Opening a Software Company in Dubai

Software Business Setup in Dubai:

The Information Technology (IT) industry is one of the booming sectors in the Middle East and the world in general. The UAE residents and Government alike has always been open to new technologies entering the market and the government is taking efforts to implement the system interface rather than human interface in all sectors for a fast paced environment.
In UAE, Dubai is one of the Emirates where they are accommodating such kind of technologies within no time and emerging into a technology oriented culture. This is the right time for every business owner to open a software or hardware company in Dubai to take advantage of the current market trend.

How to Set Up Software Company in Dubai

For Setting up your software company in Dubai you need to identify your target market first. If you are planning to do more local business along with international business, it is recommended that you establish your company on Dubai Mainland. The Department of Economic Development (DED), Dubai which governs the licensing on the Dubai Mainland has brought about several reforms to ease the procedures and the cost of opening a company on the Dubai Mainland.
The other option is to setup business in Free Zone if your target market is purely international. Free zones are governed by their own framework of regulations and are restricted from doing business directly on the Mainland. Those companies who are registered in free zones, need to appoint a local distributor/ service agent on the Mainland to carry out their business in local market but are allowed to do international business without any restrictions.

Activity Details for Setting up Software Development and Software Trading

The DED has classified Software development as a professional license and Software trading as a commercial license. If you want to establish only as Software Development Company you can go for a 100 percentage ownership company in Dubai mainland without a UAE local partner. The UAE national, however, needs to be a Local Service Agent.

The other option on the Dubai Mainland is to have both the Software Development and Software Trading activities in one license which will be issued as commercial license and will have a UAE local partner to your license.

For Free zones you will get 100 percentage ownership for both professional as well as commercial licenses and you need to issue dual licenses for your free zone company to have both activities with additional costs.

Office Space Requirements

The office could be a commercial retail space or commercial office for professional and commercial licensing in Dubai Mainland and the approximate requirement of the space would be a minimum of 200 sq ft.
For Free Zone Professional and Commercial license issued on flexi desk or separate office as per requirement like no of employment visa and physical office usage.

How Much Does it Cost to Start a Software Company

In Dubai mainland, the cost for a Software professional license will be AED 10,797($2,945) approximately and a 2.5% of the annual rent of the office will be added along with the license fees as market fee.
For Software commercial license in Dubai Mainland will cost you approximate of AED 17,454($4,755) and the market fee will be added along. The office cost will be extra based on the location and size for both licenses. You can also register your office as a shared office which can reduce the rental costs.

For a free zone company the license fees will vary based on the free zone jurisdictions. The license fee in Dubai free zones is starting with AED 12,000(3,270) and the office rental cost will be extra.

Time Frame for Software Business Setup in Dubai

In Dubai Mainland the time frame to Open a Software Company in Dubai will be 7 to 10 working days where as in a Dubai free zone it will be around 5 to 6 working days after immigration approval.

Investor Visa Eligibility Criteria

The license once is issued eligible to have a maximum of 2 investor visa whose name appears on the MOA in commercial and professional license in Dubai Mainland.
For Free Zone, eligibility of investor visa depends on the package selected by client.

Flyingcolour Business Setup, Accounting & VAT Services has helped several clients to setup business in Dubai and UAE in mainland, Free Zone & offshore with detailing all the steps, costs, regulations and legalities. This blog post is written by Mr. Sajeev. Feel free to call today for a more detail on your business setup inquiry. Please send inquiry to info[at]flyingcolour[dot]com or call +971 4 4542366.