Dubai has many investment opportunities for individuals who want to start a company leading up to the Dubai expo 2020. In the IT sector, many large businesses have opened subsidiaries in Dubai, but the city also provides plenty of choices for smaller IT companies as well. The incorporation process is quite easy once all the requirements are met.
In this blog, we explain the main requirements to abide by when setting up a software company in the lead-up to Dubai expo 2020. With the help of our agents in Dubai, the start of the software company in Dubai can happen quickly.
Why Open Software Company in Dubai?
The main reason you open a software company in Dubai is the lack of corporate taxes and the free return of profits if the company is set up in the Dubai free zone. Besides tax matters, the investors have access to a large pool of talented workers as Dubai has the most developed Internet infrastructures.
From the business environment point of view, Dubai is very trusted, and you can start a software company in Dubai with the possibility of providing services to clients all over the world.
The key reason for you to open a software company in Dubai leading up to Dubai expo 2020 is that digital technology has shown a lot of contributions for the development of Dubai and will also continue the same as:
- Dubai’s population, which is more than 2.5 million people benefit from one of the highest information and communication technology acquisition levels in the region.
- By Expo 2021 Dubai, the government will be covering 90% of the daily needs of the population through digital services
- By Expo 2021 Dubai, Dubai municipality also plans to rely on an autonomous transportation system as 12% of the trips of the city will be completed through such a system
- With the help of digital technology, the usage of public transportation is also bound to increase by 20% by Expo 2021 Dubai.
Where can You Open Software Company in Dubai?
According to the recent surveys, the Software industry in Dubai is set to grow considerably by Dubai expo 2020 dates. The IT sector in Dubai will generate 22 billion AED. As the population is more predisposed to use apps created by software companies, the annual growth of the software industry is expected to reach 3.5% by next year,
Those interested in starting a software company in Dubai can register it in Dubai mainland or one of the Dubai free zones. Following are the free zones that were mainly designed to house software companies:
- Dubai Silicon Oasis
- Dubai Internet City
- Dubai Media City;
- Dubai Knowledge Village
Requirements to Open Software Company in Dubai
- To start a software company in Dubai, the following are a few aspects that need to be considered first:
- You must decide if you want to set up your company in Dubai mainland or one of the free economic zones in the city.
- You must choose the legal entity under which the company will operate. The most preferred one is an LLC.
- You must start the company formation procedure by holding back a trading name and having the Articles of Association selected.
- The registration process of your company will be completed with the Trade Register in Dubai or the free zone authority, depending on the location of operation of the business.
- A mandatory step when opening a software company in Dubai is all the companies are required to register for VAT.
- The license will be provided by the Dubai Companies Register or by the Dubai free zone authority of the respective economic zone.
Obtaining a Professional License for a Software Company in Dubai
Before setting up a business in Dubai, you must get a professional license that will allow you to engage in business activities. The professional license is provided by the Department of Economic Development (DED) in Dubai. The first step for receiving your license is to rent the services of a local agent who will deal with getting the employment visa, the license, and other documents that are required.
The step for obtaining your professional license is your name reservation. The approval for this activity must be undertaken with the Department of Economic Development in Dubai. Software companies in Dubai can be registered as professional firms with full foreign proprietorship.
Documents Required Starting a Software Company in Dubai
- Following are the documents to be submitted to the Department of Economic Development in Dubai:
- A copy of your passport and your partners' request for the license.
- A Proof of payment of the initial approval fee
- A copy of the local partner’s naturalization book
- A no objection letter for emigrant partners from sponsors
- Partners with a professional license are required to pay 20,000 Dirhams as a security deposit, and a single investor must pay 10,000 Dirhams.
- The agreement of the partnership must be signed before a notary.
Cost to Start Software Company in Dubai
The cost for a Software professional license in Dubai mainland leading up to Dubai World Expo will be approximately AED 10,797. A small fraction i.e., 2.5% of the annual rent of the office will be added along with the license fees, which will be your market fee. The office cost will be added based on the location and size of both licenses. You can also register your office as a shared office, which can minimize rental costs.
For a free zone company, your license fees will vary based on the free zone jurisdictions. In Dubai free zones, the license fee is starting with AED 12,000, and the office rental cost will be additional.
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