The UAE is making strides in the field of “information technology” (IT) by establishing a strong digital economy. As a global business hub, the Emirates is attracting a large number of foreign investors and entrepreneurs to set up their IT businesses. Some of the IT business opportunities you can consider are cybersecurity, application development, and software development.
Read this blog to gain insight into the process and other requirements of setting up an IT company in UAE.
Back to topWhere Can You Start a UAE IT Company?
The first step in your entrepreneurial journey of starting an IT company in UAE is to choose a suitable jurisdiction based on your specific business needs. The UAE offers various mainland and free zone options for setting up your IT business.
To learn more about the jurisdictions, go through the table below:
Mainland Company Formation | Free Zone Company Formation |
Setting up a company in UAE Mainland enables you to conduct trade across the country. The Department of Economic Development (DED) is the authority in the mainland that provides you with the necessary licenses and legal permissions. | In the UAE free zones, you can set up your company at a comparatively lower cost. Each free zone operates under its own legal framework, so consider the one that suits your business requirements. |
Read the Difference Between Mainland, Freezone, and Offshore Companies in the UAE to understand the difference between the jurisdictions.
Back to topRequirements to Start a Software Company in UAE
You need to fulfil certain requirements set by the authorities for setting up an IT company in UAE mainland or freezone.
For the Mainland, you require:
- Memorandum/s of Association.
- Approvals from other government entities.
- Initial approval from the relevant authorities.
- No objection certification from the sponsors (if any)
- Lease or rental contract.
- Additional approvals from other government entities.
- Naturalisation book copy of a local sponsor (if any)
- Duly filled application and copies of all the required documents.
Note: Local partner’s naturalisation books’ copy refers to a document that confirms the citizenship of your local partner.
For the Free Zone, you require:
- Filled in application must be submitted.
- Registry Identification Code Form (RIC), which is required for the company’s appointed manager (original and notarised)
- Existing trade license certificate copy (if applicable)
- Existing trade registration certificate (if applicable).
- Zero tolerance policy for forged or unauthorised specimen signatures of the company’s shareholders and appointed manager. Ensure original notarised and attested specimen signatures are provided.
- Original and notarised Registry Identification Code Form (RIC) for a board resolution appointing a manager.
- No need to submit a detailed proposal; a brief letter about the investment idea and the investor's plan suffices.
- Evidence of financial health, such as submission of a reference certificate provided by a bank or at least two years of audited financial reports.
How to Start an IT Company in UAE?
You need to adhere to a systematic process for starting a software company in UAE mainland and freezone. Here is a step-by-step guide to help you understand the process:
Identify your Business Activity
Both the UAE free zones and the mainland offer a diverse range of business activities. Select the most suitable activity for your launching IT company in UAE.
Decide the Legal Structure of your Company
UAE offers a wide range of legal forms of business for entrepreneurs planning to start their own software company in UAE. Some of these include sole establishment, limited liability company, civil company, among others. Select one of these depending on your business needs.
Register the Trade Name
The trade name must be unique and should not be duplicated. Once decided, register the trade name with the respective UAE authority.
Apply for Initial Approval
Initial approval is the UAE government's preliminary “No Objection” for setting up a software business in UAE. It allows you to proceed with the licensing process but doesn't grant operational permission.
Draft your MOA
You need to create an MOA, which is a legal document that outlines the company’s constitution, objectives, and the rights and responsibilities of shareholders.
Finalise your Office Space
Secure suitable office space through a lease or rental agreement. Ensure that the chosen location is in compliance with the UAE’s Department of Economic Development regulations and needs. Subsequently, register the chosen office location with the respective government authority to obtain an Ejari certificate.
Additional Approval
In some cases, the business activities require additional approvals. This can be availed by applying to the relevant government authorities.
Submit the Required Documents
If you are planning to incorporate a UAE IT company, gather all the required documents and submit them to the relevant government authorities.
Collect your License
Once all the steps are completed, pay the required fees and collect your license. This will allow you to operate a business legally in the UAE.
Starting a software company and providing IT services in UAE can look daunting, but with the help of an expert business setup consultant in Dubai, the entire process can be handled seamlessly. Contact Commitbiz to get in-depth information about the process, documentation, licensing, and other requirements for setting up an IT company in UAE.
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