The Outbreak of COVID -19 has tested the core of each and every industry throughout the world. But IT Industry stood strong like a rock, it was the first industry to go along with the “new normal” terminology especially in the UAE. Dubai has dedicated Free zones allows 100% ownership with world-class infrastructure for IT Business such as Dubai Internet City Free zone and D-tech in Dubai Silicon Oasis. It creates comfort for the business owners and entrepreneurs to establish IT businesses in Dubai and operate their businesses remotely or from the co-working and dedicated space.
In Addition, IT Service is classified under the professional category therefore the same license allows 100% ownership in the mainland as well. The competitive DED pricing attracts entrepreneurs in the mainland. Dubai Economic Department will provide virtual office facilities for the startups with 2 investor visas and 3 employment visas quotas with virtual facilitation. Eventually, Abu Dhabi economic department issue the license for 2 years with almost 70% discounted price.
Why to Setup IT business in UAE
One of the major benefits of setting up an IT Company in UAE is the freedom from corporate taxes and 100% repatriation of capital and profits. UAE has more than 30 free zones which permit IT Services that offer redemption of tax or a 0% corporate and personal income tax rate for companies and individuals except for 5% VAT.
- 2. Ease – of – Businesses
The favorable market condition and IT-friendly environment of Dubai give the edge over others in the industry all over the world. Digitalization of the environment has made the whole UAE the hotspot for new-age investors and budding entrepreneurs to set up their business in UAE.
- 3. Quality Manpower
Foreign investors can get access to the pool of qualified resources in the UAE. The taxation policy of UAE attracts professionals to migrate and to invest in UAE hence results in increasing the net saving of the employee.
Alongside retaining all types of professionals in the country, UAE has started issuing 10 years of Golden Visa to them, so this will automatically retain IT professionals in the country.
- 4. Retain Optimum Resources with Limited Infrastructure
IT business gives you the freedom to work from anywhere around the globe remotely. UAE’s liberal labor policy invites more companies to retain resources in the emirate. Comparing to the United States and the European regions UAE is the best destination for the same. You don’t have to invest much into infrastructure, which makes this country more appealing to foreign investors.
Where to start an IT Company?
Dubai has proved to be the most attractive place in the world to set up an IT business. The local government is supportive of all the foreign and local investors who want to set up their business. That’s the reason Dubai has come up with IT sustainable Free zones like D-tech in Dubai Silicon Oasis, Dubai Internet City etc. to attract the IT startup aspirants.
The United Arab Emirates has 30 plus free zones ideal for IT startups, following are the most budgeted free zones;
- Sharjah Media City Free zone (SHAMS)
- International Free Zone Authority (IFZA)
- Ras Al Khaimah Free Zone (RAKEZ)
- Ajman Media City Free zone
- Dubai International Financial Centre (DIFC)
- Dubai Silicon Oasis (DSO)
- Dubai Technology Entrepreneur Campus (DTec)
On the other hand, setting up an IT company in Dubai Mainland can help you to cater the clients across UAE. The greatest advantage of the mainland business is the flexibility to set up their office anywhere in the emirates with unlimited visa eligibility. In addition to it, you can open your business bank account without much hassle in UAE.
The procedure of Setting up an IT Company
- Decide the jurisdiction you want to set up a company i.e., mainland or Free zone
- Choose the legal entity under which the company will operate
- Reserve the trading name and finalize activity
- Obtain initial/ In-Principle approval
- Onboarding Application/Notarization of MOA
- Then complete the following procedures like leasing the facility, final submission, obtain a voucher from the concerned departments etc.
- Obtain License
- Process Immigration card & create Labor file, then process visas
- Obtain Bank account
- Obtain Tax registration if your business anticipates the threshold amount of AED 375000 within the UAE.
Documents Required for IT Business Setup
- Passport copy of all shareholders, Directors and Managers
- Tourist visa copy/Residence visa copy
- Emirates ID copy (applicable for UAE residents)
- No Objection Certificate (NOC) from the Sponsors for mainland company (applicable for UAE residents)
At Prime Global Business Services, we will help you to set up your business in UAE with our expert guidance and provide business assistance even after the successful establishment of your venture.
For more information on all the details mentioned here, make sure to visit https://primedubai.com/. Call us on +971 52 1054028 or message us on Whatsapp on +971 52 1054028. You can also drop us an email at firstname.lastname@example.org