How to set up a software company in Dubai?

start company in Dubai

The software sector in Dubai is the most significant part of the IT industry. It has been growing successfully for more than a decade now. This came to be possible because of the federal authorities’ allocation and understanding towards the need for a production setting and excellent technologies for enhancing the city’s advancement.

Why should one start their Software Company in Dubai?

Dubai is an international business hub and an incredible spot for establishing all sorts of activities, regardless of the chosen realm. Also, the remunerative taxation strategy proposed especially in the Free Zones helped to boost up the expansion of IT companies along with delivering quality digital products and services. Generally, the public services in Dubai are the main priority of the government.

Hence, those who are willing to start a software company can utilize this opportunity in Dubai as they are suitable to start both a small and a large corporation. Aside from the tax advantages, international employers will hire a vast number of skilled workers from all over the country in this country with the best Web access.

Apart from the tax benefits, the foreign investors can assign a large number of talented employees from anywhere around the world in this region which has the most advanced Internet infrastructure.

What is a Software Company?

A technology corporation is a business that produces a large number of outputs that have a useful function. They also design blogs, develop business agendas, and create digital antidotes to dilemmas. They also assist with the development of software for various operating systems and include business espionage. In Dubai, a suite of applications and documents helps you to understand the demands and emergencies of your customers.

As a result, this is important in a variety of industries, including health care, finance, and manufacturing. It acquires computer features designed for administration on laptops and handheld devices. While there are plenty of emerging inventions that have joined the fray.

A software company is an enterprise that usually generates numerous outputs which perform favorable purposes. Also, they create digital antidotes to dilemmas, create corporate policies, and design websites. They also help to develop applications for different kinds of operating systems and supply business espionage.

In Dubai, with a suite of software and its documentation it allows you to know the customer’s needs and crises. So, this is pertinent in various sectors such as health care facilities, banking, and engineering fields. It procures device capabilities that are developed to administer on notebooks and mobile devices. There are additional new technologies that have enlisted in the sector. They are:

  • Firstly, massive and popular companies producing Commercial off-the-shelf like Red Hat, Microsoft, and Oracle Corporation.
  • Secondly, minor companies producing customized software for other companies and entrepreneurs
  • Thirdly, companies producing technical Commercial off-the-shelf software like Panorama, Hyperion, and Siebel Systems.
  • Then, the companies producing Software as a Service platform like Google, Facebook, and Linkedin.
  • Next, companies producing software segments like Developer Express and Dundas.
  • Finally, companies producing customized software for vertical enterprises or specific geographical localities.

Dubai is now one of the Emirates where certain inventions and a technologically organized background are admired. As a result, now is the ideal time for any business owner to establish a tech service in Dubai and capitalize on the latest industry trend. Dubai is one of the Emirates, where they admire these technologies and a technology-arranged lineage. So, this is the right opportunity for any business owner to create a software company in Dubai and utilize the new market sensation.

How to set up a software company in Dubai?

Aspects to keep in mind

However, before you start company in Dubai, do your study and review the nation’s free zones. Dubai free trade zones are always the best finance-benefiting means to start a business. However, their tax exemptions and capital and profit repatriation enable entrepreneurs to always conserve ownership of their business. Other than these, they provide office and working space, reception lid, access to committee and conference room, and lend communication facilities such as telephones, broadband, and more. Each of these free zones also offers a range of varied benefits.

Where can one open a software company in Dubai?

In Dubai, the IT industry is growing extensively. A new survey report predicts that by the year 2022, the capital this sector is going to generate will surpass 22 billion AED. Also, the annual growth of this industry is expected to outgrow 3.5% in the coming years. Likewise, people are more willing to use apps created by software companies.

Those who want to begin their software business in Dubai can register it in the mainland or one of the free zones.

  1. Mainland company setup Dubai

First of all, one must keep in mind that to set up a business or company in the mainland, it is necessary to have a local sponsor to keep and own 51% of the possession of shares.

  1. Free Zone company setup Dubai

A free zone would provide a foreign investor with more satisfactory options. For example, tax-free trading, complete capital ownership, and profit repatriation.

The list of free zones that are precisely built to acclimate IT corporations, including software companies are given below.

  1. Dubai Silicon Oasis: This is designed as a hi-tech ecosystem that provides a gushing amount of advantages giving all capabilities required for an ethical IT industry activity.
  2. Next is Dubai Internet City (DIC): As part of TECOM Group, Dubai internet city offers you creative and efficient collective arranged innovation solutions.
  3. Then Dubai Techno Park (DTP): This is an IT park to assist technological advancement within the retail and industrial zone.

How to Set Up a Software Company in Dubai?

To set up your software company in Dubai,  first, you have to determine your target market. If you wish to do more local business alongside foreign business, it is better to set up your company on the mainland of Dubai. The other choice is to set up your company in the Free Zone if your target market is precisely domestic.

So, they work under their legal structure and are incapable of administering business activities on the mainland. Then the IT industry doesn’t need any special pre-approval or a different kind of license.  Just like most of the other businesses, it follows the normal path of opening a company in Dubai.

What are the documents needed to start an IT company in Dubai?

The software realm in Dubai is one of the best develop and significant IT branches. It is because of the functional innovative services and applications for public assistance within the city. Therefore, software entrepreneurs have the choice of beginning a software company either in the free zones and mainland.

But to get a favorable tax consideration it is better to choose from the free zones such as Dubai Knowledge Village, Dubai Media City, Dubai Silicon City, and Dubai Internet City. They are the main important trade zones where IT firms are often establish. However, for registering an IT company in Dubai, it is good to understand all about the licenses and permits we require.  It is issue by the UAE’s Ministry of Communication and Information Technology.

The documents to be submit with the Department of Economic Development for company formation are listed below:

  • Copies of the passport of the owner(s) along with the application for a license.
  • Evidence of payment of the initial fee for approval
  • Copy of the local partner’s naturalization book
  • NOC for foreign partners from their sponsors

What are the steps to obtain a professional license?

Ahead of making your submission, you need to have a hold of valuable papers like a passport copy and a business plan. But, have you ever thought about how to get a business license in Dubai?

Here are the steps to attain a professional license:

  • Reservation of the company name.
  • Gain approval for the business activity with the DED in Dubai.
  • Register your IT company as a professional firm with full foreign ownership as well as a sole proprietorship.

A POINT TO NOTE: To obtain a professional license, each of the partners or shareholders is require to pay AED 20,000 as a security deposit. If it is a single investor, he/she has to pay AED 10,000.

What is the cost of setting up a software company in Dubai?

The cost for starting a software corporation in Dubai will always depend on the location one chooses for their company. Despite the size and layout of your company, doing business in a free zone is an incredible way to maintain startup costs low. Free zones offer package prices, inclusive of visa applications, and enable the use of office facilities. However, the estimated cost associated with opening a software company in Dubai can range from AED 18,000 to AED 47,500.


Dubai is one of the broadly outstanding regions in the IT industry of the world. Other than the zero taxation system offered in the free zones, the government authorities have ratified the focus on life developments with the help of technology. If you’re planning to start a software company in Dubai the greatest benefit you can earn is the circumstance to offer services to clients everywhere on the globe.


Please enter your comment!
Please enter your name here