Even though we launched our IT company in Dubai only in 2022, we started working towards it nearly 3 years before that. We went through a lot of research, competitor studies and discussions with consultants before we made our final decision to launch our company’s branch in Dubai. 

Before I share experience in starting an IT company in Dubai, let me share a brief background about myself. 

Spending time idling was not my cup of tea, so at the end of each routine working day as a software architect and web developer in the USA for more than a decade, instead of twiddling my thumbs, I took to expressing my thoughts on a personal website. Coincidentally, that first weblog was in the same year when Google emerged on the tech & computing scene, launching a blogging platform and offering a monetization advertising program. 

From a professional blogger, it was a natural jump to start my own niche websites on technology, travel, and education. Now I am firmly entrenched in the world of blogging and digital marketing, both as a profession and a business. I and my team at SpiderWorks Technologies offer the best Software Development services for promoting businesses and websites.

Spreading my wings to expand my business from my head office in Kerala, India where I relocated from the US in 2011, I successfully set up an office in Dubai, UAE a few years ago. I am sharing here the knowledge and expertise I gained on how to start an IT company in Dubai.

Why Start an IT Company in Dubai: Key Benefits and Reasons

Self-made entrepreneurs as well as corporates are cashing in on the booming IT sector, with Dubai, UAE a key destination to set up their business. It took around 3 years of research and analysis before I made the final decision to launch our IT company in Dubai. We all were very excited about making that decision at the end. The reasons for this are not hard to understand, ranging from excellent infrastructure to smooth application processes and tax exemptions in Free Zones. Let's explore the host of benefits and reasons for launching an IT startup in Dubai-

• Contemporary Infrastructure and Operational Support:

 Whether you want to set up a FinTech company, launch an app development startup or offer a digital marketing service, Dubai has excellent infrastructure and support. I am impressed that I got quick access to basic utilities, such as water, power and telecommunications, as well as security systems for our office. Advanced networking equipment and other support for technical and logistics operations are also offered. Dubai's superior network of roads and public transport, including trams and buses, is a boon to meet potential clients across the city. 

• Skilled Professional Personnel:

 Employees are the core of a business and in Dubai you will easily get skilled candidates to take up various roles, thanks to an ease in Visa restrictions which attracts global talent. Whether you require a senior admin manager, personnel at the front desk, accounts staff, or IT technicians for hardware maintenance, recruiting competent talent is not a problem. Unlike places like India where employees keep switching the job very often, in Dubai we will get a pretty stable work force who stay with the same employer for a relatively higher period of time. 

• Conductive Business Environment:

 Dubai has consistently held a high position in various prestigious Ease of Doing Business global ranking lists. I have experienced this first-hand, with streamlined registration procedures and obtaining the required licenses. What's more, friendly taxes and a slew of other measures have created a highly favourable hub for business growth. The labour laws in UAE are more employer-friendly than many other countries. 

• Financial Support Systems:

 Acquiring capital for a promising IT enterprise is within easy reach, thanks to a robust investor network in Dubai which encourages talented entrepreneurs. You can approach accredited angel investors who provide funding for IT companies and startups across the UAE, including Dubai Free Zone IT companies. There are plenty of individuals who have solid funds with them and ready to invest in startups and emerging businesses like IT sector. 

• Promising Revenue:

 With Dubai a major hub for technology and innovation, an IT business setup can generate quick profits due to exceptional market potential. Whether it is biotech, AI, digital payment, e-commerce or any kind of IT-associated setup, the sky's not the limit for generating good revenue. The cost for software development and other IT projects are relatively high in UAE compared to countries like India, so it was a wise decision for us to open our office in Dubai. 

How to Start an IT Company in Dubai

Having taken the decision to start an IT company in Dubai, you can start the application process either online or offline at a government service centre, an authorized legal service office, and customer happiness centres, adhering to government norms for all procedures. There are hundreds of business setup companies in the UAE who will take up all the pain involved in setting up your business. 

We took services from a very reputed business setup company called “Kiltons Business Setup Services” who offered us support throughout the company registration process.

Here's a checklist of what is required to start your company in Dubai -

• The Business Name:

 The first step in launching your IT company in Dubai is to register a name to use in official documents related to the business. When registering the name, there are specific rules and guidelines, such as not using an offensive name, not using one that is under copyright, etc. The name cannot have in it fully/partially any of the local or global active brands or names and abbreviations used in government projects. Check the government portal to know the do's and don'ts for reserving the business name.

• The Business Location:

 You can opt to set up your tech business in a mainland establishment or in one of the free zones, depending on the type of IT business. The mainland gives you access to doing business across Dubai and the UAE, but you need to have a local partner. For me, setting up my business in a free zone was advantageous as I got 100% business ownership, exemption from corporate tax, and other benefits.

• The Business Structure: 

You need to select the appropriate corporate entity for your IT, namely, (a) Limited Liability Company (LLC), (b) Professional Company (Civil), or (c) Branch/Representative office of a foreign company.

• The Business License: 

It is mandatory to get an approved license from the Department of Economic Development (DED) of the Emirate of Dubai to start your IT Company in Dubai. The license fee, to be paid in United Arab Emirates dirham (AED), depends on the type of business structure (sole proprietorship, LLC, etc.) Ensure that you apply for the right business license, select the relevant business activity, and provide accurate details in the application form. Other than a copy of the passport, you need to provide documents to indicate financial stability, provide a business plan outline, etc.

• The Business Articles of Association:

 Registration of your IT Company in Dubai requires you to submit a corporate document listing the Articles of Association (AoA). This outlines the company's regulations and the purpose of the corporate entity.

• The Business Bank Account:

 A dedicated corporate account is essential for conducting business operations in Dubai, as it provides easy access to funds whether it is for receiving payments from clients or issuing payments to employees. Select the bank, submit the required documents, deposit the minimum AED, and you are good to go to operate the account within a few weeks. 

• The Business VAT Registration: 

By law, a business which exceeds mandatory or voluntary registration thresholds must register for Value-Added Tax (VAT). You can check the UAE Federal Tax Authority website for details and guidelines to know the current registration threshold for tech startups in Dubai.

Cost of Starting an IT Company in Dubai

The following could be the key determining factors for the cost of starting an IT Company in Dubai

• Business Structure and License:

 The setup cost in Dubai for an IT company depends on the type of business entity it is, namely, a sole proprietary establishment, an LLC or a civil company. While the fee for the trade name and initial approval submission is uniform for all types, the license fee varies, with an LLC-established entity possibly paying over AED 40k. Also, multiple proprietors mean higher fees.

• Location:

 Depending on whether you are setting up the IT Company in a free zone or the mainland, you will be spending within an approximate range of AED 10k to AED 50k. 

• Office Space:

 Don't forget to factor in expenses for utilities, office furnishings and furniture for designated areas such as the reception and the conference room, computer terminals, facilities for employees, etc. A larger office space and a higher number of employees naturally means higher costs. A Tip- look out for discount sales online and at retail stores in Dubai, and consider buying in bulk to avail of possible free/discounted transportation and installation.

• VISA and other Charges: 

In the current year, the charges for a Dubai Employment VISA for your employees may be in the range of AED 500 to AED 2,000. You also need to consider the charges for an Emirates ID card, government processing fees, and a medical test as applicable.

Documents required to start an IT Company in Dubai

When applying to the appropriate government authority to set up your IT Company in Dubai, the documents you need to submit are-

• A copy of the passport of the company's owner/partners 
• Entry stamp/UAE VISA 
• Proof of payment of the initial approval fees
• Lease agreement of the designated office 
• Any other relevant documents

In the case of a partnership business, documents include an NOC (No Objection Certificate) from the partners, the partnership agreement if applicable (it must be signed in the presence of an authorized notary), the neutralization book of local partners, and of the security deposit.

Check out: Web Development Companies in Dubai

Conclusion

In conclusion, starting an IT company in Dubai has been a great experience for me, and I firmly believe it can be for you too. With its exceptional infrastructure, business-friendly policies, and cost-effective free zones, Dubai offers the perfect foundation for tech entrepreneurs. Whether you’re venturing into cybersecurity, digital marketing, web development, or network management, the city’s thriving ecosystem and global connectivity provide unmatched growth potential.

Having navigated this journey myself, I can say that careful planning and adherence to local regulations are key to a smooth setup process. 

It has been around 3 years since I started my IT company in Dubai and have learnt a lot about it from my own experience. I hope I have covered most aspects of starting an IT company in Dubai. If you need any help or guidance from me, feel free to ask below and I will be happy to help. 

 If there’s anything I missed or you’d like me to elaborate on, feel free to reach out. I’d be happy to update this article or help you with insights to kickstart your entrepreneurial journey in Dubai.