Dubai is currently on the path to becoming the destination of choice for international digital investment and global tech talent. The Emirates aims to further attract software development professionals in the country and globally by offering 100,000 Golden Visas to exceptional computer programming talent. As such, there is an opportune moment to start a software company in Dubai.
The Minister of State for Artificial Intelligence, Digital Economy and Remote Work Applications and Chairman of Dubai Chamber of Digital Economy, Omar Sultan Al Olama, said “The UAE is committed to unlocking the full potential of digital economy, which has grown two and a half times faster than global GDP over the past two decades. The UAE is involving all relevant parties in building a clear roadmap to stimulate digital industries, and ensure that current government policies, initiatives and strategies promote innovation and business friendliness for all sectors.”
The Evolution of Software as a Service (SaaS)
The rise of Software-as-a-Service (SaaS) has made an impact on the entire IT industry. Though it has been around for a while now, the past few years have seen meteoric growth in this sector. The pandemic is also one of the major contributing factors to it. The transition to cloud-based services is cost effective and saves time. Therefore, SaaS has proved to become a valuable replacement for the traditional in-house IT services.
How to start a software company in Dubai?
The 2022 IMD World Digital Competitiveness Ranking report shows Dubai as the most competitive country in the Arab world and in the top 12 globally among the most highly competitive economies. Therefore, the UAE government has put in a simple process to help entrepreneurs easily start a company in Dubai.
To start a software company in Dubai, follow these steps:
1. Choosing the jurisdiction
Dubai and the UAE offer business setup options in the mainland as well as several industry specific free zones across the Emirate. Depending on the nature of your business and the specific software activities, you can choose in which location you can set up your company. Additionally, there are several freezones such as Dubai Internet City, Dubai Silicon Oasis, Dubai Knowledge Park, and Dubai Media City that specifically cater to the software and IT industry.
2. Trade Name Registration
You need to register a legal trade name for your software company in Dubai. There are certain rules in place that entrepreneurs will need to follow. Company formation experts like Shuraa will help you be compliant with the rules and regulations set by the Department of Economic Development in Dubai. Avoid offensive/targeted/insulting language in your trade name.
3. Legal Type of the Company
The license you apply for is dependent on the activities you choose to conduct in your organisation. Again, the DED (Department of Economic Development) will administer the software company license in Dubai. Getting a professional license in Dubai allows for 100% business ownership as well as sole proprietorship. Investors can also opt for an LLC license depending on their need.
4. Visa Application
Business owners in Dubai need an investor visa which allows residency in the Emirates. The visa application can be done easily with experts like Shuraa Business Setup at your service. Dealing with the correct government agencies, getting your documentation in order, getting your medical test conducted, Shuraa takes care of all the processes you need to get your visa process going.
Steps to Get a Software Company License in Dubai, UAE
Entrepreneurs need to follow some simple processes to get a software business license in Dubai, UAE. Therefore, a valid business license for your IT/software company is mandatory for you to conduct your business operations. Here is how you can get one:
1 – Select your company trade name
2 – Submit documents for proof of identity and residence for all shareholders/owners
3 – Submit documents for company incorporation
4 – Finalise the location for your office
5 – The Dubai DED will issue the software business license
6 – You can collect the license within 2-3 working days
7 – Finally, you can open a corporate bank account in the UAE
Cost of Starting a Software Company in Dubai
There are several factors in play that can affect the costs of starting a software company in Dubai. Depending on factors such as location, legal structure, number of shareholders, the cost can vary. However, the basic initial cost can start from around AED 12,900*. As you add more shareholders, increase your workforce, and lease out bigger premises, the cost goes as high as AED 50,000.
Explore the UAE with new business beginnings
With the evolving integration of the IT industry in everyday commercial operations, the software industry is gaining demand, especially in Dubai. Therefore, this is the right time to start a software company in Dubai. Entrepreneurs coming to the UAE should ideally enroll the services of reliable corporate consultants like Shuraa Business Setup.
Their expert business setup consultants in Dubai will help you navigate through the complicated laws and regulations of the United Arab Emirates. Additionally, they assist you on every step of your company formation journey with value added services such as business bank account setup, visa and PRO services, tax and vat consulting, Emirates ID, office space and more. Contact Shuraa Business Setup for a free consultation today.
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