The United Arab Emirates (UAE) is regarded as one of the developing startup hubs worldwide. With competition from different sectors, the country is gaining tremendous global interest, especially from tech entrepreneurs who are interested in investing in the impressive infrastructure built by the government.
Let us talk about one of its famous Emirates, known for being the hub for all businesses - Dubai. Dubai prides itself on being one step ahead of the competition and looking for the next big technology revolution and smart city initiative. UAE government departments, Ministry offices, Ministry of Finance and Ministry of Foreign Affairs, Agencies and Municipalities are now adopting technology and IT services where possible, making all their systems and processes fully digitally integrated.
There are many opportunities for both start-ups and established businesses to expand or start an IT/technology company in Dubai and the UAE. Therefore, how can a company stand out from the crowd and how to get your Dubai company up and running in the quickest possible time? Read our article to know more about tech firm setup in Dubai.
How to Start a Tech Firm in Dubai?
Just like any other business in Dubai, the steps are almost similar. They are -
1. Determine your Business Activity
The first step is to note down which type of tech firm you want to start. Will your tech firm provide generalized services or specialized services? Here’s all you must know -
Generalized Tech Services
Setting up a generalized IT service company with several service offerings, you will have a variety of clients.
Pros – providing generalized services will result in a wider client base. Nearly every business or person requires technical and IT services and support. Since you will be providing generalized services your business will need to remain updated on the latest industry changes and could learn more, seek opportunities and improve your business operations, resources and performance overall.
Cons – operating as a generalized technology / IT company you are competing with others in the market and often competing on price. Therefore, you may not be able to charge as much as a specialized IT company. Furthermore, it is essential that you keep up to date on the latest, technology and trends which can be time-consuming but will keep you in business.
Specialized Tech Services
There are many opportunities to offer clients and companies specializing in IT services. Some areas of specialities may include but are not limited to are:
- Networking and cloud computing and programming
- Big data, Data recovery and data management
- Website development and design
- Business intelligence
- Digital and analytic services
- Cybersecurity and system management
Pros – If you decide to be specialized in an IT field, you can become well known as the expert and market leader for a certain technology or service. Therefore, you may be able to charge more per hour, due to the demand for your services and have a thriving business.
Cons – being so specialized you could miss an opportunity to provide complementary services and revenue streams. Therefore, this may have an effect and slow down the growth and expansion of your business.
2. Selecting a Trade Name
One of the most important steps while setting up a business in Dubai is selecting a business name. Your company name needs to be simple, straight to the point and easily searchable, which is important in the current digital landscape and search websites.
3. Forming a Legal Business Entity
Deciding the corporate structure is also necessary. Selecting the right company structure will place the company in the best position operationally and financially. Not seeking the correct advice on the company structure and getting it wrong can be costly and restricted to the business overall.
4. Choosing the Jurisdiction
This is the part where many get confused. Whether you want to start a business in the mainland or freezone is a complex question. And business setup consultants like Commitbiz can help you with the confusion.
If a company provides IT/technology services and their clients are based on the mainland, the business is required to register as a mainland company. Company registration is completed with Dubai Economic Department. Most IT consulting-type services are considered as a professional license and a local National Service Agent (NSA) is required.
Whereas, if a company provides IT/technology services and their clients are based outside of the UAE and the company has no desire to expand its client base to the UAE, the company has the option to register as a free zone IT consultancy firm. Company registration is complete with the selected free zone. There is over 50 free zone in the UAE, and some are specific to certain industries. The main IT/technology-free zones located in Dubai are Dubai Internet City and Dubai Silicon Oasis. The industry-specific IT/technology-free zones are considerably more expensive than the general-free zones located in the North Emirates.
Start your Tech Firm with Commitbiz
We at Commitbiz can help you set up your tech firm in the UAE. Right from business incorporation to office space, we cover it all. Get in touch with us today.