Dubai is known for many things, like tourism, real estate, and most importantly, the IT business. Its strategic location and state-of-the-art infrastructural support make it one of the most attractive spots for IT companies. The government policies, tax structure, and 100% ownership make it profitable to start an IT Company in Dubai.
In this post, we will give you a step-by-step process for an IT services company in the Dubai Mainland. If you want assistance, 365 Days PRO Services can help you with the IT company setup in the Dubai mainland. Read till the end to know how.
Why Start An IT Services Company in the Dubai Mainland?
Starting a business in a free zone is much easier and less costly. Then why do the founders of a technology company in Dubai choose the Mainland business?
A simple answer is: unrestricted market access. The Free Zone companies get various benefits that they can’t access in the UAE Mainland market. Furthermore, the Free Zone companies aren’t eligible to bid for government projects. Therefore, if you want to target locals in the UAE and apply for government deals, you must start a Mainland business.
The following are a few more reasons to start your IT & Software company in the Dubai Mainland:
- Expand your business beyond Dubai easily
- Gain credibility in the market
- Build your brand image
- Access to infrastructure and co-working spaces
- Leverage the higher demand for IT services in the UAE
Step-By-Step Guide To Start An IT Company In Dubai
The following is a simple guide to setting up an IT services company in the Dubai Mainland.
Step 1: Define Your Business Activity & Legal Structure
Choosing the right business activities is one of the most important tasks in establishing a company in Dubai Mainland. Your business structure, operations, taxes and other administrative duties will depend on the activities you choose. You may select more than one activity, provided that they are consistent with the way you do business.
The following are a few common business activities for an IT company in the UAE:
- Software Development and Programming
- Web Design and Development
- IT Consultancy
- Cybersecurity Services
- Cloud Computing Services
- Data Analytics and AI Solutions
- IT Support and Maintenance
- Network Installation and Management
- IT Training and Education
And you also need to decide on the legal structure for your company. Since 2021, most businesses can be opened without a local sponsor. The most popular legal structures for an IT company in the Dubai Mainland are Limited Liability Company (LLC) and Sole Establishment.
Step 2: Reserve Your Trade Name
After defining your activity and legal structure, you can register your trade name. You cannot have the same trade name as another existing one in the UAE. So, before applying for a licence, you need to check and register your brand name with the DET, Dubai.
Registration is important to make sure you are following every rule. Under the UAE regulation, your brand name must now have references to offensive language to religion or government bodies or be identical to an existing registered entity.
Step 3: Get Initial Approval
Initial approval is necessary to confirm that there are no objections regarding your IT & Software company in Dubai.
For initial approval you need to send some documents to the DET or other relevant government authority. A few documents that you need to submit are identity proofs, Memorandum of Association (MOA), business plans, application forms, trade name registration etc.
Step 4: Secure Office Space
All mainland companies need to have a physical office address. Depending on the size of your team and your budget, you can choose from serviced offices, co-working spaces or dedicated commercial premises. The trade licence cannot be issued without the lease agreement (Ejari).
Step 5: Get External Approval If Necessary
Additional approval by the appropriate authority is required for some data sensitive IT companies. Cybersecurity and other IT-related businesses that work with the government may also need a local partner to establish a business.
Step 6: Get Trade License
Submit all required documents to the DET and pay the applicable licence fees for the trade licence. Your application will be approved once all the documents are verified. Then, the Department of Economy and Tourism will issue you a trade licence.
Step 7: Open A Bank Account
Once you get your trade licence, the next step is to open some corporate or current account with a bank. That account will be for taxation and basically all your business’s financial transactions will be logged there. 365 Days PRO Services helps you open a bank account with minimal hassle.
Step 8: Apply For Visas
You can sponsor residency visas for yourself, partners, employees and dependents under the terms of your trade license. The amount of visas is usually determined by the size of your office space and the nature of your business activity. In Dubai Mainland business you can apply for 1 employee visa per 9 square metre.
How Much Does It Cost To Start a Company In Dubai?
The cost of a company setup in Dubai Mainland depends on various factors such as the number of activities, scale of operations, type of office space, and your bank. It can start from AED 25,000 or more and can cost more based on your choices. We can help you find more affordable options.
365 Days PRO Services is the best business set up companies in Dubai. We have been helping businesses start their journey in the Dubai Mainland for 15+ years. From initial registration to visas, we can help you with end-to-end business setup in the Dubai Mainland. Contact us to know more.
Conclusion
Starting an IT company in Dubai Mainland can be one of your best decisions, as it provides you access to a lucrative market, benefiting from government policies, building credibility, and an opportunity to expand anywhere in the UAE. We have given you a step-by-step guide to start your technology company in Dubai. You must choose the right activities and legal structure for better legal alignment. 365 Day PRO Service is here to help you through each of these steps for a seamless business launch. Whether you’re a startup founder launching your first software company in Dubai or a multinational establishing a regional office, we tailor our services to your exact needs. Contact us to know more.
FAQs
How to start an IT company in Dubai?
To start an IT company in Dubai, you need to register your business and trade name with DET and other relevant government authorities. If you are in a data-sensitive or security-related niche you will also need other approvals. You will have to look for an office space for the registration of your business in Dubai Mainland. 365 Day PRO Services provides a complete range of business setup services, making your journey smooth. Contact us to learn more.
Can a foreigner set up a company in Dubai?
Yes. Following amendments to the UAE Commercial Companies Law, foreign nationals can now own 100% of many business types on the Dubai Mainland, including IT and technology companies, without the need for a local Emirati sponsor.
How long does it take to set up an IT company in Dubai?
The whole process usually takes somewhere around 7 to 15 working days, depending on how complex your business activities are, how complete your documents are, and whether any extra regulatory approvals might be needed. If you partner with a professional business setup company like 365 Days PRO Services, things can move faster, and you can avoid a lot of back-and-forth that slows the process.
Are special approvals required to start an IT company in Dubai?
Most generic IT companies don’t need special approval. However, if you are operating in a sensitive niche such as telecommunication or cybersecurity, you might need additional approval. You might even need a local partner if your business is in a sensitive niche.