IT Company Business License In Dubai
IT, Tech-based Company in Dubai
Dubai attracts a large pool of entrepreneurs each year for a number of reasons, including the ease of doing business and countless opportunities afforded. With a drive to always improve their futuristic pathways and abilities, businesses across many different sectors can learn to integrate Information Technology (IT) into their processes, right here in Dubai. Add to this a 0% tax regime on personal and corporate income and a straightforward incorporation process, and you have the most conducive environment to run a technology enterprise.
How to Start Your Tech Business in Dubai?
1. Outline Your Business Activities
The first step is to establish the type of business you intend to run. Your business activity will determine for which type of license you need to apply. There are many subsectors to technology, ranging from software development to hardware sales, IT services, and beyond. Outlining your business activities upfront will make the rest of the setup process straightforward.
2. Decide The Legal Company Structure
To form a legal business entity, you need to decide on a suitable company structure after evaluating your business operationally and financially and considering market entry requirements.
3. Build Your IT Team
Having the right team of technology experts and skilled resources is critical to IT business success. Employees must have the required technical expertise to do the job well and provide good service to the clients.
4. Choose A Jurisdiction
Nothing starts until you finalize an ideal site for your company that squarely fits into the business nature, requirements and budget. UAE gives you three options to set up your business – Mainland (Onshore), Offshore, or Free Zone. You have to pick one keeping the benefits and limitations in view that each jurisdiction features.
5. Apply For Business License
You can only conduct business with the use of a business or trading license. The process involves contacting several authorities within the free zone or mainland and filling out applications whilst dealing with paperwork.
The following documents are generally required to apply for a Trade License:
- Copy of Passport 1st and 2nd page, CNIC (for non-resident)
- Copy of passport, Emirates’ ID and UAE residence visa (for resident)
- Summary of business plan
- Office address/Ejari/Lease Agreement
- Home country address and recent utility bill
6. Apply For Residence Visa
- You will also need to obtain a visa to live and work in the UAE. For this, you can apply to the relevant immigration department.
- If you plan to set up your tech business in a free zone, then the residence visa application is part of the primary company formation process.
7. Sign and Collect Documents
- You will also need to obtain a visa to live and work in the UAE. For this, you can apply to the relevant immigration department.
- If you plan to set up your tech business in a free zone, then the residence visa application is part of the primary company formation process.
8. Open Your Bank Account
In order to track your expenses, assets and liabilities, you need to formulate payments plans and open up a bank account.
IT and Tech-based Activities You Can Pursue in UAE
Here are a few tech-related business activities you can potentially venture into.
IT Consulting:
This involves the maximization of your digital skills to help out clients during a technological project. Primarily, other organizations and businesses may require your expertise when it comes to operating their plans and objectives using technology. Updates about new software, cybersecurity and analytics would be some of the areas you need to be vigilant about.
E-Commerce:
You can trade a variety of goods and services online with an expertly designed e-commerce website, great project management skills, and good technical skills. Dubai is home to a vast online market with customer segments that enjoy novel products that enhance the quality of life, which is a big deal to start a business.
Software Development:
Many businesses and organisations are codependent on programs that run their daily business processes. The software development industry will continue to thrive with emerging talent and innovation that is surpassed every day. All you need is the relevant knowledge, passion for coding and IT and good business management skills to get started on it..
Selling Technological Equipment:
The first step would be to engage in buying and selling technological equipment like smartphone collections, laptops, tabs, specialized computer software and other tech goods.
IT Company Business License
Benefits of Starting a Tech-based Company in Mainland
Foreign investors enjoy attractive options to set up their tech companies in mainland UAE. Companies set up in the mainland can trade freely across the UAE, GCC, and international markets. A mainland entity requires that a local sponsor holds 51% of the shares of the company. However, when you partner with a local corporate sponsor through a corporate nominee program, your company can retain complete control of business operations and 100% of profits. The additional benefit of a mainland setup is that you can apply, bid, and lodge tenders for many lucrative local government contracts. Since technology is now a key focus across all the UAE government departments, more and more contractual opportunities are becoming available for tech businesses.
Below are some Key reasons to set up your tech business in the mainland:
- Freedom to do business with local and government authorities in any part of the UAE
- Access to the global market
- 0% personal and corporate tax
- Unlimited employment visas (number depends on the size of the office space)
- Office premises can be located anywhere in mainland Dubai
- Ability to diversify business operations
- Endless growth potential, and more.
IT Company Business License
Benefits of Starting a Tech-based Company in Free Zone
Foreign investors enjoy attractive options to set up their tech companies in mainland UAE. Companies set up in the mainland can trade freely across the UAE, GCC, and international markets. A mainland entity requires that a local sponsor holds 51% of the shares of the company. However, when you partner with a local corporate sponsor through a corporate nominee program, your company can retain complete control of business operations and 100% of profits. The additional benefit of a mainland setup is that you can apply, bid, and lodge tenders for many lucrative local government contracts. Since technology is now a key focus across all the UAE government departments, more and more contractual opportunities are becoming available for tech businesses.
Lenient Regulatory Environment
Usually, a free zone allows 100% tax concessions and cost-abiding transport links that inevitably reduce your business costs. You can make use of full ownership whilst avoiding the payments of personal and corporate tax, allowing plenty of time to strategize and plan ahead with your tech business. Being involved with technology introduces a large sum of research and development costs, so registering your business to suit a more affordable structure may be beneficial in the long run.
Room For Innovation
Dubai is surrounded by the latest technology that can aid your business in its growth. From the use of blockchain technology and quantum computing to artificial intelligence—UAE facilitates all. Applying these to your business can help sustainable growth and collaboration of businesses in the free zone.
Good Infrastructure
Operating in a free zone like Meydan Free Zone will introduce you to some of the best amenities that will benefit your business in the long run. Well-equipped office spaces, strategic transport links and airports nearby can greatly help the logistics of your tech business. Moreover, it’s highly likely that you’d be surrounded by similar competition that will drive growth in your business
Easy Set-Up Procedure
We, MARKEF, help business owners with registration, licensing, documentation, paperwork, legal advice and consultation on tax, all to make sure that the set-up procedure is a seamless one.
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MARKEF is a leading Accounting Firm offering wide range of services including Accounting and Bookkeeping, Audit and Assurance, VAT and Corporate Tax, Business Consulting, Management Consulting, and Business Setup Services in Dubai and across United Arab Emirates.
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