Setting Up an Information Technology Company in Dubai

Setting Up an Information Technology Company in Dubai

Over the past decade, Dubai has become an international business and trade centre. The economy and other areas of activity are developing dynamically here. All this has been made possible by trade, transport, tourism and manufacturing. It is now profitable to open an IT company in Dubai. Many factors contribute to this, but the most important ones are security, confidentiality and 0% tax (when doing business outside the Emirate).
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IT Company Formation Processes in Dubai

Advantages of an IT Company in Dubai

Every business needs internet technologies. They make it possible to stand out among competitors. The Emirates is considered the most technologically advanced country in the Middle East, with Dubai being its most developed city. Therefore, there are many investment opportunities in the region that allow you to establish an Information Technology business.

For those who want to become investors and make IT investments as a resident, there are laws and regulations to follow. The government continues to develop innovative plans to make Dubai the most advanced and intelligent city in the world.

Advantages of opening an IT company in Dubai:

  1. No taxes.
  2. Business security and convenience.
  3. No reporting requirements.
  4. Information regarding managers and shareholders is kept confidential.
  5. They do not control the currency and do not prohibit the repatriation of funds abroad.
  6. Full foreign ownership is permitted.
  7. The IT field is considered a leader in flexible environments and offers a global reach for clients and partners.
  8. The ability to increase business connections and expand trade due to a favorable geographical location.

 

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The Process of Opening an IT Company in Dubai

To open a company:

  1. Choose the type and form of the company. There are only 3 of them: in a Free Zone (FEZ), local on the mainland, or offshore.
  2. Select the type of activity. The choice of the Free Zone and the type of license will depend on this.
  3. Obtain a visa and rent an office. The number of visas affects the company's value; it depends on the number of founders. It is also worth choosing an office space. Two options are available: real and virtual. The type of office directly depends on the type of activity and the company. For example, if your business specializes in manufacturing, you will need a warehouse and an office, even for an IT firm. The fact of doing business within the Emirates or abroad is also important.

Each Emirate has its own document requirements. If you decide to open a business in Dubai or as an individual in Dubai, prepare the following package of documents:

The jurisdiction depends on the type of activity and the location of customers. Consider the features of the available company options.

Mainland

  1. Allows you to work with partners in the global market, right from Dubai.
  2. Business forms range from a Limited Liability Company (LLC), partnership, and joint-stock company to a branch/representative office of a foreign business.
  3. An LLC established in any region of the Emirates, excluding a Free Zone, requires a division of ownership shares. In this case, at least 51% must belong to a local individual or legal entity.

Free Zone IT Company

  1. Collaboration is only permitted with foreign partners within the Free Economic Zone.
  2. An LLC is tax-exempt and is considered the most profitable form of business in the information technology field.
  3. Full-fledged foreign ownership is allowed.

Offshore

  1. Allows for international partnership without any relationship with Emirates residents.
  2. There are tax advantages, and SOIDN is applied.
  3. A certificate of company registration is required.

How to Open an Account in Dubai Banks

Non-residents can use individual and corporate banking. For residents of Russia, transactions from a foreign account must be made according to the following scheme: 80% of the amount must be converted into rubles, and 20% must remain in foreign currency. Such a decision is linked to sanctions and counter-sanctions.

Opening an account takes 30-45 days. Cases where additional documents are required are an exception.

The procedure begins with submitting an application on behalf of the company. Then, you must prepare the documents and submit their copies. The list of required items is as follows:

 

Setting Up an Information Technology Company in Dubai

In addition, customer verification is performed when registering with an IT company in Dubai. This consists of a personal meeting or remote consultation with a manager.

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