How to Open a Software Company in Dubai?

by Zaara 23, Nov 2020

How to Open a Software Company in Dubai?

The IT Industry in Dubai has become quite successful thanks to different factors like state-of-art infrastructure, pro-business government, tech-savvy investors, and flourishing economy. The software sector in Dubai is the hero of the play when it comes to the essential branches of the IT industry. The number of software companies that arose in Dubai in recent years has grown significantly thanks to the innovation that is now used in most public services in the Emirate.

In this article, we explain the main requirements to comply with when opening up a software company in Dubai. With help from business setup consultants in the UAE like Commitbiz, the opening of a software business can happen in a hassle-free manner.

Where can you Open a Software Business in Dubai?

As we have already mentioned, the IT industry in Dubai is set to grow considerably, as the latest surveys indicate that by the year 2020, this sector will generate 22 billion AED. Those interested in starting a software business in Dubai can register it in Dubai mainland or one of the free zones. Among the free zones which were explicitly designed to accommodate IT companies, including software ones, are:

  • Dubai Silicon Oasis
  • Dubai Media City
  • Dubai Internet City
  • Dubai Knowledge Village

What are the Requirements to Open a Software Business in Dubai?

To set up your software business in Dubai, there are a few aspects that must be considered first. The requirements include the business registration procedure which are –

  1. Finalize if the company will be set up in Dubai mainland or any of the Dubai free zones
  2. Choose the corporate entity under which the company will operate (the Limited Liability Company is preferred most of the times)
  3. Start the business incorporation procedure by reserving a business name and having the Articles of Association chosen
  4. The business registration procedure will be completed with the Trade Register in Dubai or the free zone authority, reliant on where the business will operate
  5. Starting with 2018, all Dubai companies are obligatory to register for VAT, so this is a mandatory step when opening a software company
  6. The license will be provided by the Dubai Companies Register or by the free zone authority of the respective economic zone

You must also know that most of Dubai free zones allow businesses to undertake IT-related activities. However, there are also free zones that have dedicated licenses for such business activities.

As the 6th step suggests, obtaining a business license for your software business. You need a professional license that will allow an individual/company to engage in business activities. The professional license is provided by the Department of Economic Development (DED) in Dubai. The first step for obtaining the license is to hire the services of a local agent who will deal with obtaining the employment visa, the license, and any other mandatory documents. The steps for getting the professional license are the name reservation and the approval for the activity to be undertaken with the Department of Economic Development in Dubai.

The software business can be registered as a Professional business with full foreign ownership or as a sole proprietorship. Civil companies are also permitted when the owner has one or more partners. There is no minimum share capital for civil companies in Dubai, but the amount must be stated in the Articles of Association of the software firm.

Documents Required to Register a Software Company in Dubai

  • Passport copies of the owners and shareholders requesting the license
  • Proof of payment of the initial approval fee
  • Copy of the local partner’s naturalization book
  • A NOC for expatriate partners from their sponsors
  • The partnership agreement must be signed in front of a notary

Dubai is one of the most preferred Emirate when it comes to opening a software company in the UAE, and this is because the local government is very involved in offering support to foreign and local investors who want to do business here.

Opening a software business in Dubai can be simple and straight-forward if you take help from Commitbiz Management Consultants. Our consultants have years of experience in this field and are well-versed with the legal procedures. Contact us today for more information.


Do we require a ‘No Objection Certificate’ for incorporating a software company in Dubai?

Yes, NOC is essential for ex-pats from their sponsors.

Do we require a local partner’s naturalization book for a Dubai software company?

Yes, the naturalization book of a local partner is essential.

Are there any minimum share capital for a software civil company in Dubai?

No, but the Articles of Association should contain the amount.

Which license is to be issued for setting up a software business in Dubai?

 A professional trade license is to be obtained.

Is it mandatory for all software companies in Dubai to register for VAT?


Start your Entrepreneurship Journey Today in UAE from AED 5,500

Commitbiz will help you with every step of your success journey. You can get one-on-one mentorship from our experts and get guidance on how to clear the legal proceedings and grow your business.

Know More