How to Setup a Mobile App Business in the UAE?

by Zaara 31, Dec 2021

How to Setup a Mobile App Business in the UAE?

With millions of free apps now available in the App Store and Google Play Store to help you hail a cab, track a trip, monitor your sleep, diet and exercise routine, read books or listen to music, the mobile industry has boomed everywhere in the last decade.

Due to the ease of incorporation, most mobile app development companies chose to start a company in a free zone. You could geographically spread the app development team around the globe. Or you may be using local freelance developers' services. Starting with a jurisdiction that provides Flexi-desk services, start-up and overhead costs would be below.

The mobile app industry is moving at incredible speed, so you will have to stay on top of these developments to provide your customers with the best possible services. When it comes to using the most evolving technologies, your company will need to be agile and concentrate on emerging technologies such as virtual reality or artificial intelligence.

 

The flexibility with which it is possible to set up an app-building company here is another reason why the UAE presents an excellent opportunity for those wishing to tap into the mobile app market. If you're intrigued by the app business, are planning to participate in HostApp, or better yet are ready to set up your app business here in the Emirates, all you need to know is here.

Free zone or Mainland

As mobile app companies are generally seen as "virtual," i.e. the app can be created and then exchanged from anywhere in the world, for this form of company, there is no UAE mainland licence on offer. Mobile app companies must, therefore, always be registered in free zones.

Choosing a Free Zone

There are many benefits for setting up in a UAE free zone: 0 per cent corporate and personal tax, 100 percent company ownership, 100 percent capital and profit repatriation, and 100 per cent exemption from import and export tax, to name just a few. However, while all free zones provide these benefits, some are a better fit than others for mobile app companies. Dubai Internet City (DIC) is the most appropriate depending on the characteristics of the free zone. Maintenance cost can be relatively high here, however. For those seeking to save on extra expenses, Fujairah Creative City Free Zone is a more affordable choice.

Getting Established

The process is meticulously planned, whether you choose to set up in Fujairah Creative City or DIC. DIC does, however, require additional documentation, including a comprehensive business plan and a certificate of incorporation, along with the copies of the passport and application form. On the other hand, Fujairah Creative City is usually light on documentation and bureaucracy and does not require any shared capital, annual audit or formal bookkeeping.

Flexible Office Options

DIC and Fujairah both sell Flexi-desk packs. These enable business owners to make use of office facilities on an ad-hoc basis without the need to commit to physical office space, such as desk space, conference rooms, reception cover and call screening. Fujairah Creative City also provides packages for freelancers and single owners that provide entrepreneurs with a simple and easy way to get their companies up and running, with little dedication, no office space requirements and minimal start-up and overhead costs.

Setup with Multiple Shareholders

Dubai Internet City and Fujairah Creative City, due in part to their versatile shareholder requirements, both are popular with companies worldwide. Both free zones allow more than one shareholder to form corporations, which can be both individuals and companies.

 

Apply for Numerous Visas

Both free regions allow you to apply for numerous visas, up to six in the case of Fujairah Creative City, under their respective Flexi-desk packages. DIC includes the ability to apply for one permit per eight square metres of office space for those seeking to take over physical premises as well as receive visas for employees.

Following are the most suitable Free Zone for Mobile app business due to its nature of the Free Zone -

  • The most suitable free zone for setting up a mobile app company in Dubai is Dubai Internet City (DIC).
  • Setting up a mobile app company in Dubai is a more affordable choice for Fujairah Creative City Free Zone.
  • If you choose Dubai Internet City (DIC) to set up, additional documents such as a comprehensive business plan and a certificate of incorporation are required.
  • In general, Fujairah Creative City is light on paperwork; paid-up share capital, an annual audit or other formal bookkeeping are not needed.
  • The Flexi-desk packages are offered by both Dubai Internet City (DIC) and Fujairah Creative City.
  • The DIC also provides the option of applying for one visa per eight square metres of office space.
  • Fujairah Creative City also provides freelancer and single owner packages.
  • For company creation, both free zones allow more than one shareholder to form a company.
  • And under their respective Flexi-desk packages, you can also submit several visas (up to six in the case of Fujairah Creative City).

 

Advantages of Starting a Mobile App Company

Starting an app company in Dubai provides many advantages. For one thing, the process can be both quick and inexpensive with the aid of a UAE business creation specialist.

Every stage of the application process can be handled on your behalf by a business creation specialist, helping to identify your operations, select a company name, and carry out licence and visa applications.

Provided you have the necessary skills and computing power available, there are also relatively low overheads in developing apps. There's always no need to take on physical premises, because you're going to work to order, which means that it's billable most of the time.

Start an app development company right now in the UAE, and you will benefit from a broad and rising market as well. UAE users are beginning to expect their service providers' app experience. The retail and food industry is an outstanding example. Numerous applications, such as Talabat, Deliveroo, Zomato and more are now available in this region, highlighting the increasing demand for such services.

 

What Does it Cost to Start an App Business?

There are many costs to consider when starting any company in the UAE. You would also need to pay for employee salaries and pensions, premises (if required) and facilities, as well as a business licence and a visa.

You'll need to invest in software and a reasonably healthy machine if you're starting from scratch. If you already have this and start tiny, there are relatively low start-up costs. Just the value of your licence and visa would have to be paid for.

Since there is so much space for variety, consulting with a business creation specialist is a suitable way to get an idea of cost. You will get to know your organisation and customise a quote for your particular needs.

How to Open a Mobile App Firm in Dubai?

  1. First of all, seek out the services of a valued expert in the business venture. It will start by deciding if your company is more appropriate for a free zone or the mainland.

             Both structures have advantages. Free zones such as Fujairah Creative City offer services such as

             a fast and straightforward procedure of formation, ongoing business assistance and financial

             rewards such as tax exemptions and restrictions on zero currency.

  1. Next, they will assist you in deciding your business activity. The main thing here is that the actions you have selected are in line with those on the list of the official Economic Development Department (DED).
  2. It's time to pick the name of a company now. Be informed that here in the UAE, you have to abide by a strict collection of naming conventions.

In short, you must stop any language that's offensive or profane. When naming your business after yourself, avoid names of well-known organisations and avoid abbreviations. You will have to verify that your preferred name is available for registration.

  1. You will apply for your trade licence with these significant decisions made. A few specifics and some essential documents, including you, will be expected to provide
  • Application template completed
  • Passport copy of the owners or shareholders proposed.
  • Two colour images of the passport size
  1. Finally, you will need to apply for one, unless you already have a legitimate UAE residency visa.

Much like applying for your business licence, the visa application process can be straightforward with the right instructions.

You are also eligible to sponsor others for their visas as the holder of a UAE business licence. It may be a partner, a parent or an infant, or a housekeeper, such as a domestic worker.

Are You Ready to Start a Mobile App Business in the UAE?

Starting an app development company in the UAE doesn't have to be too complicated if you're armed   

with the right knowledge.

It needs a degree of prior process expertise. It is necessary to remember that the application process is

clear only if the licence application is complete and free of errors at the date of submission.

How Can We Help?

Commitbiz is a team of business registration experts who are passionate about bringing to life  

the dreams of ambitious entrepreneurs and SMEs.

It may also assist with opening corporate bank accounts and advise on the most suitable

financial institution to meet your particular needs, as well as managing your licence application.

We also provide visa and immigration services and all government formalities, licences, work permits  

and visa applications necessary for trade in the UAE are handled.

It's an excellent opportunity to work with a Dubai company creation specialist like Commitbiz when forming a new company in the UAE to help you confirm that this is the case.

In short, our experts will set up your business on your behalf, make applications for your licence and visa, and take care of all the requisite administrators, leaving you free to run your business.

Do contact us; we will be keen to guide you.

FAQs

1. Are there any UAE mainland license offer for a mobile app company?

No, there are no mainland license offers, so the app companies must be registered in the free zones as they are ‘virtual’.

2. Which is the most appropriate free zone in Dubai for starting an app business?

The Dubai Internet City (DIC) is the most appropriate one based on its free zone characteristics.

3. Why the Fujairah Creative City (FCC) free zone is more affordable than the DIC?

This is because the maintenance charge is higher in the DIC and so if you want to save extra money then the FCC free zone is an affordable choice.

4. Which license must be obtained to start an app business in the UAE?

A trade license is a must to incorporate an app company.

5. Which Visa is necessary to apply for a trade license while incorporating an UAE app company?

The UAE Residency Visa is important initially before applying for any other Visas.

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