How to Open a Software Company in Dubai
In this technological era, Dubai is ranked number 1 for Foreign Direct Investment (FDI). The technological sector in Dubai continues to improve at a brisk pace. The blockchain sector reported a 24% growth in 2020, and there already are more than 1000 blockchain companies in the emirate. With all the progress of exponential scales, Dubai is well on its way to becoming a city of the future. Hence, it stands to reason that establishing your software company in the UAE can be a highly lucrative venture.
The first step that goes into company formation is selecting the ideal location for your business to prosper. With over 45 free zones in the UAE, it can take some skill to fathom what area is suitable for your business. However, a company formation consultant would tell you that free zones like Dubai Internet City, Dubai Silicon Oasis, IFZA, and others.
It’s a good idea to go with a free zone when establishing your company in the UAE, because free zones offer dedicated infrastructure. However, they are not immune to restrictions. In fact, one of the free zones restrictions is that you can only establish an LLC company. So, all shareholders in your company will have an equal share. If you choose to accompany minority and majority shareholders, who do not hold an equal share in the company, then you can do so in Mainland.
The next step is to procure all the necessary documents for submission. If you’re the only owner of the company, then you’d need to draft what is called Memorandum of Association (MoA). Now, if there are multiple owners to the company, then you’d need Articles of Association (AoA) in lieu of MoA. The term “Articles of Incorporation” would come to use if your branch office would be fully owned by another company.
Regardless, all of the above documents have one thing common — they specify the name, owner and purpose of the establishment. A reputable business setup expert can help you collate all the required documents and get them notarized.
Once you have all the notarized prerequisite documents with you, you’ll need to start looking for a place to setup shop. A free zone office space is highly desirably by those that are just starting off in the business. Some of the benefits of free zones are that they offer co-working spaces, which are completely modifiable. You can even lease an entire area and build to suit to your taste. Free zone offers you the flexibility that other business structures lack.
On the other hand, if you decide to setup your business in mainland, then you will be more accessible to clients. Whichever structure you choose the go with, you must have an office space that’s at least 100 square feet for every employee hired. A Tenancy Agreement with the landlord must be registered so that it becomes an “Ejari.”
When your company is registered and your business license issued, the address of your office in the mainland would be your official registered address. You can change the registered address only once a year, i.e., at the time of your license renewal. In free zone, you wouldn’t have to change your registered address while changing your office because the address allotted to you in free zone is a P.O. box number at the free zone.
If it’s in the free zone you’re opening your software company in, then you’d also need to submit a Lease Agreement along with other documents. If it’s in the mainland, then an Ejari must be submitted in place of the lease agreement. Free zone applications must be submitted to the respected free zone authority. Mainland applications must make their way to the Department of Economic Development (DED) in Dubai.
Any additional documentation, like copies of passports of the shareholders, must be provided at the behest of the authority. If you’re a foreigner to the UAE, then your proof of residency in your home country also must be provided. If all documents are in the proper order, then you will receive your business license within weeks, after which, you can start your business activities.
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If you have these tips crossed off your checklist, you’re good to go! Get in touch with us at +971 4321 6631 to setup your business in Dubai!
