Within a short time, UAE has transformed into an economic powerhouse with many opportunities and great future prospects. Dubai is a thriving, integrated hub of business activity. Dubai has become a major global capital for commerce, fostering new entrepreneurs. It is a place you should consider for Company Setup in UAE for 2022.
This blog will provide information on the requirements for setting up an IT company in Dubai. Our company formation consultants in Dubai make it easy and stress-free to start a technology business.
How Can One Set Up a Technology Company in Dubai?
Depending on the type of business and target market, the company can be registered. The main entity destinations are Mainland Company, Offshore Company and Free Zone Company. If the proposed company wants to target international and local clients, Free Zone or Mainland company formation are the best options.
Dubai’s free zones allow for the registration and use of IT companies within designated free trade zones in the United Arab Emirates. D-TEC, Dubai Media City and Dubai Internet City Dubai Silicon Oasis are just a few of the tech-free zones.
The mainland company is considered a local company. It is primarily targeted at local businesses. The Department of Economic Development (DED) issues licenses for mainland companies.
Benefits of Registering a Technology Company in Dubai, UAE.
* Foreign ownership of 100% is permitted
* Funds can be repatriated 100%
* 100% tax benefits
* No corporate tax
* There is no personal tax
* There is no dividend tax
* High-tech infrastructure
* Numerous business opportunities
* International hub of technology exhibition
How can you open an IT company in Dubai?
* Tax Benefits: Companies located in Dubai-free zones do not have to file any corporate or personal income tax returns and can enjoy 100% repatriation.
* Global Workforce – Foreign investors have access a large pool talented and skilled human resources from around the globe who have moved to Dubai.
* International IT Hub: Dubai emerged quickly as an exciting and diverse destination that offers quality hospitality, top-quality technology infrastructure and a wide range of attractions.
How to Start a Tech Business in Dubai Mainland or Free Zone
Entrepreneurs looking to open a business in Dubai face many challenges. They must decide whether to establish a business in a free or a mainland zone. Your organizational needs will influence your decision.
Setup: Each zone is subject to its own rules and regulations. The main benefits of setting up a company within a free zone are 100% foreign ownership, zero corporate tax and personal taxes, total exemption from import/export duties and 100% repatriation capital and profits.
Companies from the Free Zone can trade across international markets and the free zone, but cannot trade within the country. Companies from the free zone cannot bid for lucrative government contracts, nor can they apply for them. To bid for government contracts, they must be a mainland business.
Mainland Setup – Foreign investors have attractive options for setting up tech companies in the UAE. Businesses established in the UAE can trade freely with the GCC and other international markets. An entity on the mainland must have a local sponsor holding 51% of its shares. Your company will retain full control over business operations and profits if you partner with Make My Firm, a local corporate sponsor. A mainland structure also allows you to apply, bid, and lodge tenders in many lucrative local government contracts. Tech businesses are increasingly being offered more contract opportunities, as technology is a major focus in all UAE government departments.
Here are some key reasons you should set up your tech company in the mainland
- Freedom to do business in all parts of the UAE with local and federal authorities
- Access to the global marketplace
- Personal and corporate taxes at 0%
- Unlimited Employment Visas (number dependent on office space size)
- You can locate office premises anywhere on the mainland Dubai
- Diversification of business operations
- There is endless growth potential.
It can be difficult to start a business in UAE tech. It is important to carefully review the requirements for company formation. There are many options in UAE for tech startups. You should consult experts to learn more about business setup solutions and support services. This will help you make the best decision at the beginning of your start-up journey.
You can start your tech company within days of submitting your license application with the help of experienced consultants such as Make My Firm. Make My Firm is here to help you if your goal is to set up a tech company in Dubai.
How Can Make My Firm Help You –
Our experts will help you plan your company registration. This includes the strategies that you need to follow to set up your business. They’ll also advise you on the best office locations, offer licenses, and consult on any current regulations or compliances.
Incorporation of our company
Consultants in Dubai can provide more information about the incentives available to the UAE’s IT industry. Give us a call to answer any questions.