How To Start a Software Company in Dubai?
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Is it Worth it to Start a Software company In Dubai?
Recently, many software companies have been registered in Dubai, thanks to its business-friendly environment and software development services.
Additionally, with the burgeoning technology, Dubai has become a mind-blowing launch pad to start a software business.
Often referred to as “The Silicon Valley of Middle East,” Dubai is the ideal place with strong attraction for offering custom software development services, given the rising graph of the software development industry and digital services.
In fact, the Software industry receives great encouragement from government departments as well.
Starting an information technology company in Dubai is worthwhile. Whether you are an investor or software developer interested in obtaining a license for software business, there is no reason to hesitate.
Before we begin, how to open a software company in Dubai and what are the steps to open a software company in Dubai are the primary questions on everyone’s mind.
If you are facing any trouble setting up a software company in Dubai or getting a software company license in Dubai. Don’t worry, Khidmath Corporate Services has a solution to your problem.
Benefits of starting a software company in Dubai
To initiate your venture, understanding the procedural steps is crucial.
From business planning to registration, this section outlines the step-by-step process required for setting up a software company in Dubai.
- Business ecosystem
The legal framework and welcoming attitude encourage software companies to easily operate and grow in the Dubai market. With a seamless process for company setup in Dubai, there are countless potential customers ready to purchase your services from all around the world
- Access to skilled workers
Dubai has a large pool of skilled professionals required to run a software company, including programmers and UX/UI designers. Additionally, the market also consists of other supporting skilled sources, including branding, sales, and marketing, that can help grow your business.
- Low tax rates
Due to a 0% individual tax rate and a low tax rate for mainland companies, Dubai actively promotes the establishment of software companies. Furthermore, Freezone companies benefit from the absence of corporate tax, granting software companies a significant advantage in eliminating tax liabilities. This creates a favorable environment for reinvesting more income into the business.
- Infrastructure
Dubai’s top-notch infrastructure which includes, local cloud server for reliable data source, high speed internet for optimal performance, and an efficient road transportation system, serves as catalyst for software companies, enabling them to operate seamlessly to reach their customers.
- Emerging market for software companies
Dubai has been actively positioning itself as a hub for technology and innovation, making it an attractive destination for various industries, including software companies. The city has invested significantly in infrastructure, business-friendly policies, and initiatives to support the growth of the technology sector.
- Networking opportunities
In one centralized location, you can establish a network comprising investors, innovators, and entrepreneurs. This serves as a significant advantage for showcasing your business in an emerging market and fostering financial growth.
What are the documents required for software company setup in Dubai?
You need below mentioned document if you are going to start a software company in Dubai:
- Completed application form
- Business plan
- Passport copies of owners and shareholders
- Visa copies of owners and employees (if applicable)
- Lease agreement for office space
- Articles of Association
- Partnership agreements (if applicable)
- No Objection Certificate (NOC) for expatriate partners (if applicable)
How to get a software development business license in Dubai?
Obtaining the right business license is a critical step.
Software company license in Dubai is the first step you need to take.
DED- Department of Economic Development is responsible to issue software companies licenses in Dubai, either its mainland or Freezone.
For software business registration, you need a range of documents that we mentioned above. You also need to submit an application to:
Moreover, there are some other permits and license according the business activities:
- Commercial license
- Work permit
- VAT registration
Learn about the specific requirements and procedures involved in securing a software development business license in the UAE.
Choose your business location: You can operate from the Dubai mainland, a free zone, or both. Each location has different licensing requirements and advantages.
Submit an application: Apply for the appropriate software development license with the DED.
Pay required fees: Pay the license fees and any other applicable charges.
Meet with DED representatives: Attend a meeting with DED officials to discuss your business plan and address any questions.
Receive your license: Once approved, you’ll receive your official software development business license.
Cost of Software Company License
We cannot quote a single figure to register a software company in Dubai. The cost of a software company license in Dubai depends upon the type of activities and your company size.
For some rough estimation, we can say that if you start a sole entity business in Dubai Free zone, the initial software business setup cost is likely to be around AED 15,000 to AED 20,000 including annual renewal charges.
Additionally, if you have more than one partner with more staff along with large office space, keep in mind that it will charge you around AED 48000 to AED 51000 for complete business setup in Dubai.
Also keep in mind the other costs such as:
- Local partner fee
- Website development cost
- Initial marketing cost
- Security deposit for the office
- Hardware and furniture cost
- Internet cost
- Cost of software to run company such as CRM
Explore the financial aspect of starting your software venture and save finance for employee salaries and other expenses. Understand the costs associated with obtaining a software company license in Dubai and ensure a well-prepared budget.
Cost of starting a software company in Dubai mainland
Delve into a detailed breakdown of the expenses involved in establishing a software company in Dubai Mainland.
From licensing fees to office space costs, this section provides a comprehensive overview.
| Sr. No. | Particulars | Tenure | Charges in AED |
| 1 | Initial approval fees | One time | 220 |
| 2 | Name approval fees | One time | 720 |
| 3 | Tasheel fees | One time | 348 |
| 4 | Notary verification fees | One time | 450 |
| 5 | MOA/LSA-notary fees | One time | 400 |
| 6 | Professional license fees – variable Commercial license fees – variable |
Annual | 12500-18000 9000-12000 |
| 7 | Immigration card fees | One time | 750 |
| 8 | Labour card fees | One time | 1000 |
| 9 | Investor residence visa fees | 2 Years | 4899 |
Cost of starting a software company in UAE Freezone
For entrepreneurs considering the Freezone option, understand the distinct costs associated with setting up a software company in a Freezone area in the UAE.
Compare and contrast to make an informed decision.
| Sr. No. | Particulars | Tenure | Charges in AED |
| 1 | License fees- variable | Annual | 5500.00 |
| 2 | Immigration card fees | Annual | 2,000.00 |
| 3 | Investor residence visa fees | 2 Years | 5,000.00 |
Steps to start a software company in Dubai
To initiate your venture, understanding the procedural steps is crucial.
From business planning to registration, this section outlines the step-by-step process required for setting up a software company in Dubai.
Choose your business structure: Decide whether to operate as a sole proprietorship, a limited liability company (LLC), or another legal entity. Each structure has different pros and cons regarding ownership, liability, and visa requirements.
Register your business name: Choose a unique and relevant name and register it with the Department of Economic Development (DED).
Obtain a business license: Apply for a software development license from the DED. This may involve submitting a business plan, financial projections, and other documents.
Secure visas: If you’re a foreign national, you’ll need to obtain the appropriate visas for yourself and your employees.
Open a bank account: Choose a reputable bank and open a corporate bank account to manage your finances.
Register for VAT: If your annual turnover exceeds AED 375,000, you must register for Value Added Tax (VAT).
Types of software companies to open in Dubai
Software Development
This is the broadest category and encompasses companies that create custom software solutions for clients in various industries. This could include anything from enterprise resource planning (ERP) systems to e-commerce platforms to mobile apps.
Cloud Computing
With the increasing demand for cloud-based solutions, companies that provide cloud computing services, like platform as a service (PaaS), infrastructure as a service (IaaS), and software as a service (SaaS), are in high demand.
Mobile App Development
The mobile app market is booming, and there is a growing need for companies that can design and develop high-quality apps for both iOS and Android platforms.
Web Development
Companies that specialize in designing and developing websites, e-commerce platforms, and other web-based applications are always in demand.
Cybersecurity
With the increasing threat of cyberattacks, companies that provide cybersecurity solutions, including network security, data protection, and identity management, are becoming increasingly important.
Artificial Intelligence (AI)
AI is transforming businesses across all industries, and there is a growing demand for companies that can develop and implement AI solutions. This could include anything from chatbots and virtual assistants to machine learning algorithms and predictive analytics.
Internet of Things (IoT)
The IoT is another rapidly growing market, and there is a need for companies that can develop and implement IoT solutions. This could include anything from smart home devices to connected car technology to industrial automation systems.
Fintech
The financial services industry is undergoing a major transformation, and there is a growing demand for companies that can develop and implement innovative fintech solutions. This could include anything from blockchain-based applications to robot-advisors to mobile payment systems.
Healthcare
The healthcare industry is also being transformed by technology, and there is a growing demand for companies that can develop and implement innovative healthcare solutions. This could include anything from electronic medical records (EMRs) to telemedicine platforms to wearable health devices.
Education
The education sector is also being disrupted by technology, and there is a growing demand for companies that can develop and implement innovative education solutions. This could include anything from online learning platforms to adaptive learning software to gamified learning experiences.
How Khidmath can help you setup a software company
With Khidmath, starting a software company in Dubai isn’t just about dealing with bureaucracy; it’s about opening up many exciting opportunities. We become your reliable friends, helping you concentrate on what’s important – creating your tech business, step by step.
So, go ahead. Let Khidmath be your guide for starting a business in Dubai, leading you toward a bright future where your software ideas become the main focus in the desert city.
Navigate the intricacies of Dubai business setup with Khidmath, your trusted consultancy partner. Our experienced team ensures a hassle-free process. Contact us at +971-582-955227 or https://khidmath.ae/business-setup-consultants-in-dubai/ and focus on what you do best.
