For quite some time now, the global community has been closely observing the advancements taking place in Dubai, particularly in the realm of information technology. Dubai has experienced unparalleled growth in nearly every sector of industry, and the field of IT has been no different.
Start an IT company in Dubai
The IT sector has experienced a significant influx of investment, with the current estimated value reaching a staggering 8 billion dollars. This tremendous growth can be attributed to the fact that numerous IT companies from around the globe have chosen to establish their subsidiary branches in Dubai. This has led to the city being commonly referred to as the silicon valley of the Middle East, as it has successfully enticed some of the most reputable industries to set up shop within its borders.
Several elements have contributed significantly to the remarkable expansion of the information technology (IT) sector in Dubai. One of these influential factors is the implementation of a low taxation system, which has not only provided considerable support but also enticed investments from various corners of the globe. Another key aspect that has propelled the growth of the IT industry in Dubai is the emirate’s strategic location and favorable time zone, enabling seamless trade and collaboration with other prominent trade hubs worldwide.
Requirements to open an IT company in Dubai
The information technology industry in Dubai has consistently attracted investors from various parts of the world due to the government’s continuous efforts in implementing investor-friendly policies that facilitate the establishment of businesses in the country.
The government has simultaneously been enacting legislation that is favorable to businesses, resulting in the simplification of the process for establishing companies within the country. Prior to establishing an IT company in Dubai, specific prerequisites must be met.
- One of the primary considerations that an investor needs to make is determining the ideal location for their company, which includes choosing between Mainland Dubai or the various Freezones within Dubai.
- The investor needs to make a decision regarding the type of company they want to establish, also known as the legal entity that will govern its operations.
- After the aforementioned decisions have been finalized, the next step in the process of establishing the company involves selecting a business name and drafting the articles of association.
- The completion of the registration process will be done either through the trade register of Dubai or through the free zone authority, depending on the preferred location selected by the investor.
- The relevant authorities will grant the license once all the necessary procedures and paperwork have been successfully finalized.
Securing a professional license for an IT company in Dubai
When an investor makes the decision to establish an IT company in Dubai, it becomes imperative to acquire an appropriate license prior to commencing formal business operations within the nation. The issuance of licenses for diverse types of enterprises, including IT companies, is facilitated by the esteemed Department of Economic Development in Dubai.
Before an investor can obtain a license, it is necessary for them to engage the services of a local agent who will handle a multitude of responsibilities pertaining to the business. These tasks involve submitting an application for the employment visa, acquiring the license itself, and obtaining any other essential documentation.
Prior to submitting the application for a license, it is necessary for the investor to complete the process of name reservation and specify the type of activity they plan to undertake. The Dubai government has implemented a system that permits investors to register professional firms in the IT sector with complete foreign ownership, or alternatively, they have the option to register as sole proprietorships.
Documents required to start an IT company in Dubai
When an investor makes the decision to establish an IT firm in Dubai, they are required to submit a diverse range of documents to the Department of Economic Development.
- Passports belonging to the company’s partners and owner.
- Entry Stamp and Visa for the United Arab Emirates
- The investor’s selected local partners must provide a neutralizing book.
- NOC for foreign partners selected by the different sponsors.
- The partnership agreement needs to be signed in front of the notary.
Where exactly to start an IT business in Dubai?
The IT industry has received significant backing from the Dubai government over the course of several years. In order to facilitate the establishment of an IT company, the government of Dubai has established numerous specialized free zones.
There are several different free zones in Dubai where IT companies can establish their operations, including Dubai Media City, Dubai Silicon Oasis, and Dubai Internet City. However, it is important for investors to consider that the choice of company location should be determined by the type of company they intend to start, such as an onshore company that would necessitate the involvement of a local service agent (LSA).
The individual in question would refrain from getting involved in your business choices and would solely provide support when it comes to applying for licenses and obtaining any necessary approvals. Additionally, if you opt for a free zone as your business location, you will maintain complete ownership rights; however, you will be limited in conducting business activities outside of the United Arab Emirates.
IT sector in Dubai (Investment opportunities)
Dubai, renowned globally as a highly desirable investment destination, has garnered immense attention from investors worldwide due to its proactive government’s efforts in facilitating a streamlined and simplified investment process, complemented by the implementation of numerous business-friendly legislations.
The government has established Free zones that specifically cater to IT activities, and out of all the Free zones in Dubai, Silicon Oasis stands out as one of the most exceptional IT-focused zones, often referred to as the Silicon Valley of the Middle East.
Dubai Silicon Oasis boasts exceptional business-friendly environments and provides convenient housing options for both business owners and employees. It proudly offers state-of-the-art technological facilities that surpass any other in the Middle East. Additionally, the government’s implementation of tax exemption policies in Free zones amplifies the attractiveness of establishing IT companies in Dubai’s Free Zone.
Dubai Internet City, established in 2000, has emerged as a highly sought-after destination due to its appealing features. Initially, this location primarily housed major corporations; however, it has now also become an appealing choice for startups.
Why to open an IT business in Dubai?
In conclusion, Dubai’s lack of corporate taxes, repatriation of profits, availability of a talented workforce, strategic location, advanced infrastructure, government support, and exceptional lifestyle make it an enticing destination for setting up an IT business. By capitalizing on these advantages, entrepreneurs can unlock limitless potential for growth, innovation, and success in the ever-evolving world of technology.
Furthermore, Dubai’s advanced infrastructure and technological advancements play a crucial role in attracting IT businesses. The city boasts state-of-the-art facilities, cutting-edge technologies, and modern infrastructure, ensuring a seamless and efficient business environment. This, combined with Dubai’s commitment to innovation and its forward-thinking approach to technology, provides businesses with a conducive ecosystem for growth and success.
Moreover, Dubai’s government policies and initiatives further contribute to its attractiveness as an IT business hub. The government’s unwavering support and commitment to fostering a thriving business environment have led to the establishment of various incentives, grants, and programs specifically designed to promote and nurture the growth of IT businesses.
These initiatives include funding opportunities, mentorship programs, and research and development grants, among others. In addition to the aforementioned benefits, Dubai’s strategic location further strengthens its appeal as a prime destination for IT businesses. Positioned at the crossroads of Europe, Asia, and Africa, Dubai serves as a gateway to these thriving markets.
This advantageous geographical location facilitates easy access to potential clients, partners, and markets, opening doors to unlimited business opportunities. Dubai is an ideal choice for establishing an IT business due to various compelling factors. One noteworthy aspect is the absence of corporate taxes, which provides a significant advantage for investors.
Moreover, in Free zones, investors are granted the opportunity to repatriate all profits generated by their businesses. This advantageous tax policy encourages entrepreneurs to seize the potential growth opportunities in Dubai. Furthermore, the availability of a diverse and highly skilled workforce is another appealing aspect for investors. Dubai attracts talented individuals from various corners of the globe, creating a vast pool of expertise and knowledge.
This multicultural workforce not only enhances the overall productivity and innovation within the IT industry but also brings valuable perspectives, insights, and ideas to the table. Additionally, Dubai’s vibrant and cosmopolitan lifestyle is an added bonus for entrepreneurs and professionals.
The city offers a rich cultural tapestry, world-class amenities, and a high standard of living, making it an attractive destination for both businesses and individuals alike. This unique blend of business opportunities and quality of life creates a harmonious work-life balance, ultimately contributing to the overall success and satisfaction of IT professionals.
Dubai boasts a highly commendable infrastructure that excels in offering a wide range of services, including internet access. Moreover, the government has taken significant measures to simplify the establishment of IT businesses in the city, alongside implementing various business-friendly provisions to ensure seamless operations.
If you want to start an IT company in Dubai and looking for some professional help then please feel free to contact us and book free business consultation with our company setup experts and we will guide you every step of the way and will help you to start an IT company in Dubai.