsors chosen.
- The agreement of partnership must be signed in front of the notary.
Where can one start an IT business in Dubai?
Over the years IT industry has found great support from the government of Dubai. the government in Dubai has created a number of dedicated free zones where an investor can set up an IT company.
Various Free zones where IT companies can be set up are Dubai Media City, Dubai Silicon Oasis, and Dubai Internet City. However, the investor has to keep in mind that before choosing the location of the company, the decision regarding the type of company to be started has to be made i.e. onshore company which will require a local service agent (LSA).
He/she wouldn’t intervene in your business decisions and would only offer assistance in applying for licenses and securing other mandatory approvals. Furthermore, if a free zone is chosen as the location, the investor will still have full ownership rights but restricted to do business outside UAE.
Investment opportunities in the IT sector in Dubai
Dubai as a country is one of the most sought after among investors all over the world as the government has been taking steps to make the process easier and put in place a number of business-friendly laws.
The Free zones created by the government have been dedicated to IT activities and among the Free zones in Dubai, Silicon Oasis is one the best IT dedicated zones as it is usually called by the name of silicon valley of the middle east.
Dubai Silicon Oasis has some of the best conditions for conducting business and has also offered housing space for owners and employees. It has one of the best technological facilities on offer in the whole of the Middle East. Since the government has put in place a provision of tax exemption for Free zones, it makes opening IT companies in the Dubai Free Zone even more attractive.
Another attractive location among the many locations in Dubai Internet City was started in 2000, even though in earlier times only big companies opened up their offices here, it has since become an attractive proposition for startups as well.
Why open an IT business in Dubai?
There are a number of reasons as to why one should choose Dubai as a location for setting up an IT business and one of the major factors being lack of corporate taxes and investors being allowed to repatriate all of the profits from the business if it is set up in Free zones. Further, the investors will have the availability of a large number of talented workforces that have moved in from different parts of the world.
The country has one of the best infrastructures in place when it comes to providing a number of services such as internet access. Further, the government has made the process of setting up an IT business in Dubai very easy and also made sure a number of business-friendly provisions are put in place to make the running of the business a smooth process.